Omnicom Sees Growth In Media Business Amid AI Competition
Omnicom's media business is growing, but faces increasing competition from AI-driven platforms. The company's Q3 earnings show a 10% organic growth in integrated media, which makes up 53% of its core revenue.
Original reporting · adexchanger.com
Original: “Q3: Omnicom’s Media Business Is Growing, But Is It Agent-Proof?”
Read “Q3: Omnicom’s Media Business Is Growing, But Is It Agent-Proof?” at AdExchanger →
How this was written. ABM Fuel wrote this article with a language model from AdExchanger’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from AdExchanger’s report
- Omnicom's media business is growing, with a 10% organic growth in integrated media in Q3.
- The company faces increasing competition from AI-driven platforms, including those from walled gardens and independent ad tech companies.
- Omnicom is investing in its Omni platform and partnering with AWS to enhance its capabilities in the AI-driven market.
- The company plans to complete the sale of its non-core businesses by the end of the year and focus on new acquisitions and growth opportunities.
Omnicom's third quarter earnings call sparked a discussion on the role of large holding companies in the era of agentic AI, according to AdExchanger. The company is building its own AI-driven marketing intelligence platform, called Omni, to stay competitive in a complex media market.
Historically, agencies have helped clients navigate the fragmented media landscape, but with the rise of AI, this role may be changing. Omnicom's CFO, Phil Angelastro, argued that the complexity of the market makes the company's offering more central, particularly with the development of its Omni platform.
Omnicom's CTO, Paolo Yuvienco, explained that the platform orchestrates complexity on behalf of clients, facilitating work and simplifying the marketing lifecycle. However, he did not address how Omni compares to other end-to-end solutions in the market.
The company's integrated media segment, which includes media, commerce, and data, grew over 10% organically in Q3, making up 53% of Omnicom's $6 billion in core revenue. CEO John Wren noted that the company is gaining share and has the resources to invest in its platform and agentic AI capabilities.
Omnicom has also partnered with AWS to drive joint growth and establish a dedicated unit to sell cloud AI solutions to clients. This partnership is expected to enhance the company's capabilities in the AI-driven market.
The company's acquisition of IPG, which closed nearly a year ago, has contributed to its growth. Omnicom's core revenue rose 7.2% organically, with the US market growing 10%. However, CEO John Wren warned that the growth boost from the World Cup and midterm elections will not repeat in 2027.
Looking ahead, Omnicom plans to wrap up the sale of its non-core businesses by December 31, which will allow the company to focus on new acquisitions and growth opportunities. With the sales substantially complete, Omnicom can stop splitting out those numbers and get back into acquisition mode.
Questions and answers
What is Omnicom's Omni platform?
Omni is Omnicom's AI-driven marketing intelligence platform, designed to orchestrate complexity and simplify the marketing lifecycle for clients.
How does Omnicom's partnership with AWS contribute to its growth?
The partnership is meant to drive joint growth and establish a dedicated unit to sell cloud AI solutions to clients, enhancing Omnicom's capabilities in the AI-driven market.
What is Omnicom's plan for its non-core businesses?
Omnicom plans to complete the sale of its non-core businesses by December 31, which will allow the company to focus on new acquisitions and growth opportunities.
