Omnicom followed rival Publicis with strong Q4 2022 numbers with organic growth in the period of 7.2% and 9.4% for the whole year (Publicis was up 10%.). Full year revenue was $14.29bn.
Media, precision marketing and healthcare were the standout performers with a number of big media wins including L’Oreal and, recently, Burberry. Precision marketing grew 13.7% as more clients bought ecommerce services in an ever-more complex media landscape. Retail media is one of the fastest growing segments.
On media pitches CEO John Wren said: “You have to come and demonstrate to that potential client the strength of your e-commerce capabilities.”
Omnicom’s US business grew 8.7% in 2022, the UK grew 10.9% and Asia Pacific 14.1%. In Q4 APAC grew 18.2% thanks to re-opening in China. Omnicom is forecasting 3-5% growth in 2023, again in line with Publicis.
Wren also commented on the importance of technology in Omnicom’s business, specifically on the likes of AI and new kind of the block AI and ChatGPT3.
“All of the automation we’re looking at enhances capabilities and makes the jobs easier for our best and brightest people, and it eliminates a lot of the otherwise mundane projects or activities that we also get paid for,” he said. “We think it’s good for our smartest people, and therefore, it’ll be good for the work they do on behalf of our clients.”