By

Keira Wingate
Reporter, Ad Age
This piece originally appeared in Ad Age

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7 takeaways following Stagwell’s second-quarter report, including how creativity and media agencies are joining forces

Stagwell Inc. released its second-quarter earnings today and maintained its annual forecast.

During the company’s conference call, Stagwell CEO Mark Penn shared news regarding creative agencies Crispin Porter Bogusky, Forsman Bodenfors, Observatory, and Vitro joining Stagwell’s media network and the holding company launching Stagwell Media Studios.

Ad Age spoke to Penn following the call to discuss those plans and hear more about the industry, including Stagwell’s financial outlook versus those of its rivals, staffing and where clients are spending.  

This interview is edited for clarity and length.

What does it mean for the agencies that are now part of the media network? Will the agencies be changing or consolidating? 

We won’t be consolidating or changing cultures because we create groups, but we keep the culture separate. We’ll be renaming the media group to something kind of broader, named to be revealed soon.

What it means is that they will be in a much better position to meet the emerging trend, particularly in online advertising, of coordinating media and creativity into a single contract and single account.

Unlike television media, which became doing the TV spot and handing it over to people for media, doing online media really requires understanding data and the funnel and a target audience, and then doing creativity that really fits those mediums [where the target audience is].

And because I think a lot of the companies haven’t really adapted to that change, we’re bringing back together media and creativity so that we can really hit those online trends and do even better, tighter online marketing, which also can open it up to more performance pricing because we’re doing both the creative and the data work.

During today’s earning call you also mentioned Stagwell Media Studio. Can you explain exactly what that is and who will be involved?

That’s an offering so that for those creative agencies that have their own networks like Anomaly, Alliance or Constellation, they will also have within them now a media capability that they will be able to staff and operate so that they can also bring media closer to creativity whenever that makes sense.

The individual networks will staff the technology suite and [have] access that they’ll be given so that they can go ahead and buy media. So they will hire some planners and other folks to staff that individually and make that their brand media.

How do you think your competitors are doing? They seemed to all increase their projections in terms of revenue.

Well, look, I think that we came out with kind of very bold projection of 18% to 22% growth. And I think that remains a bold projection. So I don’t ever really see, you know, any need or appropriateness given the marketplace to change that. I think a lot of them had and still have projections that are just far lower than our 20% growth. So I think they’re looking at mostly 6, 7 or 8% growth. And we’re looking at 18% to 22% growth. So, they may be increasing that, but they’re not coming anywhere close to our projections.

How do you think Stagwell is doing compared to the other holding companies right now and is there a big point of difference?

Well, I think our digital-first nature and its advantages are really becoming clearer and clearer. I think everybody had strong growth rates coming out of the pandemic. Now that we’ve come out of the pandemic, for all practical purposes, you’re seeing them normalize back to much lower growth rates and us continue to separate out at a higher growth rate, particularly this year where there’s going to be an advocacy component as well.

S4 recently reduced its full-year earnings estimates and paused hiring. What are your thoughts about that?

Well, we’ve successfully hired several 1,000 people and yet we’ve kept our count-to-revenue ratio in check. In fact, it declined. So I think that it looks to me that, S4 was struggling to kind of find the right balance and keep that in check. Whereas in contrast, I think you look at what we’ve done, and we have grown. And we’ve been able to add the team as we needed to service the work. But we have managed to keep the count-to-revenue ratio in line. And that’s why we’re able to, I think, meet these rather bold projections for the year.

Where do you see Stagwell going? Where doy ou want to see the most growth?

Our goal is to continue to be the real challenger network against the majors. So, we have really grown significantly. If you look at the counts that might have started with four brands, like J&J, we’re up to 12 brands.

We’re looking to get into bigger global pitches as our network expands and grows so that we will become the ultimate digital-first challenger. You know, that’s our goal. And I think in addition, by mid-next year, we’ll be coming out with a series of products for the do-it-yourself marketer called the Stagwell marketing cloud. I think that will introduce another critical differentiation between us and the others.

Do you foresee any layoffs and ad spending cuts from clients?

