Q3 Earnings Roundup: Winners, Losers, and What’s Fueling the Next Wave
AI acceleration, political ad dollars, and platform reinvention define a turbulent but opportunity-rich quarter in marketing and media.
From Publicis' continued AI dominance to Reddit's breakout profitability, Q3 earnings revealed a reshaping of the marketing landscape. Evros Group unpacks who’s surging, who’s stalling, and why adaptability—not just scale—is the new competitive edge.
The third quarter of 2024 delivered a wave of surprises across the marketing and advertising landscape. Amid geopolitical shocks, shifting economic policy, and accelerating AI integration, industry players either surged ahead—or stumbled behind. Evros Group’s latest quarterly earnings analysis dives into public company performance, revealing deepening divides between legacy agencies, agile digital platforms, and tech-enabled innovators.
Holdcos: Publicis Leads, Stagwell Gains, Others Lag
Among advertising holding companies, Publicis once again led the pack, posting 5.8% organic growth fueled by Epsilon-powered data-driven media and strong new business across APAC and EMEA. Its continued investments in AI and personalization earned it both market share and investor confidence.
Omnicom followed with steady 1.8% growth, backed by strong performance in media (+9.4%) and experiential marketing (+35.3%). Despite challenges in healthcare, Omnicom’s operational efficiency and client retention strategies positioned it well heading into 2025.
Stagwell stood out among challengers, reporting a 23% net revenue surge, largely attributed to digital transformation, advocacy work, and strategic acquisitions. However, its earnings missed street expectations, highlighting volatility despite top-line momentum.
Conversely, WPP, IPG, Dentsu, and S4 Capital struggled. WPP and Dentsu were hit hardest by declining client spend in China, with WPP posting just 0.5% growth and Dentsu trimming full-year guidance. S4 Capital faced double-digit revenue declines (-19%) and issued a second profit warning, citing long sales cycles and tech sector weakness. IPG delivered flat growth and is actively divesting underperforming digital assets like R/GA and Huge.
Platforms: Reddit Breaks Out, Meta and Amazon Soar
The ad-supported platform space saw clear winners. Reddit stole the spotlight, reporting 68% revenue growth and its first-ever quarterly profit. Its AI-driven ad tools, retail and gaming sector traction, and rising global engagement earned it a 22% stock surge.
Meta delivered 19% ad revenue growth, driven by AI-optimized ad pricing and momentum in verticals like healthcare and entertainment. However, concerns over heavy capital expenditures in Reality Labs and AI infrastructure tempered investor enthusiasm.
Amazon continued its retail media dominance, with ad revenue up 25% to $12.1B, propelled by Amazon Marketing Cloud adoption and tighter retail-media ROI loops.
Google maintained strength with 15% revenue growth across Search, YouTube, and Cloud. AI integration played a crucial role in driving efficiency and enterprise adoption.
Meanwhile, Snap and Pinterest faced ongoing hurdles. Despite Snap’s DR ad growth and cost discipline, brand advertising demand remained weak. Pinterest grew revenue 18% but flagged rising costs and softness in CPG advertising.
Thematic Shifts and Strategic Bets
Several themes emerged from the quarter:
AI Everywhere: From Publicis’ creative automation to Meta’s Llama models and Reddit’s campaign tools, AI is no longer optional. Leaders are leveraging it to drive efficiency, personalization, and creative production.
Political Spending Surge: Stagwell capitalized on a 150% year-over-year jump in advocacy revenue. With the 2024 U.S. election cycle underway, political ad spend is expected to remain a strong tailwind.
Retail Media's Rise: Amazon, Walmart, and other retailers are reshaping digital ad strategy, as budgets shift toward high-ROI ecosystems. Traditional platforms must now prove incremental value to advertisers.
Experiential Resurgence: Live events, in-person activations, and immersive brand experiences are making a comeback. This physical-digital blend is proving resilient amid AI disruption.
Looking Ahead: M&A, Macros, and Monetization
As interest rates trend lower and regulatory pressures ease post-election, the M&A environment is primed for activity. Holdcos and platforms alike are exploring acquisitions to bolster high-growth areas like AI, commerce, and experiential.
Yet risks remain. Economic uncertainty, cautious client spend in sectors like tech and CPG, and regional imbalances (especially in APAC) will test resilience in the coming quarters.
Ultimately, Q3 underscored a familiar but essential truth: agility wins. Those willing to evolve—strategically and technologically—are pulling ahead, while others play catch-up.
Download the full report here to explore detailed performance breakdowns, strategic shifts, and what’s next for the marketing and advertising industry.