Omnicom returns to revenue growth after global P&G and Volkswagen wins

Omnicom's capture of Procter & Gamble and Volkswagen media accounts last year has helped the US advertising giant secure a return to growth, while UK revenue was up 4.9%.

Volkswagen: UK ads are created by Omnicom's Adam & Eve/DDB
Volkswagen: UK ads are created by Omnicom's Adam & Eve/DDB

Omnicom’s global revenue for last year increased by 1.9% to $15.42bn (£12.46bn). This was aided by an increase of 2.1% to $4.24bn year on year in the fourth quarter.

However, the company's fourth quarter revenue came in lower than analysts' average estimate of $4.26bn, according to Thomson Reuters I/B/E/S.

PHD, Campaign’s media network of the year for 2016, benefitted from the huge £2bn media consolidation of the global Volkswagen business, while Omnicom launched a new network, Hearts & Science, to service the US business for P&G. AT&T also consolidated its $4bn media account into Hearts & Science last year. 

This time last year, the owner of BBDO and OMD reported a 1.2% drop in global revenue for 2015 after the holding company was hit negatively by currency movements. 

Omnicom’s UK revenue growth of 4.9% outperformed the Euro markets (4%) and North America (2.4%), but was not as strong as Asia-Pacific (6.9%). In the fourth quarter of 2016, the UK was reported to be one of Omnicom’s best performing regional markets, with organic revenue growing 8.5%, compared to 0.6% in North America, 6.2% in the Euro markets and 9.5% in Asia-Pacific.

Advertising was Omnicom’s best-performing division in 2016, with 5.9% organic revenue growth, compared to a 2.8% uplift in PR, 0.3% increase in CRM and 4.6% in specialty communications.

Omnicom’s increase in organic revenue of 3.5% for 2016 was offset by a 1.9% decrease revenue caused by foreign exchange rate movements.

Operating profit for the year increased 4.6% to $2.01bn in 2016, while EBITA increased by 4.7% to £2.12bn.

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.


Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Why Cosabella replaced its agency with AI and will never go back to humans

1 Why Cosabella replaced its agency with AI and will never go back to humans

In October, lingerie retailer Cosabella replaced its digital agency with an AI platform named "Albert". Since then it has more than tripled its ROI and increased its customer base by 30%.

Just published