We’re not really seeing that happening. I’m not saying it couldn’t happen. I think there’s been a very strong travel and entertainment season. I think what you had here that’s created some dislocation is that people were buying basically goods, and they weren’t able to buy services because they were at home, they didn’t go anywhere. And now people are buying services, travel, entertainment, all of those things in reducing purchases and goods.

So I think you’ll see some of those changes, then cutting CPG spending, but maybe increasing spending, balancing that out with spending and travel and other areas. So our travel business, for example, is back, our advocacy business is going to show strong growth as the political season heats up and we’re not really seeing clients cutting back right now. I don’t know, they may come back next year, but they seem to be pretty much on autopilot right now.

We’ve continued to add significant staff. Look, I think we’re a great place to come, I think showing the kind of growth and opportunity. And a great mix of client work here. So, there’s no hiring pause or freeze at this time.

By Keira Wingate. Published August 04, 2022. 

Originally released on

Delivers Double-Digit 2Q 2022 Revenue Growth; Reiterates guidance driven by global media performance and continued digital acceleration

• 2Q GAAP Revenue grew 221.1% and 21.2% on a Pro Forma basis; YTD Pro Forma growth of 26.0%
• Pro-Forma Organic Net Revenue grew 16.0% in 2Q and 19.1% YTD
• Net Income of $24.5M in 2Q and Diluted EPS of $0.08 per share
• Net Income attributable to Stagwell of $10.5M in 2Q
• Adjusted EBITDA of $111.3M in 2Q representing a 20.0% margin on Net Revenue
• 57% of 2Q Net Revenue came from high-growth digital services
• Reaffirming 2022 full-year organic net revenue growth outlook of 18%-22%

New York, NY, August 4, 2022 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three and six months ended June 30, 2022.

SECOND QUARTER AND YTD HIGHLIGHTS:

• Second quarter revenue of $672.9 million, an increase of 221.1% versus the prior year period; YTD revenue of $1,315.8 million, an increase of 236.7% versus the prior year period.
• Second quarter Pro Forma GAAP revenue growth of 21.2% versus the prior year period and 19.3% ex-Advocacy; YTD Pro Forma GAAP revenue growth of 26.0% versus the prior year period and 24.4% ex-Advocacy
• Second quarter net revenue of $556.3 million, an increase of 205.9% versus the prior period; YTD net revenue of $1,083.0 million, an increase of 218.6% versus the prior year period.
• Second quarter Pro Forma net revenue growth of 15.8% versus the prior year period and 14.6% ex-Advocacy; YTD Pro Forma net revenue growth of 19.1% versus the prior year period and 18.3% ex-Advocacy
• Second quarter Pro Forma organic net revenue growth of 16.0% versus the prior year period and 14.8% ex-Advocacy; YTD Pro Forma organic net revenue growth of 19.6% versus the prior year period and 18.8% ex-Advocacy.
• Second quarter net income of $24.5 million versus $18.7 million in the prior year period; YTD net income of $58.1 million versus $23.3 million in the prior year period.
• Second quarter net income attributable to Stagwell Inc. common shareholders of $10.5 million versus $17.3 million in the prior year period; YTD net income attributable to Stagwell Inc. common shareholders of $23.1 million versus $21.7 million in the prior year period.
• Second quarter adjusted EBITDA of $111.3 million, an increase of 187.5% versus the prior year period; YTD adjusted EBITDA of $212.7 million, an increase of 240.0% versus the prior year period.
• Pro Forma adjusted EBITDA growth of 13.0% versus the prior period and 11.4% ex-Advocacy; YTD adjusted EBITDA growth of 22.0% versus the prior period and 20.5% ex-Advocacy.
• Second quarter Adjusted EBITDA Margin of 20.0% of net revenue; YTD Adjusted EBITDA Margin of 19.6% of net revenue.
• Net New Business wins totaled $31 million in the quarter.

