Introduction
As the publication that introduced Omnicom Media Group’s Agency as a Platform to the industry at large, Adweek knows how game-changing this approach had been for OMG, revolutionizing the role of the media group and propelling OMG to the top of the COMvergence net new business charts for the second year in a row.
But what you don’t know is that the Agency as a Platform concept was not conceived at the group level. Rather, it was a strategy that was first enunciated in a 2021 book called Shift: A Marketing Rethink, by PHD Chief Strategy Officer Mark Holden. Designed as a roadmap for agencies and clients in an era of increasing marketing complexity, Shift reimagined the modern agency structure as follows:
The agency’s role needs to evolve to that of a platform – modular in nature, adaptable to changing client needs and changing marketplace conditions, and with decentralized expertises – that provides a range of wrap-around services.
Beyond conceptualizing Agency as a Platform (AaaP), PHD has been integral to its two-year evolution from organizational concept to enterprise-wide offer. One of the first AaaP-driven pitches saw PHD landing the $500 million Burger King account in 2022, followed by Kimberly Clark EMEA. Propelled by AaaP, PHD added more than $800m in incremental new billings last year.
In the sections to follow, we will see how in 2023 PHD proves to be both an unassailable proof point for, and an exemplary practitioner of, the AaaP approach. By landing one of the most high-profile pitches of the year – the $500m Uber global account – as well Grupo Bimbo, the world’s largest baked goods manufacturer with operations in more than 30 countries, PHD set itself on a path toward winning a total of $1.15b in new business for the year-to-date.
And we will reveal how AaaP has been an impetus for innovation as PHD has not only leveraged the vast technological assets and modern media capabilities of its parent company, but also customized and augmented them to create bespoke processes and tools that enable the efficiency, incite the collaboration, expedite the insights, and inspire the creativity that drives both business growth for our clients and professional growth for our talent.
We will learn how PHD is making the most of the platform resources to advance a more sustainable and responsible approach to media investment. And of course, we will explore the work – the output and outcomes that serve as proof points to every claim made. Finally, we will preview what’s on the horizon as PHD begins a new chapter under a new CEO.
Our story begins – as these stories must – with the new business leader board. Spoiler alert: we’re not #1. But we don’t see that as a problem.
The story of PHD in 2023 – and our case for being named Adweek’s Global Media Agency of the Year – isn’t just about what we won. It’s about what we did, what we’re doing, and what we will continue to do to move our clients, our agency, and our industry forward.
In other words, it’s about our winning platform.
Business Performance:
Powered by the Platform
”Uber moves at a fast pace, and throughout the pitch, we were impressed with their speed and agility, which along with the quality of their talent, technology as embodied in their Omni marketing orchestration system, strategic thinking and commitment to being a true partner to our business set them apart.
David MogensenVP Marketing, Uber
Year-to-date as of this writing, PHD has a net new business gain (wins-losses) of $775m for the year. Holding company policy precludes sharing specific revenue numbers but applying the very conservative formula suggested by the 4As, (Revenue = .05 x billings) this translates to $38.75 million in incremental revenue for 2023 YTD. With less than a month until the end of the year, PHD is projecting 10% revenue growth for 2023.
Notably, with $1.115 billion in new billings won, and only $336.5 million moving out of the agency, PHD has one of the best win-to-loss ratios (3:1) among the top 10 ranked new business performers. Looking at attrition relevant to PHD’s total client base, our retention rate hit 97% in 2023.
The biggest headlines were generated by AaaP powered global wins – the $500 million Uber win and the $300 million Grupo Bimbo business. Beyond these headlines, PHD also saw growth across its global footprint.
In addition to US-based Uber and Mexico-based Grupo Bimbo, 2023 wins included:
Notable retentions included:
Reflecting on more than 150 awards our work has earned so far this year, many of our largest clients across our regions significantly expanded their relationships with PHD in 2023, including:
- Added a portion of their video business to the portfolio
- Moved their Australia campaigns to the US, enabling PHD US to act as their global hub for international campaigns
- Scope expansion to include Applegate brand.
- Added Commerce score for Planters division
Now that you’ve seen what we won, let’s take a look at what we did, what we’re doing and what we’re going to do that makes us a contender for Global Media Agency of the Year.
Building on the Platform:
Innovating to Unlock Opportunity, Ignite Performance
Omni Studio
”One of the huge benefits of Omni Studio is that it’s brought to the attention of our marketeers the craft of media planning in a way that was never really as visible before. It’s where art and science come together.
