Omnicom and Interpublic Receive Second Request from the U.S. Federal Trade Commission Posted on March 13, 2025March 13, 2025 by Katie Beaule NEW YORK, March 13, 2025 – Omnicom (NYSE: OMC) and Interpublic (NYSE: IPG) today announced that the companies have each received a Request for Additional Information and Documentary Material (Second Request) from the U.S. Federal Trade Commission (FTC) in connection with Omnicom’s proposed acquisition of Interpublic. The Second Request is a standard part of the regulatory process and was issued under notification requirements of the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as amended. Omnicom and Interpublic have been engaged with the FTC throughout the regulatory process and will continue to address its queries going forward. Both parties continue to expect the transaction to close in the second half of 2025. Completion of the acquisition remains subject to Omnicom and Interpublic stockholder approvals, further required regulatory approvals, and other customary closing conditions. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. About IPG Interpublic (NYSE: IPG) (www.interpublic.com) is a values-based, data-fueled, and creatively driven provider of marketing solutions. Home to some of the world’s best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe, Octagon, UM, Weber Shandwick and more. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This press release includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and the United States Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in this press release, including those that address activities, events or developments that Omnicom or Interpublic expects, believes or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “continue,” “could,” “estimate,” “expects,” “intends,” “will,” “should,” “may,” “plan,” “potential,” “predict,” “project,” “would” or the negative thereof and similar expressions. No assurances can be given that the forward-looking statements contained in this press release will occur as projected and actual results may differ materially from those included in this press release. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those included in this press release. These risks and uncertainties include, without limitation: the ability to obtain the requisite Omnicom and/or Interpublic stockholder approvals; the risk that Omnicom or Interpublic may be unable to obtain governmental and regulatory approvals required for the merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger); the risk that the expiration of the HSR waiting period may not occur as anticipated, affecting the timing of the merger; the risk that an event, change or other circumstance could result in the termination of the merger; the risk that a condition to closing of the merger may not be satisfied; the risk of delays in completing the merger; the risk that the merger may not qualify as a “reorganization” within the meaning of Section 368(a) of the Code as intended; the risk that the businesses will not be integrated successfully or that the integration will be more costly or difficult than expected; the risk that the cost savings and any other synergies from the merger may not be fully realized or may take longer to realize than expected; the risk that any announcement or news coverage relating to the merger could have adverse effects on the market price of Omnicom common stock or Interpublic common stock; the risk of litigation related to the merger; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; the risk that management’s time spent on the merger and integration may reduce their availability for ongoing business operations and opportunities; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the merger; the dilution caused by Omnicom’s issuance of additional shares of its capital stock in connection with the merger; adverse economic conditions or a deterioration or disruption in the credit markets; the risk of losses on media purchases and production costs; risks related to reductions in spending from Omnicom or Interpublic clients or a slowdown in payments by such clients; risks related to each company’s ability to attract new clients and retain existing clients; changes in client advertising, marketing, and corporate communications requirements; risks related to the inability to manage potential conflicts of interest between or among clients of each company; unanticipated changes related to competitive factors in the advertising, marketing, and corporate communications industries; unanticipated changes related to, or an inability to hire and retain, key personnel at either company; currency exchange rate fluctuations; risks related to reliance on information technology systems and risks related to cybersecurity incidents; risks and challenges presented by utilizing artificial intelligence technologies and related partnerships; changes in legislation or governmental regulations; risks associated with assumptions made in connection with critical accounting estimates and legal proceedings; risks related to international operations, including currency repatriation restrictions, social or political conditions and regulatory environment; risks related to environmental, social, and governance goals and initiatives; and other risks inherent in Omnicom’s and Interpublic’s businesses. All of the forward-looking statements Omnicom and Interpublic make in or in connection with this press release are qualified by the information contained or incorporated by reference in the joint proxy statement/prospectus described below. For additional information, see the sections entitled “Risk Factors” and “Where You Can Find More Information” beginning on pages 32 and 197, respectively, of the joint proxy statement/prospectus. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Except to the extent required by applicable law, neither Omnicom nor Interpublic undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. NO OFFER OR SOLICITATION This press release is not intended to be, and shall not constitute, an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. IMPORTANT ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT In connection with the proposed transaction, Omnicom and Interpublic first filed a joint proxy statement with the U.S. Securities and Exchange Commission (“SEC”) on January 17, 2025, and Omnicom first filed with the SEC a registration statement on Form S-4 on January 17, 2025 (File No.333-284358) (as amended, the “registration statement”) that includes the joint proxy statement of Omnicom and Interpublic and a prospectus of Omnicom. Each of Omnicom and Interpublic may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that Omnicom or Interpublic may file with the SEC. The definitive joint proxy statement/prospectus has been mailed to stockholders of Omnicom and Interpublic. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN OR MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OMNICOM, INTERPUBLIC AND THE PROPOSED TRANSACTION. Investors and security holders are able to obtain free copies of the registration statement, joint proxy statement/prospectus and other documents containing important information about Omnicom, Interpublic and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the registration statement and joint proxy statement/prospectus and other documents filed with the SEC by Omnicom may be obtained free of charge on Omnicom’s website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx or, alternatively, by directing a request by mail to Omnicom’s Corporate Secretary at Omnicom Group Inc., 280 Park Avenue, New York, New York 10017. Copies of the registration statement, joint proxy statement/prospectus and other documents filed with the SEC by Interpublic may be obtained free of charge on Interpublic’s website at https://investors.interpublic.com/sec-filings/financial-reports or, alternatively, by directing a request by mail to Interpublic’s Corporate Secretary at The Interpublic Group of Companies, Inc., 909 Third Avenue, New York, NY 10022, Attention: SVP & Secretary. PARTICIPANTS IN THE SOLICITATION Omnicom, Interpublic and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Omnicom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Omnicom’s Annual Report on Form 10-K for the year ended December 31, 2024, including under the heading “Information About Our Executive Officers,” and proxy statement for Omnicom’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 28, 2024, including under the headings “Executive Compensation,” “Omnicom Board of Directors,” “Directors’ Compensation for Fiscal Year 2023” and “Stock Ownership Information.” To the extent holdings of Omnicom common stock by the directors and executive officers of Omnicom have changed from the amounts reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 (“Forms 3”), Statements of Changes in Beneficial Ownership on Form 4 (“Forms 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Forms 5”), subsequently filed by Omnicom’s directors and executive officers with the SEC. Information about the directors and executive officers of Interpublic, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Interpublic’s Annual Report on Form 10-K for the year ended December 31, 2024, including under the heading “Executive Officers of the Registrant,” and proxy statement for Interpublic’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, including under the headings “Board Composition,” “Non-Management Director Compensation,” “Executive Compensation” and “Outstanding Shares and Ownership of Common Stock.” To the extent holdings of Interpublic common stock by the directors and executive officers of Interpublic have changed from the amounts reflected therein, such changes have been or will be reflected on Forms 3, Forms 4, or Forms 5, subsequently filed by Interpublic’s directors and executive officers with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the registration statement and joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the registration statement and joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein from Omnicom or Interpublic using the sources indicated above.
Omnicom Launches Omnicom Advertising Group (OAG) to Power the Next Generation of Creativity Posted on August 27, 2024August 27, 2024 by Katie Beaule OAG aligns BBDO, DDB, TBWA and the Advertising Collective under one leadership Accelerates investments in innovative tools, technologies, and AI platforms TBWA CEO, Troy Ruhanen, is elevated to Global CEO, OAG NEW YORK, Aug. 27, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) today announced the formation of Omnicom Advertising Group (OAG), a new global organization aligning world-class creative networks BBDO, DDB, TBWA, as well as leading agencies within the Advertising Collective including Goodby Silverstein & Partners, GSD&M, Merkley & Partners and Zimmerman. OAG will be led by Troy Ruhanen as Global CEO, Deepthi Prakash as Chief Operating Officer and Denis Streiff as Global CFO. Bringing these agency brands under one leadership addresses clients’ needs for powerful creative solutions like never before. Each will retain its unique brand, culture and people, while capitalizing on OAG’s shared and scaled investments in innovative tools, technologies, specialist capabilities, and AI platforms. This foundation will enhance agencies’ ability to deliver world-class creativity and accelerate growth, as well as unlock greater opportunities for personal and professional growth for their talent. The agency networks within OAG will report to Ruhanen and will be led by: Nancy Reyes, who was recently promoted to Global CEO of BBDO Alex Lubar, Global CEO of DDB Erin Riley, who is being elevated to CEO of TBWA\Worldwide from her previous role as TBWA\Chiat\Day US CEO James Fenton, CEO of the Advertising Collective “OAG will make the best even better. One of the most exciting parts of this new division is that we can collectively invest in innovative offerings – such as Omnicom’s recent first-mover partnerships in GenAI,” said Ruhanen. “This will take our world-class creativity to the next level and keep our clients at the top of their industries. While we are excited to grow together, we will continue to celebrate and protect the uniqueness of each agency’s culture and entrepreneurship.” Over the years, Omnicom has successfully organized its portfolio by aligning its agencies into marketing disciplines to strengthen the depth of its services and enhance collaboration across the group. This includes the formation of world-class Practice Areas such as Omnicom Media Group (OMG), Omnicom Health Group (OHG), Omnicom Precision Marketing Group (OPMG) and Omnicom Public Relations Group (OPRG). Each area now benefits from scaled investment and experimentation as the marketing world transforms. John Wren, Chairman and CEO of Omnicom said, “Clients want best-in-class talent, innovation and seamless delivery of creative services around the globe. OAG will deliver on that promise while allowing our agency cultures to remain strong and evolve through shared investments and best practices. With Troy at the helm of this new division, I’m confident our creative agencies and all our incredibly talented minds will continue to set the bar for the industry.” Existing clients will continue to be serviced by the agency and teams they currently work with, now with the enhanced capabilities of the wider group. The changes will take effect on January 1, 2025. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com.
