It might not be omnipotent, but Omnicom Group creates advertising that is omnipresent. The company ranks as the world's #1 corporate media services conglomerate, with advertising, marketing, and public relations operations. It serves global advertising clients through its agency networks BBDO Worldwide, DDB Worldwide, and TBWA Worldwide, while such firms as GSD&M's Idea City, Merkley + Partners, and Zimmerman Advertising provide services for regional and national clients. Its Diversified Agency Services division, including Fleishman-Hillard, Integer, and Rapp, provides public relations and other marketing services. In 2013 Omnicom agreed to merge with fellow industry heavyweight Publicis Groupe.
Omnicom has US offices in New York, Connecticut, and Florida, while it has international offices in London, Shanghai, and Singapore. The group's network of agencies serves some 5,000 clients in more than 100 countries. During fiscal 2012 accounts in the US generated nearly 60% of the company's revenue.
Sales and Marketing
As a leading global advertising, marketing, and corporate communications company, Omnicom has a large and diverse client base. Its largest client accounted for 2.6% of fiscal 2012 revenue. Its top 100 clients accounted for approximately 52% of fiscal 2012 revenue.
Omnicom's revenue has been steadily increasing in recent fiscal years. The group’s revenue increased by about 3% to $14.2 billion in fiscal 2012, up from $13.8 billion in fiscal 2011. Its profits increased by 5% in fiscal 2012 compared to 2011.
The growth was attributed to organic growth and increased revenue from acquisitions. The revenue and profit increases reflect strong operating performances by many of its agencies, partially offset by the negative impact from changes in foreign exchange rates. Increased revenue in the US and continued growth in the emerging markets of Asia and Latin America was partially offset by the economic weakness in the Euro Zone.
Omnicom's fortunes have been buoyed in part by its agency networks and their consistently strong creative work (traditional media advertising accounts for almost half of its revenue), but the bulk of its growth has traditionally come from such areas as customer relationship management (CRM) and specialty communications.
Omnicom sees continued growth being tied to its ability to provide an ever-expanding menu of services to its largest clients, especially in the digital and social media arenas. The company has also been focused on expanding its media planning and buying operations.
Mergers & Acquisitions
The massive deal to merge with Publicis Groupe, worth about $35 billion, could be completed by the end of 2013 or early in 2014 depending on regulatory approvals. The proposed merger highlights the competition the huge agencies are feeling from the digital and mobile advertising success stories at Google and Facebook.
In addition to adding subsidiaries that expand its advertising and marketing service offerings, the company also makes acquisitions to grow its geographic presence. In 2012 its Diversified Agency Services bought a majority stake in Medical Collective Intelligence, a Japanese online medical communications agency based in Tokyo.