“Stagwell is executing exactly as we said we would, and doing so profitably. We delivered significant organic net revenue growth of 16% in the second quarter, which has the toughest comparisons of the year. Our high-growth digital capabilities expanded to 57% of net revenue and grew 28% organically versus the prior year period. Due to our unique mix of digital and creative capabilities, clients now recognize Stagwell as a serious alternative to legacy incumbents – and we are now a regular contender in many of the largest global pitches,” said Mark Penn, Chairman and Chief Executive Officer of Stagwell. “Our disciplined financial management and strong cost controls allow us to maintain leading margins, even while making smart investments in our corporate infrastructure to scale the network. We are optimistic about the back half of the year as our world-class advocacy businesses prepare for a record cycle of US political advertising spend and our year-over-year comparisons ease. We remain very confident in our full-year guidance of 18-22% organic net revenue growth and $450-$480 million of adjusted EBITDA.”

Frank Lanuto, Chief Financial Officer, commented: “The Company reported strong second quarter results with GAAP revenue of $673 million, net revenue of $556 million and Adjusted EBITDA of $111 million. Pro forma organic net revenue increased 16% over the prior period and Adjusted EBITDA margins remained strong at 20% of net revenue as we remain diligent around cost controls. Our balance sheet is in a good position and should benefit as we head into the seasonally strong back half of the year when we expect cash flow to increase significantly.”

FINANCIAL OUTLOOK

2022 financial guidance is as follows:

• Pro Forma Organic Net Revenue growth of 18% – 22%

• Pro Forma Organic Net Revenue growth ex-Advocacy of 13% – 17%

• Adjusted EBITDA of $450 million – $480 million, excluding the contribution from 2022 acquisitions

• Pro Forma Free Cash Flow growth of approximately 30%

• Guidance assumes no impact from foreign exchange, acquisitions or dispositions.

CONFERENCE CALL

Management will host a video webcast and conference call on Thursday, August 4, 2022, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and six months ended June 30, 2022.  The video webcast will be accessible at https://bit.ly/STGWEarningsQ2. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the conference call.

A recording of the conference call will be accessible one hour after the call and available for ninety days at www.stagwellglobal.com.

STAGWELL INC.

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our 13,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

BASIS OF PRESENTATION

The acquisition of MDC Partners (MDC) by Stagwell Marketing Group (SMG) was completed on August 2, 2021. The results of MDC are included within the Statements of Operations for the period beginning on the date of the acquisition through the end of the respective period presented and the results of SMG are included for the entirety of all periods presented.

NON-GAAP FINANCIAL MEASURES

In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as “non-GAAP Financial Measures.”  Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s results. Such non-GAAP financial measures include the following:

Pro Forma Results: The Pro Forma amounts presented for each period were prepared by combining the historical standalone statements of operations for each of legacy MDC and SMG. The unaudited pro forma results are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or consolidated financial condition would have been had the combination actually occurred on the date indicated, nor do they purport to project the future consolidated results of operations or consolidated financial condition for any future period or as of any future date. The Company has excluded a quantitative reconciliation of adjusted Pro Forma EBITDA to net income under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K.

(1) Organic Revenue: “Organic revenue growth” and “organic revenue decline” refer to the positive or negative results, respectively, of subtracting both the foreign exchange and acquisition (disposition) components from total revenue growth. The acquisition (disposition) component is calculated by aggregating prior period revenue for any acquired businesses, less the prior period revenue of any businesses that were disposed of during the current period. The organic revenue growth (decline) component reflects the constant currency impact of (a) the change in revenue of the partner firms that the Company has held throughout each of the comparable periods presented, and (b) “non-GAAP acquisitions (dispositions), net”. Non-GAAP acquisitions (dispositions), net consists of (i) for acquisitions during the current year, the revenue effect from such acquisition as if the acquisition had been owned during the equivalent period in the prior year and (ii) for acquisitions during the previous year, the revenue effect from such acquisitions as if they had been owned during that entire year (or same period as the current reportable period), taking into account their respective pre-acquisition revenues for the applicable periods, and (iii) for dispositions, the revenue effect from such disposition as if they had been disposed of during the equivalent period in the prior year.

(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.

(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.

(4) Free Cash Flow:  defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments.

(5) Financial Guidance:  The Company provides guidance on a non-GAAP basis as it cannot predict certain elements which are included in reported GAAP results.

Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.

This press release contains forward-looking statements. Statements in this press release that are not historical facts, including without limitation the information under the heading “Financial Outlook” and statements about the Company’s beliefs and expectations, earnings (loss) guidance, recent business and economic trends, potential acquisitions, and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Words such as “estimates”, “expects”, “contemplates”, “will”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “forecasts”, “may”, “should”, and variations of such words or similar expressions are intended to identify forward-looking statements. These statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

Some of the factors that could materially and adversely affect our business, financial condition, results of operations and cash flows include, but are not limited to, the following:

• risks associated with international, national and regional unfavorable economic conditions that could affect the Company or its clients;
• the continued impact of the coronavirus pandemic (“COVID-19”), and evolving strains of COVID-19 on the economy and demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
• an inability to realize expected benefits of the combination of the Company’s business with the business of MDC (the “Business Combination” and, together with the related transactions, the “Transactions”);
• adverse tax consequences in connection with the Transactions for the Company, its operations and its shareholders, that may differ from the expectations of the Company, including that future changes in tax law, potential increases to corporate tax rates in the United States and disagreements with the tax authorities on the Company’s determination of value and computations of its attributes may result in increased tax costs;
• the occurrence of material Canadian federal income tax (including material “emigration tax”) as a result of the Transactions;
• the Company’s ability to attract new clients and retain existing clients;
• the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
• financial failure of the Company’s clients;
• the Company’s ability to retain and attract key employees;
• the Company’s ability to compete in the markets in which it operates;
• the Company’s ability to achieve its cost saving initiatives;
• the Company’s implementation of strategic initiatives;
• the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
• the Company’s ability to manage its growth effectively, including the successful completion and integration of acquisitions which complement and expand the Company’s business capabilities;
• the Company’s material weaknesses in internal control over financial reporting and its ability to establish and maintain an effective system of internal control over financial reporting;
• the Company’s ability to protect client data from security incidents or cyberattacks;
• economic disruptions resulting from war and other geopolitical tensions (such as the ongoing military conflict between Russia and Ukraine), terrorist activities and natural disasters;
• stock price volatility; and
• foreign currency fluctuations.

Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2021 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2022, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.

Originally released on

Limited edition merchandise from Eric Emanuel, New York Sunshine and Warren Lotas will drop in August.

– New York City: Aug 4, 5; and Los Angeles: Aug 11, 2022 –

NEW YORK and LOS ANGELES, Aug. 3, 2022 — To help prevent a blood shortage this summer, The American Red Cross, in partnership with creative agency MONO, part of Stagwell, announced the launch of Drop For Drop^TM, an innovative pro-bono campaign designed to invite a new, younger generation of blood donors.

Joining forces with three legendary streetwear designers: Eric Emanuel, New York Sunshine and Warren Lotas, the Red Cross are offering exclusive access to custom, limited edition designs to those who come out to give blood at select blood drives in NYC and LA.

“We’re seeing a concerning decrease in blood donations causing the blood supply to drop nearly 20% in recent weeks. While the summer months are historically a challenging time to engage donors – especially younger donors – the pandemic has caused a steep decline in donors between the ages of 18 and 24,” said Selma Bouhl, VP, Marketing Strategy & Creative Services, American Red Cross. “MONO approached us with a creative idea that will resonate and motivate an entirely new generation of blood donors by tapping into streetwear culture in an authentic and engaging way.”

“In our business, we don’t often get the opportunity to use our creativity and desire to bring unexpected ideas to our clients, while saving lives,” said Jim Scott, Founder and Managing Partner at MONO. “With the way that Drop For Drop™ appeals to young people, via iconic designers in culture to reframe awareness around a vital social and health cause, we can literally do both.”

Blood donation appointments are available starting today and are expected to fill up fast with drop-in slots available for fans who were unable to make appointments online. Anyone interested in getting in on the drop can visit redcross.org/drop to find details about the blood drives.

