Philippe Krakowsky
Chief Executive Officer at Interpublic Group of Companies
Thanks, Ellen. Without question, organic revenue performance to date this year is not consistent with our expectations or our long-term track record. We continue to be in market with relevant and compelling offerings that are helping marketers accelerate growth and deliver business outcomes, and that has translated to new business success year to date.
Now, for many of you who've been with us over a period of years, you know that we were among the first to embed digital capabilities across media, healthcare, and many of our marketing services, as well to recognize the importance of integrated services in an increasingly complex consumer ecosystem. Similarly, we were early to understand the growing importance of data resources and first-party data capabilities at scale as key tools to power the success of our clients. Given the very rapid rate of change we're all experiencing, we continue to further evolve our offerings, investing in ways that help brands compete in a dynamic world of new technology platforms and empowered consumers. This work has meant that increasingly large portions of our portfolio are better oriented to secular areas of growth.
Consistent with that objective, during the quarter we launched our Unified Retail Media Solution, which is a dedicated business unit within Mediabrands. It helps clients manage their investments across all retail media networks, one of the fastest-growing advertising channels. That solution is already helping brands maximize their media investments across all of the retail channels in real-time in order to drive next-best business outcomes. Earlier this week, we also launched Real ID in the cloud, the tool powered by Acxiom and piloted at FCB, that modernizes identity resolution and addresses an industry need for identity tools in a post-cookie world. Built on ethically-sourced data that prioritizes consumer privacy, Real ID creates the opportunity for us to do the intelligent, data-driven work that we've been doing in media for some time across all marketing channels and disciplines.
Our AI steering committee includes leaders from across our network, and it continues its work overseeing strategic partnerships and sharing use cases across the group. As you know, we've been using machine learning and other AI tools in our data and media business for a number of years. With hundreds of new AI pilots underway across the company, we're tracking a subset of promising programs with a particular focus on three new areas: first, using AI to generate content, including text, images, audio and video in our ideation and creative processes; second, AI as a tool to uncover strategy and insights, as well as business trends that can help our clients and their brands; and finally, piloting the use of intelligent chatbots to automate tasks like program recommendations and other key steps on consumers' ecommerce journeys.
Given the impact AI will continue to have on all businesses, including ours, we're fully engaged with leading AI innovators such as Adobe, Amazon, Google, Microsoft, Nvidia, and Salesforce. For example, during the quarter, Nvidia worked with us specifically, within our PR agencies, to incorporate AI-enabled processes into earned media and corporate communications workflows.
Just to step back and talk a bit again about our reporting segments in some detail. As discussed earlier, within the MD&E segment, we had very strong growth at our media offerings, but that continued to be largely offset by challenges within the digital specialty agencies. I think notably during the quarter, we brought 3 distinct media brand companies Kinesso, Matterkind, and Reprise under the Kinesso banner and brand to create a unified tech-driven performance unit that enhances the effectiveness, efficiency, and simplicity of media activation that is end to end across that value chain.
And as mentioned earlier, General Mills is another great piece of news at Mediabrands. During the quarter, Acxiom announced that its InfoBase, Consumer Insights, and Audiences are now available in cloud data exchanges and received a Salesforce Partner Innovation Award for work it's doing with its Heathrow client. The company also recently launched Acxiom Health, which is its latest vertical offering and provides advertisers with quality audiences that span both consumers and healthcare providers with more effective reach and precision.
At Huge, the agency had a number of wins with their new suite of consultative products that are tailored to specific client business problems, which allows them to deliver strategy through execution very rapidly and effectively. The agency expanded its relationship with Darling Ingredients, which begun earlier this year, with a significant design and build project. And on the product development side, Huge launched what it calls the AI Opportunity Mapper, which help clients anticipate big shifts that Gen AI will have in their specific industry and identify opportunities for growth across near-, mid-, and long-term horizons.
