WARC 100 Reveals the World’s Top Campaigns, Agencies and Brands for Effectiveness Posted on February 26, 2018December 11, 2020 by Revanth Ravish Ariel’s Dads #ShareTheLoad is world’s top effectiveness campaignClemenger BBDO Melbourne, Starcom Chicago and DigitasLBi Chicago lead agency rankingsBBDO Worldwide is top network for 5th consecutive yearOmnicom leads holding company tableBurger King ranked #1 brand. Unilever ranked #1 advertiser Global, 26 February 2018– WARC, the international authority on advertising and media effectiveness, has released the results of the 2018 WARC 100, an annual global index of the world’s top marketing campaigns and companies based on their business impact. WARC 100 tracks the performance of campaigns, brands and agencies in more than 70 of the most important global, regional and national marketing effectiveness and strategy competitions around the world. Now in its fifth year, the WARC 100 is based on a rigorous methodology developed in consultation with Douglas West, professor of marketing at Kings College London. The top-ranked campaign, ‘Dads #ShareTheLoad’ by BBDO India for Ariel Matic, Procter & Gamble’s premium laundry detergent brand, built on its previous ‘Share the Load’ campaign by persuading dads to do more laundry in order to promote gender equality. Ariel Matic generated a 42% increase in unaided brand awareness, $12.3 million in earned media coverage, and conversations on social media and sales growth in excess of previous campaigns. In second place is ‘The Swedish Number’ by INGO Stockholm for The Swedish Tourist Association, which manages hotels and hostels across Sweden. The purely PR-driven approach saw more than 32,000 Swedes sign up to take more than 200,000 calls from abroad helping STF boost its renewal figures and attract new members. Ranked third is the ‘Care Counts’ campaign for Whirlpool by DigitasLBi Chicago. The appliances manufacturer installed washers and dryers in schools to give disadvantaged students access to laundry facilities, resulting in 90% of the participants increasing their school attendance rate. The programme has been expanded to nearly 60 schools across the US. Three themes have emerged from the world’s top effectiveness campaigns: Purpose is effective when brands have a credible role. Three purpose-driven campaigns appear in the top 10. ‘Dads #ShareTheLoad’ for Ariel, Whirlpool’s ‘Care Counts’ and ‘Imagine the Possibilities’ for Barbie are all examples of the commercial success that can be driven when a brand’s purpose is intrinsically linked to its product.Strategies with PR baked in are becoming the norm. Three campaigns in the top ten used a PR-led strategy to drive brand awareness and increase sales: ‘Meet Graham’ for Australia’s Transport Accident Commission, Burger King’s ‘The McWhopper Proposal’ and ‘Van Gogh BnB’ for the Art Institute of Chicago.New takes on long-term ideas. Several of the highly effective initiatives ranked, such as ‘Dads #ShareTheLoad’, ‘Hungerithm’ for Snickers, the John Lewis Christmas campaigns and Always’ ‘Girl Emojis’, show how blockbuster ideas can be intelligently followed up with brands investing in long-term strategies rather than quick wins for immediate gain. Australia’s Clemenger BBDO Melbourne tops the creative agencies for effectiveness table for the first time having produced two top 10 campaigns: ‘Meet Graham’ and ‘Hungerithm’. New Zealand’s Colenso BBDO follows in second place with work for Burger King and DB Export contributing to their score. Starcom Chicago has returned to the top of the media agencies for effectiveness ranking with almost triple the points of the second-placed agency. Eight of the top digital/specialist agencies for effectiveness are from the US, with Chicago-based agencies making up the top three. DigitasLBi Chicago takes poll position. BBDO Worldwide remains the most awarded network for the fifth year in a row, having retained this rank since WARC 100 began in 2014. Its agencies contributed to four of the top 10 campaigns and 19 of the top 100. Andrew Robertson, President and Chief Executive, BBDO Worldwide, says: “Smarter thinking unleashes the power of creativity to make greater impact. That’s why leading the WARC 100 is so meaningful.” For the second time Omnicom Group is the most awarded holding company, having previously held top position in 2014. Omnicom Group owns four of the top 10 agency networks. John Wren, President and CEO, Omnicom Group, says: “Producing great work that drives results for our clients is why we come to work every day. It is especially gratifying to see Omnicom recognized by WARC as having five of the top ten individually ranked agencies, three of the top five networks, and being the top-ranked holding company. I could not be prouder of our teams.” Burger King improved its ranking by 30 places to reach the top brand for effectiveness, with the ‘McWhopper Proposal’ campaign in the top 10 and ‘Backyard Burger King’ in the top 100. The continuing performance of Ariel’s ‘Share the Load’ campaign has contributed to the brand retaining its second place. Unilever was the most effective advertiser for the third time, having previously held this top position in 2015 and 2014. Unilever has four campaigns in the top 100 – Lifebuoy’s ‘#HelpAChildReach5’, Knorr’s ‘Love At First Taste’, ‘The Vaseline Healing Project’ and ‘The