Nov 10 (Reuters) - Advertising firm Interpublic Group

beat third-quarter revenue and profit estimates on

Monday, helped by resilient spending from media and health care

clients.

Surging use of AI tools that let businesses create ads

more cheaply and quickly has squeezed traditional agencies,

prompting them to build similar in-house tools to retain

clients.

As a result, IPG has integrated AI and data platforms such

as "Interact," an AI-powered system that unifies data, creative

and media for personalized marketing, into its workflows.

The company said it cut headcount by 800 people in the third

quarter. In early 2025, it began a restructuring to cut costs

and expects total charges of $450 million to $475 million,

partly non-cash, with completion by end-2025.

In December, ad giant Omnicom ( OMC ) agreed a $13.5 billion

deal to acquire IPG, which is expected to close by the fourth

quarter, the company said.

The deal would create the world's largest advertising agency

as legacy firms adapt to compete with Big Tech and rapid

advances in artificial intelligence.

It reported revenue of $2.49 billion for the third quarter,

beating Wall Street estimates of $2.20 billion.

Profit for the quarter came in at 34 per share, higher than

the 5 cents per share it reported, a year earlier.