Credit: Adam Cai via Unsplash https://unsplash.com/@caid
Omnicom's advertising division revenue fell by a “high” single digit percentage in the June quarter.
The drop reflected internal restructuring, part of the IPG integration, rather than weaker client demand, according to CFO Phil Angelastro.
"There's been a lot of activity internally within the Omnicom Advertising Group," Angelastro told analysts during an earnings call.
He was answering a question from analyst Sean Diffley at investment bank Morgan Stanley.
The integration involved realigning and, in some cases, eliminating brands as the two companies' agency portfolios are brought together.
Angelastro said the restructuring had been under way since 2025, and in some respects since late 2024, well before the IPG deal closed in December 2025.
Omnicom had also disposed of agencies in several small, low-growth markets where it no longer needed multiple agencies serving the same clients.
“There’s been a lot of activity in bringing these businesses together, and certainly we’ve made significant progress,” he said
"I'd say some internal reorganisation has been the driver of a lot of change in that business for the first six months here post-deal."
CEO John Wren said creative work remains central to the business despite the disruption.
"Creative is our IP, and we're completely dedicated to it, even as it goes through some of these difficulties, because we'll work through them," Wren said.
Advertising accounted for under 16% of Omnicom's core operations revenue in the June quarter, compared to integrated media at 53%.
Integrated media grew more than 10% organically, while advertising was the only discipline in the portfolio to register a decline.
Angelastro said advertising would continue to be positioned as a driver of "innovation and integrated solutions" and would play a central role in the global integrated pitches.
Omnicom, posted organic revenue growth of 6.1% to just under $US6 billion in the June quarter for core operations, excluding those businesses marked for sale.
On the back of that result, the company raised full year organic revenue growth guidance to 5% from 4% to 4.5%.
The company, now the world’s biggest advertising holding company, has a target of $US1.5 billion in savings from the takeover of IPG, starting with $US900 million this year.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.