Omnicom Announces Closing of Acquisition of Flywheel Posted on January 2, 2024January 2, 2024 by Katie Beaule NEW YORK, Jan. 2, 2024 — Omnicom (NYSE: OMC) today announced it has closed the previously announced acquisition of Flywheel Digital, the digital commerce business of Ascential (LSE: ASCL.L). Terms of the acquisition were first announced on October 30, 2023. “We are thrilled to cross the finish line and officially welcome everyone at Flywheel to Omnicom,” said John Wren, Chairman and CEO, Omnicom. “Flywheel’s best-in-class solutions are a game changer for our clients whose demand for digital commerce and retail media solutions continues to grow. When combined with our well-established offerings in commerce, media and precision marketing, we now have end-to-end services that outpace the competition.” The addition of Flywheel uniquely positions Omnicom to seamlessly integrate offerings across retail and brand media, digital and in-store commerce, as well as precision marketing. Omnicom will connect the audience and behavioral data in its open operating system Omni to the product and transaction data in Flywheel Commerce Cloud to provide its clients unmatched insights and analytics. Flywheel will operate as a Practice Area within Omnicom and will be led by Duncan Painter, previously the CEO of Ascential. “Joining the Omnicom network takes our organization to the next level. We can scale faster, leverage relationships, and combine data and technology efforts,” said Duncan Painter, CEO of Flywheel. “We look forward to the unique offering created as we connect complementary data from Flywheel Commerce Cloud and Omni. The combination gives our clients an unmatched view of complex digital marketplaces and offers them new ways to automate, optimize, and measure their digital commerce and media spend.” Further details on the acquisition can be found in a presentation on Omnicom’s investor relations website. About OmnicomOmnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and branding, experiential, customer relationship marketing (CRM), public relations, healthcare marketing, and other specialty communications services to over 5,000 clients in more than 70 countries. About FlywheelFlywheel operates a leading cloud-based digital commerce platform across the world’s major digital marketplaces. It enables our clients to access near real-time performance measurement and improve sales, share, and profit. Through its expertise, scale, global reach, and highly sophisticated AI and data-powered solutions, Flywheel provides differentiated value for both the world’s largest consumer product companies and fast-growing brands. These solutions can be tailored from pure self-service software to outsourced management of digital commerce marketplace operations and everything in between. With operations across the Americas, Europe, APAC, and China, Flywheel offers clients access to massive, global markets and has solutions for more than 400 digital marketplaces. To discover more about Flywheel’s revolution in retail media technology visit www.flywheeldigital.com or view our video.
Omnicom Acquires Digital Commerce Powerhouse Flywheel Posted on October 30, 2023October 30, 2023 by Katie Beaule Expands Omnicom’s reach in fast-growing e-commerce & retail media segments NEW YORK, Oct. 30, 2023 — Omnicom (NYSE: OMC) today announced it has agreed to acquire Flywheel Digital, the digital commerce business of Ascential (LSE: ASCL.L), for a net cash purchase price of approximately $835 million. Flywheel’s services enable top brands to sell more goods more efficiently across hundreds of digital marketplaces, such as Amazon, Walmart, and Alibaba. Since 2014, Flywheel has been at the forefront of digital commerce, developing a suite of best-in-class solutions specifically designed to accelerate sales for the world’s leading brands. With a workforce of more than 2,000 professionals, Flywheel provides services in retail commerce operations, media execution, and market intelligence to over 4500 brands. These services are reinforced by their advanced technology platform, Flywheel Commerce Cloud, which delivers near real-time insights to improve decision-making and boost sales. John Wren, Chairman and CEO of Omnicom said, “E-commerce sales worldwide are set to increase by 50%, reaching about $7 trillion dollars by 2025. The acquisition of Flywheel significantly broadens our reach and influence in the rapidly expanding digital commerce and retail media sectors, two of the fastest-growing parts of the industry. Together, we will seamlessly integrate our offerings across retail and brand media, digital and in-store commerce, and CRM, ultimately delivering superior results for our clients.” For the past eight years, Flywheel has assembled leading-edge digital commerce solutions and integrated them into a proprietary platform with a single user interface. Today, the Flywheel Commerce Cloud platform manages tens of billions in product sales and billions of advertising spend annually across digital marketplaces. Flywheel Commerce Cloud’s product and transaction data will be connected to Omni’s audience and behavioral data to provide unmatched insights and analytics. Flywheel will operate as a Practice Area within Omnicom and will be led by Duncan Painter who currently serves as CEO of Ascential. Painter stated, “By connecting Flywheel Commerce Cloud’s product and transaction data with Omni’s audience and behavioral data, we are poised to offer an end-to-end set of services that outpaces the competition. We aim to empower our clients to automate, optimize, and measure their digital commerce and media spend within an increasingly complex marketplace.” The acquisition is expected to close in the first quarter of 2024 and is subject to Ascential shareholder approval, regulatory approvals, and customary closing conditions. Moelis & Company LLC acted as financial advisor and Latham & Watkins LLP acted as legal advisor to Omnicom. Omnicom has provided further detail on the acquisition in a presentation available and archived on its investor relations website. About OmnicomOmnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and branding, experiential, customer relationship marketing (CRM), public relations, healthcare marketing, and other specialty communications services to over 5,000 clients in more than 70 countries. About FlywheelFlywheel operates a leading cloud-based digital commerce platform across the world’s major digital marketplaces. It enables our clients to access near real-time performance measurement and improve sales, share, and profit. Through its expertise, scale, global reach, and highly sophisticated AI and data-powered solutions, Flywheel provides differentiated value for both the world’s largest consumer product companies and fast-growing brands. These solutions can be tailored from pure self-service software to outsourced management of digital commerce marketplace operations and everything in between. With operations across the Americas, Europe, APAC, and China, Flywheel offers clients access to massive, global markets and has solutions for more than 400 digital marketplaces. To discover more about Flywheel’s revolution in retail media technology visit the new www.flywheeldigital.com or view the Flywheel brand launch video.
