Following an earlier raising of guidance by Publicis Group this week, Omnicom Group has announced a sunny outlook for the year by raising its forecast for the year.
The group, which owns agencies including BBDO, DDB, and TBWA, posted organic revenue growth of 7.5% overall with organic growth in the third quarter of 2022 compared to the third quarter of 2021 increased across geographic markets with 7.6% for the United States, 11.5% for the United Kingdom, 6.0% for the Euro Markets & Other Europe, 4.4% for the Asia Pacific, 13.1% for Latin America, 7.7% for Other North America, and 12.2% for the Middle East & Africa.
“Omnicom delivered 7.5% organic revenue growth in the quarter with double-digit organic growth in precision marketing, public relations, and commerce & brand consulting, and solid results across our portfolio broadly,” said John Wren, Chairman, and CEO of Omnicom Group.
“Profitability also remained strong, and our experience with challenging economic environments leaves us confident that we can navigate through current business uncertainty,”
Across disciplines, the group reported organic growth compared to Q3 2021 including 5.9% for Advertising & Media, 16.3% for Precision Marketing, 12.6% for Public Relations, 11.1% for Commerce & Brand Consulting, 5.0% for Healthcare, 3.9% for Execution & Support, and 2.3% for Experiential.
Looking ahead, Omnicom raised its expected full-year organic growth from 6.5-7 percent up to 8-8.5 percent.
While macroeconomic factors put pressure on advertiser budgets, Omnicom says it has continued to drive better-than-expected growth.
Wren acknowledged the challenges during a call with analysts.
“While we are confident in our forecast, we retain a healthy level of caution due to macro factors, including the ongoing war in Ukraine, the continuing disruption of global supply chains, the economic risk posed by rising interest rates here in the United States and higher inflation around the world,” said Wren.
According to a note issued last week from Morgan Stanley analysts the ad market is likely to continue decelerating in 2023.