Mon, Aug. 29, 6:38 PM
- Omnicom (NYSE:OMC) got a boost today, up 1.5% as it scored a coup: taking control of the McDonald's account after the fast food giant ended a decades-long relationship.
- Following a review, McDonald's elected to consolidate business with Omnicom to united media and creative work, putting wraps on a 35-year relationship with Leo Burnett, part of Publicis Groupe (OTCQX:PUBGY).
- Omnicom will be working with McDonald's -- which spent $820M on U.S. advertising last year -- to build an "agency of the future," says McD's Chief Marketing Officer Deborah Wahl.
- McDonald's has had an existing creative relationship with Omnicom's DDB for 45 years.
- And agencies may change, but taglines don't always follow suit: "I'm Lovin' It" will continue to be a part of McDonald's campaigns.
Fri, Aug. 12, 2:37 PM
- After a "massive review" that wrapped up relatively quickly, AT&T (T -0.2%) has centralized its creative, digital and media accounts in ad giant Omnicom (OMC +1%).
- That firm will have the bulk of business on creative, media, digital, data and analytics in the U.S. along with some work in Mexico, with its BBDO agency taking the creative lead. Meanwhile, Omnicom's recently launched Hearts & Science will serve as AT&T's media agency.
- AT&T had pushed the review in a search for "efficiencies, quality and consistency across the portfolio."
- A spokesman for WPP (WPPGY -0.3%) said: "We are very disappointed."
Mon, Jul. 25, 7:33 PM
- In a Brazil threatened by an environment of business scandals, Telefonica Brasil (VIV -2.3%) is probing its own marketing division to see whether contracting practices led to excessive price discrepancies, Valor Econômico reports.
- The company spends 1.3B reais (about $395M) annually on marketing and advertising and has already begun a restructuring of the unit's leadership, the paper says. Former chief Cristina Duclos has been dismissed and the company is looking for a new marketing executive.
- The probe examined contracts with some of Brazil's biggest ad agencies, including DPZ&T, Young & Rubicam (NASDAQ:WPPGY) and Africa (NYSE:OMC), and ended up retaining them.
Fri, Jul. 15, 6:06 AM
Thu, Jul. 14, 12:08 PM
- Ad giant Omnicom Group (NYSE:OMC) is off 1.6% after a revenue miss in its Q2 earnings report.
- Net income rose 7.9% to $1.36/share, though, and organic revenue growth outpaced a negative impact from foreign exchange rates. EBITA rose 4.3% to $590.3M, and EBITA margin (compared to total revenue) rose to 15.2% from a year-ago 14.9%.
- Organic revenue by discipline: Advertising, +7.7%; Public relations, +0.1%; Specialty Communications, +4.4%; CRM, -2.7%.
- Organic revenue growth in regions: North America, 3.2%; United Kingdom, 3.3%; Euro Markets and Other Europe, 4.3%; Asia Pacific, 4.5%; Latin America, 1.7%; Middle East and Africa, -1.2%.
- Conference call link
- Press Release
Thu, Jul. 14, 6:48 AM
Wed, Jul. 13, 5:30 PM
Wed, Jun. 29, 11:25 AM
- Ad giant Omnicom (OMC +0.6%), in the middle of a push to expand its healthcare practice, has combined several agencies into a single focused network.
- DDB Health will roll up agencies including AgencyRx, Flashpoint, and Synergy as well as local DDB Health efforts into a dedicated offering.
- Josh Prince will lead the new DDB Health as CEO. He's named Jennie Fischette to lead his efforts in the U.S. Prince will also continue to serve as chief marketing officer of Omnicom Health Group.
- Last month, Omnicom boosted its efforts with an acquisition of health strategy consulting firm Rabin Martin.
Mon, Jun. 27, 11:16 AM
- The outperformance of low-P/E stocks that marked H1 is behind us, says RBC's Jonathan Golub, and it's time for the "Stable Growers" to re-asset leadership. He cautions about putting money to work too quickly though, noting the pullback so far has been limited.
- His list of Stable Growers (page 1, page 2): CHD, CL, CVS, K, MO, PEP, PG, PM, BCR, BDX, DGX, DVA, HSIC, JNJ, LH, MDT, SYK, TMO, UNH, ZBH, AFL, AON, MMC, TMK, CTAS, DHR, HON, ITW, LMT, MMM, NLSN, RSG, RTN, UPS, VRSK, WM, XYL, CMCSA, MCD, OMC, ADP, APH, EMC, MA, T, VZ, ECL, PX
Thu, Jun. 2, 1:47 PM
- Ad agencies are getting rebates from media companies based on spending a certain amount on behalf of marketing clients, an eight-month trade-group investigation is showing.
- That practice is widespread in the sample it looked at, the WSJ reports that the Association of National Advertisers found. The report is due for full release soon, and may cast doubts on ad industry transparency (and raise fears among marketers that agencies don't have their best interests at heart, a trust that has been fraying in recent years).
- Accepting rebates is common elsewhere, in Europe and China, but historically not part of the ad business in America, and agencies have said publicly they don't accept rebates.
- Leading ad agencies: WPPGY, OMC, OTCQX:PUBGY, IPG, OTCPK:HAVSF
Tue, May 24, 5:10 PM
Mon, May 16, 10:14 AM
- Omnicom (OMC +0.5%) is continuing its investment in healthcare initiatives, acquiring health strategy consulting firm Rabin Martin.
- Rabin Martin features a roster of clients among healthcare firms, nonprofits, foundations and universities, and has worked on a number of global health initiatives.
- It will join Omnicom Public Relations Group and continue to be led by its president and CEO, Jeffrey Sturchio. The move follows earlier acquisitions, including BioPharm Communications, and the merger of two of its agencies under the TBWAWorldHealth brand.
- Now read The Moat Around Every Ad Agency Is Client Retention »
Mon, Apr. 25, 11:16 AM
- McDonald's (MCD +0.9%) is taking proposals from major creative agencies as it looks to use a single firm for its multi-faceted marketing needs, according to AdvertisingAge.
- The company's strategy is to spread new menu and store concepts quicker across different channels by using a single ad agency.
- Omnicom's (NYSE:OMC) DDB, Publicis' (OTCQX:PUBGY, OTCQX:PGPEF) Leo Burnett, and WPP (WPPGY, OTCPK:WPPGF) are the three firms in the running for the gigantic account.
- Now read McDonald's: The Quarter Wasn't That Good, But Maybe That's The Point
Tue, Apr. 19, 2:18 PM
- Amid mixed trading today, Omnicom (NYSE:OMC) is now off 0.8% following an earnings report where it beat earnings expectations showing growth in key markets.
- Revenue that grew 0.9% overall rose fastest in Asia Pacific (5.1% organically) and North America (4.5%), alongside 2.2% growth in the UK, 3% in Euro/Other Europe, and 1.7% in Africa and Middle East. Meanwhile, Latin American revenue slid 7.8%.
- Revenue growth by discipline: Advertising +7.9%; CRM -0.7%; public relations -0.9%; specialty communications +2.2%.
- It's also made some changes to keep its board fresh, adopting a mandatory retirement age of 75 -- meaning that when it becomes effective at the end of 2017, five of the current independent directors as well as Chairman Bruce Crawford will leave the board by the 2018 meeting.
- Also in line with that retirement age policy, two other longtime directors are stepping down in time for this year's meeting. After the 2016 meeting, the board is expected to have 12 members (10 independent).
- Press Release
- Now read Omnicom: Consider This Advertising Behemoth For Your Dividend Portfolio »
Tue, Apr. 19, 6:46 AM
Mon, Apr. 18, 5:30 PM