ITV

Tag: Omnicom Group Inc

  • Omnicom Group in advanced talks to acquire Interpublic Group – WSJ Report

    Omnicom Group in advanced talks to acquire Interpublic Group – WSJ Report

    MUMBAI: The headline in the Wall Street Journal was loud and clear just as the west was waking up and we in the east  were getting into bed –  two large marketing solutions providers – Omnicom group and Interpublic group –  were nearing a merger as their talks were at an advanced stage. The Omnicom group which is valued at about $20 billion would cough up about $13-14 billion to swallow IPG in an all stock deal.  

    Both groups had not commented on the news, but it sent shivers down many a senior media observer’s spine. For memories of the merger frenzy that overtook the ad world  in yester-years was still sharp in their minds. 

    Excepting this time, advertising and media agencies are being upended and transforming themselves in response to gut-wrenching technological changes brought about due to the internet and tech giants which are transforming how consumers are shopping, watching movies and series, ordering daily necessities and what have you. Direct to consumer digitally  – that’s the mantra that’s reshaping the world of products and brands. 

    Back to the merger, the proposed coming together would create the world’s largest marketing and advertising solutions company with net revenues of $20 billion, way ahead of WPP which reported  $15.1 billion in revenue.
    Growth in the world of advertising  and towards traditional media has slowed down – in some cases it has de-grown – and it is increasingly being gnawed away by spends on digital by Google,  Amazon and Meta where the consumers are. 

    Omnicom group’s latest revenues have grown just 6.5 per cent in Q3 2024 to $3.9 billion, while IPG’s growth graph was horizontal with revenues of $2.24 billion. 

    Almost every ad agency worth its salt has been chasing start-ups or firms with some gee-whiz tech solutions which would help them respond to the requirement brought about by digital acceleration and brand custodians’ demand for data driven marketing solutions.

    Ditto with both Omnicom group and the Interpublic group – which have been making announcements regarding investments  in technology and digital transformation. The Interpublic group recently pocketed Mumbai-based  retail analytics company Intelligence Node for nearly $100 million, while it also announced the launch of its marketing intelligence engine – incorporating generative AI – Interact.  Omnicom, on its part, has also been seen fishing for tech buys and recently caught  Flywheel Digital. 

    An Omnicom-IPG wedding would give scale to the two, plus it would help them consolidate their strengths in technology – whether data or analytics or artificial intelligence – in financial resources as they seek to remain relevant in an increasingly digital world. 

    The  year has seen seismic account shifts with Amazon dividing its advertising business between agencies Omnicom, IPG, WPP. ebay moved from Group M’s Essence Mediacom to Dentsu’s iProspect. Hershey dropped a cluster of agencies like Omnicom, Horizon, Dentsu and awarded its account to Publicis. Kellanova (earlier Kellogg’s) too went in for agency reviews. As did General Mills.  These shifts and re-looks too were on account of evolving marketing strategies driven by  digital transformation, data-driven insights, and the demand for creative excellence in a competitive global landscape.

    If the fusion of the two does come about, it could lead to another wave of mergers, acquisitions, consolidation, layoffs in a global economy which is already facing challenging times. Also, one will have to watch how other agency groups like Publicis and WPP react. Will they also throw their hat into the ring? Will they give counter offers? Interesting times ahead. Painful for some possibly! (updated 9 December 2024, 7 am)

    (The image was generated using Canva. No copyright infringement is intended)

  • Omnicom Media Group EMEA CEO Guy Marks to succeed Philippa Brown as CEO of PHD Worldwide

    Omnicom Media Group EMEA CEO Guy Marks to succeed Philippa Brown as CEO of PHD Worldwide

    Mumbai: Omnicom Media Group (OMG), the media services division of Omnicom Group Inc. today announced  OMG CEO EMEA  Guy Marks will succeed Philippa Brown as CEO  of PHD Worldwide.  

