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Omnicom

Omnicom full year revenue down as CEO confirms new global media agency will be revealed in ‘a few weeks’

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By Jennifer Faull, Deputy Editor

February 9, 2016 | 3 min read

Omnicom’s much anticipated third global agency network will be unveiled within the next few weeks, according to chief executive John Wren.

The agency is to be structured differently to the OMD and PHD businesses it will sit alongside, built on hubs that service multiple markets instead of the typical network model of many offices. For this to happen, the as yet unnamed agency will adopt data and analytics platforms to give buyers and planers better market insights even though if they are not based in that territory.

Once launched, the agency network will set about establishing offices in key markets, leveraging other in-country media assets. In turn, this will give Omnicom additional capacity to manage more client relationships, while also leveraging the investments made in bolstering media capabilities across its businesses.

While the decision to build the agency was made off the back of Omnicom’s winning Procter & Gamble’s North America business late last year, it won’t be the only client.

The update comes as Omnicom latest quarterly earnings missed analysts’ expectations. Omnicom Group posted a 1.2 per cent fall in worldwide revenue for the twelve months ended December 31 to $15.13bn from $15.32bn for the same period in 2014.

Any growth for the year was driven predominantly by its advertising shops, which increased 12.6 per cent. However, its CRM, specialty communications and public relations divisions all decreased, by 1.5 per cent, 5.9 per cent and 6.9 per cent respectively.

Regionally for 2015, the UK, Asia Pacific and the Africa/Middle East performed well – with organic revenue increasing 7.1 per cent, 7.9 per cent and 6.8 per cent respectively – compared with a lesser increase in North America (5.4 per cent) and other European markets (3.7 per cent). Organic revenue decreased 3.3 per cent in Latin America.

Total revenue in the fourth quarter of 2015 was down 1 per cent to $4.15bn compared to the fourth quarter of 2014 while net income for the quarter increased 0.6 per cent to $331.6m.

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