Omnicom: The World's Largest Advertising Conglomerate
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Case Code : BSTR089
Case Length : 21 Pages
Period : 2000 - 2003
Organization : Omnicom Group.
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Advertising & Communication
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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The Growth Phase
Like its counterparts, Omnicom too adopted the mergers and acquisition route to become a leading global advertising group with an extensive portfolio of marketing and communication services. In 1990, the group established the Diversified Agency Services (DAS) division, to identify and acquire the top players in their respective fields in the marketing and communication businesses (other than advertising).
DAS acquired many companies which were leading players in areas such as sales
promotion, event marketing, direct marketing, healthcare communications and
In the early 1990s, Omnicom acquired Goodby Silverstein & Partners and Altschiller & Company, both US-based advertising agencies. Omnicom decided to operate the two outfits as independent agencies in the US.
In 1993, the company acquired TBWA, by now a very successful player in the European and US markets. By then, BBDO and DDB Needham had also expanded their operations across Europe and Asia.
After the TBWA deal, Omnicom became the third largest advertising group in the world after the WPP Group and the Interpublic Group...
Omnicom in 2003
By early 2003, Omnicom had emerged as the largest advertising agency holding company in the world with more than 1,500 subsidiary agencies operating in almost all areas of the marketing and communication services market (See Exhibit III for the list of major marketing and communication services offered by Omnicom).
These agencies were organized on the basis of strategic platforms, client-centric networks, operating groups and geographic regions. In 2003, Omnicom offered marketing and communication services to various clients through its network of global, pan-regional and national independent agency brands which principally included BBDO Worldwide, DDB Worldwide, TBWA Worldwide and OMD Worldwide (See Exhibit IV for a list of major Omnicom brands and Exhibit IV for the profiles of its major agency brands). The group operated in more than 100 countries across the world and was a market leader (worldwide) in more than 30 areas of marketing and communication services...
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