
After its acquisition of Interpublic, Omnicom’s expanded media
operations comprise about 55% of the company’s revenues, company executives said at an investor event held Thursday morning.
And media operations are expected to grow faster
than the company overall, which is expected to continue growing at an estimated 4% on a gross organic revenue basis, according to company CFO Phil Angelastro.
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But the firm
is also broadening its definition of “media” to include data, commerce and digital transformation consulting. It’s that broader definition that
accounts for 55% of revenue going forward.
Advertising services account for about 18% of the company’s business while healthcare, experiential and PR each account for between
nine and 12%. Those latter three disciplines now make up what Omnicom calls the “other” category of revenue-generating businesses. Combined they account for 27% of the
firm’s overall business.
Angelastro noted that between 75% and 85% of $900 million in estimated synergy cost savings in 2026 will fall directly to the
bottom line.
Within media, principal trading will remain a growing part of the mix and a transparent one, CEO John Wren said. He noted that all client
contracts spell out specific details about such trading and whether clients opt in or out of the process.
But for most clients, it is a part of the media mix, Angelastro
said. “It’s table stakes, everybody does it,” he added, referring to Omnicom’s company peer group.
Advisory firm Madison And Wall estimates
Omnicom’s principal trading business at approximately $3 billion, which could grow between 15% and 20% this year. “These activities will drive the bulk of the $900 million
in expected top-line growth as the company records it,” this year, M&W stated in a note about the Omnicom meeting.
“Media is clearly the most likely driver of
organic growth going forward,” the advisory firm added. It estimates that Omnicom had about $6 billion in pro forma net media revenue in 2025.