OMNICOM MEDIA GROUP TOPS COMVERGENCE Q1-Q3 REPORT WITH $7.37 BILLION IN TOTAL NEW BUSINESS

Rhea-AI Summary

Omnicom Media Group (OMG) achieved the highest total new business record among global media management groups in Q1-Q3 2024, securing $7.37 billion in client billings, including $4.4 million in retained business. The company outperformed its nearest competitor by over 40% and maintained an impressive 85% retention rate of billings under review. OMG's agencies PHD and OMD dominated the global media network rankings, with PHD leading at $3.63b in total new business. The success was attributed to OMG's Omni-powered Agency as a Platform model, which helped win 28% of the $29.5 billion in awarded business while maintaining only 5% in losses.

Positive

• Secured $7.37 billion in client billings, outperforming nearest competitor by 40%
• Achieved 85% client retention rate during high-churn period
• Won 28% market share of total business awarded ($29.5 billion)
• Only 5% loss rate compared to competitors' double-digit losses
• PHD topped global agency rankings with $3.63b in total new business
• Ranked #1 in multiple key markets including North America, EMEA, and LATAM

Negative

• None.

Insights

Financial Analyst

The $7.37 billion in new business wins and 85% client retention rate demonstrate exceptional performance in a highly competitive market. Most notably, OMG secured $4.4 million in retained business and outperformed competitors by over 40% during a period with 50% industry churn rate. The Agency as a Platform model proved highly effective, capturing 28% market share while maintaining minimal losses at 5%.

Key account wins and retentions including Volkswagen Group ($2.2 billion), Gap Inc., Michelin and strategic partnerships with tech giants position OMG for sustained revenue growth. The company's dominance across multiple regions and success in major markets like the US and China indicates strong geographical diversification and market penetration.

Market Research Analyst

The strategic evolution towards connected intelligence and integration of commerce, media and content capabilities represents a significant competitive advantage. Market leadership validation from both COMvergence and Forrester (highest score among 12 global groups) highlights OMG's technological superiority through their Omni operating system.

First-to-market partnerships with Google, TikTok, Amazon, Meta and Instacart position OMG at the forefront of creator commerce and upper-funnel media investment optimization. Recognition through Cannes Lions and Effie Index awards further strengthens their market position and ability to attract premium clients in an increasingly complex digital advertising landscape.

In a Pitch Cycle That Saw 50% Churn Rate, OMG Is #1 for Retention, Holding on to 85% of Its Billings in Play  

OMG agencies PHD and OMD Leverage Agency as a Platform Model to Dominate Global Media Network Ranking

NEW YORK, Dec. 3, 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, had the best total new business record (wins minus losses, including retentions) among global media management groups during the first three quarters of 2024. 

As reported in the recently published Global Media Agency New Business Barometer Q1-Q3 2024 - an analysis of the global media agency marketplace from independent research company COMvergence - OMG was awarded $7.37 billion in client billings – including $4.4 million in retained business  - during the first nine months of the year, outperforming its nearest competitor by more than 40 percent.  Remarkably, OMG also earned the highest retention rate, successfully defending 85% of its billings in review while concurrently expanding its client roster.

The COMvergence results affirm the findings of a recent analysis from leading research and advisory firm Forrester in which OMG  was named  a "Leader".  Earning the highest score among the 12 global media management groups evaluated in The Forrester Wave™: Media Management Services, Q4 2024, OMG received 5/5 scores in eight categories, including Innovation, Martech and Adtech Implementation and Media Responsibility.  As reported in the evaluation, Omnicom clients noted the agency's transparent business practices, trustworthy relationships, and strength of Omni -  the open operating system that supports all Omnicom agencies -  technology for media and business intelligence.  

The Omni advantage was evident in OMG's win/loss share as the group leveraged its Omni-powered Agency as a Platform model that enables a flexible ecosystem of talent, capabilities, and technology across all OMG agencies to win 28% of the $29.5 billion in business awarded during Q1-Q3 – the highest share among all groups  - while its share of losses was only 5%, compared to double-digit shares posted by some of its competitors.

"The only thing that matches the privilege of adding new clients to our roster is having our long-term clients choose to renew their relationships with Omnicom Media Group," said OMG CEO Florian Adamski.  "Earning both the best total new business record and the best retention rate during a period when an historic amount of business was in play, and half of that business changed hands, is a testament to the trust we've earned - whether over the months of a review or the years of a relationship - from the world's leading marketers. Leveraging our Agency as a Platform model, we will live up to that trust by delivering customized solutions that integrate the vast collection of specialized talent, capabilities, and processes required to drive business growth in today's complex marketplace."

