Marketing & Advertising
A World of Inspirational Problem-Solving, Savvy Brands and Smart Marketing
The goal was not to create a list of the largest global marketers or rank the brands that contribute the most to their company’s market value — plenty of others tackle those lofty questions. Rather, we sought to chronicle the brands percolating at the local and regional level; sometimes great marketing lessons can happen in your backyard, sometimes halfway around the world.
Sure, the Global Economy Is Challenging Right Now, but These Companies Have Found Ways to Make Their Brand Messages Work Harder to Reach Consumers
Posted by Ann Marie Kerwin on 06.14.10
And MTN is a new sponsor of soccer’s World Cup and U.K. team Manchester United, another one of our hot brands. Man U is a sports team unlike any other, with 333 million fans worldwide. Sponsorship of its shirts offer a unique global media channel.
NEW YORK (AdAge.com) — It’s surprising what you can learn about local marketing from the parochial approach of South African chicken chain Nando’s as it expands into three continents. Or how customer service can be the differentiator that makes an upstart brand like Brazilian airline Azul. Or how to keep your cachet even when moving into second and third-tier markets as Swedish retailer H&M has done in its aggressive global expansion.
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| World’s Hottest Brands |
They are among the World’s Hottest Brands, an Ad Age Insights global report that tells the stories of 30 brands succeeding on a global, regional and local level.
The goal was not to create a list of the largest global marketers or rank the brands that contribute the most to their company’s market value — plenty of others tackle those lofty questions. Rather, we sought to chronicle the brands percolating at the local and regional level; sometimes great marketing lessons can happen in your backyard, sometimes halfway around the world.
But talk about a tough time to identify the world’s hottest brands. Categories from banking to automotive to retail were slammed as unemployment went up and consumer spending took a nosedive. Some marketers got by on the brand equity they’ve spent years building, others had to find a way to create demand for their products.
Take, for instance, Banco Hipotecario, which faced an arguably more devastating loss of consumer confidence in 2001. That was the year Argentina’s economy spectacularly collapsed, leaving a legacy of mistrust for all institutions. Over the past two years, Banco Hipotecario set out to win back consumers’ trust through smart marketing. The bank’s ads celebrated the idea of ownership, and reminded consumers why a relationship with a bank is more than a necessary evil.
Auto recovery
Auto brands had an especially tough 2009. But BMW managed to record a late-year uptick in sales, which it attributed to the growing market for luxury autos in China and coupling its long standing tagline, “The Ultimate Driving Machine,” with a new element: Joy.
The two other car brands on the list represent another kind of evolution, finding ways to address environmental concerns. Zipcar promotes car sharing rather than car ownership. The brand claims each Zipcar takes 15 to 20 owned vehicles off the road. And consumers can even choose their cars, reserve them and unlock a Zipcar all from an iPhone app.
The Tata Nano is billed as India’s first “car for everyone.” Costing just $2,000 and only 10-feet-long bumper-to-bumper, the Nano is small, cheap and fuel efficient and could just as easily be billed as a car for the next century. It already has copycats. China’s Geely Automobile, is developing a Nano rival that will cost just $2,144 when it goes on sale in 2012.
While China and India both represent huge untapped markets for many brands, getting products into the hands of customers that live in remote areas continues to be a challenge. Global computer maker Lenovo’s main strength lately is PC sales at home — particularly in China’s third-, fourth- and fifth-tier cities. Opening up distribution there means it now has a potential market of about 700 million first-time computer buyers. Lenovo reaches them through its “PCs for Rural China” program, presenting free films in more than 3,000 villages across China.
Fullerton India Credit Co. had a similar challenge. Small business owners in rural areas were among its best prospects for loans, but reaching them was a challenge as many are cut off from major media. The solution? Go to them. In a program dubbed “Gram Sabha” or “village meeting,” branded vans, which seat 10 to 12 people, were outfitted with a TV and DVD and, most importantly, air conditioning, a luxury in those areas. Potential customers watch 30-minute films about micro-finance. Through this initiative, Fullerton created a base of more than 600,000 customers in the past three years, with 50% categorized as “first-time” borrowers.
