FRESH OFF ITS Q3 AMAZON WIN, OMNICOM MEDIA GROUP TOPS COMVERGENCE H1 REPORT WITH $5.3 BILLION IN TOTAL NEW BUSINESS WINS

Rhea-AI Summary

Omnicom Media Group (OMG) has achieved the best total new business record among global media management groups for the first half of 2024, according to COMvergence's Global Media Agency New Business Barometer. OMG was awarded over $5.3 billion in client billings, representing 35% of the $16.4 billion in business awarded during this period. The group's success is attributed to its Agency as a Platform model, which enables a flexible ecosystem of talent, capabilities, and technology across all OMG agencies.

OMG's agency networks PHD and OMD claimed the top two spots in the global agency rankings. PHD topped the global and all four regional agency rankings, while OMD secured second place globally and was the #1 agency network in North America for net new business. The group's success extended beyond new business, with OMG leading the industry in partnerships, creativity, and effectiveness during H1 2024.

In September, OMG was named Amazon's media agency of record for the Americas, further solidifying its position as a leader in the industry.

Positive

• OMG awarded over $5.3 billion in client billings in H1 2024, representing 35% of total business awarded
• Highest retention rate, successfully defending 89% of billings in play
• PHD topped global and all four regional agency rankings
• OMD ranked second globally and #1 in North America for net new business
• Won Amazon as media agency of record for the Americas in September 2024

Negative

• None.

Insights

Financial Analyst

Omnicom Media Group's (OMG) impressive $5.3 billion in new business wins during H1 2024 significantly outpaces competitors, capturing 35% of the $16.4 billion in awarded business. This performance, coupled with an 89% retention rate, demonstrates strong market positioning and client satisfaction.

The success extends across regions and key markets, indicating robust global competitiveness. PHD and OMD's top rankings among agency networks further solidify OMG's market leadership. The recent Amazon win for the Americas market in H2 2024 suggests continued momentum.

OMG's "Agency as a Platform" model and partnerships with major tech companies like Google, TikTok and Amazon show strategic alignment with digital transformation trends. This positions OMG well for future growth in an increasingly digital-centric advertising landscape.

While specific financial figures aren't provided, the scale of new business wins and industry accolades suggest positive revenue growth potential for Omnicom (OMC). Investors should monitor how effectively these wins translate into revenue and profit growth in upcoming financial reports.

Market Research Analyst

The COMvergence report highlights OMG's dominant market position, with its 35% share of new business equaling the combined share of the second and third-ranked groups. This suggests a significant competitive advantage and potential for market share growth.

OMG's success across diverse global markets, including the top three advertising markets (US, China, UK) and numerous others, indicates strong international capabilities. This global reach is important for attracting multinational clients and diversifying revenue streams.

The group's focus on integrating creators and commerce through partnerships with major platforms addresses the growing importance of influencer marketing and e-commerce. This strategy aligns well with evolving advertiser needs and could drive client acquisition and retention.

OMG's strong performance in industry awards (Cannes Lions, Effie Index) enhances its reputation, potentially attracting both clients and talent. The combination of business wins, technological partnerships and creative recognition positions OMG as a well-rounded leader in the media agency space.

OMG agencies PHD and OMD Leverage Agency as a Platform Model to Earn #1 and #2 Ranking Among Global Media Networks

NEW YORK, Sept. 24, 2024 /PRNewswire/ -- Omnicom Media Group (OMG), the media services division of Omnicom (NYSE: OMC) and parent company to the OMD, PHD and Hearts & Science global media agency networks, had the best total new business record (wins minus losses, including retentions) among global media management groups for the first half of 2024.

As reported in the Global Media Agency New Business Barometer H1 2024 - an analysis of the global media agency marketplace published today by independent research company COMvergence - OMG was awarded more than $5.3 billion in client billings during the first six months of the year.

Powered by its industry-leading Agency as a Platform model that enables a flexible ecosystem of talent, capabilities, and technology across all OMG agencies, OMG won 35% of the $16.4 billion in business awarded in H1 - a percentage that is equal to the shares of the second and third ranked media groups combined. Additionally, OMG had the highest retention rate as it successfully defended 89% of billings in play.

Commenting on the results, OMG CEO Florian Adamski said, "In H1, OMG significantly  outperformed the industry  by leveraging  our Agency as Platform approach — built for organizational agility and flexibility and powered by Omnicom's industry-leading Omni operating platform — to deliver customized solutions that integrate the vast collection of specialized talent, capabilities, and processes required to meet the scope and scale of our clients' need in an increasingly complex marketplace."