radicalisation of Persil’ – with a further 50 campaigns across all competitions contributing to its tally. Keith Weed, Chief Marketing and Communications Officer, Unilever, says: “It’s a great honour to be recognised by WARC as Most Effective Advertiser again. I’m hugely proud of our marketers, working hard to drive campaigns with purpose that cut through to consumers and make a real impact.” USA retains its place as the top country in the world with 36 of the top 100 campaigns, compared to 12 from the UK and 12 from Australia. The most highly ranked campaigns and companies in WARC 100 are: Top 10 world’s top effectiveness campaigns RankCampaign titleBrandAgencyPoints1Dads #ShareTheLoadArielBBDO India127.12The Swedish NumberSwedish Tourist AssociationINGO Stockholm95.43Care CountsWhirlpoolKetchum Chicago84.64Meet GrahamTransport Accident CommissionClemenger BBDOMelbourne82.55=The McWhopper ProposalBurger KingY&R Auckland80.75=Van Gogh BnBArt Institute of ChicagoLeo Burnett Chicago80.77HungerithmSnickersClemenger BBDO Melbourne78.98John Lewis Christmas CampaignsJohn Lewisadam&eveDDBLondon78.49RewordHeadspace National Youth Mental Health FoundationLeo Burnett Melbourne72.210Imagine the PossibilitiesBarbieBBDOSan Francisco70.0 Top 5 creative agencies for effectiveness RankAgencyLocationPoints1Clemenger BBDO MelbourneMelbourne, Australia186.62Colenso BBDOAuckland, New Zealand174.23BBDO New YorkNew York, USA139.84BBDO IndiaMumbai, India124.95Droga5New York, USA114.9 Top 5 media agencies for effectiveness RankAgencyLocationPoints1StarcomChicago, USA269.62MindshareIstanbul, Turkey86.33Spark FoundryChicago, USA77.94PHDShanghai, China76.45Manning Gottlieb OMDLondon, UK65.5 Top 5 digital/specialist agencies for effectiveness RankAgencyLocationPoints1DigitasLBiChicago, USA90.72KetchumChicago, USA84.63Leo Burnett/Arc WorldwideChicago, USA79.94Weber ShandwickNew York, USA54.45Team Unilever ShopperNew York, USA51.1 Top 5 agency networks for effectiveness RankNetworkPoints1BBDO Worldwide1454.92Ogilvy & Mather Advertising7383McCann Worldgroup699.14DDB Worldwide553.45OMD Worldwide536.4 Top 5 holding companies for effectiveness RankHolding companyPoints1Omnicom Group3472.72WPP3220.63Interpublic Group2157.24Publicis Groupe1944.15Dentsu425.5 Top 5 brands for effectiveness RankBrandPoints1Burger King153.32Ariel127.13Mastercard120.84IBM103.65Vodafone101.1 Top 5 advertisers for effectiveness RankAdvertiserPoints1Unilever5052PepsiCo398.63Mars3394Procter & Gamble327.95Heineken265.3 Top 5 countries for effectiveness RankCountryPoints1USA3360.12UK1478.33Australia949.94India630.85New Zealand531.8 The WARC 100 is now part of Gunn Report, which recently published Gunn 100, a ranking of campaigns and companies based on creativity. Commenting on WARC 100, Emma Wilkie, Managing Director, Gunn Report, says: “This year’s WARC 100 once again confirms that creative approaches to marketing translates into marketplace success, with nearly all the top 10 campaigns also recognised in Gunn 100. Long-term strategies continue to be an important element to long-term success but we’re also seeing a significant number of purpose-led and PR-led campaigns doing particularly well in achieving commercial objectives.” The full WARC 100 rankings – including the world’s top 100 campaigns for effectiveness, top 50 creative, media and digital/specialist agencies for effectiveness, agency networks, brands, advertisers, countries and top holding companies as well as commentaries, the work and credits – is available by subscription on www.warc.com/gunnreport. The Gunn media rankings will be released in March.
Fast Company Names BBDO One of the Top 10 Most Innovative Companies in Marketing and Advertising Posted on February 21, 2018December 11, 2020 by Revanth Ravish NEW YORK, Feb. 21, 2018 /PRNewswire/ — BBDO has been named one of Fast Company’s Top 10 Most Innovative Companies in Marketing and Advertising for 2018. The annual ranking honors companies that exemplify the best in business and innovation in their respective fields. This year, more than three dozen Fast Company editors, reporters, and contributors surveyed thousands of companies across 36 categories to create these lists. In naming BBDO, Fast Company said, “The New York office of the global agency has over the years cemented its reputation for balancing traditional big brand advertising with innovative, boundary-pushing creative.” “Our job is to lead the way forward for our clients,” said David Lubars, Chief Creative Officer of BBDO Worldwide and Chairman of BBDO North America. “In today’s ever-changing environment, that means never letting the cement harden in order to stay fluid and flexible and to create compelling messages that stick.” Being named to Fast Company’s Most Innovative Companies is the latest in a series of recent recognitions received by BBDO. In December, Campaign magazine named BBDO its Advertising Network of the Year. And this month, BBDO was ranked both the most creative agency network in the world and the most awarded network across all marketing communications in the Gunn Report and The Drum Big Won, respectively – two independent industry rankings. Further details can be found here: https://www.fastcompany.com/company/bbdo BBDO Worldwide is part of Omnicom Group Inc. (NYSE-OMC) (www.omnicomgroup.com), a leading global marketing and corporate communications company.