Africa
Another region with many consumers in remote areas is Africa. But thanks to mobile phones, people formally cut off from internet and telephone services are now plugged in. MTN, South Africa’s telecom, is riding this wave of mobile adoption. In 16 years, it’s grown into the world’s 11th-largest global mobile brand, with 116 million subscribers. In the most remote parts of Africa, it has become the de facto banker, a leading source of agricultural and health-care information and a go-between for trade among farmers. And MTN is a new sponsor of soccer’s World Cup and U.K. team Manchester United, another one of our hot brands. Man U is a sports team unlike any other, with 333 million fans worldwide. Sponsorship of its shirts offer a unique global media channel.
Technology, of course, is inescapable today, which is why four internet companies made the list. Facebook, with 450 million members accessing the site in 70 languages, is truly a global brand. Even with complaints about its privacy policies ongoing, there’s no denying Mark Zuckerberg’s site changed the way marketers communicate with consumers. China’s Tencent Holdings is the company behind QQ.com, an instant messaging service with 522.9 million active user accounts, and Soso.com, a search engine poised to explode now that Google has withdrawn from China. Major marketers such as Procter & Gamble and PepsiCo have already tailored campaigns for QQ.
Latin America’s MercadoLibre is akin to the U.S.’s eBay, and has 42.6 million registered users. One of MercadoLibre’s remarkable achievements is how it introduced e-commerce in Latin America, a place where even face-to-face commerce is mistrusted. Europe’s e-commerce powerhouse, Asos, was really an afterthought. In 2000, Nick Robertson noticed a demand for information about celebrities’ choice of clothing. So he set up a site — As Seen On Screen — that pictured famous people and listed exactly which brands they wore. Mr. Robertson hoped to make money from ads. But he soon decided Asos would actually have to sell the clothes to make money. Now it not only sells the labels celebrities wear, it’s got its own Asos label as well.
Natura, a Brazilian cosmetics company, has both sustainability and social networking at its core, and it was early to both trends. One of the company’s founding principles is that people and the environment are interconnected. Its sales strategy also takes a cue from how consumers are connected to one another, as Natura is the largest direct-sales company in Brazil. It’s now establishing retail locations and looking to take its brands global.
Retail was another challenged category, but the four retailers included in this list — H&M, Ikea, Tesco, and Uniqlo — each figured out how to make their operations work across borders, no easy feat. They also share a similar brand promise: quality goods at lower prices.
While it’s hard to argue or beat a brand premise that promises the best product and the best price, some brands manage to get consumers to pay more because of an inherent good associated with their name. Brazil’s Havaianas has taken the lowly flip-flop and turned it into a fashion sensation. Nike, likewise, has surrounded its athletic shoes and apparel with an aura of excellence by aligning with top athletes. It then takes those alliances and does innovative and extraordinary marketing around them, like the Chalkbot it built for Lance Armstrong’s return to the Tour de France. China’s Li Ning is studying Nike and building its very own aura. The company was founded and named after China’s most famous Olympian, but now it’s aligning with top Chinese and American athletes and even opened up a store in Nike’s hometown of Portland.
Planning expansion
Another brand from Asia is deliberately staying local, but by doing so, it is outselling package-goods giants Procter & Gamble and Unilever in its home market. Shiseido’s hair-care brand, Tsubaki, a line of shampoo and conditioners that use red camellia flower oil as a key ingredient, was pitched as more effective for Japanese women’s hair. Sales soared.
Tim Hortons is a beloved brand in its home country of Canada. Started as a coffee and donut shop by hockey legend Tim Horton, the chain today has 3,015 shops in Canada and can claim 40% of that country’s quick-service market. With 527 U.S. locations, it’s now eyeing how to move further afield.
As it looks to expand, Hortons may want to study what South African brand Nando’s has done. The chicken restaurant can be found in 35 countries, including Canada. While it has yet to put in a global branding campaign, it has established a consistent identity of cheekiness. Each region is told to “be parochial” and use local references in its marketing. By playing off current events, Nando’s stays topical and top of mind.
