Advertising and marketing companies are talking about technology, another growth driver in Q3 earnings calls

Several major publicly traded players in the marketing and advertising space addressed how technological advancements, strategic growth initiatives and strong cost control measures are driving their changes in their third quarter earnings calls.

The earnings call was provided by Bloomberg. Here is a breakdown of the key topics:

Investment in technology

In general, public companies in the marketing and advertising sector are investing heavily in technology to enhance efficiency and customer outcomes. Publicis Groupe, Interpublic Group (IPG) and WPP, PLC are all at the forefront of technological advancements, particularly in artificial intelligence.

WPP is investing more than $265 million in AI to improve employee productivity and quality of work. Mark Read, CEO of WPP, said all investments are focused on the measured adoption of AI across all WPP operations.

Similarly, Publicis Groupe has allocated about $105 million to its AI plan. The company aims to integrate AI with Epsilon identity, which is Publicis Groupe’s product name for the unique digital files they have built and stored in their first-party database. The goal is to build a transparent environment for customers.

IPG leverages AI in partnership with Adobe, using AI-powered technology to integrate all aspects of its content delivery. Philippe Krakowsky, CEO of IPG, said his company will use Adobe’s AI-powered technology as a common platform.

This investment underscores our collective commitment to use technology for competitive advantage and operational excellence.

Strategic growth strategies

WPP, Publicis Groupe and IPG are all focused on expanding their market presence and services through strategic acquisitions and organic growth.

WPP said the firm saw a 0.5% increase in online sales, driven by the performance of the company’s media investment arm, GroupM, and strategic buys such as account media of Amazon content outside the US.

Publicis Groupe reported 5.8% organic growth in the third quarter, significantly outpacing the industry. The company combined its leadership in influence and commerce, investing $1 billion to acquire Influential and Mars United Commerce.

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IPG, while reporting flat organic growth, is taking strategic steps to address inefficiencies in its digital professional organizations and drive future growth.

The companies’ efforts reflect a shared focus on strengthening market positions and improving service capabilities through natural and non-natural means.

Strong cost control methods

Effective cost control is a common issue among these companies to improve profitability and sustain growth.

WPP is focused on projects such as consolidation, downsizing and redeployment in the context of large-scale growth services. Publicis Groupe is maintaining its brand guidance and free cash flow forecasts while investing in AI and maintaining its bonus pool. IPG strives to reduce operating costs. “Our teams continue to balance cost discipline with continued investment in the development of our business,” Krakowsky said.

Corporate strategies emphasize joint efforts to optimize costs and improve financial performance.

The takeaway

The marketing and advertising department is focused on technology investments, strategic growth initiatives and strong cost control practices. Companies such as WPP, Publicis Groupe and IPG use these strategies to cope with market volatility and drive sustainable growth. By prioritizing technology, pursuing strategic growth and effectively managing costs, these companies are well positioned to maintain their competitiveness and achieve long-term success in a dynamic marketing and advertising environment.