Omnicom, the first of the big global advertising players to report June quarter results, posted better than expected organic growth of 5.2%.
CEO John Wren described the result as “solid” with “good performance” in larger markets and disciplines, led by advertising and media at 7.8%.
Revenue was $US3.9 billion and net income $328.1 million.
Omnicom expects full year organic growth of 4%-5%, with “strong” net new business wins and pipeline.
The advertising group’s results confirmed analysts' expectations of a strong performance in the US and the UK.
Both major markets are running well ahead of Australia which is still stubbornly reporting negative ad spend, as measured by media agency bookings. Advertising spend fell again in May, according to Guideline's SMI (Standard Media Index).
At Omnicom, organic growth in the June quarter compared to the same three months of 2023: 7.8% for Advertising & Media; 17.6% Experiential; 2% for Healthcare; 1.4% Precision Marketing; 0.9% Public Relations; 1.2% for Execution & Support.
However, Branding & Retail Commerce fell 3.8%.
By region, organic growth was 6.3% in the US, 4.5% for Euro Markets & Other Europe, 6.9% for the UK, 24.5% for Latin America, and 8% for the Middle East & Africa.
However, Asia Pacific was down 0.1%.
"With the rapid adoption of Gen AI, creativity and talent matter more than ever to address the breadth and complexity of consumers,” Wren said.
To serve our clients with the best, most advanced capabilities, we continue to strategically align our agencies and invest in robust data and technology, scaled content and production, e-commerce, and retail and performance media - all embedded in our industry-leading Omni platform."
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