About The Promotion Network Inc
Omnicom Group creates advertising that is omnipresent. The company is a leading global marketing and corporate communications company that provides services to over 5,000 clients across 100-plus countries. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services. The US accounts for about 55% of sales.
Omnicom is active in five primary disciplines: Advertising, CRM Consumer Experience, CRM Execution & Support, Public Relations, and Healthcare.
Advertising accounts for over 55% of Omnicom's total revenue. It includes creative services as well as strategic planning and data analytics.
CRM Customer Experience and CRM Execution & Support generates over 15% and almost 10%, respectively. CRM Consumer Experience includes Omnicom Precision Marketing Group and digital/direct marketing agencies as well as 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, including corporate communications and crisis management, generate about 10% of sales, as well as Healthcare-focused marketing and communications provides about 10%.
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.
Around 60% of the company's revenue comes from the Americas, while EMEA (Europe, Middle East, and Africa) contributes almost 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. 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 more than 60 Omnicom agencies.
By industry, food and beverage companies along with pharmaceutical and healthcare firms account for the largest share of customers, with each contributing nearly 15% of the company's total revenue. Omnicom serves other notable industries, including consumer products, technology, financial services, and the auto industry, each accounting for nearly 10% of sales.
Omnicom's revenue fluctuated in the last five years. It has an overall decline of 1%.
In 2019, revenue decreased $336.5 million, or 2.2%, to $15 billion from $15.3 billion in 2018.
Net income increased to $12.7 million, or 1.0%, to $1.34 billion from $1.33 billion in 2018 due to the decrease in salary and service costs, and net interest expense.
Cash at the end of 2019 was $4.3 billion. Cash from operations was $1.9 billion, while investing activities used $31 million. Financing activities used $1.2 billion.
Omnicom continues to use its virtual client networks to grow business relationships with its largest clients by serving them across its networks, disciplines and geographies.
Its acquisition strategy is focused on acquiring the expertise of an assembled workforce in order to continue to build upon the core capabilities of the company's various strategic business platforms and agency brands through the expansion of their geographic reach or their service capabilities to better serve clients.
Mergers and Acquisitions
In late 2019, Omnicom Precision Marketing Group, the digital and customer relationship management (CRM) specialist group within Omnicom Group Inc. agreed to acquire a majority stake in Smart Digital GmbH. "Partnering with Smart Digital is not only a strategic move for Omnicom, as we grow and leverage proprietary tools, like Omni, to strengthen our AI and personalization capabilities, but, moreover, it's important for our clients – for whom we'll be better able to deliver powerful end-to-end customer experience solutions," said Luke Taylor, CEO of OPMG.
Omnicom Group was created in 1986 to combine three leading ad agencies — BBDO Worldwide, Doyle Dane Bernbach Group (DDB), and Needham Harper Worldwide — into a single group capable of competing in the worldwide market.
BBDO Worldwide, founded in New York in 1928 as Batten, Barton, Durstine & Osborn, had a huge PepsiCo account and developed the Pepsi Generation campaign.
Doyle Dane Bernbach Group (DDB), which had created the fahrvergnügen ads for Volkswagen, had strong ties in Europe.
Needham Harper Worldwide, which had served up the "You Deserve a Break Today" commercials for McDonald's, had connections in Asia.
Omnicom was established as holding company of independent operating units working together to gain scale.
1999 Bryan St Ste 3000
Dallas, TX 75201-6820
Phone: 1 (214) 692-1522
Employer Type: Privately Owned
Pres: Rich Feitler
Managing Director Senior Vice President Convergence: Bobbi Merkel
Office Manager: Louise Watkins
Employees (This Location): 120
Employees (All Locations): 200
Los Angeles, CA
San Francisco, CA
New York, NY