Agency holding company Omnicom Group reported Q2 revenues above analysts' estimates, due in part to growth in its programmatic buying unit, Accuen, as well as growth in the retail and telecom sectors. Its rival, Publicis Groupe, with whom it once planned to merge, had a weak quarter by contrast.
Omnicom’s global revenue increased 6.4% to $3.9 billion from $3.6 billion in 2013's second quarter, with domestic revenues hitting $2.1 billion.
Paris-based Publicis reported decreasing revenues of $2.37 billion, compared to $2.41 billion in 2013's second quarter. Analysts estimated that Publicis’ earnings would reach $2.53 billion, and the company said negative foreign-exchange movements had a large impact on its sales figures.
Omnicom’s Accuen unit is taking a portion of the media it buys and sells, which the company disclosed to investors for the first time. The company reported $40 million in growth due to its programmatic buying unit, but did not say what margins it takes.
“We’re taking a principle bet,” Omnicom CFO Randall Weisenburger said during the call. “We’re buying specific media and reselling that at hopefully an increased price in most circumstances, since our revenue is based upon the difference between the purchase price in media and the sales price. We then have to provide all of the services, all of the underlying technology, build the platform, do the insights and take all the risk.”