McCann-Erickson is one of the nation's largest advertising agencies, with offices and subsidiaries around the world. McCann Erickson is itself, however, a private subsidiary of the Interpublic Group of Companies (IPG), one of the world's largest advertising agency systems. The advertising agency functions of IPG are carried out in more than 75 countries. In addition to McCann-Erickson, Lintas Worldwide, Dalley and Associates and the Lowe Group are also part of IPG's holdings. Advertising agency services are offered in 22 other countries through association arrangements with local agencies that IPG has established.
The principal functions of all of IPG's advertising agencies are to plan and create advertising programs for clients, and to place the advertising in various media, including radio, television, magazines and newspapers. The usual advertising agency commission is 15 percent of the billings for advertising space or time, but discounting is a common practice among IPG firms. During 1993, the two largest IPG clients accounted for approximately 10 percent of income from commissions and fees, and foreign operations accounted for 67 percent of income (Donald, 1995, p. 1236S).
In addition to its advertising agency activities, IPG is involved in publishing, market research, sales promotion, public relations, product development and similar services. The EC Television division (ECTV) was established in 1989 and is a leading producer and distributor of locally produced television programs in Europe. According to IPG, ECTV is the largest seller of barter advertising time outside of the United States. IPG also owns an 80 percent interest in Fremantle International in Europe, and a 20 percent interest in Canada's largest television and distribution company, Atlantis Communications.
McCann-Erickson is one of the largest advertising agencies in the world, with its own worldwide operations in addition to the foreign operatio...