OMNICOM MEDIA GROUP AGENCIES OUTPERFORM FOR GROWTH ACROSS ALL FOUR REGIONS

Rhea-AI Summary

Omnicom Media Group (OMG) agencies have outperformed the market in billings growth across all four regions, according to a new report by COMvergence. Key highlights include:

- OMG is #1 for absolute growth in LATAM and relative growth in EMEA
- OMG has the highest digital share of spend among global media groups
- OMD tops North American billings with $10.18 billion and highest YOY growth rate (6.8%)
- Hearts & Science leads growth in APAC, EMEA, and LATAM with a 9.5% global growth rate

OMG's success is attributed to its 'Agency as a Platform' model, powered by the Omni operating system. The group continues to perform well in 2024, currently holding the best YTD total new business record among global media groups at $4.6 billion.

Positive

• OMG is #1 for absolute growth in LATAM and relative growth in EMEA
• OMG has the highest digital share of spend among global media groups, above 50% for all agencies
• OMD tops North American billings with $10.18 billion and highest YOY growth rate of 6.8%
• Hearts & Science leads growth in APAC, EMEA, and LATAM with a 9.5% global growth rate
• OMG currently holds the best YTD total new business record among global media groups at $4.6 billion
• OMD North America's total new business wins YTD stand at $654.9 million
• PHD is currently leading in global total new business with close to $3 billion YTD

Negative

• None.

Insights

Financial Analyst

Omnicom Media Group's performance in the latest COMvergence report is a significant indicator of its market strength. The company has achieved impressive growth across all regions, driven by substantial account wins from major brands like Beiersdorf, Uber and Virgin Voyages. OMD's leadership in North America and Hearts & Science's dominance in multiple regions underline OMG's competitive edge. The financial perspective suggests that OMG's strategic focus on digital spend—having the highest digital share among global media groups—positions it well for future growth. Investors should note OMG's ability to consistently attract and retain high-profile clients, which directly correlates with its robust financial performance. The sustained momentum into 2024, backed by significant YTD new business records, further demonstrates OMG's strong market position and potential for continued revenue growth.

Market Research Analyst

OMG's extensive growth highlighted in COMvergence's report is noteworthy for several reasons. First, the prominence in digital spend indicates a strategic alignment with industry trends, where digital channels increasingly dominate advertising budgets. Second, the agency's success in securing high-value clients across various sectors, including automotive, e-commerce and consumer goods, showcases its diverse expertise and adaptability. The report's emphasis on OMG's 'Agency as a Platform' proposition, powered by the Omni operating system, reveals a sophisticated approach to integrating technology, data and talent. This integration not only enhances client service but also provides scalable solutions that can drive efficiency and effectiveness across campaigns. For retail investors, OMG's ability to leverage technology and data to deliver superior outcomes is a compelling reason to consider its stock, given its demonstrated ability to outpace competitors and sustain growth.

Tech Expert

The report underscores OMG's significant investments in technology and digital transformation, essential for maintaining competitive advantage in the media industry. The 'Agency as a Platform' model, enabled by the Omni operating system, highlights OMG's commitment to leveraging advanced tech to streamline operations and enhance client offerings. The integration of e-commerce, data-driven marketing and digital transformation within a single platform provides a seamless experience for clients, allowing for more targeted and effective campaigns. This technological prowess not only boosts client satisfaction and retention but also attracts new high-profile clients. For investors, OMG's emphasis on technology indicates a forward-thinking approach that aligns well with the industry's digital future, positioning the company for long-term success.

New Report Reveals OMG Is #1 For Growth in EMEA and LATAM, Leads the Industry in Digital Spend

OMD remains #1 in North America, Hearts & Science leads in global growth

NEW YORK, July 22, 2024 /PRNewswire/ -- A new report from leading independent and international research company COMvergence reveals Omnicom Media Group (OMG) agencies outperformed the marketplace for billings growth across all four regions, powered by 2023 wins that included Beiersdorf, Grupo Bimbo, Jaguar Land Rover, Uber, Under Armour, Vans, and Virgin Voyages.

