Omnicom predicts tough times ahead

John%20WrenOmnicom Group has posted a 5.6% rise in profit for the third quarter. In spite of the increase the parent company of ad agency networks including TBWA, BBDO and DDB, has predicted a tough fourth quarter.

The group’s advertising revenues held up and rose 6.9%, but PR revenues fell 1.2% and speciality services dropped 3.2%.

Omnicom’s net income is $213.6m (£130.2m), up from $202.2m (£123.2m) year-on-year. Total revenues for the quarter increased 6.9% to $3,316.2m (£2,021.7m).

Domestic revenue rose 3.8% and international revenue rose 10.5%.

Chief executive John Wren says: “No one could have anticipated the current credit crisis or the unprecedented volatility that’s created in the financial markets. We are in the process of trying to assess the impact these events we have on advertising spending for the first half of 2009.

“At this point, our clients generally remain very cautious. The only two sectors which have cut back in fourth quarter spending are automotive and some of our retail clients.”

He adds the group expects the fourth quarter to be a “challenge”.

Rival WPP Group has reportedly imposed a hiring freeze on its networks and revised revenue targets in the face of the economic downturn.

Omnicom recently ended talks to acquire UK independent agency Beattie McGuinness Bungay

Latest from Marketing Week

Marketoonist on PowerPoint pitches

The Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here Tom Fishburne will be speaking at the Festival of Marketing, which is taking place on 4 and 5 October at Tobacco Dock. To find out more information, including how to book tickets, visit […]

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here