Ronnie S. Hawkins Appointed to Omnicom Group Board of Directors Posted on February 16, 2018December 11, 2020 by Revanth Ravish NEW YORK, Feb. 16, 2018 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) announced the appointment of Ronnie S. Hawkins as an Independent Director, effective immediately. Mr. Hawkins’ appointment increases the size of the Board of Directors to 14 members, 12 of whom are independent. He will be a member of the Finance Committee. “It is a pleasure to welcome Ronnie to the Board of Directors,” said Bruce Crawford, Omnicom’s Chairman. “Ronnie comes to us with years of experience in international mergers and acquisitions, joint ventures, start-ups and divestitures, and I’m confident that he is going to be a great addition to our Board.” Mr. Hawkins is currently Managing Director, Head of International Investments and a member of the Investment Committee of EIG Global Energy Partners. He joined EIG in 2014 and was named to the Investment Committee in 2017. In these roles, Mr. Hawkins leads EIG’s efforts to identify, execute and manage energy investments outside the U.S. Previously, Mr. Hawkins held positions as a senior executive in the banking industry where he led numerous corporate financings for large companies including equity, debt and structured financings. ABOUT OMNICOM GROUP INC.Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. 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 to over 5,000 clients in more than 100 countries. Follow us on Twitter for the latest news.Contact: Joanne Trout, 212-415-3669, [email protected]
Omnicom Group Reports Fourth Quarter and Full Year 2017 Results Posted on February 15, 2018December 11, 2020 by Revanth Ravish NEW YORK, Feb. 15, 2018 /PRNewswire/ — Omnicom Group Inc.(NYSE: OMC) today announced that its net income for the fourth quarter of 2017 decreased $95.9 million, or 27.4%, to $254.4 million from $350.3 million in the fourth quarter of 2016. Diluted net income per common share for the fourth quarter of 2017 decreased thirty-eight cents, or 25.9%, to $1.09 per share versus $1.47 per share for the fourth quarter of 2016. In the fourth quarter of 2017, we recorded the net effect of the enactment of the “Tax Cuts and Jobs Act” (the “2017 Tax Act”), which resulted in a net increase of $106.3 million in income tax expense. As a result, net income – Omnicom Group Inc. and diluted net income per common share for the fourth quarter of 2017 was decreased by $106.3 million and forty-six centsper share, respectively. Excluding the additional net income tax expense recorded in the fourth quarter in connection with the enactment of the 2017 Tax Act, net income for the fourth quarter of 2017 increased $10.4 million, or 3.0%, to $360.7 million from $350.3 million in the fourth quarter of 2016. Excluding the impact of the 2017 Tax Act, diluted net income per common share for the fourth quarter of 2017 increased eight cents, or 5.4%, to $1.55 per share versus $1.47 per share for the fourth quarter of 2016. Omnicom’s worldwide revenue in the fourth quarter of 2017 decreased 1.5% to $4,176.6 million from $4,241.8 million in the fourth quarter of 2016. The components of the change in revenue included an increase in revenue from the positive foreign exchange rate impact of 2.4%, a decrease in acquisition revenue, net of disposition revenue of 5.5% and an increase in revenue from organic growth of 1.6% when compared to the fourth quarter of 2016. Across our regional markets, organic growth in the fourth quarter of 2017 as compared to the fourth quarter of 2016 was 8.2% in the Euro Markets and Other Europe, 6.0% in Asia Pacific and 1.9% in the Middle East and Africa, while North America decreased 0.8%, the United Kingdom decreased 0.7% and Latin America decreased 0.3%. In the fourth quarter of 2017, our CRM discipline was realigned into two separate categories: (1) CRM Consumer Experience, which includes Omnicom Precision Marketing Group’s Digital / Direct agencies as well as our Consulting & Branding agencies, Shopper Marketing agencies and our Experiential Marketing agencies; and (2) CRM Execution & Support, which includes Field Marketing, Sales Support, Merchandising & Point of Sale and other Specialized Marketing and Custom Communications agencies. We also realigned and renamed our Specialty Communications discipline Healthcare, so that it now exclusively includes agencies offering Healthcare Marketing and Communication services. Organic growth in the fourth quarter of 2017 as compared to the fourth quarter of 2016 in our fundamental disciplines was as follows: Advertising increased 1.2%, CRM Consumer Experience increased 3.4%, CRM Execution & Support also increased 3.4% and Public Relations increased 0.1%, while Healthcare decreased 1.9%. Operating profit in the fourth quarter of 2017 increased $18.2 million, or 3.0%, to $620.1 million from $601.9 million in the fourth quarter of 2016. Our operating margin for the fourth quarter of 2017 increased to 14.8% versus 14.2% for the fourth quarter of 2016. For the fourth quarter of 2017, our income tax rate was 50.2% compared to 32.5% for the same period in 2016. The year over year difference resulted from the enactment of the 2017 Tax Act, which was signed into law on December 22, 2017. The 2017 Tax Act reduced the U.S. Federal statutory tax rate from 35% to 21% effective January 1, 2018 and made several changes to existing tax law which affect our tax positions related to previously reported taxable income. As a result, we were required to record tax expense on undistributed earnings of our foreign subsidiaries and adjust our previously reported deferred tax assets and liabilities to reflect the impact of the revised statutory federal rate as of the enactment date. Income tax expense for the fourth quarter of 2017 reflects a net increase of $106.3 million related to the impact of the 2017 Tax Act. Due to the timing of the enactment of the 2017 Tax Act, our financial statements reflect provisional amounts for these items, and we expect to revise these estimates in future periods, in compliance with guidance provided in SEC Staff Accounting Bulletin 118 (“SEC SAB 118”) as further information becomes available. Full Year Net income – Omnicom Group Inc. for the twelve months ended December 31, 2017 decreased $60.2 million, or 5.2%, to $1,088.4 million from $1,148.6 million in the same period in 2016. Diluted net income per common share for the twelve months ended December 31, 2017 decreased thirteen cents, or 2.7%, to $4.65 per share compared to $4.78 per share for the twelve months ended December 31, 2016. Excluding the additional net income tax expense of $106.3 millionrecorded in the fourth quarter of 2017 in connection with the enactment of the 2017 Tax Act, net income for