Omnicom grows organic revenue by 11.3% in Q2

The company is investing heavily in precision marketing, commerce and retail media.
johnwren

Omnicom reported its fifth consecutive quarter of growth in Q2, as it moves from pandemic recovery to making investments to take advantage of anticipated trends in the industry.

The holding company reported its results after markets closed late Tuesday afternoon. In the three months ended June 30, organic revenue was up 11.3% year-over-year, and is now up 11.6% for the year-to-date.

Total revenue was flat, which the company pointed out was due to a disposition made in the prior year.

Organic revenue from advertising and media services grew by 8.2% in Q2. While that still makes up more than half of Omnicom’s total revenue, the company is seeing big growth in Experiential (36.6%) and Precision Marketing (21%).

Precision Marketing is now the third-largest contributor to Omnicom’s revenue, something CEO John Wren cited as an ongoing area for growth in a call with analysts, alongside CRM, performance media, consulting and health.

But the biggest area of growth the company is looking towards is retail media and ecommerce. In June, it announced partnerships with Walmart, Instacart, Amazon and U.S. grocer Kroger to explore opportunities in these areas, and has increased investment in developing Omni Commerce, which integrates data about audiences, shopper behavior, media, content, shelf analytics, sales and inventory.

By market, organic revenue grew by 12.5% in North America, excluding the U.S., which represents 3.6% of Omnicom’s total revenue. The region’s organic revenue has grown by 11.2% for the year-to-date.