Omnicom, whose organic growth fell almost 10% in 2020, expects to return to a positive track this year
CEO John Wren sees the march quarter of 2021 as challenging but sequentially better than 2020.
"We fully expect based, upon the plan reviews that we've done, even though they're not final with our operating companies, that will return to positive organic growth in the second quarter and for the balance of the year," he told an analyst briefing on Omnicom's December quarter results.
The global advertising group posted negative organic growth of 9.6% in the December quarter compared to the same three months the year before.
The result, dragged down by the economic impact of the pandemic, was better than expected by market analysts.
"Although we see hope as the vaccine rolls out, we know there are still significant challenges that will impact 2021," Wren says.
"While we hope the end is insight, the virus has surprised us, so we must remain vigilant and adaptable in planning and managing our operations. And that is exactly what we're doing.
"Our agency leaders have done an excellent job of managing our cost base to be aligned with revenues and that the work continues into 2021.
"At the same time, we remain laser focused on driving our strategic priorities to expand our clients' services and win new business."
The business in Australia and New Zeland was the only region to return to positive organic growth in the December quarter.
Wren's personal target for the year is growth of a GDP plus 1%.
He called out the media business, saying 2021 is clearly going to be better than last year.
"Some of our clients and this is quite understandable are committing for shorter durations because of the experiences they've had in the last 14 or 15 months," he says.
"But as things improve, there is a vaccine, there are positive things occurring some slower than not, we think that unless something drastically changes everything will be more positive."
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.