Beyond topping the global ranking, OMG was also #1 across every region, and in the top three largest advertising markets - US, China, and UK - as well is in France, Germany, Ireland, Italy, Netherlands, New Zealand, Portugal, Singapore, Spain, Sweden, Taiwan, and Turkey.

PHD and OMD Top the Agency Network Rankings
OMG's best-in-class H1 total new business ranking was fueled by powerful performances from its agency networks, with all its agency brands ranked in the top 10 – and two claiming the top spots on the ranking.

PHD topped the global and all four regional agency rankings by successfully defending the $2.1b Volkswagen Group business - the biggest pitch awarded in H1 – as well as Sainsbury's and HP; while also adding Priceline and David Yurman to its client roster and expanding its relationship with QSR giant Restaurant Brand's International, for which it supports Burger King, Popeye's, and Tim Horton, to include the Firehouse Subs franchise.

"In a marketplace where media sits at the center of digital transformation, connected commerce, content and creators, clients are looking for an agency that can deliver integrated, outcomes-centric solutions that can meet this broad spectrum of needs," said PHD CEO Guy Marks. "Our performance in H1 is the result of clients recognizing that PHD - a media agency engineered for connected intelligence and enabled by the breadth and depth of OMG and Omnicom – will consistently deliver on this mandate to help them outthink, outperform and outgrow the marketplace."

Earning second place on the global ranking with wins that included Gap Inc. and Michelin, OMD was also the #1 agency network in North America for net new business (wins minus losses, excluding retentions).  Joining OMD at the top of the North America net new ranking, sister agency Hearts & Science - with H1 wins that included Tapestry, HanesBrands Inc. and Lovesac - placed third.

Winning on All Fronts in H1
In addition to outperforming the market in new business, OMG also lead the industry on multiple fronts during the first six months of the year, starting at CES where the group announced first-to-market partnerships with Google, TikTok, Amazon and Meta designed to bridge the gap between creators and commerce, driving better ROI across influencer channels.

During the Cannes Festival of Creativity, OMG announced partnerships with Amazon, The Trade Desk, TikTok and Instacart designed to directly connect upper funnel media investments to sales. OMG was also the most honored media group at the festival, earning the highest combined total of Lions and short list placements; and OMD was named Media Network of the Year, with PHD coming in a close second.  

Also, in H1, when the annual Effie Index ranking the world's most effective agencies, marketers, brands, networks, and holding companies was published in June, OMG earned the highest score among global media groups.

Sustaining New Business Momentum in H2
In September, the global media group that had won the biggest decision of H1 was awarded the lion's share of the biggest pitch of 2024 to-date when Amazon - the largest advertiser in both the US and worldwide - named OMG its media agency of record for the Americas.  

As of this writing and based on the most recent numbers reported in the COMvergence dashboards that provide a moment-in-time snapshot of the new business landscape, OMG continues to hold the best YTD total new business record among the Big Six global media groups ($6.4 billion). The COMvergence provisional reporting also shows OMG agencies PHD and OMD maintaining their respective #1 and #2 ranking atop the agency network dashboards.

About Omnicom Media Group
Omnicom Media Group (OMG), the media services division of Omnicom Group Inc. (NYSE: OMC), delivers transformational experiences for consumers, clients, and talent. Powered by the Omni marketing orchestration system, OMG connects best -in-class capabilities that enable our full-service media agencies OMD, PHD and Hearts & Science to deliver more relevant and actionable consumer experiences; more productive and proactive client experiences; and more collaborative and rewarding talent experiences for the more than 26,000 people serving the world's leading brands in OMG agencies around the globe.  

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SOURCE Omnicom Media Group

FAQ

What was Omnicom Media Group's (OMC) total new business wins in H1 2024?

Omnicom Media Group (OMG) was awarded more than $5.3 billion in client billings during the first six months of 2024, according to COMvergence's Global Media Agency New Business Barometer.

Which OMC agencies topped the global agency network rankings in H1 2024?

PHD topped the global and all four regional agency rankings, while OMD secured the second place on the global ranking.

What major client did Omnicom Media Group (OMC) win in September 2024?

In September 2024, Omnicom Media Group (OMG) was named Amazon's media agency of record for the Americas, which is considered the largest advertiser in both the US and worldwide.

What was Omnicom Media Group's (OMC) retention rate for H1 2024?

Omnicom Media Group (OMG) had the highest retention rate, successfully defending 89% of billings in play during the first half of 2024.