Omnicom Group Reports First Quarter 2022 Results Posted on April 19, 2022April 20, 2022 by Amanda Granath Revenue of $3,410.3 million decreased 0.5%, with organic growth of 11.9% Charges arising from the effects of the war in Ukraine of $113.4 million included in Operating Profit Operating profit of $353.0 million, $466.4 million Non-GAAP adjusted Operating profit margin of 10.4%, 13.7% Non-GAAP adjusted Diluted earnings per share of $0.83, $1.39 Non-GAAP adjusted Stock repurchases of $300.3 million NEW YORK, April 19, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter ended March 31, 2022. “Our strong momentum continued in the first quarter with 11.9% organic revenue growth, reflecting our persistent focus on achieving better outcomes for our clients across all our business disciplines,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “We continued to invest in areas important to our clients’ growth, continued to make acquisitions in strategic areas of growth, and repurchased a significant amount of our shares. Despite uniquely challenging global events, we remain confident that our high-quality and diverse portfolio positions us strongly for future growth, both in 2022 and beyond.” $ in millions, except per share amounts Three Months Ended Ended March 31 Reported 2022 Non-GAAP Adjustments Non-GAAP 2022 Adjusted Reported 2021 Revenue $ 3,410.3 $ – $ 3,410.3 $ 3,426.9 Operating Profit 1 353.0 113.4 466.4 465.4 Operating Profit Margin 10.4% 13.7% 13.6% Net Income 2 173.8 118.2 292.0 287.8 Net Income per Share – Diluted 2 $ 0.83 $ 0.56 $ 1.39 $ 1.33 EBITA 3 372.4 113.4 485.8 485.3 EBITA Margin 3 10.9% 14.2% 14.2% Notes: 1) Operating Profit and margin for the three months ended March 31, 2022 include $113.4 million related to charges arising from the effects of the war in Ukraine; 2) Net Income and Net Income per Share are for Omnicom Group Inc. and include $118.2 million related to charges incurred in connection with the effects of the war in Ukraine; 3) See Reconciliation of Non-GAAP Financial Measures. First Quarter 2022 Results Revenues Our worldwide revenue in the first quarter of 2022 continued to improve from the negative effects of the COVID-19 pandemic. Revenue decreased 0.5% to $3,410.3 million from $3,426.9 million in the first quarter of 2021. The components of the change in revenue included a decrease in revenue from the negative impact of foreign currency translation of 2.5%, a decrease in acquisition revenue, net of disposition revenue, of 9.9% principally in the Advertising & Media discipline in the United States, and an increase in revenue from organic growth of 11.9%. Organic growth in the first quarter of 2022 compared to the first quarter of 2021 increased across all of our fundamental disciplines, including: 9.1% for Advertising & Media, 20.3% for Precision Marketing, 13.8% for Commerce & Brand Consulting, 68.0% for Experiential, 6.3% for Execution & Support, 14.0% for Public Relations and 7.7% for Healthcare. Organic growth in the first quarter of 2022 compared to the first quarter of 2021 across our regional markets was as follows: 10.6% for the United States, 9.6% for Other North America, 10.3% for the United Kingdom, 13.8% for the Euro Markets & Other Europe, 11.1% for Asia Pacific, 9.3% for Latin America and 63.8% for the Middle East & Africa. Expenses Operating expenses increased $95.8 million, or 3.2%, to $3,057.3 million compared to the first quarter of 2021, including a decrease of 2.5% from the impact of foreign currency translation. Operating expenses reflect the charges incurred in connection with the effects of the war in Ukraine of $113.4 million, as described below. Salary and service costs, which tend to fluctuate with changes in revenue, decreased $53.2 million, or 2.1%, to $2,491.8 million, reflecting a decrease in third-party service costs of $198.6 million, partially offset by an increase in salary and related costs of $145.4 million. Third-party service costs, including proprietary media, decreased during the quarter due primarily to dispositions in the Advertising & Media discipline in the United States, partially offset by costs related to our organic growth in revenue. The increase in salary and related service costs resulted primarily from the increase in organic revenue, an increase in headcount, as well as an increase in travel and related costs. