Omnicom Group

Omnicom Group, Inc.

Type	Public
Traded as	NYSE: OMC S&P 500 Component
Industry	Advertising Public relations
Founded	1986
Headquarters	New York City, United States
Area served	Global
Key people	John D. Wren, CEO & President
Products	Branding & identity Consumer insights Design Digital Marketing Market research Media planning and buying Public relations Relationship marketing
Revenue	US$ 14,584.5 million (2013) [1] US$ 14,219.4 million (2012) [1]
Operating income	US$ 1,825.3 million (2013) [1] US$ 1,804.2 million (2012) [1]
Net income	US$ 991.1 million (2013) [1] US$ 998.3 million (2012) [1]
Total assets	US$ 22,098.7 million (2013) [2] US$ 22,151.9 million (2012) [1]
Total equity	US$ 4,067.9 million (2013) [2] US$ 3,956.3 million (2012) [1]
Number of employees	70,600 (2012)
Website	Omnicomgroup.com

Omnicom Group, Inc. is an American marketing and corporate communications holding company, headquartered in New York City. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, customer relationship management (CRM), and public relations to more than 5,000 clients in over 100 countries.^[3]

Omnicom’s agency networks include BBDO, DDB Worldwide, TBWA Worldwide, Diversified Agency Services (DAS) and Omnicom Media Group (OMG). Its public relations, CRM and specialty communications agencies are managed by its DAS network and include the CRM businesses of Javelin, Proximity Worldwide, Rapp and Targetbase; the PR agency businesses Brodeur Worldwide, Fleishman-Hillard, G+ Europe, Ketchum Inc., Pleon and Porter Novelli and retail/promotional businesses such as Alcone Marketing Group. Omnicom Media Group includes OMD Worldwide, PHD Worldwide and Resolution Media. Omnicom was formed in 1986 from the merger between advertising agency networks DDB, Needham Harper Steers and BBDO.

On 28 July 2013, it was announced that Publicis Groupe and Omnicom Group would merge to form Publicis Omnicom Group.,^[4] which would have been the largest marketing and advertising holding company in the world. However, on May 8, 2014, the merger was called off,^[5] reportedly due to a "mix of clashing personalities, disagreements about how the companies would be integrated and complications over legal and tax issues".^[6] Another factor was that China’s antitrust regulator Mofcom "had not granted the deal regulatory approval".^[6]

History

Timeline

• 1986 merger of BBDO, Doyle Dane Bernbach and Needham Harper^[7]
• 1988 Fred J. Meyer, John Watt and Dennis E. Hewitt join Omnicom.
• 1991 WPP sells its 22% stake in AMV to Omnicom for £7.5 million
• 1992 buys Harrison and Star
• 1993 TBWA acquired by Omnicom^[7]
• 1994 Matthew Freud sells Freud Communications to Abbott Mead Vickers
• 1995 Chiat/Day acquired by Omnicom^[7]
• 1996 sells 13% holding in Aegis for £45.4 million
• 1996 buys Ketchum Communications
• 1996 Omnicom's BBDO Worldwide raises stake in AMV from 28.4% to 29.6%
• 1996 Ketchum and Hong Kong-based Newscan establish Ketchum Newscan
• 1997 takes stakes in interactive agencies: Agency.com, Organic Online (OGNC), Razorfish, Interactive Solutions
• 1998 GGT BDDP acquired by Omnicom^[7]
• 1998 Omnicom buys Abbott Mead Vickers for £346 million^[8]
• 1998 buys Gold Greenless Trott for £143 million
• 1998 acquires Russ Reid Company
• 1998 takes 20% of I&S, Japan's eighth-largest ad agency
• 1999 buys Sheppard Associates
• 1999 buys The M/A/R/C Group; Targetbase & M/A/R/C Research
• 1999 Direct Partners acquired by Omnicom
• 2001 buys Grizzard Communications for US$91 million
• 2001 Matthew Freud leads £10 million buyout of Freud Communications
• 2001 buys The Washington Group
• 2001 buys Stromberg Consulting
• 2001 takes stake in Estrategia Assessoria de Comunicacao in Brazil
• 2001 buys Corporate Technology Communications
• 2002 creates Element 79 Partners agency in Chicago
• 2002 buys TPG (inc The Peter Group, AI Advertising and Topak Marketing)
• 2002 buys Aaron Walton Entertainment
• 2003 buys Organic, Inc. and Siegel+Gale
• 2003 Hall & Partners acquired by Omnicom for an undisclosed sum^[9]
• 2005 buys Resolution Media
• 2005 buys Luntz-Maslansky Strategic Research
• 2006 buys Rodgers Townsend
• 2006 buys 50% shareholding in 180 Amsterdam and 180 LA

