(Reuters) – Omnicom Group topped Wall Street estimates for fourth-quarter results on Tuesday, aided by strong growth in its advertising and media segment.
The company is capitalizing on the opportunity to leverage AI in driving campaigns, helping the company secure new business and expand its market presence.
The U.S. presidential election and the holiday season prompted higher political and retail advertisements in the last three months of 2024.
Omnicom is a marketing and communications firm that offers services such as advertising, digital marketing solutions and branding to large corporations and government agencies across various sectors.
IPG-owned media research firm Magna Global said the global ad market size would be up 6.1% to $990 billion in 2025, with the growth rate lower versus prior years due to the lack of major cyclical events.
Omnicom’s advertising and media segment, its largest by revenue, posted a growth of 5.9% to $2.43 billion in the fourth quarter.
In December, the company struck a $13.25 billion all-stock deal to buy rival Interpublic Group, creating the world’s largest advertising agency.
Omnicom’s revenue stood at $4.32 billion in the quarter ended Dec. 31, compared with the average analyst estimate of $4.31 billion, according to data compiled by LSEG.
On an adjusted basis, the company earned $2.41 per share, compared with expectations of $2.37.
(Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)