About the American Red Cross
The American Red Cross shelters, feeds and provides comfort to victims of disasters; supplies about 40% of the nation’s blood; teaches skills to save lives; distributes international humanitarian aid; and supports veterans, military members and their families. The Red Cross is a nonprofit organization that depends on volunteers and the generosity of the American public to deliver its mission. For more information, please visit redcross.org or cruzrojaamericana.org, or visit us on Twitter at @RedCross.

About MONO
MONO is a creatively driven brand agency that believes powerful, simple ideas win. Working across media and platforms, MONO has done award winning work for Apple, Google, MolsonCoors, Sherwin Williams, Herman Miller, BluDot Furniture, AlfaRomeo as well as brand creation, including Boomchickapop. MONO has offices in Minneapolis and New York City. For more information, visit mono-1.com.

Contact:

American Red Cross
Emily Osmet
media@redcross.org

Jessica Merrill
jessica.merrill@redcross.org

MONO
Jim Scott
Founder, Managing Partner
jim.scott@mono-1.com

PR Contact:
Sarah Arvizo
sarah.arvizo@stagwellglobal.com

SOURCE Stagwell Inc.

Originally released on

Marketers must embrace the art of political communications, financial discretion and deep insights into their consumers

By: Mark Penn. Published on June 09, 2022

The temperature isn’t the only thing heating up this summer. The next few months promise to be chock-full of potentially divisive issues for corporations as the midterm elections accelerate, the Supreme Court prepares opinions and Congress mobilizes on some of the most hotly contested issues of our age: the 2nd amendment, abortion rights, freedom of speech and more. In the private sector, Elon Musk is taking over Twitter (maybe?), forcing a new chapter in the free speech debate, and the enduring fallout from the Russia-Ukraine conflict promises to refocus how brands tackle geopolitical conflict.

In short, summer 2022 will be a pressure cooker for brands and politics—all happening against the backdrop of bitter partisanship with the two parties duking it out for legislative supremacy in the midterms. What does this mean for you? It means that one group or another is very likely to come knocking and asking you to take their side on these hot-button issues. Sometimes they will add an “or else” to the request. Often it will be an employee petition.

It is clear, especially if you offer a mass-market product, that how you respond may literally determine billions of dollars in revenue and reputation, with the potential to be far more important to the company than its entire marketing spend. While there are some notable exceptions, many times businesses that have forayed into politics have split their consumer bases, cost the company significant points in brand image and plopped them dead center in the middle of big controversies. So how best to navigate today’s environment?

Take a position–if it’s close to your business

First, the closer the issue is to what the company does, the more important it is for the company to take a position. For example, you would expect Boeing to take a position on new regulations that limit commercial airflights because of climate change. The farther removed from what the company does, and that company’s expertise, the more red lights should flash as it considers speaking out. Sometimes there is a safe middle ground. On abortion, for example, offering travel benefits for those seeking an abortion if they wind up in a heavily restricted state is probably a safe response to any abortion ruling because it puts all your employees on an equal footing.

Helping the planet, teaching kids how to read and assisting the community with healthcare are seen as consistent with good company values—as opposed to wading into the mix of the political issues that will be front and center in the midterm elections. Activities predicated on simply “doing good” will always work for almost any company. But that is no defense to employees who want the company to take a strong position on political issues that are more the arena of midterm debates than boardroom conversations.

Assemble a balanced team of consultants

My basic recommendation on how to handle these issues is to have a process in place that rigorously studies all the potential positions your brand can take on the issue. Use research to see what employees, consumers and shareholders think about the issue and your role in it. Assemble a team of a bipartisan consultants—a Democrat, a Republican and a financial communications expert are ideal—to study this and make joint, across-the-aisle recommendations. That is the key to gaining a fair understanding of the potential impact taking a position can have on a business and its stakeholders—both internal and external. In the art of politics, every word counts and often those in business may miss the nuances of political communications. At the same time, relying on experts from just one side of the aisle is a common mistake brands will make. Those consultants will tell you “It’s gonna be great”—and it will be, for the half of your consumer base they represent, while the other half might start throwing your products out of the window.

