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"The region most at risk is Europe," said Mr. Wren, noting that
with the exception of the U.K., the European markets "experienced
only nominal growth."
First-quarter domestic revenue rose 4% year-over-year, to $1.7
billion, while international revenue was up 5.9%, to $1.58
billion.
Mr. Wren was asked by an analyst to comment on the formation
last month of Commonwealth, a shop Omnicom built with rival holding
company Interpublic Group of Cos. to serve Chevrolet. He largely
credited his trust in the leader of one of his agencies, Goodby Silverstein
& Partners co-founder Jeff Goodby, for his agreeing to the
deal.
Mr. Goodby, whom Mr. Wren noted had been a partner of his since
1989, had asked him to listen "to an interesting concept." He
believed that the groups should "get together and form some kind of
a new entity to aid in the resurgence of Chevy as the leading
global brand," Mr. Wren said. "He asked if we would entertain an
unusual situation, which was Commonwealth, and do a partnership
with IPG. Knowing and trusting Jeff as much as I do, and knowing
the objectives of what they're trying to accomplish, and knowing
two out of three of the other creative guys, it was a pretty simple
decision for us. It resulted in Michael Roth and I shaking hands
and saying we'd make it work."
The financial results suggest that Omnicom, and adland in
general, may post more moderate numbers than in 2011 -- when many
companies saw sharp increases after relatively low earnings in
2010.
Omnicom's revenue breakdown by industry remained essentially the
same as a year ago. Among the categories: food and beverage, 15%;
pharma and health, 10%; autos, 8%; and telecom, 7%. PR businesses
showed growth for the first time in several quarters, Mr. Wren
pointed out.
The company continues to invest in markets outside of North
America. On Monday, Omnicom Media Group announced the purchase of
NIM Digital, a Shanghai-based agency that opened in 2004 as a
digital media-buying operation but has since expanded into
creative, search marketing and production services.
During the earnings call, Omnicom Group Chief Financial Officer
Randy Weisenberger provided some color commentary on that deal. He
said the company had worked on it for more than a year, visiting
the country and meeting with executives there several times.
"Transactions in that region can take some time," Mr. Weisenberger
said. We "have a lot of resources focused on it."
There's more to come. Acquisitions in China and other markets
"will accelerate over the course of the year," Mr. Wren said.