• by David Goetzl , July 23, 2008

Omnicom executives said Tuesday that the company posted nearly 5% in organic growth in the second quarter, even as traditional media spending declined in the area. Propelling the growth was an increase in below-the-line marketing services.

The 4.8% organic growth led to a $150 million revenue increase, the company said.

Overall, Omnicom reported a 5.5% jump in the second quarter in domestic revenue to $1.8 billion, but said its comparisons were impacted by the loss of AT&T and Dell businesses last year. (Advertising sector dollars were up 9.8%).

CEO John Wren said on a conference call with investors that the company is grappling with "economic headwinds," but remains "cautious about the economy."

He added, however, that the slowdown might bring opportunity as far as potential acquisitions, since the troubled credit markets may have some buyers less interested in the marketing services industry. Competitors may have weakened balance sheets after a run of high-priced acquisitions at the top of the market, he added.

"We expect that we will do more deals going forward," Wren said.

Other results were announced, including domestic revenue climbing 6.5% to $3.4 billion for the first six months of the year. Global revenue for the first six months jumped 11.8% to $6.7 billion.

Net income for the six-month period was $515.6 million--up 12.2% compared to a year ago.