Omnicom Acquires Award Winning Creative Agency Grabarz & Partner Posted on July 6, 2023July 6, 2023 by Katie Beaule NEW YORK, July 6, 2023 — Omnicom (NYSE: OMC) today announced the acquisition of Grabarz & Partner to further cement its leadership position in Germany, the fourth largest advertising market in the world. Founded in 1993, Grabarz & Partner is a world-class creative agency headquartered in Hamburg. With more than 260 employees, the agency works with prominent global and local clients such as Deutsche Bahn, IKEA, Lidl and Porsche. It has been named to prestigious industry lists such as Cannes Lions’ “Top Ten Independent Agencies of the Decade” and Campaign UK‘s “The World’s Leading Independent Agencies”. Grabarz & Partner’s management team will continue to serve in their current roles following the closing of the transaction. “We’re thrilled to add one of the most creative agencies in Germany to our roster and to lean into its stellar reputation in one of Europe’s most important economic regions for our clients,” said John Wren, Chairman and CEO of Omnicom. “Our shared vision for creative excellence is what drew us to them, and we look forward to the impact they’ll make as part of Omnicom. We welcome the entire Grabarz & Partner team to the group.” “Throughout our 30 years of existence, we’ve received many offers for our agency. Omnicom was the first one that truly piqued our interest as they presented us a tailor-made plan that took into account our goals and vision, our strategy as a creative agency, and, above all, our unique culture formed by the last three decades,” said Ralf Heuel, co-founder and managing partner at Grabarz & Partner. “We are convinced this will be another successful chapter for Grabarz & Partner, one in which all our clients and employees will benefit.” The transaction is expected to close during the third quarter of 2023, subject to customary closing conditions, including regulatory approval. About Grabarz & PartnerFounded in 1993, G&P is a world-class creative agency headquartered in Hamburg. With more than 260 employees, the agency works with prominent global and local clients such as Deutsche Bahn, IKEA, Lidl and Porsche. It has been named to prestigious industry lists such as Cannes Lions’ “Top Ten Independent Agencies of the Decade”, “Top Ten Independent Agencies of the Decade” by Horizont magazine, “Agency of the Year” by W&V magazine, Eurobest, and Clio awards, “Managers of the Year” by Horizont magazine and Campaign UK’s “The World’s Leading Independent Agencies”. About OmnicomOmnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
Omnicom Wins Most Creative Company of the Year at the 2023 Cannes Lions International Festival of Creativity Posted on June 23, 2023June 23, 2023 by Katie Beaule DDB and BBDO Named Two of the Top Three Creative Networks in the World NEW YORK, June 23, 2023 — Omnicom (NYSE: OMC) was named Most Creative Company of the Year at the 70th annual Cannes Lions International Festival of Creativity. More than 120 agencies from 40 countries contributed to the title, with over 175 Lions won throughout the week. Of note, two of Omnicom’s creative networks, DDB and BBDO, placed in the top three of the Network of the Year category, with DDB coming in first and BBDO in third. As the top Creative Network of the Year, DDB won more than 85 Lions. “The Last Photo” by adam&eveDDB for ITV x Calm dominated as the network’s most-awarded piece of work at this year’s festival. It won 11 Lions, including one Grand Prix. Other heavy hitters for the group included “Apologize the Rainbow” by DDB Chicago for Skittles and “Baby Scan” by adam&eveDDB for Marmite, winning two Gold Lions each. BBDO, who came in third for Creative Network of the Year, closed with 55 Lions. “Phone It In” by Colenso BBDO for Skinny was hugely successful with nine Lions, including one Grand Prix. BBDO Toronto also racked up points with “Missing Matoaka” for Muskrat Magazine, scoring eight Lions, two of which were Gold Lions. The network also secured three more Grand Prix wins with “Inside the Newspaper” by Impact BBDO for An-Nahar Newspaper, “Eart4” by AlmapBBDO for UN Global Compact, and “Flipvertising” by CHEP Network for Samsung. As a reflection of the breadth of creative excellence housed within Omnicom, its agencies entered over 175 campaigns created for more than 115 clients. Its wide span of disciplines achieved Gold Lions in a variety of categories including Health & Wellness, Media, Public Relations, Creative Commerce, Brand Experience and Activation, and more. Omnicom Media Group collectively contributed 57 total Lions, and PHD Worldwide came in second place for the Media Network of the Year category. Several agencies also received special awards throughout the week, including within the Regional Network of the Year category. DDB Worldwide took the title for Europe and BBDO Worldwide won for MENA and Pacific. “I am incredibly proud of how our agencies showed up this year,” commented John Wren, Chairman and CEO of Omnicom. “It’s always rewarding to see the hard work of our people across the globe recognized by Cannes Lions, the global benchmark for creative excellence. I want to congratulate them for their efforts; this award is a direct reflection of their brilliance and unwavering dedication to their clients.” The award comes at the end of the week when Omnicom announced a series of generative AI collaborations with Microsoft, Google, Adobe and Amazon. It also follows two other Holding Company of the Year titles for Omnicom in 2023, including The One Show and Ad Age’s A-List. 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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
Omnicom Collaborates with AWS to Transform Advertising Campaign Development with Generative AI Posted on June 22, 2023June 22, 2023 by Katie Beaule CANNES, France, June 22, 2023 — Omnicom Group Inc. (NYSE: OMC) today announced a first-mover collaboration with Amazon Web Services (AWS) to reimagine creativity and accelerate innovation with generative AI foundational models for advertising. As part of the collaboration, Omnicom will use AWS generative AI and machine learning (ML) services, including Amazon Bedrock and Amazon EC2 Trn1n instances powered by AWS Trainium chips that are purpose-built for ML workloads, to help accelerate the transformation of advertising campaign development. Working with AWS, Omnicom will advance its AI-powered platform Omni – an open operating system which today uses AWS to ingest trillions of advertising signals monthly and store more than 10 petabytes of data – by creating new foundational models that help automate activities such as developing creative briefs, media plans, ad creative, audience segmentation, and performance measurement. This collaboration will expand how Omnicom leverages their industry-leading datasets within Omni and will add capabilities powered by out-of-the box foundational models (FM) via Amazon Bedrock. Omnicom will run these generative AI models using AWS Inferentia ML inference chips, designed to deliver performance at the lowest cost, as well as low-energy efficiency purpose-built chips, designed with low-energy efficiency deep learning (DL) inference applications. Pairing Omnicom’s open operating system with AWS generative AI services and purpose-built silicon for machine learning will help improve and further enable the automation of the entire advertising campaign and creative journey development on behalf of brands. It will help empower marketers to fully harness data insights and reinvent their customer experiences with less heavy lifting. “We are committed to our mission of creating end-to-end solutions for clients, everywhere, swiftly and efficiently,” said Jonathan Nelson, CEO of Omnicom Digital. “The innovation, security, simplicity, and reliability of AWS machine-learning and generative AI services help us accelerate our data capabilities to deliver transformational innovation and results to our customers. We look forward to getting unique access of AWS models and together pioneering the complete transformation of the advertising campaign end-to-end journey together.” “It’s important for us to find transformational ways to help advertisers reach their goals,” said Adam Gitlin, President, Annalect. “Amazon Bedrock, together with AWS Trainium and AWS Inferentia chips purpose built for machine learning will help us accelerate the transformation of advertising campaign development, creative generation, insights and recommendations. By unlocking advertisers first-party data, we can create more powerful advertising campaigns through trained, purpose-built LLMs that are unique to them, secure, protected, and private.” “For more than a decade, Omnicom has worked with AWS to boost its creative processes with the latest technological advances. Generative AI will soon change the advertising industry completely, and we’re excited to continue experimenting with Amazon Bedrock foundation models (FMs) so that our customers can benefit from these recent advancements,” said Vasi Philomin, Vice President, Generative AI at AWS. “By using Amazon Bedrock, our ML capabilities, and FMs, Omnicom will help brands transform their customer experiences and marketing outcomes.” 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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
Omnicom Strengthens Partnership with Adobe to Bring Enterprise Generative AI Capabilities to Clients Posted on June 22, 2023June 22, 2023 by Katie Beaule Omnicom becomes first advertising holding company to join the Content Authenticity Initiative NEW YORK, June 22, 2023 — Omnicom Group Inc. (NYSE: OMC) today announced it has further strengthened its partnership with Adobe through a joint initiative that will bring enterprise generative AI capabilities to their shared clients. As the first holding company to have access to Adobe Firefly models, Omnicom will be able to use Adobe Firefly creative generative AI models with Omni data, Omnicom’s open operating system, to create on-brand content that helps marketers orchestrate better outcomes. This access will also allow Omnicom and Adobe to embed the power of Firefly into client ecosystems, allowing for the generation of content in the brand’s unique style and brand language using API’s to increase automation. “Firefly is at the forefront of creative intelligence. Leveraging that for our clients will be critical to bring the promise of mass personalization at scale to our client’s businesses,” said Paolo Yuvienco, EVP, Chief Technology Officer at Omnicom Group. “Adobe is one of our key partners in delivering outstanding creativity and true business outcomes for our clients.” “We’re excited to once again have Omnicom join us as an early collaborator and to bring this latest innovation to our shared clients,” said Ely Greenfield, Chief Technology Officer at Adobe. “They share our eagerness to be a leader in generative AI and to reinvent the ways our clients can develop and deliver creative content. Their close involvement in our Content Authenticity Initiative indicates they are aligned with our commitment to providing transparency into how content is created.” Omnicom is the first advertising holding company to join the Content Authenticity Initiative (CAI). Launched in 2019, the CAI is an Adobe-led cross-industry initiative comprised of media and tech companies, NGOs, academics and others focused on increasing trust and transparency in digital content. The CAI is actively partnering across its membership community with over 1,500 partners to ensure the technical innovations are built on ethical foundations. Particularly with the rise of AI-generated content, there is increased momentum around the adoption of Content Credentials, CAI’s free, open-source technology, so that creators can receive proper attribution, and consumers can make informed decisions based on facts and origins about the content they see online. These updates follow on the heels of Omnicom announcing an enterprise licensing deal of Adobe’s Content Supply Chain solution. The solution allows Omnicom agencies across the globe to have a unified view of every step of the content process, from planning and production to activation and optimization. Adobe’s generative AI offerings, Firefly and Sensei GenAI, are a key part of the solution. 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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