the twelve months ended December 31, 2017 increased $46.1 million, or 4.0%, to $1,194.7 million from $1,148.6 million in the same period in 2016. Excluding the impact of the 2017 Tax Act of forty-five cents per share, diluted net income per common share for the twelve months ended December 31, 2017 increased thirty-two cents, or 6.7%, to $5.10 per share versus $4.78 per share for the twelve months ended December 31, 2016. Worldwide revenue for the twelve months ended December 31, 2017 decreased 0.9% to $15,273.6 million from $15,416.9 million in the same period of 2016. The components of the change in revenue included an increase in revenue from the positive foreign exchange rate impact of 0.3%, a decrease in acquisition revenue, net of disposition revenue of 4.2% and an increase in revenue from organic growth of 3.0% when compared to the same period of 2016. Across our regional markets, organic growth for the twelve months ended December 31, 2017 as compared to the same period of 2016 was 0.6% in North America, 5.1% in the United Kingdom, 8.0% in the Euro Markets and Other Europe, 5.8% in Asia Pacific, 0.6% in Latin America and 12.5% in the Middle East and Africa. Organic growth for the twelve months ended December 31, 2017 compared to the same period in 2016 in our fundamental disciplines, updated for the realignment described above, was as follows: Advertising increased 3.9%, CRM Consumer Experience increased 0.8%, CRM Execution & Support increased 4.0%, Public Relations increased 0.3% and Healthcare increased 2.8%. Operating profit for the twelve months ended December 31, 2017 increased $50.8 million, or 2.5%, to $2,059.7 million compared to $2,008.9 million for the same period in 2016. Our operating margin for the twelve months ended December 31, 2017 increased to 13.5% versus 13.0% for the same period in 2016. For the twelve months ended December 31, 2017, our income tax rate was 36.9% compared to 32.6% for the same period in 2016. The year over year difference resulted from additional tax expense recognized in the fourth quarter of 2017 in connection with the enactment of the 2017 Tax Act, as detailed above. The year over year difference to our tax expense was also impacted by the adoption of FASB Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) on January 1, 2017. Income tax expense for the twelve months ended December 31, 2017 included a benefit of $20.8 million arising from a cash tax deduction on restricted stock awards that vested and stock option awards that were exercised in 2017 in excess of the book tax deduction on the amortization of these awards over the vesting period. In prior periods only the book tax deduction was reflected in income tax expense. ASU 2016-09 is required to be adopted prospectively, and prior periods have not been restated. Non-GAAP Financial Measures We use certain non-GAAP financial measures in describing our performance. Net income – Omnicom Group Inc. and diluted net income per common share excluding the impact of the 2017 Tax Act are presented in the fourth quarter and full year results above. Additionally, we use EBITA (defined as earnings before interest, taxes and amortization of intangible assets) and EBITA margin (defined as EBITA divided by revenue) as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization of intangible assets arising from acquisitions). Accordingly, we believe they are useful measures for investors to evaluate the performance of our businesses. The financial tables at the end of this document reconcile the GAAP financial measure of net income to EBITA for the periods presented. For the fourth quarter of 2017, EBITA increased $15.7 million, or 2.5%, to $647.1 million from $631.4 million in the fourth quarter of 2016. Our EBITA margin increased to 15.5% for the fourth quarter of 2017 versus 14.9% in the fourth quarter of 2016. For the twelve months ended December 31, 2017, EBITA increased 2.3%, or $49.4 million, to $2,173.5 million from $2,124.1 million for the same period in 2016. Our EBITA margin for the twelve months ended December 31, 2017 increased to 14.2% versus 13.8% for the same period in 2016. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies. Definitions – Components of Revenue Change We use certain terms in describing the components of the change in revenue above. Foreign exchange rate impact: calculated by translating the current period’s local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue. Acquisition revenue, net of disposition revenue: Acquisition revenue is calculated as if the acquisition occurred twelve months prior to the acquisition date by aggregating the comparable prior period revenue of acquisitions through the acquisition date. As a result, acquisition revenue excludes the positive or negative difference between our current period revenue subsequent to the acquisition date and the comparable prior period revenue and the positive or negative growth after the acquisition date is attributed to organic growth. Disposition revenue is calculated as if the disposition occurred twelve months prior to the disposition date by aggregating the comparable prior period revenue of disposals through the disposition date. The acquisition revenue and disposition revenue amounts are netted in the presentation above. Organic growth: calculated by subtracting the foreign exchange rate impact component and the acquisition revenue, net of disposition revenue component from total revenue growth. About Omnicom Group Inc. Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. 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 to over 5,000 clients in more than 100 countries. Follow us on Twitter for the latest news. For a live webcast or a replay of our fourth quarter earnings conference call, go to https://investor.omnicomgroup.com/investor-relations/news-events-and-filings. Omnicom Group Inc.Consolidated Statements of IncomeThree Months Ended December 31 (Unaudited)(Dollars in Millions, Except Per Share Data) 2017 2016 Revenue $ 4,176.6 $ 4,241.8 Operating Expenses: Salary and service costs 3,048.9 3,141.7 Occupancy and other costs 316.3 304.8 Costs of services 3,365.2 3,446.5 Selling, general and administrative expenses 121.5 120.8 Depreciation and amortization 69.8 72.6 3,556.5 3,639.9 Operating Profit 620.1 601.9 Interest Expense 55.3 52.2 Interest Income 11.7 12.0 Income Before Income Taxes 576.5 561.7 Income Tax Expense (a) (b) 289.5 182.7 Income From Equity Method Investments 0.8 1.4 Net Income 287.8 380.4 Net Income Attributed To Noncontrolling Interests 33.4 30.1 Net Income – Omnicom Group Inc. 254.4 350.3 Net income allocated to participating securities (0.3) (1.6) Net income available for common shares $ 254.1 $ 348.7 Net income per common share – Omnicom Group Inc. Basic $ 