Commentary

IPG's Krakowsky Confirms Company Reconsiders Becoming Principal Media Seller

For years, Interpublic Group has resisted — unlike competitors including Omnicom and WPP — buying and reselling media to advertisers out of concern that the practice would compromise, or at least appear to be a conflict with its obligation to serve as agent to its clients.  

But that could change. On a conference call with analysts Friday morning, IPG CEO Philippe Krakowsky confirmed that the company was reconsidering its position on the issue.  

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“We’re definitely looking at that,” Krakowsky said, responding to a question from Michael Nathanson of MoffettNathanson.   

“Our media model works well,” said Krakowsky. The question, he added, is “can it work better?” -- particularly in terms of delivering value to clients. 

It’s not a done deal yet. Krakowsky said that the firm’s priority is to deliver as much “value” to clients as possible. If it concludes that enough clients would consider the practice valuable particularly from an efficiency standpoint, than the firm may do it.  

Krakowsky did not get into what value IPG might derive from the practice if it were to move forward on the idea.  

 

 

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