Other brands made the list because they hit with just the right product at the right time. Nintendo Wii, with its sensor-motion technology, transformed the video gaming space. The founder of JetBlue left that company and moved to Brazil, where he noted a definite gap in airline service that he could fill with Azul. The Economist has been around for 167 years, but its presentation and packaging of world events seems to work just as well today.
If you want to be a global brand and save the world, follow Pampers’ lead. Procter & Gamble teamed with UNICEF for the “one pack equals one vaccine” program, and transferred its child development brand attribute to the developing world.
The promise of branding is that it can take a commodity product and imbue it with qualities that make consumers choose it over any other. That’s not a new idea, but it is always heartening to see it really work. Argentina’s Mama Lucchetti brand of pastas and soups got a makeover by agency Madre, Buenos Aires, and sales took off. A catchy jingle, cute animated characters, and a great consumer insight add up to a near perfect case study in branding.
And for a master class in global branding, see Coca-Cola and McDonald’s — two megabrands that don’t take anything for granted, reinventing and refreshing as they go to maintain worldwide dominance.
Despite economic downturns and increased competition, the power of a well-managed brand endures.
originally published in Adage – http://adage.com/globalnews/article?article_id=144404
The OCM Group for the year ended December 2024 reported Revenues of TT$301M / US$44.3M (2023: TT$318M / US$46.8M) and a NPBT and impairment of TT$17.1M / US$$2.5M (2023: TT$37.2M / US$5.5M).
In 2024, our Newspaper segment incurred restructuring costs and other one-off costs as management sought to develop business models better aligned to the current operating environments.
In Barbados, capacity challenges with the electrical grid persisted and impacted the financial performance of our Renewable Energy company. However, action has been taken to reduce the operating cost of the company while the relevant authorities seek a final solution.
In Trinidad, the forex shortages seriously affected our Distribution business and put a strain on supplier relationships. Efforts are being explored to mitigate this problem.
Positively, Flexipac (Packaging company) and Green Dot (Cable/ Internet services) were both able to achieve healthy profitability growth. In the case of Flexipac, the Company was able to double its regional sales and forex earnings and this growth trend is expected to continue with the introduction of new product offerings in 2025. Green Dot completed the rollout of the first phase of its fiber expansion program and is expected to launch the second phase during 2025. Both of these companies have been able to successfully progress their strategic plans to ensure the delivery of sustainable growth.
Our media assets in Barbados and Grenada were able to report profitability growth notwithstanding a contraction in advertising spend. This performance was realized due to the strategies implemented to achieve improved cost efficiencies and enhance our value proposition to customers. Additionally, our media assets across the Group were collectively able to report Digital Revenue growth over prior year with E-paper subscriptions growing by 36% over 3 years.
The Board has taken a conservative decision to impair its investment in one of its associates which has a long outstanding receivable due to it. Notwithstanding this impairment, it is anticipated that this matter will ultimately be favourably resolved and will redound to the benefit of all parties. The Board expresses its gratitude to the management and staff for their unwavering support and dedication throughout the year and we look forward to the Group returning to its growth path in 2025. Having regard to the Group’s performance and capital expansion plans, a dividend of TT$0.10 has been declared and will be paid on 31st July 20
Faarees Hosein Chairman 26th March, 2025
Businessuite Markets
The LAB’s Strategic Shift: Embracing Content Creation Amidst Evolving Financial Landscape
Limners and Bards Limited (The LAB) headed by Kimala Bennett Chief Executive Officer, has unveiled its unaudited financial statements for the first quarter ending January 31, 2025, showcasing a nuanced performance as the company navigates a strategic pivot towards content creation. This move aims to capitalize on the burgeoning global appetite for diverse, high-quality content.
