Month: February 2019

Advertising legend, TBWA Global Director of Media Arts, and Chairman and founder of TBWA\Media Arts Lab honored with “Chairman Emeritus” title, and a love-filled celebration on Valentine’s Day.Clow announces retirement in a love note–to the ad industry, and to the company he spent his life working for. 

LOS ANGELES, Feb. 14, 2019 /PRNewswire/ — “Think Different (Here’s to the Crazy Ones).” “Dogs Rule.” “Yo quiero Taco Bell.” “Keeps Going and Going.” “Impossible Is Nothing.” “That’s G.” Lee Clow, the visionary creative who touched the hearts of consumers and revitalized brands with iconic advertising campaigns, is retiring.

The Global Director of Media Arts at worldwide advertising collective TBWA, and founder and Chairman of TBWA\Media Arts Lab, will move into an advisory role as Chairman Emeritus of the agency he founded in 2006 to serve Apple and to embody his vision of an agency that impacts culture, rather than just “makes ads.”

“The years I spent doing this thing called ‘advertising’ have been fun: challenging, rewarding, maddening—sometimes painful—but mostly, joyful. And I wouldn’t trade a day of it.” Clow—an original Chiat\Day partner and one-time TBWA\Worldwide Chairman—mused, in his “Love Note to Advertising,” released today.

Clow continues to work on a personal film project that tells the story behind some of the most famous and culture-altering advertising in history, recalling his 50 years at Chiat\Day—the people, the work—and retelling how they did it.

He will also remain involved in the agency’s social-impact group, For Good, based in Los Angeles, where he will advise on select projects for clients who share his commitment to the planet and the people (and animals) who inhabit it.

“Don’t do the right thing,” he challenged the agency, the advertising world, and clients, on TBWA\Chiat\Day’s 50th anniversary in 2018. “Do the brave thing. Do the thing that doesn’t just defy the status quo, but reshapes it, forever.”

Clow actually announced his retirement to the agency, alumni and close friends in October 2018, at a party on Jay Chiat’s birthday, part of the year-long “Chiat\Day 50” celebration. His decision to formally share the news with the industry on Valentine’s Day is a nod to Jay Chiat’s unconventional custom of sending Valentine’s Day cards to staff, colleagues and clients, instead of the expected, “Season’s Greetings,” typically dispatched during December holidays.

Clow’s career, that started at Chiat\Day in LA, spans five decades. It tells a story of “doing the brave thing,” with disruptive campaigns that epitomized “California cool.” He took Chiat\Day’s creatively audacious style of advertising global when he helped lead the successful merger with TBWA, crystallizing the agency’s reputation as the destination for creative professionals who want to do groundbreaking, iconic work.

“Lee will always be our creative conscience,” said Troy Ruhanen, President and CEO, TBWA\Worldwide. “He has given so much to our company and to our industry.  His challenge to us, to do the brave thing, to Disrupt, will continue to be our North Star. We all love you, Lee.”

“Lee is one of the most talented and visionary leaders in our industry,” said Chairman and CEO of Omnicom Group, John Wren. “Over the past five decades, he has built a foundation of creative excellence for the TBWA network that has distinguished the agency among its peers. On behalf of the Omnicom family, I would like to thank Lee for his invaluable leadership and significant contributions to our group.”

There’s perhaps no better example of Clow’s impact on the industry than his 30-plus-year partnership with Apple. From the launch of Macintosh in 1984, to the now-famous “Think Different (Here’s to the Crazy Ones)” campaign that launched the rebirth of Apple in 1997. During the past two decades he helped orchestrate Apple’s moves, into music with iPod and iTunes with the celebrated “Silhouettes” campaign, into phones with the category-redefining iPhone and then, creating the “campaign of the decade,” “Get a Mac (Mac versus PC).” Then, he helped Apple forge a whole new category with iPad. Most recently, Clow led the creative teams that launched Apple Music into the world, and worked on the introduction of Apple Watch.

Tim Cook, CEO of Apple, added: “During his long partnership with Steve and Apple, Lee told powerful visual stories that elevated new technologies with the passion, creativity and ingenuity that define our own humanity. He helped Apple carry itself through times of challenge, and his work inspired audiences to look beyond the horizon as an exciting future came into view. Lee’s body of work over five decades hums with cleverness, warmth and enthusiasm—and there is no doubt that it will inspire and motivate generations of ‘Crazy Ones’ still to come.”

In 2018, Adweek named TBWA its “Global Agency of the Year,” recognizing its strong global relationship with Apple—one of the industry’s longest-running, and most prolific, creative partnerships. 