1.10 $ 1.47 Diluted $ 1.09 $ 1.47 Weighted average shares (in millions) Basic 231.2 236.5 Diluted 232.3 237.8 Dividend declared per common share $ 0.60 $ 0.55 (a) On December 22, 2017, the 2017 Tax Act was enacted into law. The 2017 Tax Act reduced the Federal statutory tax rate from 35% to 21% effective January 1, 2018 and made several changes to existing tax law which affect our tax assets and liabilities related to previously reported taxable income. As a result, we are required to record to tax expense, as of the enactment date, the effects of the changes to previously reported tax assets and liabilities, including deferred tax balances, undistributed earnings of foreign subsidiaries and other items. We estimated the impact to be an increase to our tax expense of $106.3 million for the three months ended December 31, 2017. We expect to revise these estimates in future periods in compliance with the guidance provided in SEC SAB 118 as further information becomes available. (b) On January 1, 2017, we adopted ASU 2016-09, which requires all additional tax benefits or deficiencies related to share-based compensation to be recognized in the results of operations on the restricted stock vesting date or on the exercise date for stock options. ASU 2016-09 is required to be adopted on a prospective basis and retroactive restatement is not permitted. As a result, income tax expense for the three months ended December 31, 2017 reflects a reduction of $1.3 million arising from a larger cash tax deduction as compared to the book tax deduction resulting from the vesting of restricted stock and stock options that were exercised in the fourth quarter of 2017. The larger tax deduction is primarily due to the increase in the intrinsic value of these awards that resulted from an increase in the price of our common stock since the grant date of the awards. Omnicom Group Inc.Non-GAAP Financial MeasuresImpact of the 2017 Tax ActThree Months Ended December 31 (Unaudited)(Dollars in Millions, Except Per Share Data) 2017 Reported Impact of Excluding 2017 2017 Tax Act 2017 Tax Act Income Before Income Taxes $ 576.5 $ — $ 576.5 Income Tax Expense 289.5 106.3 183.2 Tax Rate % 50.2 % 31.8 % Net Income – Omnicom Group Inc. $ 254.4 $ (106.3) $ 360.7 Net income allocated to participating securities (0.3) 0.1 (0.4) Net income available for common shares $ 254.1 $ (106.2) $ 360.3 Diluted net income per common share – Omnicom Group Inc. $ 1.09 $ (0.46) $ 1.55 Diluted weighted average shares (in millions) 232.3 — 232.3 The above table presents the U.S. GAAP financial measures of Income Before Income Taxes, Income Tax Expense, Net Income – Omnicom Group Inc., Net income available for common shares and Diluted net income per common share as reported, as well as the non-GAAP amounts excluding the impact of the 2017 Tax Act, for the periods presented. We believe the amounts excluding the impact of the 2017 Tax Act are useful measures for investors to understand the impact of the 2017 Tax Act on our reported results. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies. Omnicom Group Inc.Consolidated Statements of IncomeTwelve Months Ended December 31(Unaudited) (Dollars in Millions, Except Per Share Data) 2017 2016 Revenue $ 15,273.6 $ 15,416.9 Operating Expenses: Salary and service costs 11,249.7 11,440.6 Occupancy and other costs 1,232.1 1,230.6 Costs of services 12,481.8 12,671.2 Selling, general and administrative expenses 450.0 443.9 Depreciation and amortization 282.1 292.9 13,213.9 13,408.0 Operating Profit 2,059.7 2,008.9 Interest Expense 224.5 209.7 Interest Income 49.7 42.6 Income Before Income Taxes 1,884.9 1,841.8 Income Tax Expense (a) (b) 696.2 600.5 Income From Equity Method Investments 3.5 5.4 Net Income 1,192.2 1,246.7 Net Income Attributed To Noncontrolling Interests 103.8 98.1 Net Income – Omnicom Group Inc. 1,088.4 1,148.6 Net income allocated to participating securities (1.6) (6.5) Net income available for common shares $ 1,086.8 $ 1,142.1 Net income per common share – Omnicom Group Inc. Basic $ 4.68 $ 4.80 Diluted $ 4.65 $ 4.78 Weighted average shares (in millions) Basic 232.3 237.9 Diluted 233.9 239.2 Dividend declared per common share $ 2.25 $ 2.15 (a) On December 22, 2017, the 2017 Tax Act was enacted into law. The 2017 Tax Act reduced the Federal statutory tax rate from 35% to 21% effective January 1, 2018 and made several changes to existing tax law which affect our tax assets and liabilities related to previously reported taxable income. As a result, we are required to record to tax expense, as of the enactment date, the effects of the changes to previously reported tax assets and liabilities, including deferred tax balances, undistributed earnings of foreign subsidiaries and other items. We estimated the impact to be an increase to our tax expense of $106.3 million for the twelve months ended December 31, 2017. We expect to revise these estimates in future periods in compliance with the guidance provided in SEC SAB 118 as further information becomes available. (b) On January 1, 2017, we adopted ASU 2016-09, which requires all additional tax benefits or deficiencies related to share-based compensation to be recognized in the results of operations on the restricted stock vesting date or on the exercise date for stock options. ASU 2016-09 is required to be adopted on a prospective basis and retroactive restatement is not permitted. As a result, income tax expense for the twelve months ended December 31, 2017 reflects a reduction of $20.8 million arising from a larger cash tax deduction as compared to the book tax deduction resulting from the vesting of restricted stock and stock options that were exercised in 2017. The larger tax deduction is primarily due to the increase in the intrinsic value of these awards that resulted from an increase in the price of our common stock since the grant date of the awards. Omnicom Group Inc.Non-GAAP Financial MeasuresImpact of the 2017 Tax ActTwelve Months Ended December 31(Unaudited)(Dollars in Millions, Except Per Share Data) 2017 Reported Impact of Excluding 2017 2017 Tax Act 2017 Tax Act Income Before Income Taxes $ 1,884.9 $ — $ 1,884.9 Income Tax Expense 696.2 106.3 589.9 Tax Rate % 36.9 % 31.3 % Net Income – Omnicom Group Inc. $ 1,088.4 $ (106.3) $ 1,194.7 Net income allocated to participating securities (1.6) 0.2 (1.8) Net income available for common shares $ 1,086.8 $ (106.1) $ 1,192.9 Diluted net income per common share – Omnicom Group Inc. $ 4.65 $ (0.45) $ 5.10 Diluted weighted average shares (in millions) 233.9 — 233.9 The above table presents the U.S. GAAP financial measures of Income Before Income Taxes, Income Tax Expense, Net Income – Omnicom Group Inc., Net income available for common shares and Diluted net income per common share as reported, as well as the non-GAAP amounts excluding the impact of the 2017 Tax Act for the periods presented. We believe the amounts excluding the impact of the 2017 Tax Act are useful measures for investors to understand the impact of the 2017 Tax Act on our reported results. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies. Omnicom Group Inc.Reconciliation of Non-GAAP Financial MeasuresThree Months Ended December 31 (Unaudited)(Dollars in Millions) 2017 2016 Net Income – Omnicom Group Inc. $ 254.4 $ 350.3 Net Income Attributed To Noncontrolling Interests 33.4 30.1 Net Income 287.8 380.4 Income From Equity Method Investments 0.8 1.4 Income Tax Expense 289.5 182.7 Income Before Income Taxes 576.5 561.7 Interest Income 11.7 12.0 Interest Expense 55.3 52.2 Operating Profit 620.1 601.9 Add back: Amortization of intangible assets 27.0 29.5 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $ 647.1 $ 631.4 Revenue $ 4,176.6 $ 4,241.8 EBITA $ 647.1 $ 631.4 EBITA Margin – % 15.5 % 14.9 % The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA (defined as earnings before interest, taxes and amortization of intangibles) and EBITA Margin (defined as EBITA divided by revenue) for the periods presented. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization of intangible assets arising from acquisitions). Accordingly, we believe they are useful measures for investors to evaluate the performance of our businesses. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies. Omnicom Group Inc.Reconciliation of Non-GAAP Financial MeasuresTwelve Months Ended December 31(Unaudited)(Dollars in Millions) 2017 2016 Net Income – Omnicom Group Inc. $ 1,088.4 $ 1,148.6 Net Income Attributed To Noncontrolling Interests 103.8 98.1 Net Income 1,192.2 1,246.7 Income From Equity Method Investments 3.5 5.4 Income Tax Expense 696.2 600.5 Income Before Income Taxes 1,884.9 1,841.8 Interest Income 49.7 42.6 Interest Expense 224.5 209.7 Operating Profit 2,059.7 2,008.9 Add back: Amortization of intangible assets 113.8 115.2 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $ 2,173.5 $ 2,124.1 Revenue $ 15,273.6 $ 15,416.9 EBITA $ 2,173.5 $ 2,124.1 EBITA Margin – % 14.2 % 13.8 % The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA (defined as earnings before interest, taxes and amortization of intangibles) and EBITA Margin (defined as EBITA divided by revenue) for the periods presented. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization of intangible assets arising from acquisitions). Accordingly, we believe they are useful measures for investors to evaluate the performance of our businesses. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies. View original content:https://www.prnewswire.com/news-releases/omnicom-group-reports-fourth-quarter-and-full-year-2017-results-300599133.html SOURCE Omnicom Group Investor Relations: Shub Mukherjee, 212-415-3011, [email protected]; Media: Joanne Trout, 212-415-3669, [email protected]
Omnicom Names Torrey La Grange Chief Talent Officer Posted on February 13, 2018December 11, 2020 by Revanth Ravish NEW YORK, Feb. 13, 2018 /PRNewswire/ — Omnicom (NYSE: OMC) announced today the appointment of Torrey La Grange to the newly created position of Chief Talent Officer of its Global Client Leaders (GCL) group. The GCL group is comprised of client leaders responsible for overseeing Omnicom’s top global accounts. Underscoring the company’s ongoing investment in talent and connected client solutions, Torrey will be working closely with each of the leaders to further shape and support their role by expanding development programs, talent sharing platforms, recruiting strategies and more. Peter Sherman, EVP of Omnicom said: “Having lived on the front lines of account leadership and talent recruitment, Torrey has gained a deep understanding of both areas in the context of creative cultures. She embodies Omnicom’s commitment to talent at every level and will be applying that commitment directly to the Client Leaders group.” Torrey commented, “At a time when our industry is seeing so much change, I’m thrilled to bring my experience to an organization that believes that a continued focus on world-class creativity and talent development will drive business success.” Torrey was most recently Head of Account Management and Global Business Director at BBH New York where she managed global teams in New York, India, Singapore, and South Africa, with oversight into client relationships, strategic insight, and creative. She joined BBH after three years as a recruiter at Tangerine where she developed relationships with talent on both the agency and client side of the business. Previously, Torrey served as Account Director at JWT and Business Director at Saatchi & Saatchi London. Torrey began her career at agencies including Publicis Seattle, Secret Weapon Marketing, and TBWA\Chiat\Day, where she worked on building the first ever website for Nissan. ABOUT OMNICOM GROUP INC. Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. 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 to over 5,000 clients in more than 100 countries. Follow us on Twitter for the latest news. View original content:https://www.prnewswire.com/news-releases/omnicom-names-torrey-la-grange-chief-talent-officer-300597512.html SOURCE Omnicom GroupJoanne Trout, 212-415-3669, [email protected]
BBDO Worldwide Tops Gunn Report As The World’s Most Creative Agency Network For 12th Year In A Row Posted on February 12, 2018December 11, 2020 by Revanth Ravish Almap BBDO and BBDO New York Ranked as #1 and #2 Agencies in the WorldFour of the Top Five Campaigns in the World Created by BBDO Agencies NEW YORK, Feb. 12, 2018 /PRNewswire/ — For the 12th year in a row, BBDO Worldwide has topped the Gunn Report as the most creative agency network in the world. The Gunn Report is a global index of creative excellence, based on results from the most important global, regional and national award competitions of the year. In addition, four BBDO agencies were ranked among the world’s top ten individual agencies, with Almap BBDO and BBDO New York taking the #1 and #2 slots, respectively. Clemenger BBDO Melbourne ranked #7; and Colenso BBDO, New Zealand, ranked #10. A total of 36 BBDO agencies from 25 countries across every region contributed to this year’s ranking. This year’s Gunn Report includes the inaugural Gunn 100, a ranking of the 100 best creative ideas in the world, regardless of communication discipline (in the past, campaigns were ranked by category, such as Print, Film and All Gunns Blazing), as well as a ranking of the top 50 agencies, networks, brands, advertisers, countries and top holding companies. Four of the top five campaigns in the Gunn 100 were created by BBDO agencies, including “Meet Graham” from