With Launch of Omni Commerce, Omnicom Brings Connectivity to Fragmented Investment Landscape Posted on June 20, 2023June 22, 2023 by Katie Beaule Industry’s first commerce orchestration solution enables seamless decisioning across brand and commerce CANNES, France, June 20, 2023 — Omnicom (NYSE: OMC) today announced the launch of Omni Commerce, the industry’s first connected commerce orchestration solution. Omni Commerce – the newest vertical application on Omnicom’s Omni open operating system – is an ecosystem of tools, technology, data, and partnerships that enables always-on insight, activation, optimization, and attribution across the entire commerce landscape, breaking down the silos between commerce and brand investment to enable seamless decisioning. Powered by data from Omnicom’s portfolio of retail media network partners – including Albertson’s, Amazon, Instacart, Kroger and Walmart – and data vendors, Omni Commerce’s depth of data categories (media performance, operations, content, product inventory and sales) provides a single, standardized yet customizable view of the commerce journey – not only across commerce and brand investment, but also across retailers, and online/offline environments as well. Omni Commerce is a foundational solution underpinning Transact, the Omnicom connected commerce consultancy that helps brands accelerate and integrate their e-Commerce strategies to drive omnichannel sales across all channels, on and offline. The solution is available to all Omnicom agency clients. “The commerce landscape is extremely fragmented – bridging gaps between online and offline data, cross-retailer performance, and brand and retail media has been a longstanding challenge in the industry,” says Transact CEO Frank Kochenash. “Curating and connecting the right data from the right partners and platforms is the first major step toward a world where we can fill in the gaps and drive outcomes for clients.” “Building this capability within Omni, the industry’s only open operating system, allows for a level of customization and scalability that closed systems or off-the-shelf purchased solutions cannot match, and unlocks a new level of actionable insights that will deliver better commerce outcomes for Omnicom clients,” says Annalect Chief Experience Officer Clarissa Season. According to eMarketer, U.S. ecommerce sales grew 8.6% in 2022, representing 14.7% of retail sales, expected to grow to 17.9% by 2025. “We know marketers are looking to work with fewer and bigger partners, as the retail media landscape becomes increasingly fragmented. But even then, brands still have to connect the dots to get a holistic view of their retail media impact,” said Ryan Mayward, Senior Vice President of Retail Media Sales for Walmart Connect, which delivers custom audience forecasts from the Walmart DSP to Omnicom. “We have a shared goal of making it easier for brands to easily and efficiently harness the full power of retail media, and tools like Omni Commerce will help to do that.” OmnicomOmnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
Omnicom Enters Strategic Collaboration with Google Cloud Posted on June 20, 2023June 22, 2023 by Katie Beaule NEW YORK, June 20, 2023 — Omnicom (NYSE: OMC) today announced a strategic collaboration with Google Cloud that offers the group unique access to the Vertex AI platform. This includes foundation models such as PaLM 2 and Imagen which can be applied to various use cases in the fields of creativity, summarization of knowledge, discoverability, and automation. The models will be integrated into Omnicom’s open operating system, Omni, enabling agency and client teams to accelerate the content development process for marketing campaigns. Among the several foundation models offered within the partnership is Google Cloud’s text-to-image model, Imagen. Launched in May, Imagen allows organizations to generate and customize studio-grade images at scale from input text with low latency and enterprise-grade data governance. Once deployed within Omni, Google Cloud Imagen will enable more than 17,000 trained and certified users to leverage Omni audience intelligence and campaign workflow to create customized images in minutes, define, activate, and measure the impact. “We’re thrilled to have another first-mover advantage with Google Cloud’s foundation models and to continue strengthening the use of Generative AI within Omnicom,” said Jonathan Nelson, CEO, Omnicom Digital. “By creating Omni as an open operating system, we’re able to quickly integrate these innovative models and mobilize them to thousands of Omnicom employees that use Omni. We’re especially excited to see how Imagen will unlock greater inspiration for our people and elevate the ideas created for clients.” “At Google Cloud we are committed to bringing the power of our transformational foundation models to people with all levels of technical experience so that everyone has an opportunity to innovate in entirely new ways,” said June Yang, Vice President of Cloud AI and Industry Solutions at Google Cloud. “Our partnership with Omnicom deepens this commitment as it allows marketers to create studio-grade images with mask-free editing for any business need, in a platform where they are already familiar, with only a few typing prompts. We cannot wait to see what they create!” This partnership is the latest collaboration between Google and Omnicom, who have closely collaborated together for decades. This includes their early collaboration as a alpha partner for clean room integrations with Ads Data Hub. 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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
With Omni Assist, Omnicom Leverages First-Mover Access to Open AI to Accelerate the Timeline from Insights to Outcomes Posted on June 19, 2023August 30, 2023 by Katie Beaule Reveal Marks the Launch of Omni 3.0, Powered by Generative AI CANNES, France, June 19, 2023 — Omnicom (NYSE: OMC) today unveiled Omni Assist, the inaugural Generative AI capability enabled by a first-mover partnership with Microsoft. Omnicom is the first agency holding company to have enterprise access to the latest Open AI GPT models. Omni Assist is a virtual assistant providing insights, notifications, and recommendations across every step of the workflow of the Omni open operating system, from audience development to planning, activation, measurement, and optimization. Expected to reduce discovery from days to minutes, and with the ability to enhance communications across agency and client teams, Omni Assist will accelerate the timeline from insights to client outcomes. In addition to accelerating campaign time-to-market, Omni Assist delivers on the primary promise of Generative AI as outlined by Omnicom CEO John Wren: improving workflow in a way that enables Omnicom’s knowledge workers to be more productive – and its agencies to add more value – in the marketplace. “We’re embracing Generative AI as quickly as possible to enhance the capabilities of our best and brightest people, and deliver better outcomes for our clients,” said Wren. Revealed during a Cannes Lions event celebrating Omni’s fifth anniversary, Omni Assist is part of launch of Omni 3.0, the next generation of Omni where every experience is powered by Generative AI. Launching the Next Generation of AI Powered Innovation AI technology and techniques – including computer vision, language modeling and facial recognition – have been core to Omni’s capabilities since its launch in 2018 as the industry’s first people-based, precision marketing and insights platform, distinguished in the marketplace by its open architecture and dynamic federation of data partners. Recognized by leading research and advisory company Forrester as the holding company platform with the deepest integration across its network, Omni launched its second generation in April 2021, with an enhanced user experience designed to expand access to more users across Omnicom agencies. Omni 2.0 also saw the launch of healthcare and PR verticals; data collaborations and/or integrations with Affinity, Amazon, Google, Infosum, LG, Teads and Yahoo; clean room partnerships with AWS, Disney, NBCU and TelevisaUnivison; and retail media partnerships with Albertson’s Media Collective, Instacart, Krogers and Walmart Connect. With Omni 3.0, Omnicom has deployed Microsoft Azure Cognitive Services to build its most powerful capabilities yet for its agency teams and clients, delivering benefits such as real-time conversational enablement for all Omni applications; automated audience intelligence that surfaces hard to identify audience behaviors; and performance intelligence that summarizes key trends and identifies drivers of performance with optimization recommendations. “When we launched Omni in 2018, we described its mission as the democratization of data – a mission that we’ve met with more than 17,000 Omni trained and certified users across the holding company, and Omni integrations into agency-level planning processes across the network,” said Annalect CEO Slavi Samardzija. “With Omni 3.0 – powered by Omni Assist – we are going beyond the democratization of data, to the democratization of insights.” “Most recently, I have had the privilege of working with Omnicom on their transformation efforts, leveraging Microsoft Azure Open AI to power Omni 3.0. We are at the heart of Omni Assist, a virtual assistant providing insights, notifications, and recommendations the Omni workflow, from audience development to planning, activation, measurement, and optimization. This platform is evolving quickly and is unique to anything I’ve seen in the industry,” commented Simon Crownshaw, Director of Media & Entertainment, Microsoft. In addition to Omni Assist, Omni 3.0 launch capabilities will also include Omni Commerce, which was launched earlier today in Cannes. Omni Commerce, the industry’s first connected commerce orchestration solution, enables Omnicom to maximize brand awareness and increase the effectiveness of its clients’ retail media investments, driving product sales and profitability. 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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.
Jacquelyn Baker Named CEO of Omnicom Commerce Group Posted on June 9, 2023June 9, 2023 by Katie Beaule NEW YORK, June 8, 2023 — Omnicom Commerce Group (OCG) today announced the appointment of Jacquelyn Baker as CEO following Sophie Daranyi’s decision to step down to pursue consultancy and non-profit opportunities. Daranyi played a key role in the search for new leadership and will oversee the transition to Baker, who starts in August. Baker will report to Michael Larson, CEO of the DAS Group of Companies (DAS). “Jacquelyn brings a unique combination of strategic acumen, client leadership and a proven track record in innovation and driving growth. We’re delighted she’s joining us to accelerate OCG’s vision and bring our product offer to the next stage,” commented Larson. “We are very grateful to have benefitted from Sophie’s industry experience and strong leadership over the past few years, and we thank her for ensuring this successful handover.” Jacquelyn Baker joins from VMLY&R Commerce, where she was Chief Experience Officer. She previously served as Managing Director of VMLY&R and was instrumental in driving commerce integration across the network following its 2021 merger with Geometry Global. Prior to that, she was VP Business Innovation at Rockfish. With over 20 years of management, commerce and brand building expertise, Baker has an established track record of driving innovation within the commerce landscape. She is a recognized thought leader and strategic guide for clients across digital marketing, ecommerce and omnichannel customer strategy. She was named Account Leader of the Year by Campaign US in 2022 and a 2021 Women of Excellence Innovator award winner by Path to Purchase Institute. “I am humbled, honored, and thrilled to be joining the Omnicom Commerce Group family to lead this talented collective of industry defining agencies and capabilities into the future of commerce for our clients,” said Baker. “I look forward to building upon the incredible foundation and vision set forth by Sophie.” Sophie Daranyi led the original business strategy and creation of OCG in October 2021. She played a pivotal role in setting the connected commerce agenda at Omnicom and pioneered the creation of OMNI Commerce, the ecosystem of data, partnerships, and tools on Omnicom’s OMNI platform. In addition, she was instrumental in the 2022 launch of Transact, a dedicated practice focused on connected-commerce consulting and eRetail execution services. The new agency played a key role in several new business wins including the L’Oréal USA media business, among others. Prior to her role as OCG CEO, Daranyi was CEO of Haygarth, where she led the agency’s sale to Omnicom in 2015. Later, she was named CEO of RAPP UK overseeing Haygarth, RAPP and Code Worldwide, before moving to OCG. “While I’ve relished my time at Omnicom and will miss the people and our clients, I feel it’s the right time to change direction,” explained Daranyi. “Jacquelyn will be an outstanding leader for OCG and brings the right expertise and fresh perspective to drive OCG’s future growth.” About Omnicom Commerce GroupOmnicom Commerce Group (OCG) is comprised of six agencies offering multi-channel commerce and conversion expertise: Haygarth, Integer, TPN, Tracy-Locke, Transact and Molecular Worldwide. It is a global community of award-winning commerce experts, working with brands and retailers to offer best in class consultancy, creativity and capability focused on driving increased conversion and transaction. OCG’s priority is to address the need for innovative multi-channel commerce expertise in the rapidly evolving world of retail and shopping. OCG is part Omnicom Group Inc. (NYSE: OMC), a leading global marketing and corporate communications company.