Financial Performance Overview
The LAB reported a robust quarterly revenue of $286.1 million, marking a significant 30.4% year-over-year increase. This growth was primarily driven by gains in the Production and Media segments. Gross profit reached $100.5 million, a 13% uptick from the previous year, indicating sustained operational efficiency.
However, profit before tax experienced a slight decline of 3.6%, settling at $25.2 million. This downturn is attributed to the transition from a full income tax holiday to a 50% concession, following The LAB’s fifth year on the Junior Stock Exchange. Consequently, net profit for the period stood at $21.6 million, reflecting a 17.6% decrease compared to the prior year. Despite this, the company maintains a robust balance sheet and a stable cash position.
Segment Performance
Media: Generated $142.5 million in revenue.
Production: Contributed $101.0 million.
Agency: Accounted for $42.6 million.
The net profit margin declined by 5.4%, as revenue growth was led by the lower-margin Production and Media segments, compared to the higher-margin Agency segment in the prior period. The company anticipates an Agency rebound by Q3, aligning with industry’s seasonal fluctuations.
Strategic Investments and Asset Growth
The LAB’s asset base expanded by $178.0 million, driven by strategic investments in content development. This initiative positions the company for long-term growth and revenue diversification in the “Owned” content industry.
Current assets rose to $920.6 million, while cash and cash equivalents experienced a year-over-year decline of $89.2 million.
Accounts receivable increased by $118 million, mirroring strong revenue growth. Management remains focused on optimizing credit terms through active client engagement.
Shareholders’ equity strengthened to $660.1 million, a 5.8% increase from the prior year, underscoring the company’s financial resilience.
Transition Towards Content Creation
The LAB is strategically positioning itself to harness the escalating global demand for diverse and high-quality content. With major streaming platforms, including Netflix, projected to invest $18 billion in content in 2025—an 11% increase from 2024—the appetite for fresh storytelling is evident.
The company’s “FIVE in 25” initiative, aiming to produce five films by 2025, is progressing well. Two films have been completed, with active negotiations underway with buyers and distributors. By focusing on high-performing genres such as Christmas and romance, The LAB ensures its productions cater to proven audience preferences.
Industry Outlook and Viability
The global content market is experiencing unprecedented growth. Streaming services and traditional distributors are increasingly seeking diverse narratives that resonate with a global audience. This trend presents a significant opportunity for The LAB, as its productions offer unique Jamaican perspectives with universal appeal. Engagements at international events like NATPE Global 2025 have facilitated negotiations with major distributors and networks, enhancing the company’s visibility and positioning its films for broader distribution.
Implications for Shareholders and Investors
While the strategic shift towards content creation entails upfront investments and a gestation period before realizing returns, it aligns with global industry trends favoring diverse content. The LAB’s strong financial foundation, coupled with its proactive approach to content development and strategic partnerships, suggests a forward-thinking trajectory. Shareholders and investors can anticipate potential long-term gains as the company taps into new revenue streams within the expanding content market.
Conclusion
The LAB’s recent financial performance reflects the complexities of transitioning within a dynamic industry landscape. By embracing content creation and investing in strategic initiatives, the company demonstrates adaptability and a commitment to sustainable growth. As The LAB continues to evolve, its focus on delivering compelling, culturally rich content positions it to capitalize on emerging opportunities, promising value creation for shareholders and stakeholders alike.
Business Insights
Subscription vs. Pay-Per-Use: Choosing the Right Revenue Model for Caribbean Business Growth
Businessuite Markets
RJR Group Continues To Be Negatively Impacted By Softness In Advertising Market
Q2 2024 (Ended September 30, 2024 ) continued to be impacted by both local and international challenges, inflation and increased costs. The Group continued to experience softness in the overall advertising market as businesses repotted the continued impact of local and global economic conditions. The Group’s advertising revenues were more than last year due to the broadcast of the Olympic Games in July and August 2024. The quarter was also impacted by some one-off costs of approximately $25 million incurred related to restructuring expenditure as part of the move to a new target operating model (TOM)
The Group recorded a pre-tax loss of $1 18 million and an after-tax loss of $103 million for the quarter, compared to a pre-tax loss of $79 million and an after-tax loss of $65 million for the prior year period. This profit performance represents an improvement over the quarter to June 2024 where the pre- and post-tax losses were $183 million and $167 million, respectively. This loss reduction is directly attributable to the Implementation of cost management strategies and efforts to ensure that advertising revenues were maximized from programmes aired during the period.
