The New York City advertising-agency holding company, Omnicom, is currently undervalued and a â€œsteal” of a buy, according to money men like Steve Roukis, managing director and senior portfolio manager at New Yorkâ€™s Matrix Asset Advisors. Roukis also shared his thoughts with Fox about how big agencies will fare far better during the recession.
â€œWeâ€™re going to see the bigger advertising companies get bigger, and the small guys fade away,” he said, adding that Omnicom supplies a â€œbetter mousetrap” and â€œbetter management team.”
â€œThese guys are the worldâ€™s premier global advertising agency, and they are ranked number one every year. They are much bigger than their peers, and every quarter they get new billings, and continually grow their market share. Each year they seem to outgrow everyone else in the industry.”
â€œClients like Pepsi and Johnson & Johnson are going to stick with the large media agencies, even in times of recession. Big companies want to send one simple message to all media outlets, and [Omnicom] does this.”
Tell us something we don’t know, yeah? Omnicom will be fine, yes, yes. Those bitches will still be making it rain in 2009 when the recession lands full frontal. Although, downsizing will be inevitable for everyone including Omnicom and small, tiny shops with just a client or two, may be forced to bail, but what about the mid-sized agencies? How will they fare? What about the digital only shops like Poke? Will they scoop up more biz as clients shift dollars to digital experiences in an effort to save dough? Hmmm…. your thoughts please.