    “Guy is one of our industry’s most entrepreneurial leaders, with an approach that transformed first OMD’s and subsequently Omnicom Media Group’s offering in EMEA over the past six years,” said OMG global CEO Florian Adamski. “By enabling our agencies to quickly identify, adapt and respond in real time to the challenges of a dramatically changing consumer marketplace, he’s unlocked growth for our clients and made OMG  the #1 media agency group for net new business in the EMEA region  for the year-to-date, according to the most recent COMvergence reporting.  

    Adamski continues, “The fact that –  at the same time –  he was also one of the network’s key people coordinating Omnicom’s boots-on-the-ground Ukrainian relief and rescue efforts tells you everything you need to know about both his character and his leadership skills.”

    Brown, who has served as PHD’s global CEO since 2019, is stepping down following almost four decades in the media industry – including 16 years in leadership positions with OMG – to focus on non-executive advisory roles at both the corporate and advocacy levels.

    Commenting on Brown’s contributions, Adamski said,  “As CEO,  Philippa’s passion for great work that advanced our clients’ business goals was matched by her dedication to helping young talent advance their career goals.  After leading the agency through the Covid crisis, she brought PHD back stronger than ever, earning Media Network of the Year honors at the 2021 Cannes Festival;  winning Diageo, Chanel, Unilever, and most recently, the $300 million Grupo Bimbo account.  She also launched and oversaw OMG’s  Talent Management Community,  an initiative offering professional development across the entire career life cycle.

    “We are deeply grateful for her tireless leadership,  creative vision, and  unwavering commitment to meeting the needs of her clients and her people,  and we wish her all the best as she redirects her  singular energy, experience, and expertise to an exciting  new chapter in her career.”

    In 2022, PHD was ranked #2 globally for net new business gains – second only to sister OMG agency OMD – adding $902 billion in incremental billings in 2022.

    Marks joined OMG in 2014 following Omnicom’s acquisition of Mobile5, the global  UX, design and tech consultancy service that he co-founded.  As CEO of OMG EMEA,  he helped establish  Omnicom’s Transact connected commerce and retail media consultancy in the region; and co-architected the expansion of OMG’s TRKKN analytics and cloud consultancy from five European countries to 20 markets across APAC, EMEA and North America.

    “The thread that can be pulled through all my professional experience is driving growth through transformation,” said Marks. “As the CEO of PHD – an agency that was  born from a transformative concept of media as a strategic tool –  my priority will be assuring that every PHD account team around the world have the talent, tools,  technology and collective commitment to excellence they need to deliver the  transformative ideas, solutions and service that drive growth for our clients, our agency, and our people.”

    Marks, whose appointment is effective 1 October, will be headquartered in London, reporting to Adamski.  His successor as leader of OMG EMEA is expected to be named next week.  

  • Yusuf Hatia takes charge as MD, FleishmanHillard

    Yusuf Hatia takes charge as MD, FleishmanHillard

    MUMBAI: FleishmanHillard (FH), the global communication firm has elevated Yusuf Hatia to managing director, India. Hatia in his new position will be responsible for deciding the strategic direction for the agency while also continuing to provide the high-level strategic communications counsel to corporations and organizations.

    Hatia is a founding team member of the company, which entered the market in 2007, having its first office in Maharashtra.

    “Yusuf Hatia has been a cornerstone of FH in India. He has been a key factor in tripling our offices, instrumental in finding and supporting an impressive and fast-growing portfolio of clients and essential to the mentoring of a close-knit team of communications professionals,” said FleishmanHillard‘s Asia Pacific president Lynne Anne Davis.

    “Over the past 12 months, he has won an impressive calling of new clients. He is the ideal candidate to take on the leadership mantle to take us into our next phase of growth,” informed Davis.

    Hatia, in his earlier stint, worked as managing director of client service, India. Pior to that, he was also managing director of FH‘s Mumbai office, where he provided strategic communications advice to a broad range of clients.

    Hatia also heads the agency‘s Majlis offering, a specialty service created to assist corporations looking to build and protect their reputation with the Muslim community. He brings an international perspective to all his engagements, having worked previously in the United Kingdom and the Middle East.

    FleishmanHillard is part of Diversified Agency Services, a division of Omnicom Group Inc. and offers public relations, public affairs, marketing, paid media and transmedia and social content.