Omnicom
Group Inc. said its business continued to improve from the damage and disruption caused by the Covid-19 pandemic, with third-quarter organic revenue gains in each of the advertising company’s major disciplines.
The New York-based company, which owns agencies including BBDO, DDB and TBWA, said organic revenue increased 11.5% compared with the third quarter of 2020. Organic revenue is a metric that removes the effects of currency fluctuations, acquisitions and disposals.
John Wren, chief executive of Omnicom Group Inc.
Photo:
Omnicom Group Inc.
Marketers would like to be spending more in areas such as live events, said
John Wren,
Omnicom’s chief executive. But the company’s growth areas such as advertising and media have compensated for the “not-yet-returned segments where people will spend money as we move forward, as more people get back to a regular schedule,” Mr. Wren said.
“I’m pretty bullish about the future,” he added, citing the return of more people to offices and sporting events.
Omnicom’s organic revenue grew 50% in its CRM Experiential discipline, 24% in CRM Precision Marketing, 18% in CRM Commerce and Brand Consulting, 11% in public relations and 8.6% in advertising, the company said.
Organic revenue also increased across regions, including gains of 7.7% for the U.S., 20% for the rest of North America, 11% for the U.K., 15% for European markets, 20% for Asia-Pacific, 16% for Latin America and 24% for the Middle East and Africa.
Overall revenue at Omnicom increased 7.1% to $3.44 billion in the third quarter. That fell short of analyst expectations of $3.46 billion in revenue, according to FactSet.
Last week, Omnicom rival
Publicis Groupe SA
raised its full-year revenue forecast after reporting strong demand for digital marketing services in the third quarter.
Interpublic Group of
Cos., another competitor, will report its third-quarter earnings on Thursday.
Jay Pattisall,
a principal analyst at research company
Forrester Research Inc.,
said he anticipated the other major holding companies would also put out positive results, given the performance of Publicis and Omnicom.
But advertisers are grappling with a fourth quarter marked by supply-chain bottlenecks and labor shortages. Pattisall said though advertisers typically produce and plan out campaigns well in advance, uncertain circumstances are shaking that up.
“I think we’re probably going to run into a situation where they’re going to have to change and turn on a dime,” in terms of which products will be advertised, which outlets and channels those ads will appear in and the amounts that are available, among other factors, Pattisall said.
Write to Megan Graham at [email protected]
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