Business Units or Product Lines

The Interpublic Group of Companies, Inc. (IPG) operates through a network of marketing services, including advertising, digital marketing, communications planning, media buying, public relations, and specialty marketing targeting specific industries.

Business Models for Each Product Line

IPG generates revenue primarily through fees for services rendered across its advertising and marketing services. Major expenses include salaries and related costs for employees, office rent and facilities, and expenses related to media buying operations such as purchasing ad space on behalf of clients.

Future Opportunities for Growth

IPG has opportunities for growth in expanding digital and data-driven marketing services, integrating new technology into traditional ad services, increasing presence in emerging markets, and developing additional services in ecommerce and digital transformation consulting.

Potential Major Risks

The major risks include the rapid pace of technological changes in the advertising industry, increased competition from both traditional rivals and new digital platforms, client concentration risk, and economic downturns that may affect advertising budgets.