Omnicom Media Group Ends 2023 Ranked #1 for Net New Business for the Second Consecutive Year, Earns 97% Retention Rate Among Existing Clients
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Insights
Omnicom Media Group's (OMG) announcement regarding its leading position in net new business gains for the second consecutive year holds significant implications for their financial performance. With an increase of over $2.5 billion in incremental billings, the company has demonstrated robust business development capabilities. This performance, coupled with a win-to-loss ratio of 3:1, suggests a competitive advantage in client acquisition and retention.
Furthermore, the positive net new business gains across all global regions indicate a well-diversified geographical presence, reducing the company's exposure to regional market downturns. The RECMA performance evaluation underscores OMG's operational effectiveness and client service quality. The 97% retention rate is particularly noteworthy, as it reflects client satisfaction and stability in recurring revenue streams.
The strategic moves by OMG, including the global adoption of the Agency as a Platform model and the launch of Omni Assist, highlight the company's commitment to innovation and adaptability in a rapidly evolving media landscape. These advancements are likely to enhance OMG's service offerings, creating value for existing clients and attracting new business.
The acquisitions in high-growth categories and markets, alongside the establishment of retail media network partnerships, position OMG favorably in areas of market expansion and technological disruption. These initiatives are expected to contribute to revenue growth and diversification of the company's portfolio.
OMG's first-to-market capabilities, such as their Generative AI capability 'Omni Assist' and retail media network partnerships, are indicative of a forward-thinking approach to technology adoption and media strategy. These initiatives are likely to improve operational efficiency and client outcomes, setting a precedent in the industry for innovation.
The focus on future-fit solutions, such as addressing privacy concerns in a cookieless world and enhancing consumer experiences in a commerce-centric marketplace, suggests that OMG is actively working to address emerging challenges. These efforts may lead to a sustainable competitive edge as the media industry continues to navigate digital transformation and shifting consumer behaviors.
OMG agencies OMD, Hearts & Science and PHD wrap the year
achieving historic trifecta atop the agency ranking
With just a few business days remaining until the end of the year, the COMvergence C-Dash new business barometer that tracks account wins and losses in near real-time shows OMG is once again the #1 ranked global media group for net new business, having added more than
OMG was also the only group to show positive net new business gains across every global region.
Breaking down the individual agency performances driving that number, OMG networks OMD, Hearts & Science and PHD are positioned to maintain their locks on the #1, 2 and 3 slots on the agency rankings, respectively, sustaining their historic sweep from the COMvergence Q1-Q3 ranking. Notably, that report marked the first time any media group had all its agency brands topping the agency network ranking since the Media Agency New Business Barometer was first published in 2017.
OMG also outperformed the market in the latest performance evaluation from the Research Company Evaluating the Media Agency Industry (RECMA) which offers a nuanced assessment of global media groups based on a wide range of criteria that - in addition to new business wins - also includes global footprint, depth and breadth of services and capabilities, digital share of business, and the longevity of client relationships. In the 2023 report, OMG's future fit- capabilities and
Concurrent with leading its category in winning new business and successfully servicing a client roster that includes many of the world's best-known brands, in 2023 OMG also led the industry in delivering first-to-market capabilities and future-fit solutions that drive sales and grow share for clients, including:
- The global adoption of its Agency as a Platform model that leverages Omni - the open operating system that supports the Omnicom network - to enable a flexible ecosystem of talent, capabilities, and technology across all OMG agencies.
- The launch of Omni Assist - the inaugural Generative AI capability enabled by Omnicom's first-mover access to Microsoft's Open AI GPT models - that has dramatically accelerated the timeline from discovery to client outcomes by acting as a virtual assistant providing insights, notifications, and recommendations across every step of the Omni workflow, from audience development to planning, activation, measurement, and optimization.
- Expanding its capabilities in high growth categories and markets with the acquisitions of international financial services specialty agency Ptarmigan and
Brazil -based connected commerce shops Outpromo and Global Shopper. - First-to-market global and regional retail media network partnerships with category leaders like Criteo, Uber and Tesco that added to the industry's most extensive RMN portfolio.
- Partnering with NBCU to launch program-level reporting at scale across CTV environments, transforming the way streaming content is planned and bought.
- Operationalizing standards and best practices for programmatic buying that enable levels of transparency, control, safety, and effectiveness that significantly outperform recent industry studies.
"Good agencies adapt to change, better agencies anticipate change, but the best agencies define and drive change to unlock transformative growth for their clients - that is our ambition," says OMG CEO Florian Adamski. "Aiming for that high bar is how OMD, PHD and Hearts & Science - empowered by our Agency as a Platform model - led the industry in 2022 and 2023. As issues like privacy in a cookieless world, an increasingly commerce-centric marketplace and the demand for cohesive consumer experiences across the path to purchase bring new challenges for marketers in 2024, our goal will be to deliver growth for our clients, our agencies, and our talent not by predicting the future, but by creating it."
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 24,000 people serving the world's leading brands in OMG agencies around the globe.
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SOURCE Omnicom Media Group
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