If you look at the Axios-Harris Poll 100 or the Edelman Trust Barometer—two of the leading indices for corporate reputation—both reported this year that direct involvement in political issues that weren’t explicitly related to a company’s core services proved to be risky business, dragging otherwise “friendly” brands into the din of political discourse. Many of those companies who jumped headlong into furious political debates faced serious setbacks in their ratings with consumers.

Be consistent in your values

What is clear is that consumers are looking for consistency in values. And looking under the hood of recent brand foibles on purpose, the stroke of death is rarely the voicing of an opinion, but that opinion being incongruous with a brand’s stated purpose, key demographics or product alignment. As John Gerzema, co-chair of the Harris Poll, said, “Disney’s about-face shows the reputational hit that comes when the public perceives you as being calculating rather than clear in what you believe in and stand for.” Brands including Nike and Patagonia are clear and consistent in their views and those views have become a core element of their product offerings; this is quite different from the rushed, scattershot positions some CEOs have rushed to put out each time a new issue arises.

It’ll take attunement to the art of political communications, financial discretion and deep insights into your consumers and how they relate to your brand’s stated values to navigate what promises to be a minefield of political pitfalls this summer.

CONTACT

Mark Penn

FEATURING

BUT GOP HAS NOT CLOSED THE DEAL WITH VOTERS FOR 2022 MIDTERMS

INFLATION AND AFFORDABILITY IS THE TOP ISSUE ACROSS THE POLITICAL SPECTRUM

ROE V. WADE IS ONLY SLIGHTLY IMPACTING DEMOCRATIC OUTLOOK IN MIDTERMS

NEW YORK, Aug. 3, 2022 — Stagwell (NASDAQ: STGW) today released the results of the July Harvard-CAPS Harris Poll, a monthly collaboration between the Center for American Political Studies at Harvard (CAPS) and the Harris Poll, a Stagwell research and insights firm.

Four in ten voters report feeling pessimistic about their lives over the next year in the face of historic inflation levels and data suggest we are looking at another hyper-partisan election cycle. The topics surveyed in this month’s poll include the political impact of Roe vs. Wade, voter views on the Biden administration energy policy, the January 6 hearings, and the 2024 presidential election. Download key results here.

“Democrats can still hold onto hope ahead of the midterms, with the race a dead heat despite President Biden’s approval rating being at a historic low and nearly half of Americans believing the country is currently in a recession,” said Mark Penn, Co-Director of the Harvard-CAPS Harris Poll. “Looking to 2024, most voters are still open to a moderate independent candidate, but among Republicans, Florida Governor Ron DeSantis is solidifying his status as the second choice. In these divided times, voters themselves seem to be holding contradictory opinions on issues such as energy policy and Trump’s legal culpability in the January 6 riots.”

• Biden’s approval remains at a historic low of 38%.
• 84% think the economy is either in recession or will be within the next year.
• Perceptions on inflation seem to have peaked slightly: 33% of voters, up from 28% last month, think the U.S. economy is strong today, and inflation – while still the number one issue facing the country – fell 6 points.
• Approval rating of the Republican Party neared 50 percent for the first time since February 2022 in our poll – now 5 points higher than the Democratic party approval rating.

• The generic Congressional ballot is split 50-50, with Democrats and Republicans voting along party lines; Independents lean with Republicans 54-46
• Inflation and affordability is overwhelmingly the biggest concerns for both Democrats and Republicans, followed by Abortion Rights for Democrats and Immigration for Republicans
• Democrats have made little progress mobilizing on abortion so far: 39% of voters, up from 36% in June, say the Supreme Court’s decision has made them more likely to vote for a Democrat in the midterms

• Voters are tired of hyper-partisanship: Strong majorities of over 6 in 10 voters don’t want either Joe Biden on Donald Trump to run in 2024
• A majority open to considering a “moderate independent candidate” in case the choice is between Trump or Biden.