Quick facts

• Revenue (2013): 14.585 B ^[10]
• Revenue (2012): 14.219 B
• Revenue (2011): 13.873 B
• Revenue (2010): 12.543 B
• Revenue (2009): 11.721 B
• Revenue (2008): 13.359 B
• Revenue (2007): 12.694 B
• Revenue (2006): 11.376 B
• Revenue (2004): 9.747 B

• Employees (2008): 68,000
• Chief Executive Officer is John D. Wren, its Chief Financial Officer is Philip J. Angelastro
• Chairman of the Board is Bruce Crawford
• Corporate headquarters on Madison Avenue in New York City
• Previous CEOs were Allen Rosenshine (1986 to 1989) and Bruce Crawford (1989 to 1997)

Companies

Advertising and media

Business to business

• Doremus & Co.

Media planning and buying

• OMD
• Resolution Media
• PHD
• Novus Media
• Manning Gotlieb

Channel and field marketing

• The Cosine Group
• CPM Group
• Creative Channel Services
• Marketstar
• National In-Store
• Pierce Promotions & Event Management
• Unisono Fieldmarketing

Public relations

• Beaupre
• CONE
• Fleishman-Hillard
• g+ europe (previously known as GPlus Europe)
• Ketchum Pleon
• Porter Novelli International
• The Zimmerman Agency

Customer relationship management

• Agency.com
• Alcone Marketing Group
• AtmosphereBBDO
• Direct Partners
• GMR Marketing
• The Integer Group
• Javelin Direct
• Unit 7
• RAPP Worldwide
• Russ Reid Co.
• Targetbase Marketing Inc.
• U.S. Marketing & Promotions

Outsourcing services

• Sellbytel Group

Full-service marketing agencies

• TPG Direct
• Grizzard Communications Group
• SinoTech Group

Marketing technology

• Code Worldwide
• LiveTechnology

Market research

• Adelphi Group
• Hall & Partners Group
• M/A/R/C Research
• Flamingo
• U30 Group
• Communispace

Competitors

In order of revenue:

• WPP Group PLC (NASDAQ:WPPGY)
• Interpublic Group (NYSE:IPG)
• Publicis Groupe (NYSE:PUB)
• MDC Partners (NASDAQ:MDCA)
• Havas (Delisted from NASDAQ)

Governance

The company is governed by a board of directors. Current members of the board are: Robert C. Clark, Leonard S. Coleman, Jr., Errol Cook, Bruce Crawford, Susan Denison, Michael Henning, John Murphy, John R. Purcell, Linda Rice, Gary Roubos, and John D. Wren.

In addition to the board of directors, current management officers are: Bruce Crawford, John D. Wren, Philip J. Angelastro, Serge Dumont, Dennis E. Hewitt, William Timothy Love, Peter Mead, Asit Mehra, Michael J. O'Brien, Janet Riccio, Rita E. Rodriguez and Tiffany R. Warren

Controversies

Lobbying for the Russian government

Omnicom Group's subsidiary Ketchum Inc and its subsidiary GPlus Europe are among the PR agencies used by the Russian government.^[12] The Russian government reportedly spends millions on its lobbying efforts. GPlus specializes in recruiting former EU officials and eminent journalists. Gregor Kreuzhuber, who leads the company's pro-Gazprom operations, was previously European Commission industry spokesman. Peter Witt is a retired German deputy ambassador to the EU who was hired by the company. Angus Roxburgh, another GPlus worker, covered the war in Chechnya for the BBC.^[13]

References

External links

• Official website
• Yahoo! – Omnicom Group Inc. Company Profile

Omnicom Group Global Advertising Brands BBDO (Proximity Worldwide Sellbytel) DDB Worldwide (Tribal DDB) TBWA Worldwide (TBWA\Chiat\Day FAME The Integer Group Luna\TBWA) National Advertising Agencies Arnell Element 79 Goodby, Silverstein & Partners GSD&M Martin Williams Merkley + Partners Roberts + Langer Zimmerman Advertising Media Services Omnicom Media Group OMD (Manning Gottlieb OMD) PHD Prometheus Media Specialist Solutions Icon International Novus OMG Outdoor Media Group Resolution Media Diversified Agency Services Customer Relationship Management The Beanstalk Group Interbrand Siegel + Gale Wolff Olins CPM GMR Marketing MarketStar Organic Hall & Partners M/A/R/C Research The Marketing Arm (Davie Brown Entertainment Millsport) Public Relations/Public Affairs Fleishman-Hillard Ketchum (Pleon) Kreab Gavin Anderson Porter Novelli Specialty Communications Doremus & Co. LatinWorks Related Publicis Omnicom Group