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On Thursday, holding companies WPP and IPG shared their Q1 results. While WPP reported 2.9% organic growth, IPG reported a 0.2% organic decrease this quarter—a contrast to the 11.5% organic increase it saw during the same period last year. Both companies reported that decreased spending among US tech companies impacted their bottom line.
IPG CEO Philippe Krakowsky said on the company’s earnings call that the company’s “top line performance in the quarter is not in keeping with our long-term track record or the growth we're collectively striving to achieve.” However, he also said the business is still expected to see 2%–4% organic revenue growth this year.
According to Krakowsky, cutbacks in the tech sector had “about a 2% drag on organic growth at the worldwide level in Q1.”
WPP CEO Mark Read told Reuters the company also saw an “increased focus on cost” and reduction in spend among US tech companies; however, increased spend from British companies helped offset their losses.
Both companies indicated they’re investing more in AI; WPP is also putting more emphasis on influencer marketing, as shown in the company’s recent acquisition of influencer agencies Goat and Obviously.