Short dive:
- The Omnicom Group is strengthening its e-commerce division by launching Transact, a consulting practice for connected commerce and online retail services, according to a press release .
- This new offering is an offshoot of OmniCommerce and offers retail and analytics tools, catalog management, content optimization and account management, and operational services to give customers a comprehensive view of marketing channels.
- The division is also leveraging Omnicom's recent partnerships with companies such as Amazon, Instacart, Kroger, and Walmart. The emergence of agencies around the media, trying to attract clients' interest in the media.
Diving sights :
The launch of Transact by Omnicom continues to drive agency interest in getting a share of the retail media pie. According to GroupM's latest projections , retail media advertising revenue will increase from $88 billion in 2021 to $101 billion this year. According to news agencies, retail media currently accounts for 11% of global advertising spending and 18% of digital media spending.
With the addition of Transact, Omnicom customers gain new knowledge and strategies to complement the parent group's existing offerings, including marketing technology consulting, customer relationship management, precision marketing, creative media and content strategy, and campaign activation. Key to this new division are partnerships with Amazon, Walmart, Instacart , and Kroger , which are expanding their presence in retail media by adding new solutions.
Amazon announced in its second-quarter earnings report that its advertising services segment grew 18% year-on-year as retailers try to engage consumers at the point of purchase . The e-commerce giant accounted for 50% of all retail media advertising spend in the first five months of the year, according to the Standard Media Index, followed by Walmart. Walmart Connect recently expanded its Innovative Partner Program , which includes Roku, TikTok, and Snapchat . Walmart's global advertising business is expected to generate $2 billion in revenue by 2021 .
The information this partnership provides could increase Omnicom's competitive advantage as other agencies develop strategies in similar areas. Omnicom CEO John Wren said the agency wanted to create a holistic view of the customer journey for the brand.
“[E-commerce and e-retail] are at the core of our customer growth and transformation program,” Ren said. “By expanding Transact, we are strengthening our core capabilities for our customers and helping turn each customer touchpoint into a new growth opportunity.”
Transact is led by Frank Cochenas, who joined the company in March and previously held positions at Wunderman Thompson Commerce, Amazon and McKinsey . In its second-quarter earnings report, Omnicom reported 11.3% organic revenue growth and 0.1% net profit to $348.4 million.