Omnicom to Present at the Goldman Sachs Communacopia Conference Posted on September 11, 2022September 11, 2022 by Katie Beaule NEW YORK, Sept. 10, 2022 — Omnicom Group Inc. ( NYSE: OMC) today announced that it will present at the Goldman Sachs Communacopia & Technology Conference in San Francisco, California on Wednesday, September 14, 2022 at 7:30 a.m. Pacific Time. Live and archived webcasts will be available on the investor relations section of www.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.
Omnicom Group Inc. Declares Dividend Posted on December 2, 2021December 2, 2021 by Katie Beaule NEW YORK, Dec. 2, 2021 — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on January 11, 2022 to Omnicom Group common shareholders of record at the close of business on December 21, 2021. 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.
Omnicom Prices £325 Million Senior Notes Offering Posted on November 17, 2021November 17, 2021 by Katie Beaule NEW YORK, Nov. 17, 2021 — Omnicom Group Inc. (NYSE: OMC) and Omnicom Capital Holdings plc (the “Issuer”), a wholly owned subsidiary of Omnicom Group Inc. (“Omnicom Group”), today announced the pricing of the Issuer’s public offering of £325 million aggregate principal amount of 2.250% Senior Notes due 2033 (the “Notes”). The Notes will mature on November 22, 2033. The transaction is expected to close on November 22, 2021, subject to customary closing conditions. The Notes will bear interest at a rate of 2.250 percent per annum. The Notes will be fully and unconditionally guaranteed by Omnicom Group. The Notes and the related guarantee will be the unsecured and unsubordinated obligations of the Issuer and Omnicom Group, respectively, and will rank equal in right of payment to all of their respective existing and future unsecured senior indebtedness. The Issuer intends to use the net proceeds from the offering for general corporate purposes, which could include working capital expenditures, fixed asset expenditures, acquisitions, repayment of commercial paper and short-term debt, refinancing of other debt, repurchases of Omnicom Group’s common stock or other capital transactions. Application will be made to have the Notes listed on The New York Stock Exchange. The listing application will be subject to approval by The New York Stock Exchange. If such a listing is obtained, the Issuer will have no obligation to maintain such listing, and the Issuer may delist the Notes at any time. BNP Paribas, Deutsche Bank AG, London Branch, and J.P. Morgan Securities plc are acting as joint book-running managers for the offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction. The public offering is being made pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission (“SEC”). A final prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. In addition, copies of the prospectus and prospectus supplement relating to the Notes offered in the offering may be obtained by contacting any of the following underwriters: BNP Paribas toll-free at 1-800-854-5674, Deutsche Bank toll-free at 1-800-503-4611, or J.P. Morgan Securities plc collect at +44-207-134-2468. This document is for distribution only to persons who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”), (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc.”) of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. Relevant stabilization regulations including FCA/ICMA will apply. UK MiFIR and MiFID II professionals / ECPs-only / No UK or EEA PRIIPs KID – Manufacturer target market (MIFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels). No EEA or UK PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK. 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. 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, we or our 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 condition, or otherwise, based on current beliefs of our management as well as assumptions made by, and information currently available to, our 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 our 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: the impact of the COVID-19 pandemic, international, national or local economic conditions that could adversely affect us or our 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 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 us or our clients; risks associated with assumptions we make in connection with our critical accounting estimates and legal proceedings; and our international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and regulatory actions. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect our 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 Omnicom Group’s Annual Report on Form 10-K for the year ended December 31, 2020. Except as required under applicable law, we do not assume any obligation to update these forward-looking statements.
Omnicom at Advertising Week 2021 Posted on October 15, 2021October 15, 2021 by Katie Beaule Advertising Week 2021, or AWNewYork, will return as a hybrid event this year, gathering professionals in New York and digitally around the globe for four days of insight, inspiration and rejuvenation. The week will focus on brilliant creative work, technology advances, consumer research and media transformation happening right now. Omnicom, along with several agency members from across the networks, will be featured in speaking sessions throughout the week. Highlights include: Monday, October 18th 3:00PM | “The World is Ending and It’s Never Been a Better Time to Be in Advertising” with Ari Weiss, Global Chief Creative Officer, DDB Tuesday, October 19th 12:30PM | “Consumer Attention: A Sacred Commodity” with Christina Hanson, Chief Strategy Officer, OMD WW Wednesday, October 20th 12:00PM | “Hey, We Could All Use A Laugh” with Chris Beresford-Hill, CCO, TBWA\Chiat\Day New York Thursday, October 21st 2:00PM | “Brand On-Demand: Reimagining Collaborative Content” withTreva Thimm, Managing Director, Head of Content, Omnicom Media Group, Content Collective View the full list of events here.
Omnicom Group Reports Second Quarter and Year-to-Date 2021 Results Posted on July 20, 2021July 20, 2021 by Katie Beaule NEW YORK, July 20, 2021 — Omnicom Group Inc. (NYSE: OMC) today announced net income – Omnicom Group Inc. for the second quarter of 2021 of $348.2 million as compared to a net loss – Omnicom Group Inc. of $24.2 million in the second quarter of 2020. Diluted net income per share for the second quarter of 2021 was $1.60 per share compared to a diluted net loss per share of $0.11 in the second quarter of 2020. Net income – Omnicom Group Inc. and diluted net income per share for the second quarter of 2021 include the gain on a disposition of a subsidiary and a loss on the early retirement of our 2022 Senior Notes, of $31.0 million and $0.14 per share, respectively, as discussed below. Net loss – Omnicom Group Inc. and diluted net loss per share – Omnicom Group Inc. in the second quarter of 2020 included a net after-tax decrease of $223.1 million and $1.03 per share, respectively, as a result of COVID-19 repositioning costs. Omnicom’s worldwide revenue in the second quarter of 2021, which continued to improve from the negative effects of the COVID-19 pandemic, increased 27.5% to $3,571.6 million from $2,800.7 million in the second quarter of 2020. The components of the change in revenue included an increase in revenue from the positive impact of foreign currency translation of 5.4%, a decrease in acquisition revenue, net of disposition revenue of 2.2% and an increase in revenue from organic growth of 24.4%. Since the onset of the COVID-19 pandemic, the second quarter of 2020 had the most significant negative impact on our revenue. Organic growth in the second quarter of 2021 as compared to the second quarter of 2020 increased across all of our fundamental disciplines. The percentage increases were as follows: 29.8% for Advertising, 25.0% for CRM Precision Marketing, 15.2% for CRM Commerce and Brand Consulting, 53.0% for CRM Experiential, 22.7% for CRM Execution & Support, 15.1% for Public Relations and 4.5% for Healthcare. Across all of our regional markets, organic growth in the second quarter of 2021 as compared to the second quarter of 2020 was as follows: 19.9% for the United States, 37.1% for Other North America, 23.8% for the United Kingdom, 34.5% for the Euro Markets & Other Europe, 27.9% for Asia Pacific, 20.8% for Latin America and 42.8% for the Middle East & Africa. Operating profit increased $505.9 million to $568.4 million compared to $62.5 million during the second quarter of 2020. Our operating margin for the second quarter of 2021 increased to 15.9% versus 2.2% for the second quarter of 2020. Operating profit in the second quarter of 2021 reflects a pre-tax increase of $50.5 million arising from the gain on disposition of ICON, a specialty media business, during the quarter. The sale of ICON is part of our continuing realignment of our portfolio of businesses and is consistent with our strategic plan and investment priorities. The disposition is not expected to have a material impact on our ongoing results of operations or financial position. Operating profit in the second quarter of 2020 included a pre-tax decrease of $277.9 million due to COVID-19 repositioning costs, comprised of incremental severance charges, right-of-use asset impairments and other costs. Interest expense in the second quarter of 2021 increased $26.6 million due to the early retirement of our 2022 Senior Notes. The retirement reduced our leverage, which had increased from the issuance of $600 million of Senior Notes due 2030 in the second quarter of 2020 to increase our liquidity in response to the pandemic. For the second quarter of 2021, our effective income tax rate decreased period-over-period to 24.9%. The lower rate for the second quarter of 2021 was predominantly the result of a nominal tax applied against the book gain on the disposal of ICON that resulted from excess tax over book basis. Additionally, the prior year effective tax rate reflects the non-deductibility in certain jurisdictions of a portion of the COVID-19 repositioning charges recorded in the second quarter of 2020, which increased our rate. Year-to-Date Net income – Omnicom Group Inc. for the six months ended June 30, 2021 increased $402.0 million to $636.0 million compared to $234.0 million in the same period in 2020. Diluted net income per share – Omnicom Group Inc. for the six months ended June 30, 2021 increased $1.85 to $2.93 per share compared to $1.08 per share for the six months ended June 30, 2020. Net income – Omnicom Group Inc. and diluted net income per share for the six months ended June 30, 2021 include the gain on a disposition of a subsidiary and a loss on the early retirement of our 2022 Senior Notes, of $31.0 million and $0.14 per share, respectively, as