• 59% of voters oppose the Biden administration’s energy and gas policies, and 63% think they are responsible for most of the increase in gas prices
• 45% think climate change is an immediate threat, including 66% of Democrats and 41% of independents. Voters want the administration to emphasize lower prices and energy independence over climate change.
• Climate change is an immediate threat to 45% of voters, including 66% of Democrats and 41% of independents
• Voters are wary of the climate issue being politicized: Only four in ten say that an emergency climate declaration by the Biden administration would be legitimate

• Voters are split on how and whether Trump should be held responsible: 53% of voters think Trump should face criminal indictment for his actions on January 6, but 54% think he should be allowed to run for president again.
• Nevertheless, 69% think it is time to unite the country and heal.
• Voters are split 50-50 on whether Congress should be involved in certifying presidential elections instead of the courts. Still, clear majorities believe the role of the Vice President and state governors should be purely ceremonial.

• 48% of voters think Taiwan is neutral towards the U.S., 36% think it is an ally, and 16% think it is an enemy
• 52% of voters support senior U.S. government officials visiting Taiwan even if China has signaled it might act military to prevent them from doing so—surprisingly, 59% of Democrats support it, over 10 points higher than Republicans and Independents.

The July Harvard-CAPS Harris Poll survey was conducted online within the United States from July 27-28, 2022, among 1,885 registered voters by The Harris Poll and HarrisX. Follow the Harvard CAPS Harris Poll podcast at https://www.markpennpolls.com/ or on iHeart Radio, Apple Podcasts, Spotify, and other podcast platforms. 

The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations, and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing.

The Center for American Political Studies (CAPS) is committed to and fosters the interdisciplinary study of U.S. politics. Governed by a group of political scientists, sociologists, historians, and economists within the Faculty of Arts and Sciences at Harvard University, CAPS drives discussion, research, public outreach, and pedagogy about all aspects of U.S. politics. CAPS encourages cutting-edge research using a variety of methodologies, including historical analysis, social surveys, and formal mathematical modeling, and it often cooperates with other Harvard centers to support research training and encourage cross-national research about the United States in comparative and global contexts. More information at https://caps.gov.harvard.edu/.

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 12,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Media contact:
Beth Sidhu
pr@stagwellglobal.com 

SOURCE Stagwell Inc.

Originally released on

Stagwell Celebrates a Successful Year Post-Merger Driven by Digital Services, Top Talent, Strategic Investments and Global Expansion

NEW YORK, 08/02/2022  — One year ago today, Stagwell (NASDAQ: STGW) launched as the challenger network built to transform marketing. Led by longtime pollster, political strategist, businessman, and author Mark Penn, who serves as chairman and CEO, Stagwell has grown exponentially in the last year, outpacing global advertising giants in full-year 2021 performance.

“On Stagwell’s first birthday, I can point to a year of spectacular results and incredible collaboration,” said Stagwell Chairman and CEO Mark Penn. “Our combination of talent and technology is working. Thanks to our clients, talent, and partners who share in this philosophy, we’ve had a great first year, and we’re ideally poised for another year of transformative work. We can’t wait for year two.”

A key component of Stagwell’s first year has been focusing on a high-growth mix of digital services that align the company to the fastest-growing segments of the digital marketing economy, including digital transformation, global performance media, connected commerce, augmented reality, and more. Fifty-six percent of Stagwell’s revenue by the end of Q1 2022 came from digital capabilities. As outlined in Stagwell’s 2022 Annual Report, four pillars are driving the network’s performance: 

• Strategic M&A is fundamentally growing Stagwell’s portfolio to evolve alongside the fastest growing segments of the new economy. To date, acquisitions include digital brand and experience innovation company Instrument; London-based media agency Goodstuff; Warsaw-based e-commerce solutions provider Brand New Galaxy; and Kyiv-based omnichannel content production company PEP Group, which joined Locaria, Stagwell’s multilingual content agency.
• SaaS and DaaS product development investments are providing new revenue from organizations doubling down on in-house marketing – once seen as a threat to global marketing networks. The Stagwell Marketing Cloud (SMC) arms the in-house marketer with tools that assist campaigns from ideation to activation. To date, these tools include solutions spanning augmented reality, influencer marketing, artificial intelligence (AI)-assisted press outreach, and more. The SMC’s first acquisition, Apollo Program, an AI-powered SaaS platform for uncovering consumer, creative and contextual insights, further enhances Stagwell’s first-party data infrastructure.
• The Global Affiliate Network of over 50 partners is enabling Stagwell to capture footprint across key growth regions. With agencies in the UK, EMEA, APAC, and LATAM complementing existing media and scaled content capabilities, Stagwell has been able to deliver the full spectrum of marketing services to global brands and capture business from legacy giants regardless of region. 
• Integrated Services and cross-network collaboration are fueling more “transformative” $10M+ assignments, including Stagwell global performance agency Assembly’s win of Lenovo’s North American, EMEA, and Latin America media AOR.