Primary contributors to this quarter’s performance, compared to prior year were:
- An overall improvement of $56 million (3.9%) in the Group’s revenues, driven mainly by an increase in the Broadcast Division revenues associated with the airing of the Olympic Games (for which the company held the broadcast rights for Television only).
- A decline in revenue in the Audio segment of $24.5 million (12%); a result of the pressure on advertising budgets, highlighting the need to find new strategies to attract businesses to this medium
- A decrease in other income of $7million (17%), as a result of a reduction in income from noncurrent investments held.
- An increase in direct expenses of $73 million (10.8%), due to the increased costs associated with the broadcasting of the Olympic Games,
- An increase in selling expenses of $13.9 million (5.2%), commensurate with increased revenues.
- An increase in administrative expenses of $2.4 million (0.6%) which was offset by the reduction in other operating expenses by $5.6M (2.6%). The containment in costs is a result of cost-saving initiatives that have been implemented. The expense movement was driven primarily by increases in staff-related costs, insurance costs and higher depreciation expenses relating to investments in infrastructure upgrades. While there has been an overall loss in the quarter, the Group continues to implement measures that will lead to further cost reductions through restructuring our expenditure profile as part of the move to a new target operating model (TOM).
Management continues to focus on the implementation of the five strategic imperatives designed to return the Group to sustained profitability. Implementation of the web-based top-up product (partnering with an overseas entity) will be completed in the next quarter Implementation of the NCB Go rewards platform is one of the most significant revenue diversification opportunities and we are hoping to launch the platform in the fourth quarter of the financial year. Initiatives relating to the digital transformation of our products are also being pursued for future revenue impact.
The Group will continue to focus on increased presence and influence in the digital space while producing content that fulfills the needs of the market.
Anthony Smith Chief Executive Officer RJRGLEANER Communications Group (the Group)
For More Information CLICK HERE
Businessuite News24 International
Omnicom to Acquire Interpublic Group to Create Premier Marketing and Sales Company
- The combined company will bring together unmatched capabilities, including the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, underpinned by the most advanced sales and marketing platform
- Together, Omnicom and Interpublic will be strongly positioned for continued growth in the new era of marketing
- The transaction is expected to be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders
NEW YORK, December 9, 2024 – Omnicom (NYSE: OMC) and The Interpublic Group of Companies, Inc. (NYSE: IPG) (“Interpublic”) today announced their Boards of Directors have unanimously approved a definitive agreement pursuant to which Omnicom will acquire Interpublic in a stock-for-stock transaction. The combined company will bring together the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, driven by the most advanced sales and marketing platform. Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated clients.
“This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth,” said John Wren, Chairman & CEO of Omnicom.
Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis. The transaction is expected to generate annual cost synergies of $750 million.
The new Omnicom will have over 100,000 expert practitioners. The company will deliver end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.
“This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth,” said John Wren, Chairman & CEO of Omnicom. “Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family.”
“This combination represents a tremendous strategic opportunity for our stakeholders, amplifying our investments in platform capabilities and talent as part of a more expansive network,” said Philippe Krakowsky, Interpublic’s CEO. “Our two companies have highly complementary offerings, geographic presence and cultures. We also share a foundational belief in the power of ideas, enabled by technology and data. By joining Omnicom, we are creating a uniquely comprehensive portfolio of services that will make us the most powerful marketing and sales partner in a world that’s changing at speed. We look forward to working with John and the entire Omnicom team.”