discussed below. Net income – Omnicom Group Inc. and diluted net income per share – Omnicom Group Inc. for the six months ended June 30, 2020 included a net after-tax decrease of $223.1 million and $1.03 per share, respectively, as a result of COVID-19 repositioning costs incurred during the second quarter of 2020, as previously discussed above. Omnicom’s worldwide revenue for the six months ended June 30, 2021 increased 12.7% to $6,998.6 million from $6,207.6 million in the same period of 2020. The components of the change in revenue included an increase in revenue from the positive impact of foreign currency translation of 4.0%, a decrease in acquisition revenue, net of disposition revenue of 1.2% and an increase in revenue from organic growth of 10.0% when compared to the same period of 2020. Organic growth for the six months ended June 30, 2021 compared to the same period in 2020 in our fundamental disciplines was as follows: Advertising increased 13.9%, CRM Precision Marketing increased 15.8%, CRM Commerce and Brand Consulting increased 4.7%, CRM Experiential decreased 1.0%, CRM Execution & Support increased 1.6%, Public Relations increased 5.3% and Healthcare increased 2.3%. Across all of our regional markets, organic growth in the six months ended June 30, 2021 as compared to the same period of 2020 was as follows: 8.5% for the United States, 14.0% for Other North America, 6.7% for the United Kingdom, 13.5% for the Euro Markets & Other Europe, 14.4% for Asia Pacific, 7.7% for Latin America and 10.1% for the Middle East & Africa. Operating profit increased $551.1 million, or 114.2%, to $1,033.8 million from $482.7 million for the six months ended June 30, 2020. Our operating margin for the six months ended June 30, 2021 increased to 14.8% versus 7.8% for the same period of 2020. Operating profit for the six months ended June 30, 2021 reflects a pre-tax increase of $50.5 million arising from the gain on disposition of ICON during the second quarter of 2021. Operating profit for the six months ended June 30, 2020 included a pre-tax decrease of $277.9 million due to COVID-19 repositioning costs, as discussed previously. Interest expense for the six months ended June 30, 2021 increased $26.6 million due to the early retirement of our 2022 Senior Notes, as discussed previously. Our effective tax rate for the six months ended June 30, 2021 decreased period-over-period to 25.8% from 30.6%. In connection with the sale of ICON in 2021, we recorded a gain of $50.5 million. The lower rate for 2021 was predominantly the result of a nominal tax applied against the book gain on the disposal of ICON that resulted from excess tax over book basis. Additionally, the prior year effective tax rate reflects the non-deductibility in certain jurisdictions of a portion of the COVID-19 repositioning charges recorded in the second quarter of 2020, which increased our rate. Our effective tax rate for the six months ended June 30, 2021 would have been in line with our expectations except for the nominal tax on the pre-tax ICON gain of $50.5 million. 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. For the second quarter of 2021, EBITA increased $505.7 million, or 602.7%, to $589.6 million from $83.9 million in the second quarter of 2020. Our EBITA margin increased to 16.5% for the second quarter of 2021 versus 3.0% in the second quarter of 2020. For the six months ended June 30, 2021, EBITA increased 104.8%, or $550.0 million, to $1,074.9 million from $524.9 million for the same period in 2020. Our EBITA margin increased to 15.4% for the six months ended June 30, 2021 versus 8.5% when compared to the six months ended June 30, 2020. EBITA for the second quarter and six months ended June 30, 2021 reflects a pre-tax increase of $50.5 million arising from the gain on disposition of ICON. EBITA for the second quarter and six months ended June 30, 2020 reflects a pre-tax decrease of $277.9 million due to COVID-19 repositioning costs, comprised of incremental severance charges, right-of-use asset impairments and other costs. 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. COVID-19 Business Update We experienced an improvement in our business in the second quarter of 2021 as compared to the second quarter of 2020, primarily because the recovery from the COVID-19 pandemic that began in the first quarter 2021 continued into the second quarter. The second quarter of 2020 reflected the most negative impact on our businesses since the onset of the pandemic. The COVID-19 pandemic did not significantly impact our major markets and businesses until late in the first quarter of 2020 and the improvement from the pandemic in 2021 compared to the prior year, was significantly greater in the second quarter. Global economic conditions will continue to be volatile as long as the COVID-19 pandemic remains a public health threat, including as a result of new information concerning the severity of the pandemic, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients’ spending plans. We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy subsides. 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. Revenue by Discipline Effective January 1, 2021, we realigned the classification of certain services primarily within our CRM Consumer Experience discipline. As a result, our CRM discipline is now grouped into four categories: CRM Precision Marketing which includes our precision marketing and digital/direct marketing agencies; CRM Commerce and Brand Consulting that is primarily comprised of Omnicom Commerce Group, including our shopper marketing businesses, and Omnicom Brand Consulting agencies; CRM Experiential, which includes our experiential marketing agencies and events businesses; and CRM Execution & Support, which includes field marketing, merchandising and point of sale, as well as other specialized marketing and custom communications services. Forward-looking Statements Certain statements in this press release including those related to COVID-19 constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, 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. 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. You should carefully consider this 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 most recent Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. Conference Call Omnicom will host a conference call to review the second quarter 2021 financial results on Tuesday, July 20, 2021 at 8:30 a.m. EDT. Participants can listen to the conference call by dialing (844) 291-6362 (domestic) or (234) 720-6995 (international), along with access code 1468163. The call will also be simulcast and archived on our website at: https://investor.omnicomgroup.com/investor-relations/news-events-and-filings. 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. Omnicom Group Inc. Consolidated Statements of Income Three Months Ended June 30 (Unaudited) (Dollars in Millions, Except Per Share Data) 2021(a) 2020(b)(c) Revenue $3,571.6 $2,800.7 Operating Expenses: Salary and service costs $2,603.1 $ 2,031.1 Occupancy and other costs 293.9 290.0 Gain on disposition of subsidiary (50.5) — COVID-19 repositioning costs — 277.9 Costs of services 2,846.5 2,599.0 Selling, general and administrative expenses 103.2 82.1 Depreciation and amortization 53.5 57.1 3,003.2 2,738.2 Operating Profit 568.4 62.5 Interest Expense 80.3 53.7 Interest Income 6.8 6.5 Income Before Income Taxes 494.9 15.3 Income Tax Expense 123.2 21.9 Loss From Equity Method Investments (0.1) (7.8) Net Income (Loss) 371.6 (14.4) Net Income Attributed To Noncontrolling Interests 23.4 9.8 Net Income (Loss) – Omnicom Group Inc. $348.2 $(24.2) Net Income (Loss) Per Share – Omnicom Group Inc. Basic $1.62 $(0.11) Diluted $1.60 $(0.11) Weighted average shares (in millions) Basic 215.4 214.9 Diluted 217.1 215.4 Dividends Declared Per Common Share $0.70 $0.65 (a)During the second quarter of 2021, we recorded a gain on the disposition of subsidiaries, which increased Operating Profit and Net Income – Omnicom Group Inc. by $50.5 million for the three months ended June 30, 2021. Additionally, Net Interest Expense during the second quarter of 2021 included a $26.6 million charge related to the early extinguishment of our 2022 Senior Notes, which decreased Net Income – Omnicom Group Inc. by $19.5 million for the three months ended June 30, 2021. The net impact of these items increased Earnings per Share – Diluted by $0.14 per share for the three months ended June 30, 2021.(b)During the second quarter of 2020, we recorded expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items decreased Operating Profit by $277.9 million, Net Income – Omnicom Group Inc. by $223.1 million and Earnings per Share – Diluted by $1.03 per share for the three months ended June 30, 2020.(c)Salary and service costs for the second quarter of 2020 includes the reduction of $49.2 million in operating expenses related to reimbursements and tax credits under government programs in several countries where we have operations. Omnicom Group Inc. Consolidated Statements of Income Six Months Ended June 30 (Unaudited) (Dollars in Millions, Except Per Share Data) 2021(a) 2020(b)(c) Revenue $6,998.6 $6,207.6 Operating Expenses: Salary and service costs $5,148.1 $ 4,564.4 Occupancy and other costs 585.5 599.6 Gain on disposition of subsidiary (50.5) — COVID-19 repositioning costs — 277.9 Costs of services 5,683.1 5,441.9 Selling, general and administrative expenses 174.9 168.9 Depreciation and amortization 106.8 114.1 5,964.8 5,724.9 Operating Profit 1,033.8 482.7 Interest Expense 134.1 112.2 Interest Income 13.1 19.2 Income Before Income Taxes 912.8 389.7 Income Tax Expense 235.2 119.3 Loss From Equity Method Investments (0.1) (13.0) Net Income 677.5 257.4 Net Income Attributed To Noncontrolling Interests 41.5 23.4 Net Income – Omnicom Group Inc. $636.0 $234.0 Net Income Per Share – Omnicom Group Inc. Basic $2.95 $1.08 Diluted $2.93 $1.08 Weighted average shares (in millions) Basic 215.5 215.8 Diluted 217.0 216.5 Dividends Declared Per Common Share $1.40 $1.30 (a)During the second quarter of 2021, we recorded a gain on the disposition of subsidiaries, which increased Operating Profit and Net Income – Omnicom Group Inc. by $50.5 million for the six months ended June 30, 2021. Additionally, Net Interest Expense during the second quarter of 2021 included a $26.6 million charge related to the early extinguishment of our 2022 Senior Notes, which decreased Net Income – Omnicom Group Inc. by $19.5 million for the six months ended June 30, 2021. The net impact of these items increased Earnings per Share – Diluted by $0.14 per share for the six months ended June 30, 2021.(b)During the second quarter of 2020, we recorded expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items decreased Operating Profit by $277.9 million, Net Income – Omnicom Group Inc. by $223.1 million and Earnings per Share – Diluted by $1.03 per share for the six months ended June 30, 2020.