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OMNICOM PLANTS ITS FLAG IN COMMERCE MEDIA WITH AN $835 MILLION DEAL FOR FLYWHEEL
DIGITAL | ADEXCHANGER

Home Commerce Omnicom Plants Its Flag In Commerce Media With An $835 Million
Deal For Flywheel Digital

commerce


OMNICOM PLANTS ITS FLAG IN COMMERCE MEDIA WITH AN $835 MILLION DEAL FOR FLYWHEEL
DIGITAL

By James Hercher

Monday, October 30th, 2023 – 3:08 pm
SHARE:
LinkedInEmailXFacebookShare



The holdcos really want to cash in on the retail and commerce media trend.

On Monday, Omnicom entered the ecommerce marketplace services space in a big way
with an $835 million deal to buy Flywheel Digital.

Founded in 2014, Flywheel was one of the first players in the now-crowded
category of Amazon ad agency specialists. It was acquired by Ascential, a
UK-based consultancy and B2B media business, for roughly $60 million in 2018,
including up to $400 million in earn-outs over three years.

Omnicom will add around 2,000 Flywheel employees as well as the company’s
co-founding team, including current Ascential CEO Duncan Painter, who now
becomes head of Omnicom’s ecommerce and retail media practice.







Get the Flywheel going

Flywheel, which has a suite of tools to help enterprise brands manage their
ecommerce efforts, was a direct competitor of Omnicom’s, and the two also had
many overlapping accounts, Omnicom CTO and EVP Paolo Yuvienco told AdExchanger.

But what Flywheel provides is new to traditional agency structures. For
instance, an important part of Flywheel’s services is to manage product pages,
warehousing, inventory movement and product pricing across sometimes dozens or
hundreds of sites.

For a time, these needs were unique to Amazon, Yuvienco said.

That led to the rise of Amazon-only ad agencies like Flywheel, Marketplace
Ignition (which was bought WPP) and The Ortega Group, (now owned by Tinuiti).

But now there’s Walmart Connect, Target’s Roundel, Kroger, Albertson’s and a
host of other large retailers that have launched scaled retail media networks.
Each network has similar dynamics as Amazon, Yuvienco said, which means that
agencies need to have in-house commerce marketplace chops in order to keep up.

Commerce data grab

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Flywheel also “comes with massive amounts of data,” Yuvienco said, “almost equal
to what we have with Omni.”

You can think of Omni as the holdco’s metadata hub. It spots trends and patterns
of how different audiences and media are performing. Rather than tracking
individuals – Omni isn’t itself an identity graph – it analyzes data at the
metadata level to see what insights can be pulled from its aggregated
media-buying info.

Flywheel will contribute greatly to Omnicom’s dataset, Yuvienco said. Although
it doesn’t have user-level payment data like Amazon has to run closed-loop
attribution, it does have aggregated, non-PII information about product sales.

Flywheel sees how products are displayed and where they’re purchased around the
web, he said, which provides another layer on top of Omnicom’s audience and
behavioral data.

“Ultimately, our clients are looking to drive higher sales,” Yuvienco said.
“That’s the reason why we exist.”

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    Disney is celebrating the first birthday of ad-supported Disney+ with a new
    slate of targeting and measurement options for advertisers.

 2. Online Advertising
    
    
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 3. Data Privacy Roundup
    
    
    WEBSITE TAGS ARE YOUR NEW (AND OLD) BEST FRIEND
    
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    Google’s VP of global measurement.

 4. CTV
    
    
    PARAMOUNT IS GIVING BUYERS MORE DIRECT ACCESS TO ITS INVENTORY
    
    Paramount unveiled a new ad product called Conduit, a direct integration
    layer between SSPs and EyeQ, Paramount’s CTV ad selling platform that
    aggregates Paramount+ and Pluto TV inventory.

 5. CTV
    
    
    THE TV BUNDLE IS MAKING A COMEBACK
    
    TV industry vets convened at the National Association of Broadcasters (NAB)
    show in New York City last week to discuss the streaming industry’s
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