Transaction Highlights
- Highly complementary assets create an unmatched portfolio of services
and products that expands client opportunities for each company on day one - Omnicom and Interpublic share highly complementary cultures and core values including a foundational belief in the power of ideas enabled by technology and data
- Creates an industry leading identity solution with the most comprehensive understanding of consumer behaviors and transactions, enabling us to deliver superior outcomes for our clients at scale and speed
- Advances our ability to continually innovate and develop new products and services, providing higher ROI on marketing spend
- Significant free cash flow provides greater capacity for internal investments and acquisitions
Leadership & Governance
John Wren will remain Chairman & CEO of Omnicom. Phil Angelastro will remain EVP & CFO of Omnicom. Philippe Krakowsky and Daryl Simm will serve as Co-Presidents and COOs of Omnicom. Krakowsky will also be Co-Chair of the Integration Committee post-merger. Three current members of the Interpublic Board of Directors, including Philippe Krakowsky, will be welcomed to the Omnicom Board of Directors.
Transaction Details and Financial Profile[1]
The transaction is expected to generate $750 million in annual cost synergies and be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders. Omnicom will have an attractive pro forma financial profile:
- Combined 2023 revenue of $25.6 billion, Adjusted EBITA of $3.9 billion and free cash flow of $3.3 billion
- Combined 2023 revenue of 57% U.S. and 43% International
- Strong balance sheet, commitment to investment grade rating with combined debt to EBITDA ratio of 2.1x before the benefit of synergies[2]
- Omnicom will continue its practice for use of free cash flow: dividends, acquisitions and share repurchases
- Both Omnicom and Interpublic will maintain their current quarterly dividend through the closing of the transaction
The stock-for-stock transaction is expected to be tax-free to both Omnicom and Interpublic shareholders and is expected to close in the second half of 2025, subject to Omnicom and Interpublic shareholder approvals, required regulatory approvals, and other customary conditions.
The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange.
Advisors
PJT Partners is serving as financial advisor to Omnicom. Latham & Watkins LLP is serving as legal advisor to Omnicom. Morgan Stanley is serving as financial advisor to Interpublic. Willkie Farr & Gallagher LLP is serving as legal advisor to Interpublic.
Conference Call
The companies will hold a conference call to discuss the transaction on Monday, December 9, 2024 at 8:30 a.m. Eastern Time. Live and archived webcasts, along with an accompanying investor presentation, will be available in the investor relations section of www.omnicomgroup.com and www.interpublic.com.
About Omnicom
Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com.
About IPG
Interpublic (NYSE: IPG) (www.interpublic.com) is a values-based, data-fueled, and creatively-driven provider of marketing solutions. Home to some of the world’s best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe, Octagon, UM, Weber Shandwick and more.
FORWARD-LOOKING STATEMENTS
This communication contains certain “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “could,” “continue,” “estimate,” “expects,” “intends,” “will,” “should,” “may,” “plan,” “predict,” “project,” “would” and similar expressions. Forward-looking statements are not statements of historical fact and reflect Omnicom’s and IPG’s current views about future events. Such forward-looking statements include, without limitation, statements about the benefits of the proposed transaction involving Omnicom and IPG, including future financial and operating results, Omnicom’s and IPG’s plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the proposed transaction, and other statements that are not historical facts, including the combined company’s ability to create an advanced marketing and sales platform, the combined company’s ability to accelerate innovation and enhance efficiency through the transaction, and the combined company’s plan on future stockholder returns. No assurances can be given that the forward-looking statements contained in this communication will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the ability to obtain the requisite Omnicom and IPG stockholder approvals; the risk that Omnicom or IPG may be unable to obtain governmental and regulatory approvals required for the proposed transaction (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); the risk that an event, change or other circumstance could give rise to the termination of the proposed transaction; the risk that a condition to closing of the proposed transaction may not be satisfied; the risk of delays in completing the proposed transaction; the risk that the businesses will not be integrated successfully or that the integration will be more costly or difficult than expected; the risk that the cost savings and any other synergies from the proposed transaction may not be fully realized or may take longer to realize than expected; the risk that any announcement relating to the proposed transaction could have adverse effects on the market price of Omnicom’s or IPG’s common stock; the risk of litigation related to the proposed transaction; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; the diversion of management time from ongoing business operations and opportunities as a result of the proposed transaction; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; adverse economic conditions; losses on media purchases and production costs; reductions in spending from Omnicom or IPG clients, a slowdown in payments by such clients, or a deterioration or disruption in the credit markets; risks related to each company’s ability to attract new clients and retain existing clients; changes in client advertising, marketing, and corporate communications requirements; failure to manage potential conflicts of interest between or among clients of each company; unanticipated changes related to competitive factors in the advertising, marketing, and corporate communications industries; unanticipated changes to, or any inability to hire and retain key personnel at either company; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; risks and challenges presented by utilizing artificial intelligence technologies and related partnerships; changes in legislation or governmental regulations; risks associated with assumptions made in connection with critical accounting estimates and legal proceedings; risks related to international operations; risks related to environmental, social, and governance goals and initiatives; and other risks inherent in Omnicom’s and IPG’s businesses.