The agency will continue to serve Apple around the world—led by Global President of TBWA\Media Arts Lab, Katrien De Bauw, and by Global Chief Creative Officer, Brent Anderson—and to set global creative standards. In 2018, Media Arts Lab won 64 awards: for the launch of HomePod, with its Cannes Lions Grand Prix-winning film, “Welcome Home”; for the evolution of its “Shot on iPhone” campaign into long-form content across the globe (notably, the film, “Three Minutes,” in China), and into social media, with @apple; and for its “Behind the Mac” campaign (including an animated short for Apple’s holiday campaign called, “Share Your Gifts”).

“In constantly pushing ourselves to reach the creative standard he set, we are better than we ever could imagine being,” said Brent Anderson, adding that, “So we’ll do just as he always asked us to do: ‘Make it smart. Make it beautiful. And have fun.'”

Clow often credits his artful, freethinking, creative style to his California roots. To celebrate his outstanding contributions to the creative community, and his love for his hometown, the agency has established a scholarship at the College of the Arts—School of Art at Clow’s alma mater, California State University Long Beach (CSULB). Additionally, all proceeds from his film project will go into a college fund previously established in Clow’s and Chiat’s names at Art Center College of Design, which was created to assist low- and middle-income students with tuition fees and costs.

Also, TBWA agencies in Los Angeles will continue to honor Clow’s impact on the Southern California creative community by partnering with Turnaround Arts: California, a national, public-private partnership that leverages the arts to spark transformation in the state’s highest-need schools. Agency leaders and staff will work with Turnaround Arts educators on programs that will bolster the creative skills of teachers and students, including hosting workshops focused on graphic design, coding and creative problem-solving.

Clow is a member of the One Club Hall of Fame, the Art Directors Club Hall of Fame and the Museum of Modern Art’s Advertising Hall of Fame, and has been honored by the Clios with a Lifetime Achievement Award, and by Cannes Lions with the Lion of St. Mark. Clow was also inducted into the American Advertising Federation’s Hall of Fame and the American Marketing Association’s Hall of Fame.

About TBWA\WorldwideTBWA is The Disruption® Company: the cultural engine for 21st century business. Named Adweek‘s 2018 Global Agency of the Year, we create disruptive ideas that locate and involve brands in culture, giving them a larger share of the future. Our collective has 11,300 creative minds across 275 offices in 95 countries, and also includes brands such as AUDITOIRE, Digital Arts Network (DAN), eg+ worldwide, GMR, The Integer Group®, TBWA\Media Arts Lab, TBWA\WorldHealth and TRO. Global clients include adidas, Apple, Gatorade, Henkel, Hilton Hotels, McDonald’s, Michelin, Nissan, and Singapore Airlines. Follow us onTwitter,LinkedIn andInstagram, and like us onFacebook.

About Omnicom Group Inc.Omnicom Group Inc. OMC,-0.78%(https://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.

SOURCE TBWA\Worldwide

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NEW YORK, Feb. 12, 2019 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the fourth quarter of 2018 increased $144.8 million, or 56.9%, to $399.2 million from $254.4 million in the fourth quarter of 2017.  Diluted net income per common share for the fourth quarter of 2018 increased sixty-eight cents, or 62.4%, to $1.77 per share versus $1.09 per share for the fourth quarter of 2017. In the fourth quarter of 2017, we increased income tax expense to record the net effect of the enactment of  the “Tax Cuts and Jobs Act” (the “2017 Tax Act”), which resulted in a net decrease to net income – Omnicom Group Inc. and diluted net income per common share of $106.3 million and forty-six cents per share, respectively.

Omnicom’s worldwide revenue in the fourth quarter of 2018 decreased 2.2% to $4,086.7 million from $4,176.6 million in the fourth quarter of 2017. The components of the change in revenue included a decrease in revenue from the negative foreign exchange rate impact of 2.0%, a decrease in acquisition revenue, net of disposition revenue of 2.4% and an increase in revenue from organic growth of 3.2% when compared to the fourth quarter of 2017.  In addition, effective January 1, 2018, we adopted FASB Accounting Standards Codification Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). We elected to adopt ASC 606 applying the modified retrospective method.  The effect on revenue in the fourth quarter of 2018 from adopting ASC 606 when compared to the fourth quarter of 2017 was a decrease in revenue of 0.9%.

Organic growth in the fourth quarter of 2018 as compared to the fourth quarter of 2017 in our five fundamental disciplines was as follows: Advertising increased 4.4%, CRM Consumer Experience increased 4.2%, CRM Execution & Support decreased 3.7%,  Public Relations increased 1.5% and Healthcare increased 7.6%.

Across our regional markets, organic growth in the fourth quarter of 2018 as compared to the fourth quarter of 2017 was: 2.6% in the United States, 1.3% for Other North America, 2.4% in the United Kingdom,  5.7% for the Euro Markets and Other Europe, 2.9% for Asia Pacific, 1.0% for Latin America and 4.2% for the Middle East and Africa.

