IPG revenue increased 2.4% YoY to $1.68 billion from $1.64 billion in Q1 2014. The effect of foreign currency translation was negative 4.4% during Q1, but the impact of net acquisitions had a positive effect of 1.1%
Its organic revenue increased 5.7%. On Thursday, WPP posted a 5.2% organic growth rate, Omnicom reported a 5.1% organic growth rate and Publicis Groupe reported only 0.9%.
Roth pointed to IPG’s recent investment in Samba TV, and to its radio automation efforts through Cadreon, as a signal of ongoing investment in programmatic.
“We do see a significant rise in programmatic and we have been rolling that out on a global basis because we think it is a very efficient and effective way to handle video, certainly on the digital side of the business,” he said. “We’ve entered into all these agreements with various cable operators and with radio now. All of these are related [to] having the right data to place the media dollars in the right place to reach the right people in an efficient way.”
But investors wanted to know how willing traditional media owners are to opening up more inventory to programmatic buying.
“It’s going to be difficult for premium content on TV to be put into that fold,” Roth responded, citing the challenge of negotiating premiums. “The marketplace will determine whether or not that happens. We may see it but we’re not seeing it right now.”