Beyond topping the global ranking, OMG was also #1 in North America, EMEA and LATAM, and in the top two largest advertising markets – the US and China; as well is in Argentina, Colombia, France, Germany, Hong Kong, Ireland, Mexico, Netherlands, New Zealand, Peru, Portugal, Singapore, Slovakia, Spain, Switzerland, and Turkey.

PHD and OMD Dominate the Agency Network Rankings
OMG's best-in-class total new business ranking for Q1-Q3 was fueled by powerful performances from its agency networks, with all its agency brands ranked in the top 10 – and PHD and OMD claiming the #1 and #3 spots, respectively.

PHD topped the global agency rankings with $3.63b in total new business  by successfully defending the $2.2b Volkswagen Group business as well as  Sainsbury's , HP  and the majority of its Unilever business – making PHD the most successful network for retaining it client relationships coming out of this Q1-Q3 pitch cycle.  Incremental wins included  Priceline and David Yurman , and an expanded relationship with QSR giant Restaurant Brand's International - for which it supports Burger King, Popeye's, and Tim Horton – with the addition of the Firehouse Subs franchise.

 "Our performance reflects the evolution of PHD's offer over the past year, as we have realigned our talent, our approach and our use of technology to enable an agency network that is engineered for connected intelligence," says PHD CEO Guy Marks. "As a result, clients both current and new are increasingly seeing PHD - enabled by the depth and breadth of OMG and Omnicom capabilities – as not just a media agency, but as a partner than can truly orchestrate consumer experiences, connecting media, commerce and content to deliver solutions that help them outthink, outpace and outgrow the marketplace." 

Joining PHD at the top of the global ranking with wins that included Gap Inc. and Michelin, OMD was also the #1 agency network in North America for net new business (wins minus losses, excluding retentions), with sister agency Hearts & Science making the top five on the NA net new ranking with wins that included Tapestry, HanesBrands Inc., Lovesac and Goldman Sachs.

Winning on All Fronts in the First Nine Months
In addition to outperforming the market in new business, OMG also lead the industry on multiple fronts during the first six months of the year, starting at CES where the group announced first-to-market partnerships with Google, TikTok, Amazon and Meta designed to bridge the gap between creators and commerce, driving better ROI across influencer channels.

During the Cannes Festival of Creativity, OMG announced partnerships with Amazon, The Trade Desk, TikTok and Instacart designed to directly connect upper funnel media investments to sales. OMG was also the most honored media group at the festival, earning the highest combined total of Lions and short list placements; and OMD was named Media Network of the Year, with PHD coming in a close second.   

Also, when the annual Effie Index ranking the world's most effective agencies, marketers, brands, networks, and holding companies was published in June, OMG earned the highest score among global media groups.

About Omnicom Media Group 
Omnicom Media  Group (OMG), the media services division of Omnicom Group Inc. (NYSE: OMC), delivers transformational experiences for consumers, clients, and talent.  Powered by the Omni marketing orchestration system, OMG connects best -in-class capabilities that enable our full-service media agencies OMD, PHD and Hearts & Science to deliver more relevant and actionable consumer experiences; more productive and proactive client experiences; and more collaborative and rewarding talent experiences for the more than 27,000 people serving the world's leading brands in OMG agencies around the globe.  

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SOURCE Omnicom Media Group

FAQ

How much new business did Omnicom Media Group (OMC) secure in Q1-Q3 2024?

Omnicom Media Group secured $7.37 billion in client billings during Q1-Q3 2024, including $4.4 million in retained business.

What was Omnicom Media Group's (OMC) client retention rate in Q1-Q3 2024?

OMG achieved an 85% client retention rate, successfully defending the majority of its billings under review.

How did PHD perform in Omnicom Media Group's (OMC) Q1-Q3 2024 results?

PHD topped the global agency rankings with $3.63 billion in total new business, successfully retaining major clients like Volkswagen Group, Sainsbury's, and HP.

What was Omnicom Media Group's (OMC) market share of awarded business in Q1-Q3 2024?

OMG won 28% of the $29.5 billion in business awarded during Q1-Q3 2024, the highest share among all groups.