Omnicom Group Inc. (NYSE:OMC) is one of the world’s largest “marketing services” companies. It is a publicly traded holding company that owns many different agencies. Omnicom breaks its revenue down into four categories: advertising (50% of revenue), customer relationship management (34%), public relations (9%), and specialty communications (7%).
All of the global creative agencies are great businesses and Omnicom is no exception. When run right in terms of costs, capital allocation, etc. all these companies can make for great long-term investments. All of them will be great businesses in 5, 10, and 15 years from now. They’ll have many of the same clients. If we had to pick one best stock in the ad industry though it’d be Omnicom. It’s the company with the best financial results. It has the best history of capital allocation. And Omnicom’s agencies win more awards than anyone else. It's also the cheapest.