Digital partnerships help Omnicom deliver strong Q4 performance | M&M Global

Digital partnerships help Omnicom deliver strong Q4 performance

Partnerships with technology giants such as Google and Facebook are helping Omnicom Group agencies to deliver industry-leading innovation, driving a “solid” 2014 performance, according to CEO John Wren.

Omnicom

The combination of technology “tools” and agency “brains” have helped Omnicom to continue to serve clients to a high-standard in a “rapidly changing landscape”, Wren told today’s fourth quarter results analyst call.

A strong Q4 performance in North America has provided a timely boost for Omnicom, driving the company on to achieve a 5.9% year-on-year increase in quarterly revenues.

The group today (10 February) announced that its worldwide revenue in the same quarter had grown by 3.4% to $4.2bn.

The increase in growth was helped by an 8.5% rise in organic revenue for advertising, another 8.5% growth in PR and a 9.4% growth in specialty communications. CRM operations stayed flat at 1%.

Alongside the positive 8.3% growth across North America, the UK followed closely behind with 6.2% growth. Other European markets saw an increase of 1.2%, while the APAC and Africa/Middle East regions saw 3.2% and 14.1% growth respectively.

However, Latin America disappointment, decreasing by 0.5% when compared to the same quarter in 2013, in part due to the loss of a government account in Chile.

Omnicom stated that its fourth quarter results included the $13.3m pre-tax charges related to the group’s failed merger with Publicis Groupe last year which were “primarily comprised of professional fees”, according to a company statement.

Across the total year, Omnicom reported revenue of $15.4bn, an increase of 5% year-on-year.

In the call, Wren said US businesses can expect to benefit from a rush in consumer spending as a result of lower oil prices, but warned about the impacts of global currencies devaluing against the US dollar.

He added: “From an industry perspective, we’re undergoing a major transformation, as new digital tools and platforms emerge, with media and technology evolving at an astonishing pace. We expect that shift to digital to only accelerate over the next five years.

“Our industry is becoming increasingly complex and our clients are looking to us for ways to navigate this rapidly changing landscape. Technology is proving the tool and we are providing the brains, to give Omnicom clients the best possible solutions. Our strong performance is testament to the fact that Omnicom’s long-term strategies are working.”

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