The uptick in agency fortunes continues with Omnicom, the world’s second-largest marcoms group, reporting a five per cent increase in revenues (to $3bn) and six per cent increase in profits ($172.9m) for the third quarter of 2010.
US revenue, fuelled by heavy-spending car clients Chevrolet and VW, surged 8.4 per cent to $1.62bn while international progress was rather more sedate, up just 2.3 per cent to $1.38bn.
But boss John Wren said he saw evidence of the recovery everywhere, including embattled Western Europe.
Vincent Bollore’s French-based Havas also reported good figures with third quarter revenue up 12.9 per cent to £324m. The UK was the strongest European performer with revenues up 12.1 per cent with home base France up by 7.1 per cent. Brazil, which appears to be going bananas, rose by 62 per cent. Havas, the owner of EURO RSCG, is the fifth-biggest global marcoms group.
Omnicom, which owns major agency brands BBDO, DDB and TBWA plus PR firms Fleishman-Hillard, Ketchum and Porter Novelli traditionally takes a cautious, organic attitude to growth although Wren may be concerned about losing the top marcoms spot to WPP. The company is arguably underweight in media with just OMD Worldwide and PHD up against WPP’s Mediacom, MEC and Mindshare plus GroupM which carries out the big negotiations.
Which, presumably, means that Omnicom would be attracted to big independent media buyer Aegis if the company came into play.
For the meantime though Wren seems content to cash in quietly on global ad recovery (Publicis Groupe’s Zenith Optimedia recently revised its forecasts for the fourth time this year, it’s now punting 4.8 per cent growth).
But might he want to do just one big deal before he retires?