(c)Salary and service costs for the six months ended June 30, 2020 includes the reduction of $49.2 million in operating expenses related to reimbursements and tax credits under government programs in several countries where we have operations. Omnicom Group Inc. Detail of Operating Expenses Three Months Ended June 30 (Unaudited) (Dollars in Millions) 2021 2020 Operating Expenses: Salary and service costs Salary and related service costs $1,721.7 $1,424.7 Third-party service costs 881.4 606.4 Occupancy and other costs 293.9 290.0 Gain on disposition of subsidiary (50.5) — COVID-19 repositioning costs — 277.9 Costs of services 2,846.5 2,599.0 Selling, general and administrative expenses 103.2 82.1 Depreciation and amortization 53.5 57.1 Total Operating Expenses $3,003.2 $2,738.2 Omnicom Group Inc. Detail of Operating Expenses Six Months Ended June 30 (Unaudited) (Dollars in Millions) 2021 2020 Operating Expenses: Salary and service costs Salary and related service costs $3,370.9 $3,067.1 Third-party service costs 1,777.2 1,497.3 Occupancy and other costs 585.5 599.6 Gain on disposition of subsidiary (50.5) — COVID-19 repositioning costs — 277.9 Costs of services 5,683.1 5,441.9 Selling, general and administrative expenses 174.9 168.9 Depreciation and amortization 106.8 114.1 Total Operating Expenses $5,964.8 $5,724.9 Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures – EBITA Three Months Ended June 30 (Unaudited) (Dollars in Millions) 2021 2020 Net Income (Loss) – Omnicom Group Inc. $348.2 $(24.2) Net Income Attributed To Noncontrolling Interests 23.4 9.8 Net Income (Loss) 371.6 (14.4) Loss From Equity Method Investments (0.1) (7.8) Income Tax Expense 123.2 21.9 Income Before Income Taxes 494.9 15.3 Interest Income 6.8 6.5 Interest Expense 80.3 53.7 Operating Profit 568.4 62.5 Add back: Amortization of intangible assets 21.2 21.4 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $589.6 $83.9 Revenue $3,571.6 $2,800.7 EBITA $589.6 $83.9 EBITA Margin % 16.5 % 3.0 % 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. Reconciliation of Non-GAAP Financial Measures – EBITA Six Months Ended June 30 (Unaudited) (Dollars in Millions) 2021 2020 Net Income – Omnicom Group Inc. $636.0 $234.0 Net Income Attributed To Noncontrolling Interests 41.5 23.4 Net Income 677.5 257.4 Loss From Equity Method Investments (0.1) (13.0) Income Tax Expense 235.2 119.3 Income Before Income Taxes 912.8 389.7 Interest Income 13.1 19.2 Interest Expense 134.1 112.2 Operating Profit 1,033.8 482.7 Add back: Amortization of intangible assets 41.1 42.2 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $1,074.9 $524.9 Revenue $6,998.6 $6,207.6 EBITA $1,074.9 $524.9 EBITA Margin % 15.4 % 8.5 % 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 Reports First Quarter 2021 Results Posted on April 20, 2021April 27, 2021 by Katie Beaule NEW YORK, April 20, 2021 — Omnicom Group Inc. (NYSE: OMC) today announced net income – Omnicom Group Inc. for the first quarter of 2021 of $287.8 million as compared to $258.1 million in the first quarter of 2020. Diluted net income per share for the first quarter of 2021 was $1.33 per share compared to $1.19 in the first quarter of 2020. Omnicom’s worldwide revenue in the first quarter of 2021 increased 0.6% to $3,426.9 million from $3,406.9 million in the first quarter of 2020. The components of the change in revenue included an increase in revenue from the positive impact of foreign currency translation of 2.8%, a decrease in acquisition revenue, net of disposition revenue of 0.4% and a decrease in revenue from negative organic growth of 1.8%, primarily due to the negative effects on our revenue attributable to the COVID-19 pandemic, when compared to the first quarter of 2020. Organic growth in the first quarter of 2021 as compared to the first quarter of 2020 in our fundamental disciplines was as follows: Advertising increased 1.2%, CRM Precision Marketing increased 7.2%, CRM Commerce and Brand Consulting decreased 4.2%, CRM Experiential decreased 33.2%, CRM Execution & Support decreased 13.3%, Public Relations decreased 3.5% and Healthcare was flat. Across all of our regional markets, organic growth in the first quarter of 2021 as compared to the first quarter of 2020 was as follows: the United States decreased 1.0%, Other North America decreased 3.2%, the United Kingdom decreased 6.4%, the Euro Markets & Other Europe decreased 3.2%, Asia Pacific increased 2.5%, Latin America decreased 2.4% and the Middle East & Africa decreased 10.2%. Operating profit increased $45.2 million, or 10.8%, to $465.4 million compared to $420.2 million during the first quarter of 2020. Our operating margin for the first quarter of 2021 increased to 13.6% versus 12.3% for the first quarter of 2020. For the first quarter of 2021, our effective income tax rate increased period-over-period to 26.8% from 26.0%. 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. For the first quarter of 2021, EBITA increased $44.3 million, or 10.0%, to $485.3 million from $441.0 million in the first quarter of 2020. Our EBITA margin increased to 14.2% for the first quarter of 2021 versus 12.9% in the first quarter of 2020. 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. COVID-19 Business Update The negative effects of the COVID-19 pandemic began to have a significant impact on our businesses late in the first quarter of 2020. In the beginning of 2021, we continued to experience the negative impact of the pandemic on our organic revenue compared to the same period in the prior year. However, the impact from the COVID-19 pandemic on the global economy appears to be moderating in several of our markets, and we expect to achieve positive organic revenue growth beginning in the second quarter of this year and for the full year 2021. As long as the COVID-19 pandemic remains a public health threat, global economic conditions will continue to be volatile depending on several factors, including new information concerning the severity of the pandemic, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients’ spending plans. We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy moderates. We continuously assess the impact of the COVID-19 pandemic and adjust our response related to changes in our business. In the second quarter of 2020, we took steps to strengthen our liquidity and financial position that were intended to mitigate any potential impact of the COVID-19 pandemic on our liquidity. Among other things, we issued $600 million of 4.20% Senior Notes due 2030 and entered into a $400 million 364-day revolving credit facility, or 364 Day Credit Facility, and we suspended our share repurchase activity. The 364 Day Credit Facility expired without ever being drawn on April 2, 2021. 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. Revenue by Discipline Effective January 1, 2021, we realigned the classification of certain services primarily within our CRM Consumer Experience discipline. As a result, our CRM discipline is now grouped into four categories: CRM Precision Marketing which includes our precision marketing and digital/direct marketing agencies; CRM Commerce and Brand Consulting that is primarily comprised of Omnicom Commerce Group, including our shopper marketing businesses, and Omnicom Brand Consulting agencies; CRM Experiential, which includes our experiential marketing agencies and events businesses; and CRM Execution & Support, which includes field marketing, merchandising and point of sale, as well as other specialized marketing and custom communications services. Forward-looking Statements Certain statements in this press release related to the potential impact of the COVID-19 outbreak constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, 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. 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. You should carefully consider this 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 most recent Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. Conference Call Omnicom will host a conference call to review the first quarter 2021 financial results on Tuesday, April 20, 2021 at 8:30 a.m. EDT. Participants can listen to the conference call by dialing (877) 336-4440 (domestic) or (409) 207-6984 (international), along with access code 5410296. The call will also be simulcast and archived on our website at: https://investor.omnicomgroup.com/investor-relations/news-events-and-filings. 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. Omnicom Group Inc. Consolidated Statements of Income Three Months Ended March 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2021 2020 Revenue $ 3,426.9 $ 3,406.9 Operating Expenses: Salary and service costs 2,545.0 2,533.3 Occupancy and other costs 291.6 309.6 Costs of services 2,836.6 2,842.9 Selling, general and administrative expenses 71.6 86.8 Depreciation and amortization 53.3 57.0 2,961.5 2,986.7 Operating Profit 465.4 420.2 Interest Expense 53.8 58.5 Interest Income 6.3 12.7 Income Before Income Taxes 417.9 374.4 Income Tax Expense 111.9 97.4 Income (Loss) From Equity Method Investments — (5.3) Net Income 306.0 271.7 Net Income Attributed To Noncontrolling Interests 18.2 13.6 Net Income – Omnicom Group Inc. $ 287.8 $ 258.1 Net Income Per Share – Omnicom Group Inc. Basic $ 1.33 $ 1.19 Diluted $ 1.33 $ 1.19 Weighted average shares (in millions) Basic 215.6 216.6 Diluted 216.8 217.5 Dividends Declared Per Common Share $ 0.70 $ 0.65 Omnicom Group Inc. Detail of Operating Expenses Three Months Ended March 31 (Unaudited) (Dollars in Millions) 2021 2020 Operating Expenses: Salary and service costs Salary and related service costs $ 1,649.2 $ 1,642.4 Third-party service costs 895.8 890.9 Occupancy and other costs 291.6 309.6 Costs of services 2,836.6 2,842.9 Selling, general and administrative expenses 71.6 86.8 Depreciation and amortization 53.3 57.0 Total Operating Expenses $ 2,961.5 $ 2,986.7 Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures – EBITA Three Months Ended March 31 (Unaudited) (Dollars in Millions) 2021 2020 Net Income – Omnicom Group Inc. $ 287.8 $ 258.1 Net Income Attributed To Noncontrolling Interests 18.2 13.6 Net Income 306.0 271.7 Income (Loss) From Equity Method Investments — (5.3) Income Tax Expense 111.9 97.4 Income Before Income Taxes 417.9 374.4 Interest Income 6.3 12.7 Interest Expense 53.8 58.5 Operating Profit 465.4 420.2 Add back: Amortization of intangible assets 19.9 20.8 Earnings before interest, taxes and amortization of intangibleassets (“EBITA”) $ 485.3 $ 441.0 Revenue $ 3,426.9 $ 3,406.9 EBITA $ 485.3 $ 441.0 EBITA Margin % 14.2 % 12.9 % 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 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.
