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Omnicom: How M&A created a world-leading communications company

Published: January 2013 · Publisher: MarketLine
Omnicom is a holding company with numerous ad agency and related subsidiaries. This structure allows it to offer custom marketing services to clients by creating networks of relevant companies. This Case Study examines the effectiveness of ...
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages19
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-2788
Price € 369,00
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Introduction

Omnicom is a holding company with numerous ad agency and related subsidiaries. This structure allows it to offer custom marketing services to clients by creating networks of relevant companies. This Case Study examines the effectiveness of this strategy in a cyclic market.

Features and benefits

* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

In Western advertising and related markets, Omnicom is second only to WPP in revenue
Each year during the 2001-2011 period, Omnicom acquired an average of 16 companies, paying an average of $25m for each.
Despite reliance on the US and European markets, Omnicom remained profitable during the 2009 recession.

Your key questions answered

* What are the largest advertising and marketing companies in the world?
* How has Omnicom's client focus been reflected in its M&A strategy?
* In a market that is highly sensitive to general economic conditions, how does Omnicom maintain profitability?
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O VERVIEW
Catalyst
Summary
OMNICOM IS ONE OF THE WORLD’S LARGEST ADVERTISING COMPANIES
Omnicom has grown through acquisitions, generally of SMEs
OMNICOM’S ACQUISITIONS RETAIN THEIR INDIVIDUALITY
Networking of individuated subsidiaries allows Omnicom to be client-focused
Leading competitors have similar structures
Advertising is its most important segment
Its advertising agencies have a strong reputation in the industry
Customer relationship management is also a major revenue stream
Advertising and related services are sensitive to macroeconomic conditions
Omnicom’s key US market contracted during the recession
In 2009, Omnicom saw revenues fall, but remained profitable
M&A provides access to growth markets
New media are challenging traditional communication
Omnicom is using partnerships rather than acquisitions in response
CONCLUSIONS
M&A strategy supports Omnicom’s client focus
APPENDIX
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Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.