About The Promotion Network Inc

Omnicom Group creates advertising that is omnipresent. The company ranks as the world's #1 corporate media services conglomerate, with 1,500 agencies across 100-plus countries conducting 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, 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.

Operations

Omnicom is active in four primary disciplines: Advertising, Customer Relationship Management (CRM), Public Relations, and Healthcare.

Advertising accounts for more than half of Omnicom's total revenue.

The CRM segment consists of two units, CRM Customer Experience & CRM Execution & Support. CRM Consumer Experience consists of Omnicom Precision Marketing Group's digital/direct marketing agencies, as well as its branding, shopper marketing, and experiential marketing agencies. CRM Execution & Support carries out field marketing, sales support, merchandising, and point of sale, as well as other specialized marketing and custom communications services.

Public Relations services generate around 10% of sales, while Healthcare marketing and communications focused segment provides around 5%.

Geographic Reach

Omnicom has principal corporate 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. About 60% of the company's revenue comes from the Americas, while EMEA (Europe, Middle East, and Africa) contributes around 30%. The remaining 10% or so comes from the Asia-Pacific region.

Sales and Marketing

As a leading global advertising, marketing, and corporate communications company, Omnicom has a large and diverse client base, and often several Omnicom agencies will serve the same client concurrently. None of its clients account for more than 5% of revenue, while its top 100 clients account for a little more than 50% of revenue and are served on average by 50 Omnicom agencies.

By industry served, food and beverages provides the most custom at nearly 15% of sales. Other notable industries include pharmaceuticals and healthcare, consumer products, and the auto industry, each accounting for around 10% of sales.

Financial Performance

Omnicom has struggled to meaningfully grow its revenue over the past four years. In fiscal 2017 sales decreased 1% to $15.3 billion as the sale of the its specialty print business was mostly offset organic revenue growth and the positive effect of currency movements.

Net income has likewise proven fairly static of late, and in fiscal 2017 it declined 5% to $1.1 billion, comparable with recent averages. Much of the fall was accounted for by the 2017 US Tax Cuts and Jobs Act, which added $106.3 million to net income tax expense.

Cash from operations grew 4% to $2.0 billion due to changes in taxation and an increase in operating capital, partially offset by lower net income.

Strategy

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. To better serve the increasing scope of its CRM business, in 2017 Omnicom split its CRM activities into two separate units, CRM Consumer Experience and CRM Execution & Support. It also recognized the increasing importance of Healthcare by realigning the former specialty communications segment as a healthcare-specific segment.

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 and Acquisitions

In March 2018, Omnicom agreed to acquire Elsevier's Japanese Pharma Communications business. Elsevier is part of RELX Group. Pharma Communications engages in the delivery of medical content for promotional materials and educational programs directed at doctors and patients.

In February that year, Omnicom acquired Snow Companies, a full-service patient engagement agency that focuses on direct-to-patient (DTP) communications, marketing, education, and patient research initiatives. It primarily serves major pharmaceutical and biotech companies.

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The Promotion Network Inc

1999 Bryan St Ste 3000
Dallas, TX 75201-6820
Phone: 1 (214) 692-1522
Fax: 1 (214) 692-8316

Stats

  • Employer Type: Public
  • Vice President, Planning: Helen Chan
  • Chief of Client Integration: Tracy Faloon
  • Managing Director Senior Vice President Convergence: Bobbi Merkel
  • Employees: 200

Major Office Locations

  • Dallas, TX

Other Locations

  • Rogers, AR
  • Los Angeles, CA
  • San Francisco, CA
  • Chicago, IL
  • New York, NY
  • Austin, TX
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