Omnicom’s organic growth continues upward in Q4

The holding company's advertising business grew by 5.1% for the quarter and 4.5% for the full year.
johnwren

While Omincom’s PR agencies and parts of its CRM business continued to struggle, organic growth is continuing to tick upwards.

The holding company’s worldwide revenue increased by 1.3% year-over-year in Q4 2019, with a 3.5% increase in revenue from organic growth.

Released on Tuesday, Omnicom’s results also show a 2.2% decrease in worldwide revenue for the full year, which the holding company attributed to the negative effects of foreign exchange rates and disposition activity in excess of acquisitions over the past year, a common thread in its most recent quarterly reports. However, revenue from organic growth, which ignores the impact of exchange rates and disposition, increased by 2.8%.

Organic growth from its advertising business – which made up 58.2% of the holding company’s revenue in Q4 – increased by 5.1% in the quarter, while CRM consumer experience and healthcare also increased year-over-year. For the full year, advertising increased 4.5%, CRM consumer experience increased 1.6% and healthcare increased 9.5%. Meanwhile, organic growth in CRM execution and support (which covers services like field marketing, point-of-sale, sales support and merchandising) and public relations decreased by 6.0% and 2.5%, respectively, in Q4, and were down 3.2% and 2.0% for the full year.

Omnicom’s “Other North America” segment – which includes its Canadian operations – experienced a 2.3% decrease in organic growth in Q4 2019, but still ended the full year with organic growth up 4.2%. The U.S. saw a 2.8% increase in organic growth in Q4 and 2.7% in the full year. While still the smallest region, the Middle East and Africa had the largest organic growth (19.5%) in Q4 2019, with growth up 6.5% for the full year. Latin America is the only other region that experienced a dip in organic growth for the quarter.

Some of Omnicom’s agencies in Canada include BBDO, DDB, TBWA, Critical Mass, Hearts & Science, OMD, Touché! and PHD.

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