Clemenger BBDO Melbourne for Transport Accident Commission (#1), “Child Replacement Programme” from Colenso BBDO for Pedigree (#3), “Evan” from BBDO New York for Sandy Hook Promise (#4), and “Endless Possibilities” from Almap BBDO for Getty Images (#5). “Gunn 100 is a way for agencies to benchmark themselves versus one another in the most important area – creativity. That’s why these rankings matter,” said Emma Wilkie, Managing Director of the Gunn Report. “To be ranked #1 is a testament to an agency’s creative capabilities. After all, Gunn is based on the very best and most competitive award shows in the industry. For BBDO to be ranked #1 year after year is not only an indication of the network’s ability to deliver on its mantra of ‘The Work,’ but also to do it consistently, while evolving to reflect the new world of content creation.” Winning the Gunn comes on the heels of BBDO being named the most awarded agency network across all marketing communication disciplines in The Drum Big Won Rankings, where BBDO agencies were also ranked among the top three in the world (Clemenger BBDO Melbourne #1, Almap BBDO #2 and BBDO New York #3). Andrew Robertson, President and CEO, BBDO Worldwide, said, “We know that award-winning work works better in the marketplace, so topping Gunn and The Big Won matters.” He added, “When we say we’re focused on The Work. The Work. The Work, we mean it: winning Gunn for 12 years in a row proves it.” In addition to BBDO, BBDO’s parent company, Omnicom Group, was ranked the #1 holding company in the world. Further details regarding The Gunn Report can be found: https://www.warc.com/gunnreport/ BBDO Worldwide is part of Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com), a leading global marketing and corporate communications company. View original content with multimedia:https://www.prnewswire.com/news-releases/bbdo-worldwide-tops-gunn-report-as-the-worlds-most-creative-agency-network-for-12th-year-in-a-row-300596684.html SOURCE BBDO WorldwideHarriet Flory, 1 917 704 9413, [email protected]
Omnicom Group Names Wendy Clark Global President and CEO of DDB Worldwide; Chuck Brymer Transitions to Chairman Role Posted on February 7, 2018December 11, 2020 by Revanth Ravish NEW YORK, Feb. 7, 2018 —Omnicom Group Inc. (NYSE: OMC) President and CEO John Wren announced the appointment of Wendy Clark as President and CEO of DDB Worldwide. Clark succeeds Chuck Brymer who will assume the title of Chairman. Both roles are effective immediately. “After 12 terrific years as the head of DDB, I am excited to hand the baton to Wendy,” said Chuck Brymer, Chairman, DDB Worldwide. “She is passionate about our business and clients, and has proven to be an inspiring leader for our company. I look forward to helping Wendy continue to foster an environment where our people can do their best work.” Under Clark’s leadership as CEO of DDB North America, the agency has grown by enhancing existing relationships such as State Farm, Mars, and Johnson & Johnson, as well as a strong new business track record. Most notably, Clark was instrumental in winning the consolidated US creative account for McDonald’s in 2016 that led to the formation of a dedicated agency unit, We Are Unlimited. In addition to leading her approximately 2,000-plus team across 17 offices, Clark launched “DDB Flex” – an operating model that creates bespoke, cross-agency, integrated teams based on clients’ businesses. On the talent front, Clark has pushed gender and diversity boundaries with the introduction of initiatives such as “Talent Has No Gender” and unconscious bias training. In 2017, Ad Age named Clark “Executive of the Year” based on her professional success over a 12-month period. Commenting on her new position, Clark said, “I’ve loved every minute of the last two years with our DDB North America team and clients creating the resurgence of this majestic, important agency. To now have the opportunity to follow Chuck’s legacy of leadership and work with our global teams and clients is both humbling and exciting.” In his new role of Chairman, Brymer will continue to serve the company while taking on added responsibilities within Omnicom. John Wren, President and CEO of Omnicom, added: “During his tenure as CEO of DDB, Chuck has successfully grown DDB as not only one of the most creative agencies in the advertising industry but also a leading network for CRM, retail activation, branding, and digital services around the globe.” He continued, “At Omnicom, we recognize the importance of succession planning, and Chuck and I knew that Wendy would be the right person to take the helm of DDB. Her experience leading DDB North America coupled with her expertise as a leading marketer makes this a seamless leadership transition that will build upon DDB’s capabilities and reputation as a leader in the business.” Clark joined the agency in 2016, from Coca-Cola North America, where she was President, Sparkling Brands and Strategic Marketing. Previously, she served as Senior Vice President, Global Sparkling Brand Center, where she was responsible for the global leadership of all Coca-Cola’s Sparkling brands. Before joining Coca-Cola in 2008, she was Senior Vice President, Advertising for AT&T. In 2017 DDB Worldwide took home Network of the Year at Eurobest for the fifth consecutive year, and adam&eveDDB was named Agency of the Year at multiple awards shows, among other recognitions. The Network was awarded nearly 100 Cannes Lions and won the business of a number of new clients including EA Sports, Puma, IKEA, Kellogg’s, State Farm, and Virgin Air to name a few. In addition, DDB Worldwide launched the Phyllis Project in 2017, which recognizes the global network’s incredible female creative leaders and helps to progress their careers, further cementing the agency’s commitment to finding and fostering the best talent in the industry. ### ABOUT DDB WORLDWIDE DDB Worldwide (www.ddb.com) is one of the world’s largest and most influential advertising and marketing networks. DDB has been named Agency of the Year numerous times by the Cannes International Festival of Creativity and the industry’s leading advertising publications and awards shows. The Gunn Report has listed DDB as one of the Top 3 Global Networks for 12 of the last 15 years. The agency’s clients include Volkswagen, McDonald’s, Unilever, Mars, Johnson & Johnson, and Exxon Mobil, among others. Founded in 1949, DDB is part of the Omnicom Group (NYSE) and consists of more than 200 offices in over 100 countries with its flagship office in New York, NY. ABOUT OMNICOM GROUP INC. Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. 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 to over 5,000 clients in more than 100 countries. Follow us on Twitter for the latest news. ### PRESS CONTACTS: Omnicom Joanne Trout212-415-3669[email protected] DDB Christie Giera212-415-2186[email protected]