Operating profit in the fourth quarter of 2018 increased $0.7 million, or 0.1%, to $627.2 million from $626.5 million in the fourth quarter of 2017. Our operating margin for the fourth quarter of 2018 increased to 15.3% versus 15.0% for the fourth quarter of 2017.  The impact from adopting ASC 606 increased operating profit by $3.8 million during the fourth quarter of 2018.

For the fourth quarter of 2018, our effective income tax rate was 26.1% compared to 50.2% for the same period in 2017. The year over year difference in our effective tax rate primarily resulted from the enactment of the 2017 Tax Act, which reduced the U.S. Federal statutory tax rate from 35% to 21%.  In addition, in the fourth quarter of 2017 we included a net increase to income tax expense of $106.3 million related to the impact of the 2017 Tax Act on undistributed earnings of foreign subsidiaries and our previously reported deferred tax assets and liabilities.

Full Year

Net income – Omnicom Group Inc. for the twelve months ended December 31, 2018 increased $238.0 million, or 21.9%, to $1,326.4 million from $1,088.4 million in the same period in 2017. Diluted net income per common share for the twelve months ended December 31, 2018 increased $1.18, or 25.4%, to $5.83 per share compared to $4.65 per share for the twelve months ended December 31, 2017.  Net income – Omnicom Group Inc. and diluted earnings per common share for the twelve months ended December 31, 2018  includes a net after tax increase of $18.2 million and eight cents per share, respectively, as a result of a net gain recognized on dispositions of certain subsidiaries, partially offset by expenses in connection with certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all of which were recorded in the third quarter of 2018 and discussed further below. For the twelve months ended December 31, 2017, we increased income tax expense to record the net effect of the  enactment of the 2017 Tax Act, as discussed above, which resulted in a net decrease to net income – Omnicom Group Inc. and diluted net income per common share of $106.3 million and forty-five cents per share, respectively.

Worldwide revenue for the twelve months ended December 31, 2018 increased 0.1% to $15,290.2 million from $15,273.6 million in the same period of 2017.  The components of the change in revenue included an increase in revenue from the positive  foreign exchange rate impact of 0.6%, a decrease in acquisition revenue, net of disposition revenue of 2.1% and an increase in revenue from organic growth of 2.6% when compared to the same period of 2017.  The effect on revenue for the twelve months ended December 31, 2018 from adopting ASC 606 when compared to the same period of 2017 was a decrease in revenue of 1.0%.

Organic growth for the twelve months ended December 31, 2018 compared to the same period in 2017 in our five fundamental disciplines was as follows: Advertising increased 2.9%, CRM Consumer Experience increased 5.9%, CRM Execution & Support decreased 2.7%, Public Relations increased 1.8% and Healthcare increased 4.5%.

Across our regional markets, organic growth for the twelve months ended December 31, 2018 as compared to the same period of 2017 was 0.7% in the United States, 0.7% in the United Kingdom,  8.2% in the Euro Markets and Other Europe, 7.9% in Asia Pacific and 2.0% in Latin America, while Other North America decreased 3.9% and the Middle East and Africa decreased 2.9%.

Operating profit for the twelve months ended December 31, 2018 increased $49.7 million, or 2.4%, to $2,133.5 million compared to $2,083.8 million for the same period in 2017.  Our operating margin for the twelve months ended December 31, 2018 increased to 14.0% versus 13.6% for the same period in 2017.  The impact from adopting ASC 606 reduced operating profit by $6.6 million for the twelve months ended December 31, 2018.

Operating profit for the twelve months ended December 31, 2018 reflects a net pre-tax increase of $29.0 million recorded in the third quarter of 2018 from the net gain on dispositions of certain subsidiaries of $178.4 million, which arose primarily from the sale of Sellbytel, our European-based outsourced sales, service and support business, partially offset by expenses of $149.4 million in connection with repositioning actions related to the continuing improvement of the strategic position and operating efficiencies of our businesses.

Excluding the impact of the items discussed above, operating profit for the twelve months ended December 31, 2018 increased $20.7 million, or 1.0%, to $2,104.5 million from $2,083.8 million for the same period in 2017, while operating margin for the twelve months ended December 31, 2018 increased to 13.8% versus 13.6% for the same period of 2017.

For the twelve months ended December 31, 2018, our effective income tax rate was 25.6% compared to 36.9% for the same period in 2017. The year over year difference in our effective tax rate primarily resulted from the enactment of the 2017 Tax Act, as described above.  Income tax expense for the twelve months ended December 31, 2018 was also reduced due to: (a) the successful resolution of foreign tax claims during the first quarter of 2018 and (b) the impact of a lower tax rate on the net gain on dispositions of subsidiaries in the third quarter of 2018, partially offset by (c) an increase in income tax expense related to the finalization of the provisional estimate of the effect of the 2017 Tax Act made during the third quarter of 2018.

