Interpublic posted steady second-quarter momentum as advertisers kept spending despite economic jitters, while signaling its $13.25 billion merger with Omnicom remains on track for the second half of the year. The company cited strong demand in media and healthcare, with added lifts from sports marketing and public relations, according to CEO Philippe Krakowsky.
The update arrives as peer holding companies also post healthy results, suggesting brands are continuing to invest. Publicis and Omnicom reported upbeat earnings recently, pointing to resilient budgets across key categories.
Results and Growth Drivers
Interpublic said performance in the April–June period was led by its media agencies and healthcare-focused units. Sports marketing and public relations also contributed, reflecting steady client activity around events, sponsorships, and reputation work.
“Interpublic benefited in the April-June quarter from strong spending from its media and healthcare-focused businesses, as well as growth in its sports marketing and public relations units,” Krakowsky said.
Healthcare advertising has been a reliable counterweight when consumer categories soften. Media buying has also held up as large brands keep committing to tentpole events and diversify investments across streaming, social platforms, and retail media. The company did not disclose specific growth rates in the remarks, but pointed to broad-based strength rather than a single surge.
- Media and healthcare drove the quarter.
- Sports marketing and PR added incremental growth.
- Spending remained steady despite economic uncertainty.
Industry Context and Peer Signals
The advertising sector has weathered uneven macro signals over the past year, with clients scrutinizing budgets while still funding brand and performance campaigns. Recent reports from Publicis and Omnicom echoed the theme: ad spending is holding firm even as companies plan cautiously.
Historically, large advertisers adjust channel mix before cutting budgets outright, shifting between TV, digital, and retail media to follow audiences and sales data. The current cycle appears similar. While some categories trim discretionary spend, healthcare, consumer staples, and certain tech and entertainment advertisers have kept plans relatively intact.
That pattern supports the better-than-feared results across major holding companies. It also reflects the value of integrated services—media, creative, data, PR, and experiential—when clients aim to stretch dollars and measure outcomes.
Merger Outlook and Strategic Rationale
Interpublic reiterated that its planned merger with Omnicom, announced last year and valued at $13.25 billion, is moving through approvals and is expected to close in the second half of the year. The deal would create the largest global ad agency group by revenue, combining broad media buying scale, creative networks, data assets, and specialized offerings.
The company “expects the deal to close in the second half of the year.”
Executives have framed the transaction as a way to meet client demand for integrated solutions at greater scale. With media markets fragmenting and privacy rules tightening, holding companies have leaned on first-party data, retail media partnerships, and analytics to show impact. A larger combined group could gain better rates in media buying and invest more in tools that prove return on ad spend.
Regulators will weigh market concentration in media planning and buying, data management, and agency services. Large marketer associations typically monitor such deals for potential effects on choice and pricing. Interpublic signaled confidence in the review timeline by guiding to a second-half close.
What to Watch Next
Attention now turns to the second half, including seasonal spending and marquee events that drive ad commitments. Analysts will watch for signals in:
- Retail and consumer brand budgets entering the holiday quarter.
- Healthcare launches and regulatory milestones that influence media spend.
- Pricing power and margins in media buying as scale effects materialize.
- Client consolidation or conflicts stemming from the merger.
Interpublic’s latest update suggests the ad market remains more stable than many feared at the start of the year. Peer results from Publicis and Omnicom support that view. If the merger closes on schedule, the combined group will compete with enhanced scale across media, creative, and data-driven services.
For now, strength in healthcare, media, and reputation work is carrying the business through a cautious economy. The next quarters will show whether that resilience continues and how a larger organization translates scale into measurable gains for clients.
