Omnicom takes Adidas global media account from WPP

Agency networks delivered mixed performances over the latest reporting period. Omnicom was the strongest performer among the major networks, rising 7.1%, helped by winning Adidas' global media account from WPP.

S4 Capital recorded the biggest gain, climbing more than 15% without any clear catalyst. Havas gained 5.9% and Dentsu rose 2.3%. WPP was the biggest decliner, falling 3.8%, while Publicis slipped 2.1% despite winning the Samsung Australia account.

The week's key developments included Adidas moving its global media business to Omnicom, the expansion of WPP Enterprise Solutions, a potential agency shift at Skechers, and reports that Dentsu plans to take its subsidiary Dentsu Soken private.

WPP

WPP was the week's biggest loser after losing Adidas' global media account to Omnicom. At the same time, the company expanded its Enterprise Solutions division with a portfolio of AI services delivered through partnerships with Adobe, AWS, Google, Microsoft and Salesforce, serving clients including IKEA, Ford, L'Oréal and Nestlé. WPP Media was also appointed media partner for The Estée Lauder Companies in the UK. However, these wins were not enough to offset the loss of Adidas, and WPP's share price fell 3.8%.

Publicis

Publicis declined despite securing new business. Samsung Electronics Australia appointed Publicis as its new media agency following a review, ending Clemenger BBDO's seven-year tenure managing both media and creative. The appointment aligns with Samsung's global media structure, where Publicis already handles media responsibilities across many markets. Publicis shares fell 2.1%.

Omnicom

Omnicom was the strongest performer among the major agency networks. The company won Adidas' global media account, which will be led by PHD and, according to various reports, represents between $512 million and $560 million in annual media spend previously managed by WPP. Shortly before the Adidas announcement, IBM also appointed Omnicom Media as its global media agency. Omnicom's shares jumped more than 5% on the day the Adidas news broke and finished the period up 7.1%.

S4 Capital

S4 Capital was the week's biggest gainer, rising 15.1% without a single obvious trigger. As a relatively small stock, its share price tends to be more volatile. In an interview with LBB, founder Martin Sorrell argued that innovation should take precedence over regulation and positioned S4 and Monks around AI, with the central idea that AI makes knowledge available at virtually zero marginal cost.

Dentsu

Dentsu gained 2.3%. Reports indicated that Dentsu Group is considering taking its IT subsidiary, Dentsu Soken, private together with partners, although the company said no decision has yet been made. Dentsu Creative also won Lotte India's creative account, while the group expanded its creator marketing capabilities through a partnership with CreatorIQ.

Havas

Havas rose 5.9%. According to reports, Skechers' global media account, representing more than $100 million in annual advertising spend, is set to move from Dentsu to Havas. Havas Media also launched an attention-based media marketplace with Viant, while the group reported progress on its ongoing share buyback programme.

Marketing Report Markets is an editorial analysis of share price developments within the marketing and communications industry and does not constitute investment advice or a recommendation to buy or sell securities.