CEO Philip Krakowsky of Interpublic Group (IPG) is moving away from time-based remuneration in light of industry challenges. With the impending merger with Omnicom, Krakowsky emphasized the company’s focus on AI advancements, notably the launch of the ASC (Agentic Systems for Commerce) platform. Designed for FMCG brands, ASC captures real-time data to enhance pricing strategies and optimize product placements, currently utilized by 20 global clients. Additionally, IPG’s Interact platform integrates various technologies, accelerating productivity and insights for over 40% of its staff. Despite AI enhancing efficiency, IPG faced a 5.9% revenue drop in its advertising sector, prompting a shift to outcome-based remuneration. Krakowsky noted that over 50% of media service contracts now reflect this model. Analysts suggest combining SaaS fees with service offerings as a path to monetizing AI technologies. Krakowsky envisions ASC as a new revenue stream, crucial for reversing a projected 1-2% annual revenue decline.
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