Omnicom Health Group Acquires Snow Companies Posted on February 6, 2018December 11, 2020 by Revanth Ravish NEW YORK, February 6, 2018— Omnicom Health Group, the largest healthcare marketing and communications group in the world, and part of Omnicom Group Inc. (NYSE: OMC), announced today that it has acquired Snow Companies, a full-service patient engagement agency that focuses on direct-to-patient (DTP) communications, marketing, education, and patient research initiatives for major pharmaceutical and biotech companies around the world. Established in 2001 in Williamsburg, Virginia, Snow Companies works in over 80 disease states and therapeutic areas. Through its trademarked Patient Ambassador® model, Snow has helped tens of thousands of patients tell their personal health stories and has inspired millions of people living with diseases and health conditions to become empowered patients. The agency was founded by Brenda Snow, whose personal experiences became the impetus for starting a communications company with the primary goal of giving a voice to patients. Snow, who is CEO, together with co-owner and COO, Corbin Wood, will continue to lead the agency as part of Omnicom Health Group. “More and more of our clients realize the importance of a patient-first philosophy. But patient centricity isn’t a belief, it’s a practice,” said Ed Wise, CEO, Omnicom Health Group. “Snow Companies has created the best practice in patient leadership and storytelling and we are thrilled to bring their expertise and talent to our clients.” “We are honored to align with a strategic partner who cares as much about patients as we do,” said Brenda Snow. “We have worked with many of the companies at Omnicom Health Group for years, and are looking forward to working more closely with them to bring even more value to our clients.” “This combination was driven by a strong strategic and cultural fit that will allow Snow Companies and Omnicom Health Group to grow and fortify our commitment to patients,” added Corbin Wood. ABOUT OMNICOM HEALTH GROUP Omnicom Health Group (https://www.omnicomhealthgroup.com/ is a global collective of communications companies with more than 3,200 dedicated healthcare communications specialists. It provides marketing services to the health and life-science industries through a combination of specialized agencies, customized client solutions, and collaborations with other Omnicom network agencies. Organized around four customer groups—healthcare professionals, patients, payers, and medical, evidence and regulatory stakeholders—Omnicom Health Group serves more than 100 clients in over 55 offices worldwide. Omnicom Health Group is part of the DAS Group of Companies, a division of Omnicom Group Inc., and a global group of marketing services companies with over 200 companies in the following marketing disciplines: healthcare, public relations, customer relationship management, events, promotional marketing, branding, research and advertising. ABOUT SNOW COMPANIES Snow Companies, established in 2001 in Williamsburg, Virginia, is a global leader in patient storytelling. Snow Companies was the first in the industry to bring strategic, regulatory-compliant, real-life patient stories to direct-to-patient initiatives. As a full-service agency, Snow Companies is ranked among the nation’s leading companies, winning awards such as MM&M’s Top 100 agencies and Inc. Magazine’s fastest growing private companies (46th in the health industry, 627th overall). ABOUT OMNICOM GROUP INC. Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company. 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 to over 5,000 clients in more than 100 countries. Follow us on Twitter for the latest news. Press Contacts Joanne Trout, 212-415-3669, [email protected] Oliver Portmann, 757-903-1140, [email protected]
BBDO Tops The Drum’s Big Won Rankings as The Most Awarded Agency Network in The World Across All Marketing Communications Posted on February 1, 2018December 11, 2020 by Revanth Ravish NEW YORK, FEBRUARY 1, 2018 — BBDO Worldwide has topped The Drum’s Big Won Rankings as the world’s most awarded agency network across all marketing communication disciplines. This is the 13th time in 14 years that BBDO has earned this recognition, and caps a year in which BBDO has been named Global Advertising Agency Network of the Year by Campaign magazine, at the Cannes Lions Festival, and in The Gunn Report. The Drum’s Big Won Rankings analyzes the most successful creatives and companies working in advertising according to the industry’s top global award shows. This year’s report was based on more than 4,500 pieces of work submitted by close to 2,000 agencies from around the world. Gordon Young, editor in chief of The Drum, noted, “Once again BBDO as a network has proven itself a creative force to be reckoned with having more coveted industry awards than anyone else over the last year.” Individual BBDO agencies dominated this year’s Big Won agency rankings with five of the world’s top ten agencies, including the top three: Clemenger BBDO Melbourne (#1), Almap BBDO (#2) and BBDO New York (#3). Other top ten BBDO agencies were Colenso BBDO, Auckland (#6) and Impact BBDO Dubai (#8). A Clemenger BBDO Melbourne campaign for Transport Accident Commission (“Meet Graham”) was the most awarded campaign in the world. Four other BBDO campaigns were featured in the top 15: “Hungerithm,” also from Clemenger BBDO Melbourne for Snickers (#5); “Evan” from BBDO New York for Sandy Hook Promise (#6); “The Hearing Test in Disguise” from CHE Proximity in Australia for Cochlea (#11) and “Nosferatu” from Almap BBDO for Getty Images (#12). Andrew Robertson, President and CEO, BBDO Worldwide, commented, “Our goal is to create and deliver the world’s most compelling content across all forms and platforms. Data proves that award-winning work works better. So topping The Drum’s Big Won matters.” He continued, “To do so once is good. To do so 13 times is proof of the depth and breadth of our talent base.” BBDO’s parent company, Omnicom Group, was ranked the #1 holding company in the world. Further details regarding The Drum’s Big Won Rankings can be found at https://www.thedrum.com/news/2018/02/01/which-agencies-creatives-won-the-most-awards-globally-advertising-during-2017-the ABOUT BBDO BBDO’s mantra is “The Work. The Work. The Work.” Every day, BBDO people in 289 offices in 81 countries work day by day, job by job and client by client to create and deliver the world’s most compelling commercial content BBDO Worldwide is part of Omnicom Group Inc. (NYSE-OMC) (www.omnicomgroup.com), a leading global marketing and corporate communications company.