Released yesterday, the 2023 Global & Regional Rankings shows OMG as the number #1 global media group for absolute growth (total billings added) in LATAM and for relative growth (YOY growth rate) in EMEA.  

Additionally, for the second consecutive year, OMG had the highest digital share of spend among the six global media groups; and is the only group for which digital share of billings across all its agencies is above 50%, reinforcing OMG's position as the most future-fit media holding company.

Leading in Growth Across the Globe

At the agency level, OMD topped the billings rankings for North America with $10.18 billion, maintaining the lock it has held at the top of the billings chart since the Global & Regional Billings Rankings report was first published in 2017. OMD also earned the highest YOY growth rate (6.8%) of any North American media agency network – an impressive achievement in and of itself, but especially significant considering OMD also had the largest 2022 billings base.  

OMD also has the highest YOY growth rate (8.75%)  among the top five largest global media networks.           

Making it an OMG clean sweep across all four regions, Hearts & Science was #1 for growth in APAC, EMEA and LATAM, a trifecta that translated to a global growth rate of 9.5% - the highest among all media holding company agency networks on the ranking.  

"These results reflect how OMG's Agency as a Platform proposition – powered by the Omni operating system - is enabling our agencies to outgrow the market," says Omnicom Media Group CEO Florian Adamski. "As ever-increasing marketing complexity demands an ever-expanding ecosystem of talent, tools and technology, Agency as a Platform gives our agencies a competitive advantage by delivering  to clients the full depth and breadth of resources from across the Omnicom network - including media, e-commerce, data-driven marketing, digital transformation, and content creation - through a single agency relationship. Activating these assets through the unique lens of their individual processes and perspectives, OMG agencies OMD, PHD, and Hearts & Science are leading, winning, and growing by delivering better business outcomes for their clients and more professional opportunities for their talent." 

Sustaining the Moment in 2024

The 2023 Global & Regional Rankings report is the latest in a run of good news for OMG, which dominated the daily headlines at last month's Cannes Festival of Creativity by announcing partnerships with Amazon, The Trade Desk, TikTok and Instacart designed to directly connect upper funnel media investments to sales. OMG was 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.  

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 currently holds the best YTD total new business record (wins minus losses, inclusive of retentions) among the Big Six global media groups ($4.6 billion). The COMvergence  provisional reporting also shows OMG agencies OMD and PHD topping the COMvergence North America and global total new business dashboards, respectively.

Powered by its recent Gap, Inc win, OMD North America's total new business wins YTD stand at $654.9 million. Globally, PHD – which successfully defended Volkswagen Group, HP and Sainsburys this year while also winning new  media AOR assignments from Priceline, David Yurman and Firehouse Subs – is currently in the lead for total new business with close to $3 billion YTD. With OMD and Hearts & Science (which counts Tapestry, Hanes and Lovesac among its 2024 wins) currently sitting at #2 and #6, respectively, at this moment Omnicom Media Group is the only media holding company with three agencies – and its entire agency portfolio - in the top 10 for total new business for 2024 YTD, based on provisional reporting.  

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/omnicom-media-group-agencies-outperform-for-growth-across-all-four-regions-302202556.html

SOURCE Omnicom Media Group

FAQ

What is Omnicom Media Group's (OMC) performance in the 2023 Global & Regional Rankings?

Omnicom Media Group outperformed the market in billings growth across all four regions, ranking #1 for absolute growth in LATAM and relative growth in EMEA. They also had the highest digital share of spend among global media groups.

How did OMD perform in North America according to the 2023 report?

OMD topped the North American billings rankings with $10.18 billion and achieved the highest YOY growth rate of 6.8% among North American media agency networks.

What was Hearts & Science's growth rate in 2023 for Omnicom Media Group (OMC)?

Hearts & Science achieved a global growth rate of 9.5%, the highest among all media holding company agency networks, leading growth in APAC, EMEA, and LATAM regions.

What is Omnicom Media Group's (OMC) YTD total new business record for 2024?

As of the report, Omnicom Media Group holds the best YTD total new business record among global media groups at $4.6 billion for 2024.