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $8.6 million, or 2.9%, to $300.2 million compared to the first quarter of 2021, due to the return of our workforce to the office, partially offset by lower rent and other occupancy costs. SG&A expenses increased $25.1 million, or 35.1%, to $96.7 million compared to the first quarter of 2021, due to higher marketing, advertising, and professional fees, and increased new business activity. Operating Profit Operating profit decreased $112.4 million, or 24.2%, to $353.0 million compared to the first quarter of 2021, and our operating profit margin of 10.4% decreased from 13.6%, primarily as a result of the charges incurred in connection with the effects of the war in Ukraine of $113.4 million, which decreased our operating margin by 3.3%. Excluding the charges incurred in connection with the effects of the war in Ukraine, adjusted operating profit of $466.4 million increased 0.2%, and the adjusted operating profit margin was 13.7%. Interest Expense Net interest expense of $42.8 million in the first quarter of 2022 decreased $4.7 million, or 9.9%, compared to the first quarter of 2021. Interest expense on debt in the first quarter of 2022 decreased $0.9 million to $47.0 million, primarily as a result of the benefit from the early redemption in May 2021 of all the outstanding $1.250 billion principal amount of 3.625% Senior Notes due 2022, partially offset by the May 2021 issuance of $800 million of 2.60% Senior Notes due 2031 and the November 2021 issuance of £325 million of 2.25% Senior Notes due 2033.Income Taxes Our effective tax rate of 37.2% in the first quarter of 2022 increased from 26.8% in the first quarter of 2021. The higher effective tax rate for 2022 was predominantly the result of the non-deductibility of the $113.4 million in charges arising from the effects of the war in Ukraine. Net Income – Omnicom Group Inc. Net income – Omnicom Group Inc. for the first quarter of 2022 decreased $114.0 million, or 39.6%, to $173.8 millioncompared to the first quarter of 2021. The impact of charges arising from the effects of the war in Ukraine reduced net income – Omnicom Group Inc. by $118.2 million. Diluted shares outstanding decreased to 209.8 million, or 3.2%, from 216.8 million. Diluted net income per share of $0.83 decreased $0.50, or 37.6%, from $1.33 per share, including a reduction of $0.56 per share arising from the effects of the war in Ukraine. Excluding the charges incurred in connection with the effects of the war in Ukraine, adjusted diluted earnings per share of $1.39 increased 4.5%. EBITA EBITA in the first quarter of 2022 decreased $112.9 million, or 23.3%, to $372.4 million compared to the first quarter of 2021. Our EBITA margin of 10.9% decreased from 14.2%. EBITA and EBITA margin decreased primarily as a result of the charges arising from the effects of the war in Ukraine of $113.4 million, which reduced EBITA margin by 3.3%. Excluding the charges incurred in connection with the effects of the war in Ukraine, adjusted EBITA of $485.8 million increased 0.1%, and the adjusted EBITA margin was 14.2%. Risks and Uncertainties Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, rising inflation and supply-chain disruptions could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness and other developments. Impact of the War in Ukraine We have historically conducted operations in Russia and Ukraine through local agencies in which we hold a majority stake. The minority partners in these agencies are local management, which report to the applicable Network management. During the first quarter of 2022, the war in Ukraine required us to suspend our business operations in Ukraine. The war resulted in the imposition of sanctions by the United States, the United Kingdom, and the European Union that affect the cross-border operations of businesses operating in Russia. In addition, Russian regulators have imposed currency restrictions and regulations that created uncertainty regarding our ability to recover our investment in our businesses in Russia, as well as our ability to exercise control over the operations. Also, many multinational companies, including many of our large clients, ceased or suspended their operations in Russia. Therefore, the ability to continue operations in Russia without additional funding, which we will not provide, is uncertain. As a result, we have sold, or committed to dispose of, all of our businesses in Russia. Accordingly, we recorded pre-tax charges of $113.4 million in the first quarter of 2022 primarily consisting of the net investment in our Russian businesses, and also including charges related to the suspension of operations in Ukraine. The impact of