May 19, 2013
Omnicom Group (NYSE:OMC) is the world's largest marketing and advertising conglomerate. It is organized as a holding company for a group of independent advertising and communication services firms. However, more than 50% of Omnicom's revenues come from sources other than traditional advertising, including public relations, industry-specific marketing, and its Customer Relationship Management program.[1]
Focus on non-traditional advertising methods distinguishes Omnicom from competitors and protects revenues during periods of slow ad spend growth. The firm's structure and size also work to its advantage in a highly fragmented advertising market. As a holding company for three independent networks of agencies worldwide (BBDO, DDB, and TBWA), Omnicom can serve multiple clients in the same industry. When a customer becomes unhappy, Omnicom can retain the client with an offer to revamp the marketing plan at a different subsidiary agency.
(Read more at Wikinvest
) - Company Overview
- Key Trends, Risks, and Forces
- Advertising
- An Economic Slowdown Affects Advertising Spending
- Rise of Internet Advertising Creates New Competitors
- Shift From Traditional Advertising Drives Clients to Larger Agencies
- Other
- Planned Acquisitions Pose Integration Risk
- Excessive Dependence on Developed Advertising Markets Leaves Little Room for Growth
- Competition
- Footnotes

