• by David Goetzl  @dgoetzl, April 27, 2009

In advance of Interpublic reporting first-quarter results Tuesday, CEO Michael Roth predicted the upfront will be "challenging," with "a lot of negotiation." And while clients may be a bit tighter with their purse strings, he gave no sign they will be pulling back en masse, if the price is right. 

"Companies are looking very carefully at how they spend their dollars," Roth said Monday on an interview on the Fox Business Network. "Traditional media, particularly the networks with respect to the upfront, is still a very important component of [client] marketing dollars. The issue is how you spend it, and how much you pay for it."

Also, Roth said he had never encountered a business climate this troubled -- affecting IPG in particular, with consumer confidence plunging at times.

"Certainly, consumer confidence is a critical component of our revenue stream and in fact, we saw an uptick in ... February," he said. "But I think it's started to drop a little bit in March. Whenever you're in a recovery, it's going to be a bumpy road."

Roth noted that one challenge is persuading companies to continue to invest in brands in the down cycle. The hope from IPG's perspective is they will spend consistently and emerge stronger post-recession. IPG agencies are looking to guide clients in how to capitalize on the opportunities in a tough market.v

"I know this sounds self-serving," Roth said. But clients continue to spend and "the key is how do you invest [to maximize ROI] ... so we work very closely with our clients to make sure there is a targeted message to the right people to continue."

IPG clients include Wal-Mart, Home Depot and MillerCoors.

Roth also spoke about IPG's program where start-ups can work with the holding company at no cost, gaining insight into how their technology might have potential monetization on Madison Avenue.

"There's all sorts of fragmented media and new technology and new media opportunities and ... a lot of these start-up companies don't really understand our business," Roth said. "This provides them an opportunity to learn ... in terms of how you can communicate with the consumer."

He added: "It gives us a leg up, if you will, to new technology and partnering with them -- and our clients." Still, IPG has said it will not invest in the companies under its wing.

Agencies are also trying to get ahead of the curve on mobile media. "Mobile is probably the hottest item coming out there... in America alone. Last year, there were 600 billion text messages, and more people access the Internet on their mobile phone versus regular computers, so clearly our industry is looking into ways to communicate through mobile technology," he said.

In the fourth quarter of 2008 as the recession descended, IPG reported organic revenue declining 2.2%, while total revenues fell 4.1% to $1.9 billion.