the Russia and Ukraineoperations as of and for the quarter ended March 31, 2022 was not material to our consolidated revenue, operating profit, and financial position and is not expected to be material for the full year. We will continue to monitor these ongoing geopolitical events, evaluate available options to seek to mitigate further risk of loss and continue to evaluate the impact, if any, on our goodwill impairment test, which will be performed in June 2022. COVID-19 Update Beginning in March 2020 and continuing through the first quarter of 2021, our business experienced the effects from reductions in client spending due to the economic impact related to the COVID-19 pandemic. While mixed by business and geography, the spending reductions impacted all our businesses and markets. Globally, the most impacted businesses were our Experiential discipline, especially in our event marketing businesses, and our Execution & Support discipline, primarily in field marketing. Most of our markets began to improve versus the prior year in March 2021, and the improvement continued through the first quarter of 2022 as clients substantially increased their spending on our services. 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 description 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. Conference Call Omnicom will host a conference call to review its financial results on Tuesday, April 19, 2022 at 4:30 p.m. EDT. Participants can listen to the conference call by calling 844-291-6362 (domestic) or 234-720-6995 (international), along with access code 1468163. The call will also be simulcast and archived on our investor relations website. Corporate Responsibility At Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website (csr.omnicomgroup.com) for highlights of our progress across the four areas on which we focus: People, Community, Environment and Governance. 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 70 countries. Follow us on Twitter for the latest news. Non-GAAP Financial Measures We use certain non-GAAP financial measures in describing our performance. 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 EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business. 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. Forward-Looking Statements Certain statements in this press release constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, from time to time, the Company or its representatives have made, or may make, forward-looking statements, orally or in writing. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial position, or otherwise, based on current beliefs of the Company’s management as well as assumptions made by, and information currently available to, the Company’s management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “should,” “would,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: adverse economic conditions, including those caused by the impact of the war in Ukraine and the COVID-19 pandemic, severe and sustained inflation in countries that comprise our major markets, supply chain issues affecting the distribution of our clients’ products; international, national or local economic conditions that could adversely affect the Company or its clients; losses on media purchases and production costs incurred on behalf of clients; reductions in client spending, a slowdown in client payments and a deterioration or a disruption in the credit markets; the ability to attract new clients and retain existing clients in the manner anticipated; changes in client advertising, marketing and corporate communications requirements; failure to manage potential conflicts of interest between or among clients; unanticipated changes relating to competitive factors in the advertising, marketing and corporate communications industries; the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its critical accounting estimates and legal proceedings; and the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and regulatory environment. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect the Company’s business, including those described in Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. Omnicom Group Inc. Consolidated Statements of Income Three Months Ended March 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2022 2021 Revenue $3,410.3 $3,426.9 Operating Expenses: Salary and service costs 2,491.8 2,545.0 Occupancy and other costs 300.2 291.6 Charges arising from the effects of the war in Ukraine 113.4 – Costs of services 2,905.4 2,836.6 Selling, general and administrative expenses 96.7 71.6 Depreciation and amortization 55.2 53.3 $3,057.3 $2,961.5 Operating Profit 353.0 465.4 Interest Expense 51.0 53.8 Interest Income 8.2 6.3 Income Before Income Taxes 310.2 417.9 Income Tax Expense 115.5 111.9 Loss From Equity Method Investments (0.1) – Net Income 194.6 306.0 Net Income Attributed To Noncontrolling Interests $20.8 $18.2 Net Income – Omnicom Group Inc. $173.8 $287.8 Net Income Per Share – Omnicom Group Inc. Basic $0.83 $1.33 Diluted $0.83 $1.33 Weighted average shares (in millions) Basic $208.3 $215.6 Diluted $209.8 $216.8 Dividends Declared Per Common Share $0.70 $0.70 Omnicom Group Inc. Detail of Operating Expenses Three Months Ended March 31 (Unaudited) (Dollars in Millions) 2022 2021 Operating Expenses: Salary and service costs Salary and related service costs $1,794.6 $1,649.2 Third-party service costs 697.2 895.8 Occupancy and other costs 300.2 291.6 Charges arising from the effects of the war in Ukraine 113.4 – Costs of services 2,905.4 2,836.6 Selling, general and administrative expenses 96.7 71.6 Depreciation and amortization 55.2 53.3 Total Operating Expenses $3,057.3 $2,961.5 Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures – EBITA Three Months Ended March 31 (Unaudited) (Dollars in Millions) 2022 2021 Net Income – Omnicom Group Inc. $173.8 $287.8 Net Income Attributed To Noncontrolling Interests 20.8 18.2 Net Income 194.6 306.0 Loss From Equity Method Investments (0.1) – Income Tax Expense 115.5 111.9 Income Before Income Taxes 310.2 417.9 Interest Income 8.2 6.3 Interest Expense 51.0 53.8 Operating Profit 353.0 465.4 Add back: Amortization of intangible assets 19.4 19.9 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $372.4 $485.3 Revenue $3,410.3 $3,426.9 EBITA 372.4 485.3 EBITA Margin % 10.9% 14.2% 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 intangible assets) 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 EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business. 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. Adjusted Non-GAAP Financial Measures Three Months Ended March 31 (Unaudited) First Quarter Reported 2022 Non-GAAP Adjustments (b) Non-GAAP 2022 Adjusted(b) Reported 2021 Revenue $3,410.3 $– $3,410.3 $3,426.9 Operating expenses 3,057.3 (113.4) 2,943.9 2,961.5 Operating Profit 353.0 113.4 466.4 465.4 Operating Profit Margin % 10.4% 13.7% 13.6% Add back: Amortization of intangible assets 19.4 — 19.4 19.9 EBITA(a) $372.4 $113.4 485.8 485.3 EBITA Margin %(a) 10.9% 14.2% 14.2% First Quarter Reported 2022 Non-GAAP Adjustments(b) Non-GAAP 2022 Adjusted Reported 2021 Net Income – Omnicom Group Inc., Reported(a) $173.8 $— $173.8 $287.8 Charges arising from the effects of the war in Ukraine — 113.4 113.4 — Income tax expense related to the effects of the war in Ukraine — 4.8 4.8 — Net Income – Omnicom Group Inc., Adjusted $173.8 $118.2 $292.0 $287.8 Diluted Shares (millions) 209.8 209.8 209.8 216.8 Net Income per diluted share – Omnicom Group Inc., Non-GAAP Adjusted $0.83 $0.56 $1.39 $1.33 (a) See Non-GAAP reconciliation on page 8. (b) In the first quarter of 2022, we recorded a pre-tax charge of $113.4 million in Operating Expenses and an additional $4.8 million of Income Tax, and a reduction to Net Income of $118.2 million, or $0.56 per share, in connection with charges arising from the effects of the war in Ukraine. Omnicom Group Inc. Reconciliations of Non-GAAP Financial Measures – Effects of the war in Ukraine Three Months Ended March 31 (Unaudited) (Dollars in Millions, Except Per Share Data) Non-GAAP Adjusted EBITA Operating Profit Net Income – Omnicom Group Inc. $173.8 $173.8 Net Income Attributed To Noncontrolling Interests 20.8 20.8 Net Income 194.6 194.6 Income (Loss) From Equity Method Investments (0.1) (0.1) Income Tax Expense 115.5 115.5 Income Before Income Taxes 310.2 310.2 Net Interest Expense 42.8 42.8 Operating Profit – Reported 353.0 353.0 Charges arising from the effects of the war in Ukraine 113.4 Non-GAAP Operating Profit – Adjusted $466.4 Amortization of Intangible Assets 19.4 EBITA – Reported 372.4 Charges arising from the effects of the war in Ukraine 113.4 Non-GAAP EBITA – Adjusted $485.8 Non-GAAP Adjusted Net Income – Omnicom Group Inc. Diluted Shares Net Income per Share – Diluted Net Income – Omnicom Group Inc. – Reported $173.8 $209.8 $0.83 Charges arising from the effects of the war in Ukraine 118.2 209.8 0.56 Non-GAAP Net Income – Omnicom Group Inc. – Adjusted 292.0 209.8 $1.39 Non-GAAP Adjusted Income Tax Expense