Digital and Data Demand Drove Strong Growth at Omnicom; Stock Now Fairly Valued

Omnicom reported solid fourth-quarter revenue growth that also drove margin expansion. While various digital ad platforms like Google, Meta, Snap, and Pinterest, and data collaboration service providers like LiveRamp have indicated weakening demand, the likes of Omnicom and Publicis have reported good results and provided guidance that demonstrates strong demand from advertisers for digital transformation offerings along with media buying and creativity. We believe data privacy and ad measurability challenges have pushed more advertisers to seek assistance and guidance from the ad holding companies.