DDB North America reinforces its commitment to data-driven creativity with executive hire Posted on April 8, 2021April 13, 2021 by Katie Beaule Jatinder Singh joins DDB North America as Chief Data Officer NEW YORK, April 8, 2021 — DDB North America announced today the addition of a new regional leadership position. Jatinder Singh joins DDB North America as Chief Data Officer and, reporting into regional CEO Justin Thomas-Copeland, will spearhead data science innovation for all DDB North America offices. Singh joins as DDB North America continues to fortify its data capabilities to underpin client work, following the appointment of Justin Thomas-Copeland in 2020. Thomas-Copland has championed data as a tool for marketers to harness and infuse insights which further drive creativity. To enable this, he has introduced new technology platforms which capture cultural insights and create scaled audience understanding. Singh will continue to diversify data usage across all functions of DDB North America and deliver solutions for clients across industries. “Jatinder Singh is an incredible operator and we’re excited to have him on board to fuel creativity in new and exciting ways for the region,” says Thomas-Copeland. “Jatinder is human first and will be instrumental in translating data insights into progressive, unexpected creative solutions that move mountains for our teams and clients and ensure that our creativity is always business accountable. He will be critical as we build out a DDB more integrated and creative than ever.” Singh joins from within Omnicom, DDB’s holding network, and was previously the Global Chief Marketing Sciences Officer for the Omnicom Precision Marketing Group (OPMG). Singh’s career echoes DDB North America’s connective and creative spirit with data-driven creativity experiences including AT&T, Ford Motor Company, IBM, iShares, McDonald’s, Pfizer, SAP, Uber and the Volkswagen Group. “DDB North America has made incredible strides in data science innovation to understand consumers and manifest this understanding in creative excellence. I am honored to be a part of such growth,” says Singh. “Data will continue to evolve and push creativity farther, DDB is the perfect incubator for the growth of both data and creativity.” ABOUT DDB DDB Worldwide (www.ddb.com) is one of the world’s largest and leading 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. WARC has listed DDB as one of the Top 3 Global Networks for 13 of the last 16 years. The agency’s clients include Unilever, Mars, Johnson & Johnson, and Molson Coors, among others. Founded in 1949, DDB is part of the Omnicom Group (NYSE) and consists of more than 200 offices in over 90 countries with its flagship office in New York, NY. ABOUT OMNICOM Omnicom Group Inc. (NYSE – OMC) 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.
Omnicom Celebrates International Women’s Day 2021 Posted on March 8, 2021March 8, 2021 by Katie Beaule In honor of Women’s History Month and International Women’s Day (IWD), Omnicom agencies around the world will come together to celebrate the professional and personal achievements of women within Omnicom Group and to reflect on progress made. This will also include several events hosted by local chapters of Omniwomen, Omnicom’s employee resource group that is dedicated to increasing the number and influence of women leaders throughout the Omnicom network. In addition to many of our agencies celebrating this year’s #ChooseToChallenge theme through social media campaigns, a number of them are also celebrating through unique virtual events. For a sampling of their IWD activities, please see the roundup provided below. If you have any questions about a particular event or inquiries on how to get involved, please reach out to Katie Beaule at [email protected]. Omniwomen Omniwomen Global is coordinating a Meet & Greet series where different Omniwomen from around the world will be paired together and connect virtually during the week of March 8th. There are 250 participants. Below is a breakdown of additional chapter plans. Chapter Plans: On March 11th, Omniwomen Australia will welcome a keynote speaker to discuss a story of when women have chosen to challenge something in their career (a norm, a stereotype, an issue in the ad/marketing industry) and what happened next. The speaker will be followed by a panel that will highlight the stats from shEqual before looking at some of the key challenges women face in advertising and the ways different people have overcome these challenges. In honor of International Women’s Day, Omniwomen Chicago will host an event titled Omniwomen Chicago Presents: An Afternoon with Diane L. Parker. Diane L. Parker, playwright, actress, and VP of D&I at Meredith Corporation, will perform her original one-woman play Sick and Tired. Winner of the 2017 Strawberry One Act Festival, Sick and Tired tells the story of voting rights activist Fannie Lou Hamer. In 1962, Hamer was 44 years old and, though she dreamed of being a registered voter, could not vote. In spite of much adversity, including violent voter suppression tactics, Hamer helped make the right to vote become an accessible reality for Black Americans. Following the performance, Diane will join Omniwomen for a moderated Q&A session.Omniwomen China plans to display a two-minute ‘Thank You, Thank Her’ video with true narratives and authentic stories from inspiring people in Greater China. The video will pay tribute to women who keep inspiring us with their resilience and courage in life.Omniwomen LA will be hosting a fireside chat with Camilla Grozian‑Lorentzens, President of KERN. She will discuss the journey to where she’s at now, the biases she’s encountered, her allies, sponsors and more.Omniwomen Mexico will hold a conference / panel around menopause. It will be a discussion with an Ob-gyn, a psychologist and a nutritionist to talk about menopause from different perspectives and develop dialogue among the group. Designory, eg+ and Mother Tongue Each day throughout the month, this group of agencies will feature a woman-focused item internally, highlighting an inspiring biography, podcast, article, poem, etc. Then, on IWD, they will post responses to short biographical questionnaires their women in senior leadership completed. They also will be raffling off 10 tickets to the California Conference for Women to employees who submitted stories of a woman that inspired them. Doremus North America The agency’s employee resource group, PODD, will host two Speaker Series in the month, with agency leads and mid-mangers talking about their work-life balance and what it means to be an executive within the agency. In addition, each female employee will receive an acknowledgment certificate with a term of endearment from their manager. GMR Marketing This International Women’s Day, GMR is hosting signature speaker Mikaela Kiner, author of Female Firebrands who provides actionable ways women and men can advocate for an equal and diverse workplace. The session, held on March 8th, will be followed by small group chats that provide a more intimate forum to discuss Mikaela’s topics and tools. Later in the month, the agency will host a panel with representatives from Women’s Soccer who are revolutionizing the sports industry. In addition, employees will have a chance to support those in their local community who #ChoosetoChallenge through in-person donations and book purchases. Omnicom Media Group Omnicom Media Group will be hosting two panels for employees this Women’s History Month. The first, titled We Are the Culture: Black Women and Fashion & Beauty, will be held on March 18th. The Black Leadership Network (BLN) and Hearts & Science will host a panel discussion with Black-owned beauty and fashion business owners to discuss their companies, misconceptions about Black beauty and fashion, and how they respond to cultural appropriation in those industries. Then, on March 23rd, the group will host I’m Speaking: Amplifying Black Women’s Voices. From recording studios to the mic stands at rallies, Black women are using their voices to move culture and society forward. The BLN, in partnership with Pandora, will celebrate Black women in audio and media and discuss the changes we need to make to carve a path for future women leaders. The panel discussion will be hosted by Nicole Buchanan, MC Sales Director for Pandora Multicultural. Siegel + Gale On March 8th, Siegel + Gale will host its annual IWD celebration. Margaret Molloy, Global CMO of Siegel + Gale, will welcome five, top, global CMOs and moderate a panel conversation on their personal journeys and the massive role brands and marketing can play as we #ChooseToChallenge and strive for equity. Panelists will include: Sanyu Dillon, Chief Marketing Officer, Penguin Random HouseLisa McKnight, SVP, Global Head of Barbie & Dolls Portfolio, Mattel Leanne Cutts, Group Chief Marketing Officer, HSBCHuda Buhumaid, Chief Marketing Officer, Dubai HoldingCarla Piñeyro Sublett, SVP, Chief Marketing Officer, IBM