Net Income – Omnicom Group Inc. $173.8 Net Income Attributed To Noncontrolling Interests 20.8 Net Income – Reported 194.6 Income (Loss) From Equity Method Investments (0.1) Income Tax Expense – Reported 115.5 Income Before Income Taxes $310.2 Income Tax Expense – Reported 115.5 Income tax expense related to charges arising from the effects of the war in Ukraine (4.8) Non-GAAP Income Tax Expense – Adjusted $110.7 The above tables reconcile the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of EBITA Adjusted, Operating Profit Adjusted, Income Tax Expense Adjusted, Net Income - Omnicom Group Inc. Adjusted and Net Income per share - Diluted Adjusted for the period presented. Management believes excluding the charges arising from the effects of the war in Ukraine provides investors with a better picture of the performance of the business during the period presented. SOURCE Omnicom Group Inc.
Ketchum Deepens Bench in Rapidly Expanding Areas of Health, Media; Announces Key Senior-Level Promotions Posted on April 18, 2022 by Amanda Granath NEW YORK, April 18, 2022 /PRNewswire/ — Leading global communications consultancy Ketchum today announced two appointments of top industry talent and three recent promotions of key senior leaders in areas of high growth that are seeing significant client demand, including Health Services; Media; Retail; Financial & Professional Services; Automotive, Energy & Manufacturing; and Travel, Hospitality & Leisure. New senior hires to lead key industries and specialties include: Jen Fuhrman-Kestler, who joined Ketchum in January as EVP and Managing Director, Health Services. In this role, she leads client relationships that span hospitals and health systems, public health, and payers by deploying her diverse health experience to drive innovative client offers and programs, including health modeling, digital pharma and telemedicine. With more than 20 years in the industry, Fuhrman-Kestler has held roles at RXMOSAIC, Golin and Association Management Center, leading innovative consumer, corporate and product-focused healthcare communications initiatives across pharmaceutical, OTC, health tech, payer and provider brands, and nonprofit organizations.Angelena Abate, who joined Ketchum in February as EVP and Managing Director, Earned Media Strategy. Abate leads Ketchum’s Earned Media team, leveraging her more than two decades of experience in media strategy and engagement across top-tier outlets. In her media strategy roles at IBM and Burson-Marsteller, she developed and successfully executed wide-ranging media campaigns with a dual focus on corporate and executive positioning and consumer impact. Previously, she spent almost a decade as a network and cable news TV producer, holding production roles at CBS News, CNN and MSNBC. Recent promotions among Ketchum’s industry and specialty leaders include: Partner Sara Garibaldi, who previously served as Associate Portfolio Leader of Ketchum’s Financial & Professional Services and Travel, Hospitality & Leisure sectors, was promoted to Managing Director and Portfolio Leader, overseeing the firm’s Automotive, Energy & Manufacturing; Financial & Professional Services; and Travel, Hospitality & Leisure industry offerings. A 14-year Ketchum veteran, Garibaldi has more than 20 years of experience at top global PR firms leading award-winning integrated consumer communications campaigns and corporate communications initiatives across a wide range of industries impacting brand reputation and driving business growth.Partner Kevin Oates, who was previously Managing Director of the firm’s Transportation sector, was promoted to Managing Director, Automotive, Energy and Manufacturing. A 23-year veteran of Ketchum, Oates has led some of Ketchum’s largest and most extensive client relationships. With deep expertise in thought leadership and reputation management, he specializes in constructing perception-changing programs that grow businesses. Abby Lovett, who was previously SVP and Managing Director of the firm’s Retail sector, was promoted to EVP and Managing Director, Retail. Lovett has spent 20 years at top global PR and advertising firms, including 11 years at Ketchum. She is known as a trusted client counselor who has consistently driven business results, despite volatile retail industry conditions. “These appointments and promotions reflect the depth of our expertise across high-demand, high-growth industries, as well as specialty services that are critically important to our clients,” said Neera Chaudhary, President