Nikita Mishra
Apr 17, 2024

Omnicom posts 4% organic growth in Q1, beats expectations

The agency group beat Wall Street estimates for the March quarter, with key sectors like advertising and media, precision marketing, experiential and healthcare fueling the ascent.

Omnicom posts 4% organic growth in Q1, beats expectations

Omnicom has announced better-than-expected March quarter results, reporting 4% organic growth revenue.

Revenue soared to $3.6 billion, driven by organic expansion ($136.9 million, up to 4%). The strategic $900 million acquisition of Flywheel Digital in October 2023 contributed to a 1.5% boost. This will potentially allow the agency group to tap into the global digital commerce market—estimated to be worth $7 trillion by 2025—and combine Flywheel’s retail media capabilities with Omnicom’s data unit, Omni.

Flywheel has about 2,000 staff and works with about 4,500 brands to sell goods more efficiently across hundreds of digital marketplaces. According to the company, the Flywheel Commerce Cloud platform “manages tens of billions in product sales and billions of advertising spend annually across digital marketplaces”, such as Amazon, Walmart, and Alibaba.

Omnicom chairman and chief executive John Wren attributed the result to continued strength in advertising, media, and precision marketing disciplines.

Organic growth by discipline and region

The top line gained from organic growth in advertising and media, precision marketing, experiential, and healthcare:

Below is a simplified breakdown of organic growth by discipline in Q1 compared to the first quarter of 2023:

  • Advertising and media: Grew by 7%
  • Precision marketing: Gew by 4.3%
  • Experiential: Grew by 9.5%
  • Healthcare: Grew by 2.1%

However, there were decreases in:

  • Execution and support: Fell by 4.3%
  • Branding and retail commerce: Fell by 3.8%
  • Public relations: Fell by 1.1%

Regional

  • Asia Pacific: Increased by 3%
  • United States: Increased by 4.3%
  • Euro markets and other parts of Europe: Increased by 3.5%
  • Latin America: Increased by 22.3%
  • United Kingdom: Increased by 3.2%
  • Other North America: Increased by 1.1%
  • Conversely, the Middle East and Africa saw a decrease of 4.2%

At Omnicom, Wren told analysts the company was playing defence sparingly this year, leaving room for big wins on the horizon.

“Our industry-leading tools and platforms, combined with the strength of our operating leadership, has led to our excellent new business performance and, when combined with the new opportunities we are pursuing, give us great confidence in the future," said Wren in a prepared statement.

Wren emphasised that the network's recent business wins, the Olympics, and the US elections contribute to a positive 2024 outlook for the company.

Source:
Campaign Asia

Related Articles

Just Published

3 hours ago

Samsung unveils its 'new era of AI TV' in immersive ad

Global campaign was created by BBH Singapore.

3 hours ago

Agency Report Cards 2023: We grade 31 APAC networks

Campaign Asia-Pacific presents its 21st annual evaluation of APAC agency networks based on their 2023 business performance, innovation, creative output, awards, action on DEI and sustainability, and leadership.

3 hours ago

Agency Report Card 2023: Havas Creative

Amidst talks of a potential IPO from parent Vivendi in 2024 or 2025, Havas’ commitment to sustainability will be a defining factor in its positioning and longevity in the market.

3 hours ago

How health influencers Nadya Okamoto and Dr Mike ...

Both shared their strategies—and platform likes and dislikes—at the PRWeek Healthcare Awards+Conference.