Omnicom PR Agencies Up 14% In First Quarter
Date
4/19/2022 6:39:52 PM
(MENAFN- PRovoke)
NEW YORK — Omnicom PR agency revenue was up 14% in the first quarter of 2022, marking the fourth consecutive quarterly lift since the height of the Covid pandemic.
In its Q1 earnings report, the holding company reported Omnicom as a whole saw worldwide revenue in the three months ending March 31 decrease 0.5% to $3,410.3 million from $3,426.9 million in the first quarter of 2021.
The components of the change in revenue included a decrease in revenue from the negative impact of foreign currency translation of 2.5%, a decrease in Acquisition revenue, net of disposition revenue, of 9.9% principally in the advertising & media discipline in the United States, and an increase in revenue from organic growth of 11.9%, Omnicom said in its report.
During Q1 2022, Omnicom PR Group — which includes FleishmanHillard, Ketchum and Porter Novelli — registered 14% organic growth, faring better than four other disciplines including execution & support (up 6.3%) healthcare (7.7%), advertising and media (9.1%), commerce & brand consulting (13.8%). Precision marketing, however, was up 20.3% and experiential was up 68%.
Organic growth in the first quarter of 2022 compared to the first quarter of 2021 rose 10.6% for the US, and 9.6% for the rest of North America. Organic revenue was up 10.3% for the UK, 13.8% for the Euro markets & other Europe, 11.1% for Asia Pacific, 9.3% for Latin America and 63.8% for the Middle East & Africa.
'Our strong momentum continued in the first quarter with 11.9% organic revenue growth, reflecting our persistent focus on achieving better outcomes for our clients across all our business disciplines,' said chairman and CEO John Wren. 'We continued to invest in areas important to our clients' growth, continued to make acquisitions in strategic areas of growth, and repurchased a significant amount of our shares. Despite uniquely challenging global events, we remain confident that our high-quality and diverse portfolio positions us strongly for future growth, both in 2022 and beyond.'
With Q1 2022 up, Omnicom has had four consecutive quarters of PR growth, having seen a 4.4% increase in Q4 2021 , a 10.5%. increase in revenue during Q3 and 15.1% growth in revenue during the second quarter of the year — a turnaround from the 3.5% decline the PR group experienced in the first quarter of 2021.
That had followed the positive turn Omnicom's PR agencies saw in Q4 2020 , when the group's revenue rose 0.2%, the first reported uptick in business since the onset of the Covid-19 pandemic in March 2020. The group saw revenue drop 3.4% in Q3 of 2020 and 13.5% during Q2 , the height of the pandemic shutdown.
All of which occurred against the backdrop of Omnicom and its agencies, including its PR firms, implementing layoffs and furloughs around the world in response to business drying up.
The report also comes nearly a year since Omnicom hired Chris Foster as CEO of its $1.3 billion PR agency unit, and close to two years after Karen van Bergen relinquished the role.
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