of Ketchum North America. “We are able to attract and retain top talent because of our strong culture and the opportunity to do innovative, award-winning client work that matters to the world. We’ve created a community where people show up to do their best work every day – not just for our clients, but for each other.” Jamey Peters, Chief Client Operations Officer, North America, added, “Our expansion in these areas reflects the success of our consultancy model that organizes teams around industry and specialty expertise rather than geographic boundaries, placing clients in the center and offering borderless collaboration. Our clients have more efficient access to deep subject matter experts across Ketchum, and they benefit from the expertise of a boutique agency married with the full suite of services of a global firm. These five leaders are on the front lines of delivering expert counsel and creative strategy in areas of significant demand to solve our clients’ increasingly complex needs.” About KetchumThe winner of 131 Cannes Lions, Ketchum is the most creatively awarded firm in our industry. We’re equal parts human-centered and business-focused, empathetic and intelligent. As a global communications consultancy, we combine the deep industry and specialty expertise of boutique firms with global reach to find unexpected connections that lead to lasting relationships and work that matters. For more information on Ketchum, a part of Omnicom Public Relations Group, visit www.ketchum.com. About Omnicom Public Relations GroupOmnicom Public Relations Group is a global collective of three of the top global public relations agencies worldwide and specialist agencies in areas including public affairs, language strategy, global health strategy and change management. As the largest group of communications professionals in the world, our employees provide expertise to companies, government agencies, NGOs and nonprofits across a wide range of industries. Omnicom Public Relations Group delivers for clients through a relentless focus on talent, continuous pursuit of innovation and a culture steeped in collaboration. Omnicom Public Relations Group is part of the Communications Consultancy Network, a division of Omnicom Group Inc. (NYSE: OMC). 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 70 countries. Follow us on Twitter for the latest news. SOURCE Ketchum
Omnicom Group Schedules First Quarter 2022 Earnings Release and Conference Call Posted on April 13, 2022April 13, 2022 by Amanda Granath NEW YORK, April 13, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) will publish its first quarter 2022 results on Tuesday, April 19, 2022 after the New York Stock Exchange closes. The company will also host a conference call to review the financial results on Tuesday, April 19, 2022 starting at 4:30 p.m. EDT. Participants may listen to the conference call by dialing 844-291-6362 (domestic) or 234-720-6995 (international), along with access code 1468163. The conference call will be simulcast and archived on our website at investor.omnicomgroup.com. 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 70 countries. Follow us on Twitter for the latest news. SOURCE Omnicom Group Inc.
Omnicom Media Group Launches Industry’s First Programmatic Marketplace for Point-of-Purchase Screens Posted on April 12, 2022April 12, 2022 by Amanda Granath 80,000-Screen PMP Enables New Level of Measurable Effectiveness at the Point-of-Purchase NEW YORK, April 12, 2022 /PRNewswire/ — Omnicom Media Group (OMG), the media services division of Omnicom Group Inc. (NYSE: OMC) has launched the industry’s first programmatic marketplace for point-of-purchase screens in the US, encompassing approximately 80,000 screens across all 50 states, and multiple points along the in-store and to-the- store journey, including in-aisle cold case doors, check-out screens, entrance and open- air kiosks, EV charging stations, and gas pump screens. According to the 2021 PwC bi-annual Global Consumer Survey, even as e-Commerce growth continues to accelerate, 48% of consumers still make purchases inside a physical store once a week; and even 45% of most digitally-native consumers – Gen Z – were likely to shop in-store. Live since April 8, this private marketplace (PMP) gives OMG clients preferred access to net new and existing consumer touchpoints and the latest advances in place-based inventory from leading retail vendors/networks – including Cooler Screens, GSTV, Grocery TV, Lightbox, NRS Digital Media, Screenverse , Starlite, Velocity, and