- Omnicom Group is strengthening its e-commerce arm with the launch of Transact, a practice dedicated to connected-commerce consulting and online retail services, according to a press release.
- The new offering is a branch of OmniCommerce and carries retail media and analytics tools, catalog management, content optimization and account management and operations services to provide clients with a full-funnel view of the marketing pipeline.
- The division also leverages Omnicom’s recent partnerships with companies like Amazon, Instacart, Kroger, and Walmart. Its launch comes as agencies try to capture client interest around the booming retail media space.
Dive Insight:
Omnicom’s introduction of Transact follows blossoming interest from agencies to get a piece of the retail media pie. Advertising revenue for retail media networks will increase to $101 billion this year compared to $88 billion in 2021, according to a recent GroupM forecast. Currently, retail media accounts for 11% of total advertising spending worldwide and 18% of digital media spending, the media agency found.
With the addition of Transact, Omnicom clients gain new data and strategy insights to pair with existing offerings from the holding group, including those around marketing tech consulting, customer relationship management, precision marketing, media strategy and creative content and campaign activation. Vital to the new unit are partnerships with Amazon, Walmart, Instacart and Kroger, which are all broadening their retail media footprint by adding new solutions.
In its second-quarter earnings, Amazon announced its advertising services segment grew 18% year-over-year as marketers strove to reach consumers directly at their point of purchase. The e-commerce giant accounted for 50% of all retail media ad spending in the first five months of the year, according to Standard Media Index data, with Walmart following behind it. Walmart Connect recently expanded with an Innovation Partners program that features Roku, TikTok and Snapchat. Walmart’s global ads business surpassed $2 billion in revenue in 2021.
The data offered by such partnerships could boost Omnicom’s competitive advantage as other agencies strategize around similar areas. Omnicom CEO John Wren said the agency ultimately wants to create a full-funnel view of the customer journey for brands.
“[E-commerce and e-retail] are at the center of our clients’ growth and transformation agendas,” Wren said in a statement. “In scaling Transact, we are strengthening our leading capabilities for our clients, helping them convert every consumer touchpoint into a new opportunity for growth.”
Leading Transact is Frank Kochenash, who joined the company in March and previously held roles with Wunderman Thompson Commerce, Amazon, and McKinsey. In its second-quarter earnings statement, Omnicom reported organic revenue growth of 11.3% and a net income increase of 0.1% to $348.4 million.
Read the full article here
