Tag: Ukrainian Crisis

New York, USA – Global advertising company The Interpublic Group of Companies (IPG) is the latest advertising company that has announced its exit from the Russian market following the Ukrainian crisis caused by Russian invasion.

In a public letter posted by its CEO Philippe Krakowsky on LinkedIn, he stated that they immediately applied all international sanctions and informed clients in Russia who are prohibited parties that they would no longer continue working with them. Krakowsky also added that since IPG never owned a media business in Russia, they did not have significant concerns that their media buying was either fueling the local economy, or funding media being used by the state.

“As you know, we are first and foremost a company that always strives to live up to our values. We believe in speaking up against oppression, whether that has to do with issues of race, or on behalf of other marginalised communities, and speaking up on behalf of democratic principles. We’re committed to initiatives that support sustainability. And we have always been clear that we value and stand by our people and their well-being,” he said.

The Interpublic Group of Companies is composed of five major networks namely FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group, and Marketing Specialists.

Krakowsky also added that they will leave their Russian team, approximately around 200 of them, with enough capital on their balance sheet to pay their people for a minimum of six months.

He further said that they will also be engaging with the team in the coming weeks, as they cede control of all aspects of management and operations to the local leadership team, in order to ensure continuity for any non-Russian clients who remain active in the market.

“We have always been clear that we value and stand by our people and their well-being. That’s core to our culture, since the nature of our business requires that we have the industry’s best talent – and that we each act as part of an interconnected global network, showing up for each other and working together for the common good,” Krakowsky said.

IPG is the latest advertising group to exit the Russian market after WPP previously announced that it will be discontinuing its work in Russia. Outcry in the advertising industry has been rampant regarding the crisis, including a statement from the renowned award-giving event Cannes Lions, which said that it has banned Russian entries and delegates for this year’s awards ceremony.

Singapore – In line with the ongoing Ukrainian crisis, the World Federation of Advertisers (WFA) has called upon its member organisations to reconsider their media and marketing investment in Russia, specifically those investing in media outlets that are close to or effectively part of the Russian administration.

In a statement, they stated that they will continue to work with its members and partners in the Global Alliance for Responsible Media (GARM) to ensure that advertising investment does not support or monetise misinformation and will be holding weekly meetings to provide the latest intelligence from members, agencies and platforms.

Stephan Loerke, CEO at WFA, said, “In light of the horrifying events in Ukraine, the global marketing industry must speak out. Every company will have to make its own decision but our recommendation is that media investment and marketing in Russia should end for now.”

The organisation further expressed its horror at the needless human suffering caused by Russia’s unprovoked invasion of Ukraine, adding that the thoughts of the entire organisation and their membership are with the victims.

WFA also conducted a poll amongst its members to understand multinationals’ responses in relation to their media and marketing investment in Russia. Of the 31 global brand owners representing US$43bn in global ad spend who responded, three in four have reallocated, reduced or cut spend altogether.

The Russian invasion of Ukraine has caused massive shifts in the marketing and advertising scene as well. Large companies related to media investment such as WPP and Accenture have pulled out of Russia in solidarity with Ukraine. Other major brands, from retail ones like H&M, Uniqlo, and Ikea; food brands like McDonald’s, Starbucks and Coca-Cola; as well as financial services brands like Visa, Mastercard, and American Express are part of the growing number of companies exiting the country.

Media-wise, tech giant Google also announced that it is halting its ad sales in Russia, including advertising to Russia state-controlled media on YouTube. Meanwhile, Russia has since then blocked popular online services such as Facebook, Twitter, YouTube, and PayPal in the country.