Volta – enabling unique influence on consumer decisions immediately prior to purchase. End-to-End Impact OMG’s new marketplace gives its clients a competitive advantage in leveraging the new and evolving formats that retailers like Walgreen’s, CVS, ShopRite, Whole Foods and many others are offering in and near their stores. With the ability to reach these highly actionable consumer touchpoints programmatically, OMG clients can better align and optimize product proximity and availability, support discovery for new and existing products, and maximize contextual opportunities to ignite screen level decisioning that drives incremental sales at a lower cost. “With this first-mover marketplace, we’re bringing the benefits of programmatic to the rapidly growing, highly effective and uniquely measurable environment of point-of-purchase screens,” says OMG North America Chief Activation Officer Megan Pagliuca. “The positive impact will be seen at all stages of investment, from planning to content development to activation and measurement.” OMG’s PMP for point-of-purchase screens will be incorporated into the inventory graph and activated within the Omni open orchestration platform that underpins all Omnicom agencies. Partner Perspectives “The partnership between Cooler Screens and OMG provides a unique trifecta where all parties benefit,” says Cooler Screens co-founder and CEO Arsen Avakian. “Consumers receive contextually relevant content while they are in a shopping mindset in-store, empowering them to make better decisions. Retailers are able to modernize and activate their in-store experience and increase sales. Brands now have the opportunity to connect digitally and programmatically with consumers in-store when it matters most while also being able to measure online to offline performance.” Looking at the opportunity specifically through the grocery category lens, Grocery TV Director of Ad Partnerships Nolan Johnson says, “We recently surveyed grocery shoppers and discovered that 95% of them are still regularly going into physical stores to get their groceries. OMG’s new marketplace provides both endemic and non-endemic brands with the opportunity to bridge the gap between online and in-person retail media and capture attention in the real world.” Adding the perspective from another point of the customer journey, Volta Chief Revenue Officer Brandt Hastings says, “Volta is the only company that unites EV charging with a commerce-focused media network located in front of the stores where people routinely shop. Providing Omnicom’s clients with further programmatic access to Volta Media allows more advertisers to unlock our valuable place-based inventory, while also advancing our mission of accelerating a clean energy future for all.” Partnerships for OMG’s programmatic marketplace for point-of-sale screens were negotiated by OMG’s Outdoor Media Group, the largest out-of-home media buying network in North America. Says president Jill Schnitt, “Working with the best technology enabled place-based inventory, we have an unprecedented opportunity to prove the impact of last mile/last aisle messaging on decisioning.” About Omnicom Media Group Omnicom Media Group (OMG) is the media services division of Omnicom Group Inc. (NYSE: OMC), a leading global marketing and corporate communications company, providing services to more than 5,000 clients in more than 70 countries. Omnicom Media Group includes full- service media agencies Hearts & Science, OMD and PHD; performance marketing agency Resolution; Optimum Sports Media and Marketing; the Outdoor Media Group out-of-home media buying network and the Annalect data and analytics division that develops and manages the Omni open marketing operating system that orchestrates better outcomes for marketers. SOURCE Omnicom Media Group
Omnicom Announces Enterprise-Wide Partnership with Firework Posted on April 11, 2022April 11, 2022 by Amanda Granath First-to-market strategic global partnership delivers livestream shopping solutions directly to brand websites enabling consumer experiences that drive conversion NEW YORK, April 11, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced a partnership with Firework, the world’s largest livestream commerce and shoppable video platform provider. The partnership will give clients across all Omnicom agencies access to Firework’s enterprise suite of proprietary short-form video and livestreaming technology, delivering shoppable livestreaming video directly to brand websites. Omnicom is the first