Revenue

3 Months Ended

Mar. 31, 2023

Revenue [Abstract]

Revenue

Revenue

Nature of our services

We provide an extensive range of advertising, marketing and corporate communications services through various client-centric networks that are organized to meet specific client objectives. Our networks, practice areas and agencies provide a comprehensive range of services in the following fundamental disciplines: Advertising & Media, Precision Marketing, Commerce & Brand Consulting, Experiential, Execution & Support, Public Relations and Healthcare. Advertising & Media includes creative services across digital and traditional media, strategic media planning and buying, performance media and data analytics services. Precision Marketing includes digital and direct marketing, digital transformation consulting and data and analytics. Commerce & Brand Consulting services include brand and product consulting, strategy and research, retail and ecommerce. Experiential marketing services include live and digital events and experience design and execution. Execution & Support includes field marketing, digital and physical merchandising, point-of-sale and product placement, as well as other specialized marketing and custom communications services. Public Relations services include corporate communications, crisis management, public affairs and media and media relations services. Healthcare includes corporate communications and advertising and media services to global healthcare and pharmaceutical companies. At the core of all our services is the ability to create or develop a client’s marketing or corporate communications message into content that can be delivered to a target audience across different communications mediums.

Economic factors affecting our revenue

Global economic conditions have a direct impact on our revenue. Adverse economic conditions pose a risk that our clients may reduce, postpone or cancel spending for our services, which would impact our revenue.

Revenue by discipline was:

	Three Months Ended March 31,
	2023		2022
Advertising & Media	$	1,776.5	$	1,770.2
Precision Marketing	360.0		339.2
Commerce & Brand Consulting	209.6		211.4
Experiential	147.8		139.7
Execution & Support	255.5		277.0
Public Relations	375.5		362.4
Healthcare	318.4		310.4
Revenue	$	3,443.3	$	3,410.3

Effective January 1, 2023, we realigned the classification of certain services primarily within our Commerce & Brand Consulting, Execution & Support, and Experiential disciplines.

Revenue in our geographic markets was:

	Three Months Ended March 31,
	2023		2022
Americas:
North America	$	1,926.8	$	1,839.0
Latin America	74.0		67.7
EMEA:
Europe	951.9		992.0
Middle East and Africa	84.9		81.9
Asia-Pacific	405.7		429.7
Revenue	$	3,443.3	$	3,410.3

The Americas is comprised of North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA is comprised of Europe, the Middle East and Africa. Asia-Pacific includes Australia, Greater China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Revenue in the United States for the three months ended March 31, 2023 and 2022 was $1,812.2 million and $1,724.6 million, respectively.

Contract assets and liabilities

Contract assets and contract liabilities were:

	March 31, 2023		December 31, 2022		March 31, 2022
Media and production costs	$	710.9	$	725.1	$	654.3
Contract assets and unbilled fees and costs	798.0		529.5		662.5
Work in process	$	1,508.9	$	1,254.6	$	1,316.8
Contract liabilities:
Customer advances	$	1,279.6	$	1,492.3	$	1,463.8

Work in process represents accrued costs incurred on behalf of customers, including media and production costs, and fees and other third-party costs that have not yet been billed. Media and production costs are billed during the production process in accordance with the terms of the client contract. Contract assets primarily include incentive fees, which are not material and will be billed to clients in accordance with the terms of the client contract. Substantially all unbilled fees and costs will be billed within the next 30 days. There were no impairment losses to the contract assets recorded in the three months ended March 31, 2023 and 2022. Contract liabilities primarily represent advance billings to customers in accordance with the terms of the client contracts, principally for the reimbursement of third-party costs that are generally incurred in the near term.