While it might not be omnipotent, Omnicom Group can create advertising that is omnipresent. The company ranks as the world's #1 corporate media services conglomerate, with advertising, marketing, and public relations operations serving some 5,000 clients in more than 100 countries. It serves global advertising clients through its agency networks BBDO Worldwide, DDB Worldwide, and TBWA Worldwide, while such firms as GSD&M's Idea City, Merkley + Partners, and Zimmerman Advertising provide services for regional and national clients. More than 190 other firms in its Diversified Agency Services division, including Fleishman-Hillard, Integer, and Rapp, provide public relations and other marketing services.
Omnicom Group saw its revenues increase by more than 10% and net income increase by 15% in 2011, thanks to a recovering market that saw companies boost their advertising budgets. Acquisitions also contributed to a growth in earnings.
Mergers & Acquisitions
Throughout the year the firm bought 12 companies, including Nancy Bailey & Associates, a corporate licensing and consulting firm. Nancy Bailey is working closely with Beanstalk, another licensing specialist owned by Omnicom. Also in 2011 Omnicom bought Marina Maher Communications (MMC) for an undisclosed amount. MMC adds expertise in consumer products, food and beverage, and prescription and OTC drugs marketing from a female customer perspective.
In addition to adding subsidiaries that expand its advertising and marketing service offerings, the company also makes acquisitions to grow its geographic presence. In 2012 its Diversified Agency Services bought a majority stake in Medical Collective Intelligence, a Japanese online medical communications agency based in Tokyo.
Omnicom has US offices in New York, Connecticut, and Florida, while it has international offices in London, Shanghai, and Singapore.
Omnicom's fortunes have been buoyed in part by its agency networks and their consistently strong creative work (traditional media advertising accounts for more than 45% of revenue), but the bulk of its growth has traditionally come from such areas as customer relationship management (CRM) and specialty communications. Omnicom sees continued growth being tied to its ability to provide an ever-expanding menu of services to its largest clients, especially in the digital and social media arenas.
The company has also been focused on expanding its media planning and buying operations. OMD Worldwide is a leading media specialist firm (behind Publicis' Starcom MediaVest), but Omnicom still trails WPP Group, Publicis, and Interpublic in total media services billings. To help close the gap, OMD launched Full Circle Entertainment, a branded entertainment production unit that works with clients like DIRECTV and Pier 1. In addition, Omnicom's Prometheus Media Services unit is its third media specialist, alongside OMD Worldwide and PHD Media Limited. – less