agency holding company to form a strategic partnership with Firework and gain this level of access to its platform. In a recent study from Coresight Research, the U.S. livestream shopping category was projected to reach $11 billion by the end of 2021, and $25 billion by the end of 2023. This growth rate aligns with responses in Gartner’s 2021 CMO Spend Survey, showing 26% of respondents are currently focused on livestreaming retail as a priority, and twice that number are expecting it to become a priority in the next 12 to 18 months. Combining purchases of a featured product and audience participation through a chat function or reaction buttons, shoppable livestream—also known as live commerce—is transforming the retail industry. According to McKinsey, live commerce can help accelerate conversion, telescoping the customer journey from awareness to purchase, resulting in conversion rates up to 10 times higher than conventional e-commerce while also increasing brand appeal and expanding audience base, particularly among younger audiences. By enabling livestream e-commerce on a brand’s owned media – a capability that has historically been available only on social platforms – the Omnicom and Firework partnership gives clients the ability to provide frictionless consumer experiences that can accelerate conversion. And by enabling brands to build first-party data stores in a cookie-less world, marketers can deliver more relevant consumer experiences, boost conversion, and strengthen consumer relationships. Seen through the wider commerce landscape lens, the partnership offers a single solution to help Omnicom clients adapt to critical changes in the marketplace, including the accelerated shift to e-commerce during the pandemic; the need to build deep, direct relationships with consumers in a cookie-less world; and meeting higher consumer expectations for connected personalization across a brand’s owned, earned, and paid experiences. “Brands today are in a race with the market to build the best commerce value proposition, while at the same time racing against the clock to build direct relationships with customers that will not simply replace cookies, but actually be more effective,” says John Schorr, Managing Director, Commerce for Omnicom Media Group North America, which facilitated the partnership. “This agreement opens up a wide lead for Omnicom clients in these races, giving them technology that makes their websites and other owned destinations more shoppable, and helps them deliver the more personalized and relevant experiences that build stickiness.” The Omnicom/Firework news follows the March 14 announcement naming Frank Kochenash as the holding company’s CEO eCommerce. Commenting on the partnership Kochenash said, “This collaboration exemplifies our mandate to build and innovate at the group level, driving the evolution and optimization of Omnicom’s eCommerce offering across media, commerce and precision marketing. Our capability with Firework will enhance consumer interaction, optimize conversion and build invaluable direct connections throughout the purchase journey.” Under the terms of the partnership, Omnicom will also have first-look access to Firework beta products and research. Summing up the goals of the partnership, Firework CEO Vincent Yang says, “As brands deal with concurrent seismic shifts in how they reach and engage with consumers, and how consumers buy their products, Omnicom and Firework will bring the full force of our combined strategic and technological expertise to turn these market-wide challenges into category-wide opportunities for Omnicom clients.” 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 70 countries. Follow us on Twitter for the latest news. About FireworkFirework is the world’s leading immersive “shoppertainment” platform with shoppable video, live streaming commerce and monetization capabilities powering over 600 direct-to-consumer brands, retailers and media publishers worldwide. Pandemic-accelerated, Firework has experienced 10x year-over-year growth, bringing TikTok-like interactive video experiences to your own website or app. Firework enables its customers to create and host native, shoppable video content for engaging product discovery, seamless shopping experiences and ultimately, a deeper emotional connection with consumers. The company is backed by IDG Capital, Lightspeed Venture Partners and GSR Ventures, with over $100 million in capital raised to date. To learn more, please visit firework.com. SOURCE Omnicom Media Group