Home Agencies Omnicom Q1: Accuen Adds $25M In New Revenue, As Programmatic Extends Steady Growth Rate

Omnicom Q1: Accuen Adds $25M In New Revenue, As Programmatic Extends Steady Growth Rate

SHARE:

More than meets the eyeProgrammatic revenues from Omnicom’s trading desk, Accuen, grew $25 million YoY, the holding company noted Tuesday during its Q1 2016 earnings call.

Notably, Accuen’s performance since 2014 has reliably shown YoY revenue growth of between $20 million and $40 million.

  • Q1 2016 – $25M
  • Q4 2015 – $45M
  • Q3 2015 – $25M
  • Q2 2015 – $30M
  • Q1 2015 – $40M
  • Q4 2014 – $20M
  • Q3 2014 – not available
  • Q2 2014 – $40M

While these figures suggest consistent growth, a large percentage of Omnicom’s programmatic trading is done outside of the trading desk and is largely unaccounted for, noted Pivotal Research analyst Brian Wieser.

“There’s a common misconception that all Accuen activities pass through revenues, upwardly distorting the revenue profile that Omnicom has,” he said.

Wieser said billions of dollars in transactions pass through other Omnicom entities like Icon International, which does barter trading, and OmNet, which trades traditional media. These entities often do trade programmatically, depending on your definition of the word – whether that implies a data-driven, targeted buy, or simply an automated transaction, he said.

“There can be programmatic trading that doesn’t go through the chain and doesn’t include a markup,” he said. “Just because it’s Accuen doesn’t mean it’s programmatic, and just because it’s programmatic doesn’t mean it’s Accuen.”

It remains to be seen how much the Procter & Gamble account will increase programmatic revenue growth – and whether that will be reported through Accuen or Omnicom’s new agency Hearts & Science, which was formed to service the account.

Either way, Wieser predicts Accuen will face a rapid transition in the coming years.

“In a couple of years [Accuen] will be the low-value ad trading platform,” he said. “Tonnage-based buys of TV, radio and print will all ultimately go under some centralized name and the higher-end, bespoke entities will come from OMD, PHD and Hearts & Science.”

Omnicom saw overall revenue growth of 0.9% in Q1 2016, from $3.496 billion to $3.499 billion. Organic revenue increased in all markets except Latin America, due to economic and political instability in Brazil.

Must Read

Comic: An ID Bridge Too Far?

Programmatic Companies Wrestle With ID Bridging And What Counts As Fraud

In January, the Chrome browser removed third-party cookies for 1% of users, to facilitate testing of the Privacy Sandbox –  and a new controversy was born.

It’s Open Season On SaaS As Brands Confront Their Own Subscription Fatigue

For CFOs and CEOs, we’ve entered a kind of open hunting season on martech SaaS.

Brian Lesser Is The New Global CEO Of GroupM

If you were wondering whether Brian Lesser was planning to take some time off after handing the CEO reins of InfoSum to Lauren Wetzel last week – here’s your answer.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: S.P. O'Middleman's

TripleLift CEO Dave Clark Abruptly Exits After Setting The SSP On A New Trajectory

Dave Clark, who’s led TripleLift for the past two years, is stepping down, effective immediately, and is being replaced by a coterie of TripleLifters.

shopping cart

Moloco Invests In Its Competitor Topsort As The Retail Media Stakes Go Up

Topsort can lean into Moloco’s algorithmic personalization, while Moloco benefits from Topsort’s footprint with local retailers in the US and in Latin America.

CDP BlueConic Acquires First-Party Data Collection Startup Jebbit

On Wednesday, customer data platform BlueConic bought Jebbit, which creates quizzes, surveys and other interactive online plugs for collecting data from customers.