The “Trump bump” which briefly materialised in the US following the election of himself seems well and truly over and it’s hitting the big marcoms groups.
Omnicom’s global revenue dipped two per cent in Q2 2017 despite a strong performance in the UK (where organic revenue rose 9.3 per cent) and Europe (up 7.8 per cent). Organic revenue in the US, which accounts for 57 per cent of Omnicom’s business, rose just 0.2 per cent. This was the weakest rise in the US since 2009, the depth of the financial crisis.
CEO John Wren blamed the weak performance in the US on “gridlock” in Washington causing advertisers to pause investments. Adverse currency movement also played a part.
But it also seems likely that last year’s ANA report into media “transparency” is playing a role, with many advertisers suspicious about where holding company owned media agencies are making their money. Omnicom’s media agencies include OMD and PHD plus newbie Hearts & Science which has won Procter & Gamble’s massive $2.7bn US media account.
Omnicom’s creative agencies include BBDO, DDB and TBWA.