Omnicom Group’s Revenue by Discipline (2016-2022)

On a YoY basis, the total revenue generated increased by $0.229 billion, which is a 7.13% increase. However, there was a decrease of 3.82% on a QoQ basis. On an overall basis, the revenue has seen a decreasing trend. It has fallen considerably in recent years, especially during FY 2020.

On the other hand, there is even seasonality involved. In Q4 every year, there is a sharp increase in the total revenue generated as compared to the start of the fiscal year.

Advertising

Advertising includes providing creative services, strategic media planning and buying, and data analytics services. This discipline comprises a major proportion of the source of revenue for Omnicom. In Q3 2021, as much as 53% of the total revenue came from advertisements. Even though this discipline contributes significantly, there has been a decrease of 9.63% on a QoQ basis. On a YoY basis too, there has been a decline in growth. This discipline also has a seasonality effect. 

Public relations 

These services include corporate communications, crisis management, public affairs, and media and media relations services. This discipline generates the second-highest revenue for Omnicom. More than 10% of the total revenue comes from PR. On a YoY basis, about a 10.12% increase was witnessed as compared to a 3.75% QoQ increase. A seasonality effect is observed, even in this discipline. 

Healthcare 

Healthcare includes providing media and advertising services to global healthcare clients. Over the years, this discipline has grown consistently. This discipline has increased by 8.38% on a YoY basis, however, there was no significant growth during Q3 2021. 

CRM

To better capture the expanding scope of the services, effective January 1, 2021, Omnicom realigned the classification of the CRM Consumer Experience discipline. As a result, the CRM discipline has been reclassified into four categories: CRM Precision Marketing, CRM Commerce and Brand Consulting, CRM Experiential, and CRM Execution & Support. Overall 27.13% of the total revenue comes from CRM related services. 

(i) CRM Commerce and Brand Consulting 

It primarily comprises Omnicom Commerce Group, including their shopper marketing businesses, and Brand Consulting agencies. On a QoQ basis, there has been an increase of more than 4% in this category. However, on a YoY basis, the revenue generated increased by more than 19%. 

(ii) CRM Execution & Support

It includes field marketing, merchandising, and point of sale, as well as other specialized marketing and custom communications services. They create and develop a client’s marketing or corporate communications message into content that can be delivered to a target audience across different mediums. This category has increased by 3.2% on a QoQ basis, however, there was a 9.7% increase on a YoY basis. On an aggregate level, this category has witnessed an exponential decrease.

(iii) CRM Experiential

This discipline includes Omnicom’s experiential marketing agencies and events businesses. It contributes the lowest revenue in the total revenue generated. On the contrary, there has been a 51% growth on a YoY basis. 

(iv) CRM Precision Marketing

It includes Omnicom’s precision marketing and digital/direct marketing agencies. On a YoY basis, there has been a growth of 30% in the revenue generated from this category. Instead of showing the seasonality effect, the last two categories witnessed a steep downfall in the revenue generated, with almost nil revenue in Q4 2020. 

About the company

Omnicom is a strategic holding company providing advertising, marketing, and corporate communications services to clients through its branded networks and agencies around the world.

They provide a customized mix of advertising and marketing services to marketers to integrate fragmented consumer audiences. Their fundamental business principle is meeting clients’ specific marketing requirements. This client-centric approach helps to grow business by expanding service offerings to existing clients, moving into new markets, and obtaining new clients. 

Platforms used by Omnicom: 

• Annalect: This is Omnicom’s proprietary data and analytics platform. It serves as a prudent resource to share, for all the agencies and networks, when developing client service strategies.
• Omni: This is Omnicom’s precision marketing platform. It even provides market insights. Omni helps in identifying and defining personalized consumer experiences at scale across creative, media, and CRM, along with other disciplines.

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