Non-GAAP Financial Measures

We use certain non-GAAP financial measures in describing our performance. Non-GAAP 2018 Adjusted results, including Adjusted Operating Profit, Adjusted Income Tax Expense and Adjusted Net Income – Omnicom Group Inc., exclude the impact of the net gain recognized on dispositions of certain subsidiaries, expenses in connection with certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all of which were recorded in the third quarter of 2018 and are presented in the full year results presented above and in the tables in this release. We believe that the Non-GAAP 2018 Adjusted results are useful measures for investors to understand the impact these actions had 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.

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, excluding the impact of the adoption of ASC 606.

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.

NEW YORK, Feb. 11, 2019 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) increased the corporation’s quarterly cash dividend to $0.65 per common share, or $2.60 per share of common stock on an annual basis. This represents an 8.3% increase versus the prior quarterly dividend of $0.60 per share, or $2.40 on an annual basis. The increased dividend is payable on April 9, 2019 to Omnicom Group common shareholders of record at the close of business on March 11, 2019.

 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. 

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 SOURCE Omnicom Group Inc.

Named the most awarded global agency network across all marketing communications. BBDO New York is ranked the world’s top agency.

NEW YORK, Feb. 7, 2019 – For the second year in a row, BBDO Worldwide has topped The Drum’s Big Won Rankings as the world’s most awarded agency network across all marketing communication disciplines.  The 2018 Rankings were based on submissions involving more than 3,600 pieces of work from 1,721 agencies around the world.  The top agency spot went to BBDO New York.  It’s the second year running that an individual BBDO agency has ranked number one.

In all, five BBDO agencies finished among the top 20 most creative agencies.  In addition to BBDO New York, CHE Proximity in Melbourne was ranked #9, AMVBBDO London was #12, EnergyBBDO Chicago was #15 and AlmapBBDO Brazil was #18.

BBDO’s performance was driven by multiple campaigns from agencies around the world, which were among the Top 20 most celebrated campaigns of the year.  These included “Prescribed to Death,” created by EnergyBBDO for the National Safety Council (#6); “The Talk” from BBDO New York for Procter & Gamble (#7); “Live Looper” from BBDO New York for Downtown Record’s The Academic (#9); and “Trash Isles” from AMVBBDO (#13) for LADbible/The Plastic Ocean’s Foundation.

Gordon Young, editor in chief of The Drum, commented, “The Drum’s Big Won Rankings are intended to point out advertising’s most successful companies and creatives.  And once again, BBDO has proven itself to be a creative force, with multiple agencies from multiple regions contributing multiple campaigns for multiple clients to these results.  We congratulate BBDO on this achievement.”

Added David Lubars, Chief Creative Officer, BBDO Worldwide, “We think of ourselves as a global boutique.  In other words, quick, nimble, innovative and collaborative, rather than a big stupid agency.  Operating this way, combined with our size and discipline, makes us unique, makes us a company that reaches a high creative and business plane year after year.  Which is why I am especially proud that BBDO has topped The Drum Big Won Network rankings for the second year in a row.”

David Lubars, in fact, was ranked the most awarded Chief Creative Officer in the World, followed by Greg Hahn, the Chief Creative Officer of BBDO New York.  Andres Ordonez, CCO of EnergyBBDO Chicago, and Ant White, CCO of CHE Proximity, were also among the Top 20 (at #17 and #18, respectively).  Five other BBDOers were ranked among the top Executive Creative Directors in the world.

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 here.

In 2017, The Drum acquired The Directory Big Won Rankings, an annual listing of the most awarded campaigns, people and countries.  The Big Won was launched in 2003 and, over the years, evolved to cover all forms of marketing communications including direct marketing, advertising, and promotional and above the line work, as well as digital.  During this time, BBDO topped The Directory Big Won as the most awarded agency network in the world a record 12 times.

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.

SOURCE BBDO Worldwide

NEW YORK, Feb. 7, 2019 /PRNewswire/ — Omnicom Group (NYSE: OMC) will publish its fourth quarter and full year 2018 results on Tuesday, February 12, 2019.  The company will host a conference call to review fourth quarter and full year 2018 results on Tuesday, February 12, 2019 at 8:30 AM (ET).  The dial-in numbers for the conference call are (800) 230-1059 (domestic) and (612) 234-9960 (international).  In addition, the conference call will be simulcast and archived at https://investor.omnicomgroup.com/investor-relations/news-events-and-filings.

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 to download multimedia:https://www.prnewswire.com/news-releases/omnicom-group-schedules-fourth-quarter-and-full-year–2018-earnings-release-and-conference-call-300791820.html

SOURCE Omnicom Group