Omnicom Media Group, the media services division of advertising behemoth Omnicom Group Inc. OMC, recently inked an agreement with leading digital in-theatre media network National CineMedia, Inc. NCMI. The deal entails to bring Omnicom client brands to movie patrons across National CineMedia’s network in 2015.
Valued at approximately $50 million worth of advertising deals, the contract signifies Omnicom’s video-neutral approach to media buying. This would enable advertising for client brands across on-screen, on-site, online and on mobile devices of movie buffs. In addition, the advertising messages are also likely to be featured in FirstLook pre-show, Shazam cinema interactivity, movie theater lobby activations, and online and mobile video campaigns to help target National CineMedia movie audiences.
With such innovative deals, Omnicom is likely to generate incremental revenues. Omnicom forms an integral part of the communications industry, which is highly competitive in nature and susceptible to market risks of losing contracts related to media purchases and production costs. With rising operating costs and adverse currency translation effects gradually shrinking margins, the company has focused on improving its revenue by increasing its client base.
Omnicom has also undertaken decisive steps to reduce costs that have helped it to boost earnings. The company is expanding its global footprint and moving into new service areas. It is building upon its digital and analytical capabilities by investing in agencies and partnering with innovative technology companies in key markets. In addition, Omnicom’s operations are diversified across technology platforms, thus lowering its dependence on any one product in these dynamic technological markets and reducing the volatility of its earnings.
Omnicom is one of the largest advertising, marketing and corporate communications companies in the world. Omnicom has a strong track record of winning new clients and receiving additional deals from the existing ones. The company’s business mix is well-diversified geographically and benefits largely from the growing markets. In addition, the company’s efforts in controlling expenses and its strong global reputation are commendable.
Other notable companies in the advertising space include The Interpublic Group of Companies, Inc. IPG and WPP plc WPPGY.
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