TBWASouth Africa, the South African counterpart of advertising
Omnicom Group Inc.
) operating unit TBWA, recently acquired about 80% ownership
stake in Johannesburg-based HDI Youth Marketeers for an
undisclosed amount. The remaining 20% ownership stake will
continue to be with the erstwhile management team of HDI Youth.
Founded in 1996, HDI Youth is a dedicated youth marketing
consultancy that connects diversified brands to people aged 3 to
23. Independent studies by HDI Youth have revealed that half of
South Africa's 50 million people are aged under 23 and account
for an annual direct spend of over R105 billion. Consequently, in
order to tap such a huge market and reach to newer heights, it
has agreed to form an integral part of TBWASouth Africa.
On the other hand, with revenues of R30 million and R50 million a
year, and a strong client base of leading companies such as
The Procter & Gamble Company
), HDI Youth is a key addition to TBWASouth Africa. The
increasing demand for media services, speedy growth of
technologies and massive proliferation of channels are likely to
drive TBWASouth Africa's growth going forward.
Omnicom, the parent company of TBWASouth Africa, is a leading
global marketing and corporate communications company. Omnicom
has a track record of winning new clients and receiving
additional deals from the existing ones.
The company's business mix is well diversified geographically
and benefits largely from growing markets. Additionally, the
company is also building upon its digital and analytical
capabilities by investing in agencies and partnering with
innovative technology companies in key markets.
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Recently, Omnicom and
Publicis Groupe SA
) won European Union regulatory approval for their $35.1 billion
merger, which is likely to create the world's biggest advertising
agency. This merger is anticipated to create new avenues for
growth and success for the individual companies. The 'merger of
equals' will enable the respective companies to make the best use
of their skilled workforce, diverse product offerings and
enhanced global footprint to leverage a list of global as well as
local clients and reap synergistic benefits.
Omnicom currently has a Zacks Rank #3 (Hold).