All such factors are difficult to predict, are beyond Omnicom’s and IPG’s control, and are subject to additional risks and uncertainties, including those detailed in Omnicom’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and current reports on Form 8-K that are available on its website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx and on the SEC’s website at http://www.sec.gov, and those detailed in IPG’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on IPG’s website at https://investors.interpublic.com/sec-filings/financial-reports and on the SEC’s website at http://www.sec.gov.
Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither Omnicom nor IPG undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
NO OFFER OR SOLICITATION
This communication is not intended to be, and shall not constitute, an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC
In connection with the proposed transaction, Omnicom and IPG intend to file a joint proxy statement with the SEC and Omnicom intends to file with the SEC a registration statement on Form S-4 that will include the joint proxy statement of Omnicom and IPG and that will also constitute a prospectus of Omnicom. Each of Omnicom and IPG may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that Omnicom or IPG may file with the SEC. The definitive joint proxy statement/prospectus (if and when available) will be mailed to stockholders of Omnicom and IPG. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OMNICOM, IPG AND THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents containing important information about Omnicom, IPG and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents filed with the SEC by Omnicom may be obtained free of charge on Omnicom’s website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx or, alternatively, by directing a request by mail to Omnicom’s Corporate Secretary at Omnicom Group Inc., 280 Park Avenue, New York, New York 10017. Copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents filed with the SEC by IPG may be obtained free of charge on IPG’s website at https://investors.interpublic.com/sec-filings/financial-reports or, alternatively, by directing a request by mail to IPG’s Corporate Secretary at The Interpublic Group of Companies, Inc., 909 Third Avenue, New York, NY 10022, Attention: SVP & Secretary.
PARTICIPANTS IN THE SOLICITATION
Omnicom, IPG and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Omnicom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Omnicom’s annual report on Form 10-K for the year ended December 31, 2023, including under the heading “Information About Our Executive Officers,” and proxy statement for Omnicom’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 28, 2024, including under the headings “Executive Compensation,” “Omnicom Board of Directors,” “Directors’ Compensation for Fiscal Year 2023” and “Stock Ownership Information.” To the extent holdings of Omnicom common stock by the directors and executive officers of Omnicom have changed from the amounts reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 (“Form 3”), Statements of Changes in Beneficial Ownership on Form 4 (“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”), subsequently filed by Omnicom’s directors and executive officers with the SEC. Information about the directors and executive officers of IPG, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in IPG’s annual report on Form 10-K for the year ended December 31, 2023, including under the heading “Executive Officers of the Registrant,” and proxy statement for IPG’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, including under the headings “Board Composition,” “Non-Management Director Compensation,” “Executive Compensation” and “Outstanding Shares and Ownership of Common Stock.” To the extent holdings of IPG common stock by the directors and executive officers of IPG have changed from the amounts reflected therein, such changes have been or will be reflected on Forms 3, Forms 4 or Forms 5, subsequently filed by IPG’s directors and executive officers with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the registration statement and joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the registration statement and joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein from Omnicom or IPG using the sources indicated above.
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