Looking at R/GA, the agency announced new business wins in the U.S. from Bloomberg and the BBC and in LATAM from Banco Safra, which is Brazil's premier financial institution. R/GA also launched the /Associates Program, a unique approach to fractional hiring that offers flexibility and emphasizes adaptability and creativity. And the agency's work for clients like Procter & Gamble and the Ad Council was recently recognized as a finalist for Fast Company's Innovation by Design Awards.
Within the IAC segment, as we mentioned, tech and telco weighed on our more traditional consumer advertising agencies. But FCB was a notable exception to that. The network's playing a key role in our integrated Pfizer team and also expanded relationships with existing clients, such as -- sorry about that, with new clients such as Diageo, Danone, and Upfield in global markets.
IPG Health's focus on creativity, technology, and data continue to be key to their clients. And during the quarter, the network launched the industry's first clinical trial diversity offering designed to help pharma and healthcare companies ensure more inclusive treatment innovations. Last month, following competitive pitch process, IKEA chose McCann as its first global brand marketing partner. Domestically, T.J. Maxx hired McCann as its creative AOR, and Reckitt's Durex brand named MRM and McCann as brand leads in Europe and the U.S. In addition, the network launched McCann Content Studios, its new global hub for social and creator services.
MullenLowe retained the DHRA account, which is the arm of the U.S. Department of Defense that's focused on military recruitment across all service branches. This renewal is for five years with an expanded remit that includes advertising, CRM, database management, integrated media, social, digital, and PR. Our SC&E Solutions segment, as we mentioned, saw growth across all disciplines following a strong new business track record year-to-date, in Q3, Golin won new business including Eve Air Mobility, Tapestry, the luxury brand holding company that owns Coach and Kate Spade, as well as Neutrogena, the Kenvue skincare brand.
Momentum grew strongly with core clients, including Verizon and Nike, and brought on a number of new clients, notably John Deere. Most recently, the company secured three AI patents for the machine learning of experiences, which makes them the first agency to do so in their area of expertise. Octagon signed the ACC as a new client at their industry-leading media rights division, and the agency won new client brands including Hilton Hotels and Powerade, as well as working with current clients Budweiser, MasterCard and Unilever to manage activations at major global sporting events.
At Jack Morton, Vivi, the agency's diversity-driven inclusive marketing practice, posted wins and new work with the NBA and TIAA. There were also additional new client adds with Paramount Plus and Comcast, and a large-scale reinvigoration of ESPN's SportsCenter. Weber Shandwick saw growth in the health sector and in its government and public policy work. On the new business front, notable wins included Dollar Shave Club and a significant new assignment with the CDC. The network also expanded its predictive analytics and intelligence capability with a rollout of a new proprietary solution that measures the impact of earned media.
Despite these highlights from across the portfolio, as you can see from our results, the third quarter didn't unfold along the lines we'd envisioned when we spoke with you in July. At that time, we shared our view of the second half inflection point for stronger growth driven by several factors: one was accelerating growth of our media business, which did materialize with notably stronger performance in the third quarter than we'd seen earlier in the year. We also look forward to a similar trajectory in our healthcare vertical. And while healthcare did grow in the quarter across the category, it was not at the level we'd anticipated. However, with new business coming online stronger in Q4, we do see health returning to its more typical rate of revenue growth.
And as I mentioned earlier during Q3, while we saw the impact of new business coming on stream, it was slower to convert than the rate we'd foreseen. Therefore, when we look to the fourth quarter, as mentioned earlier, and this is historically our largest due to seasonal factors as you all know, we believe organic revenue performance will come in at approximately 1% growth. And also to reiterate, we remain committed to our margin target for the year of 16.7%, 10 basis points ahead of last year. We're going to stay focused on closing the year as strongly as possible. But as I mentioned earlier, we're also, specific to areas of underperformance, assessing structural solutions to improve our growth profile. And an important additional area for value creation is our longstanding and continued commitment to capital returns, which has been underscored by the execution of our share repurchase plan and consistent dividend growth over time. These remain important priorities for us going forward.
As always, we thank you for your time and attention. And with that, let's open the floor to your questions.