Join Stagwell in celebrating its first birthday by visiting the company’s LinkedIn. 

About Stagwell

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 12,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Contact: 
Beth Sidhu
pr@stagwellglobal.com

SOURCE Stagwell Inc.

By

Assembly on July 12, 2022

Our 2022 report takes a magnifying glass to global luxury brand engagement in China, delivering four key consumer and market trends at the intersection of technology, culture, and brand experience.

Hot off the press – Assembly is back with its much-anticipated global luxury brand reports. In 2022, we release a first-of-its kind-installment, focused on the market quickly becoming the most critical for luxury brands worldwide: China.

Download your copy of: LUXE IN CHINA – New Horizons for Luxury Brands

In 2020, it was reported that by the year 2025, China will contribute to half of all luxury goods purchases worldwide. Two years later and that trajectory is very much on track, as experts expect China to take its place as the world’s largest luxury personal goods market within the next three years.

Not only are the trends we see in this market relevant to the brands seeking to win the hearts and minds of Chinese consumers – but they also point towards luxury’s future place in the lifestyles of up-and-coming generations around the world.  Where China leads in technological advances and innovation and bold, new experiences, others often follow.

In the 2022 report, we look at four key defining trends, with insight and examples of successful implementation and transformation done by global brands in the Chinese market:

Emerging Media Formats

Our Future in the Metaverse 

The Evolution of Offline Immersive Experiences 

New Consumer Engagement Beyond Brand 

Get your copy today.

We also look at media investment trends across key luxury categories, as a signal of the continued digitalization of luxe brand experiences.

While challenging economic conditions and the continued effects of COVID are felt by all, luxury brands are creating vibrant, truly culture-defining moments to create closer connections with luxe consumers.

Originally released on

“People are a company’s most significant competitive advantage and advancing an impactful people strategy is dynamic, ever-evolving, and incredibly rewarding work,” said Swisher. “The leadership team at NRG is passionate about creating a new standard for how businesses support their employees – allowing them to be true to themselves, do their best work, and make a valuable impact. Joining NRG was the perfect next step in my journey and an opportunity I had to be a part of.”

Swisher is an industry veteran with nearly 15 years of experience working in human resources and people operations, most recently serving as Executive Vice President, People Operations at the technology media company BrightTALK. There, she developed and led people strategy for a global workforce of 300 employees to elevate engagement and retention, accelerate productivity and performance, and deliver on business goals. Before BrightTALK, she held similar roles at the retail giant Target as well as Hercules Technology Growth Capital, Inc.

“Jenny is a charismatic, empathetic and compassionate leader, with a strong track record of creating dynamic teams united by a values-driven culture,” said Jon Penn, CEO, National Research Group. “She empowers employees to do their best work by being their best selves. We’re thrilled to have her supercharge our commitment to making NRG the employer of choice for smart, ambitious people everywhere.”

Swisher received a business administration, marketing degree from University of Washington’s Michael G. Foster School of Business. She will be based in NRG’s Los Angeles office.

National Research Group is a leading global insights and strategy firm at the intersection of entertainment and technology. Rooted in four decades of industry expertise, the world’s leading marketers turn to us for insights into growth and strategy for any content, anywhere, on any device. Working at the confluence of content, culture and technology, NRG offers insights for bold storytellers everywhere. To learn more, please visit www.nationalresearchgroup.com, and follow us on LinkedIn and Instagram.

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 12,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

For NRG:
Mary Moczula
mary.moczula@nrgmr.com

For Stagwell:
Sarah Arvizo
pr@stagwellglobal.com

SOURCE Stagwell Inc.

Originally released on