Omnicom growth is fuelled by BTL work

Below-the-line business is driving growth at global marketing services network Omnicom, says the group's recently published year-end results.

Non-traditional advertising activity accounts for a growing share of the company's business.

Revenue from Omnicom's CRM division, which includes direct and promotional marketing, increased by 14 per cent year-on-year. The speciality division saw combined revenue rise by 17.6 per cent.

Under the Sarbanes-Oxley Act, Omnicom agencies are not able to declare their individual incomes, but DM agencies within the Diversified Agency Services group (DAS) in the UK are reporting that business picked up in 2004.

Chris Gordon, chief executive of WWAV Rapp Collins Europe, said: "Quarter four was strong as clients regained confidence and began freeing up budgets. The new business pipeline was healthier than it had been for a long time."

Claydon Heeley Jones Mason also saw business improve in 2004, with account wins including the £10m Mercedes and £30m Egg accounts.

Group deputy chairman Leo Campbell said: "For those agencies that have realigned to adapt to the new marketing place, there are real opportunities to get back into profitable revenue."

Omnicom is not the only communications giant with flourishing direct agencies. Last year, Sir Martin Sorrell, CEO of WPP, said: "Networks such as ours need to show as much passion for direct communications as has traditionally been given to TV and more traditional media."

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