The region’s organic growth slowed substantially in Q4 to 1.8 per cent, indicating a soft media and advertising market. Globally, Omnicom grew organic revenues by 5.2 per cent in Q4 and in 2024, powered by a buoyant advertising and media market in the Americas.
Total global revenue increased by 6.8 per cent to $15.69 billion (A$25.1 billion), while organic revenues increased by 5.2 per cent in Q4 and the 2024 calendar year in spite of a sluggish advertising market in Europe and the Asia-Pacific regions.
Omnicom’s earnings (EBITA) increased $195.6 million, or 9 per cent, to $2.36 billion in 2024 compared to 2023, and the related margin increased to 15.1 per cent from 14.7 per cent.
The results beat the hold co’s expectations, but fell short of rival Publicis Groupe, which grew by 6.3 per cent in Q4 and 5.8 per cent in 2024.
Omnicom’s US marketer has powered global growth with a 6.8 per cent lift in 2024, largely owing to a strong advertising media and advertising market in that region.
Latin America (17.2 per cent) and the Middle East and Africa (5.2 per cent) also posted solid numbers.
Elsewhere the picture is more gloomy. The Asia-Pacific region grew by 3.8 per cent, Europe was up 2.8 per cent and the UK posted a 2.7 per cent lift.
In Australia, the advertising booked through media agencies declined by 0.9 per cent across the calendar year, while in December ad spend was down 7.2 per cent year-on-year according to Guideline SMI figures.
By discipline, media and advertising led the charge with 7.8 per cent growth globally, followed by precision marketing (3.8 per cent) and PR (3.7 per cent). Experiential (up 15.4 per cent) continues a strong recovery post Covid, while, conversely, healthcare comms is down 0.5 per cent and branding and retail commerce dropped 6.2 per cent.
Omnicom CEO John Wren said the results place the world’s second largest holding company in a “position of strength” ahead of a planned global merger with the fourth largest holding company, IPG Mediabrands.
“With 5.2 per cent organic revenue growth for both the fourth quarter and full year, and even higher growth in adjusted EBITA and adjusted EPS, our strong operational execution gives us confidence for continued strength in 2025,” Wren said.
“We are incredibly well prepared for and excited about the complementary combination of businesses and cultures with our proposed acquisition of Interpublic. Together, clients and employees will benefit from expanded products to deliver superior creativity, innovation and effectiveness…we see significant upside potential through expected revenue and cost synergies that can drive growth beyond what Omnicom was delivering alone.”