NEW COMVERGENCE REPORT PROJECTS OMNICOM MEDIA GROUP OUTPERFORMING ITS PEERS FOR RATE AND VOLUME OF GROWTH IN 2024

Rhea-AI Summary

Omnicom Media Group (OMG) is projected to lead global media groups in 2024 with the highest growth rate (10.5%) and actual billings growth (+$4.2b), reaching projected billings of $44.8b according to COMvergence's analysis. The company demonstrated strong performance with the highest share of digital billings among media groups.

OMG's subsidiary OMD is expected to maintain its position as the world's largest media agency, with projected 2024 billings of $25.9B, representing a 7.9% increase over 2023. The group secured significant wins including Amazon, Volkswagen Group, and Unilever, achieving $7.37 billion in total new business during the first nine months of 2024, representing 28% of all new business awarded, with an industry-leading 85% retention rate.

Positive

• Highest growth rate among global media groups at 10.5%
• Significant billings increase of $4.2b, reaching $44.8b in 2024
• Secured $7.37b in new business (28% of total market share)
• Industry-leading client retention rate of 85%
• Highest share of digital billings among all media groups
• OMD subsidiary projected for $25.9B in 2024 billings (+7.9% YoY)

Negative

• None.

Insights

Financial Analyst

The projected 10.5% growth and $4.2 billion increase in billings to $44.8 billion demonstrates Omnicom Media Group's exceptional market performance. The company's impressive 85% client retention rate and $7.37 billion in net new business wins, representing 28% of all new business in the first nine months, signals robust revenue growth potential for 2025. OMD's projected $25.9 billion in 2024 billings with 7.9% growth reinforces the group's market leadership. Key account wins including Amazon, Volkswagen Group and Unilever highlight OMG's ability to attract and retain high-value clients, suggesting strong future earnings potential and competitive advantages in the evolving digital media landscape.

Market Research Analyst

OMG's industry-leading digital billings share positions it strategically in the rapidly evolving media marketplace. The company's success in securing major accounts across diverse sectors demonstrates strong competitive differentiation, particularly through its Omni operating system for media intelligence. The triple validation from COMvergence reports and Forrester Wave evaluation underscores OMG's market leadership. Their Agency as a Platform model appears to be resonating strongly with clients, evidenced by significant wins across multiple regions. This comprehensive market performance suggests OMG is well-positioned to capitalize on the ongoing digital transformation in media spending, potentially expanding its market share further in 2025.

OMG agency OMD Ranked #1 for Billings Volume and Net Growth

Year-end projections drop weeks after Forrester Wave
named OMG a leader in a transforming media marketplace

NEW YORK, Dec. 18, 2024 /PRNewswire/ -- Omnicom Media Group (OMG), the media services division of Omnicom (NYSE: OMC) and parent company to the OMD, PHD and Hearts & Science global media agency networks is expected to finish 2024 with both the highest rate of growth and actual billings growth among all global media groups.  

As reported in Global& Regional Billings & Market Shares Projected 2024- a provisional analysis of 2024 billings for media agency networks and their respective owner groups published yesterday by independent research company COMvergence – OMG outperformed its peers in both percentage of growth (10.5% against a 2023 billings base of $40.6b ) as well as actual billings added (+$4.2b) bringing its projected 2024 billings to $44.8b.

The report also projects that OMG will end the year with the highest share of digital billings among all media groups - an important indicator of the group's ability to help clients transform their media strategies for an increasingly digitally driven consumer marketplace.

The COMvergence projections mark the third industry assessment in the past 30+ days in which OMG has significantly outperformed its category.

In early November leading research and advisory firm Forrester named  OMG a "Leader" in its Forrester Wave evaluating global media management groups -  a report that saw OMG earn both the highest score among the 12 groups assessed in the report as well as endorsements from clients for its transparent business practices, trustworthy relationships, and the strength of its  Omni operating system for media and business intelligence.

Earlier this month, the COMvergence Global Media Agency New Business Barometer Q1-Q3 2024 revealed OMG as the #1 global media group for new business in the first nine months of the year. Fueled by a series of wins and retentions that included Amazon, Volkswagen Group, Unilever, Priceline, HanesBrands, and HP, OMG won $7.37 billion in total new business (wins minus losses, including retentions) – representing 28% of all new business awarded the during the first nine months of the year -  while also earning the highest retention rate (85%) in its category.  

Commenting on the collective impact of these wins,  OMG CEO Florian Adamski said, "There are four key characteristics for assessing true costumer obsession in a media agency group: the type of clients the business retains in a fast-paced marketplace, new clients deciding to put their trust into the business in a highly competitive environment, the way it conducts business on behalf of its clients and how it advances the business to contribute to broader industry progress. In 2024, OMG worked hard on each one of these proof points, leveraging our Agency as a Platform model to deliver customized solutions that drive business growth for our clients, our agencies, and our people in a complex marketplace."

OMD Tops the Agency Network Rankings

COMvergence projects that the biggest agency in OMG will again end the year as the biggest media agency in the world, with projected 2024 billings of $25.9B.  This 7. 9% increase over 2023 represents both the best rate of growth among the top five  agency networks as well as the largest net billings increase among all networks, with $1.9b added over the past 12 months.   OMD also tops the billings rankings in North America and EMEA and delivered growth across every region.  

The projected outcomes is  the latest in a series of superlatives for  OMD in 2024, including maintaining its position as the highest  ranked media agency brand on the Effie Index, taking Media Network  of the Year honors at Cannes, and sustaining a new business winning streak that included Gap Inc,  Michelin, Turkish Airlines, AliExpress and MSC Cruises.  

Commenting on the agency's performance, OMD Worldwide CEO George Manas said, "These results reflect OMD's ongoing transformation as we've redefined the role that we play in advancing our clients business ambitions.  It's an evolution that has taken us from service provider to media partner to marketing collaborator, working with our clients to co-create next gen solutions that unlock growth today and secure lasting competitive advantage."    

Joining OMD on the growth track, sister OMG agencies PHD and Hearts & Science posted growth across all four regions, and three out of four, respectively. 

Fuel for Growth

With just two weeks left in the year Omnicom Media Group maintains the new business momentum that fueled its industry-leading billings growth in 2024. As of this writing and based on the most recent numbers reported in the COMvergence  dashboards that provide a moment-in-time snapshot of the new business landscape, OMG  continues to hold the best YTD total new business record among the Big Six global media groups, with a more than  $1.5 billion lead in total new business wins compared to its nearest competitor. The COMvergence  provisional reporting also shows OMG agencies PHD and OMD ranked first and third on the agency network dashboards.

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SOURCE Omnicom Media Group

FAQ

What is Omnicom Media Group's (OMC) projected growth rate for 2024?

According to COMvergence's report, Omnicom Media Group is projected to achieve a 10.5% growth rate in 2024, the highest among global media groups.

How much new business did OMC secure in the first 9 months of 2024?

OMC secured $7.37 billion in total new business (wins minus losses, including retentions) during the first nine months of 2024, representing 28% of all new business awarded during this period.

What are OMC's projected billings for 2024?

COMvergence projects Omnicom Media Group's 2024 billings to reach $44.8 billion, an increase of $4.2 billion from their 2023 base of $40.6 billion.

What is OMC's client retention rate in 2024?

Omnicom Media Group achieved an 85% client retention rate in 2024, the highest in its category.

Which major clients did OMC win in 2024?

OMC won several major clients in 2024, including Amazon, Volkswagen Group, Unilever, Priceline, HanesBrands, and HP.