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Omnicom Media Group Inc. Hits a Decline in Shares


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Omnicom Media Group is the media division of Omnicom Group Inc. which is comprised of three major networks consisting of: OMD Worldwide the leading global media communications agency, which employs 10,000 professionals across 100 countries serving the world’s highest profile brands. OMD provides a focused range of services globally including communications strategy, media planning and buying, digital execution, content creation, entertainment marketing, sponsorship and brand analytics. PHD is known globally as an innovator in communications planning and buying across broadcast, print, digital, mobile, social and emerging media. PHD is today one of the most awarded media and communication agency networks with over 4,000 staff working in over 80 offices worldwide for global brands like Volkswagen Group, Unilever, Bentley, GSK, SC Johnson, Elizabeth Arden and Canon. Hearts & Science is a data-driven marketing agency. The agency uses data to create and nurture billions of personalized relationships between brands and people, ultimately growing clients businesses. Hearts & Science fosters an open, collaborative, and agile environments, with more than 300 employees across the United States, Puerto Rico, and Canada. However, the trifecta of high profiled media networks that comprises OMG to OMI have been tumbling  according to the stock market, and hit it’s biggest decline in nine years. The culprits are non-other than Google and Facebook.

In today’s ever-changing world of marketing strategies, many ad clients are shifting marketing dollars toward online media and have started to wipe away spending toward traditional advertising agencies, and in the “Valley of Silicon” both Google and Facebook are the dominate players.

The Omnicom Group Incorporated stock closed last Tuesday at $70.69, down nearly 9.5 percent from Monday’s close after the New York-based company posted weaker-than-expected revenue growth of 2 percent in the second quarter. To note, Goldman Sachs Group described the revenue slump as the worst growth in North America since the recession, helping send the shares on their sharpest intraday plunge since March 2009.

Paul Sweeney, a Bloomberg Intelligence analyst, stated “Ad-account losses and general uncertainty in U.S. digital media are dragging down Omnicom’s organic revenue growth—a measure that excludes deals and currency fluctuations. North America accounts for more than half of the company’s sales. Margins also are under pressure, despite efforts to focus on more profitable businesses. Omnicom’s 2018 margin outlook is disappointing, with the company expecting stable margin even as it pruned its portfolio in 2017.”

Mr John Wren has been President of Omnicom since 1996 and CEO since 1997. He also has served as a Director since 1993.  The Brooklyn-born executive has been part of the team that created Omnicom in 1986, two years after entering the advertising business as an executive vice president with Needham Harper Worldwide. He was appointed CEO of the Diversified Agency Services (DAS), division of Omnicom in 1990. Wren was recently selected as Chairman of the board on May 22, 2018.

“We believe that the transition towards digital is not impacting the company as much as the market expected in the last few years.” added Sweeney

About Omnicom Media Group:

Omnicom Media Group is the media services division of Omnicom Group Inc. (NYSE: OMC), the leading global advertising, marketing and corporate communications company, providing services to over 5,000 clients in more than 100 countries. Omnicom Media Group includes the full service media networks OMD Worldwide and PHD Network, leading global data and analytics company, Annalect.

We offer unparalleled clout in the marketplace, as well as a depth of capabilities and experience to drive leadership and innovation in every media type. In order to maximize our investment in building out best-in-breed capabilities, ensure we can draw industry-leading talent and bring the maximum market leverage to bear for our clients.

About Omnicom Group Inc.

Omnicom is an inter-connected global network of leading marketing communications companies. Our portfolio provides the best talent, creativity, technology and innovation to some of the world’s most iconic and successful brands. We offer a diverse, comprehensive range of marketing solutions spanning brand advertising, customer relationship management (CRM), media planning and buying services, public relations and numerous specialty communications services to drive bottom-line results for our clients. Our portfolio includes three global advertising agency networks: BBDO, DDB and TBWA; two of the world’s premier providers of media services: OMD and PHD, part of Omnicom Media Group. We also manage a global diversified group of agencies, under the DAS Group of Companies. DAS includes over 200 brands across numerous marketing disciplines: public relations, medical and pharmaceutical marketing, customer relationship management, entertainment and events, shopper, branding and design, and research. At the annual Cannes Lions International Festival of Creativity, 137 Omnicom agencies won over 300 Lions from approximately 34 different countries across more than 25 communication categories in 2018. Omnicom is consistently featured in the top 250 performers of Fortune 500 and ranks Number One in the advertising and marketing industry group. The Wall Street Journal ranked Omnicom Group as the leader in its peer group for our industry leading annual total return to shareholders.

 


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Matt Harchick
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Matt Harchick

Matthew has worked in both the private sector and in higher education for over twenty years. He specializes in the areas of digital media project management, broadcast engineering and media production. Matthew has extensive knowledge in digital post production, digital asset management, digital cinema production, and broadcast facility integration. Mr. Harchick actively researches state of the art broadcast, cutting edge digital cinema and smart audio visual technologies for client implementation and is available for your consultation needs.

Matt and his family currently reside in the Washington, D.C metro area.
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