Isabel MasseyVP Global Media, Diageo
When PHD was first established in 1990, it took a different stance compared to the media agencies of the time, which were focused on buying and clout. Instead, it emphasized strategic planning and out-thinking competitors. In today’s world, where the focus is on the power of technology and data, PHD applies strategic and creative thinking on top of that, using technology and data as a creative canvas to create transformative experiences. There is no better example of this layering of strategy and creativity than in the way PHD has customized the Omni open operating system that supports all Omnicom agencies, and powers OMG’s Agency as a Platform model.
Building on Omni, PHD has developed a planning OS called Studio that transforms the entire communication strategy and planning process.
Studio allows for strategists to collaborate across markets to create campaigns online. The entire platform has been built from the ground up based on game mechanics, encouraging collaboration and resulting in 70,000 unique ideas generated by the global PHD community –including people who don’t work on the account. In essence, joining PHD is like joining an MMOG (a massively multiplayer online game), where the better you are at the game, the more you and your country rise on the leaderboard. Each week, 70% of account teams, strategists, and planners come into the platform. Here’s a small selection of the work – and results – that came out of this always-on brainstorm in 2023.
Case Study:
Building a Modern Media Roadblock for Spin Master
Project
Building a Modern Media Roadblock
Client
Spin Master
Region
North America
Unicorn Academy, Spin Master Entertainment’s newest fantasy-adventure children’s series, debuted on Netflix globally on November 2, 2023. The challenge for PHD USA: ensure a second season by getting the premiere into the Netflix Kids Top 10.
With the traditional mass-reach vehicles for children – TV and streaming – off limits for competitive reasons, PHD’s SpinMaster team – working through Omni Studio – conceived a two-pronged strategy. First, seed media through YouTube (the #1 platform for kids), followed by a modern twist on the linear TV “roadblock” strategy of running ads on all networks simultaneously. The modern version saw a takeover of all major OEM screens on launch day and during key kid viewing periods during launch weekend. Including strategic media units throughout the campaign for easy click-through to content when and where available, the strategy allowed for a simple and efficient path for viewers directly to Unicorn Academy YouTube content and the Netflix app.
Results
The concentrated reach on the biggest screen in the living room, targeted to households most likely to tune in, took awareness of Unicorn Academy from minimal to Top 10 on Netflix in one day. Not only did the show achieve the top 10, but it also reached #1 on Netflix Kids and #5 on Netflix U.S. overall, and secured a second-season renewal.
The success of the U.S. premiere, combined with the Netflix algorithm, also propelled Unicorn Academy to the top 10 in more than 68 countries. The media campaign generated over 200 million impressions, contributing to Unicorn Academy’s 30 million video views on their YouTube channel and over 15 million hours viewed on Netflix – a second-season renewal.
And all on a budget of less than $5 million.
Case Study:
Shoot Your Shot
Project
Shoot Your Shot
Client
ANZ Bank
Country
Australia
ANZ bank was facing fierce competition from its financial competitors with people under the age of 40, particularly in regard to driving leads, which related to a lack of relevance and comprehension. Research and audience data were used to identify that sport and gaming were key passion points of the 18-39 audience, highlighting that a sports-centric gaming environment was the key to build relevance with this audience.
NBA 2K was set to be released in Australia on September 9th 2023, presenting an Australian media-first for ANZ to integrate in the game within the console and PC game Software updates allowed ANZ creative to be visible within the game across all consoles, restricted to Australia only. Underpinning the NBA 2K23 in-game activity were two concurrent promotions under the banner of “Shoot Your Shot”.
The Half-Court Challenge tasked gamers with downloading custom court skins in NBA 2K23, capturing themselves making a half-court shot in-game, and sharing it on the promotional microsite. Weekly winners, chosen by influential figures, received 1.5M in virtual currency (VC), with grand prize winners selected by ANZ ambassador Dylan Alcott winning an $18,000+ Samsung pack. The Locker Code Giveaway allowed gamers aged 16+ to exchange their contact details via a microsite for a unique locker code, redeemable for 15,000 VC in-game.
Results
Working with a budget of $500k, PHD exceeded ANZ’s lead generation KPI of 5000 leads by +117% (10,863). The campaign increased positive associations about ANZ and key brand attributes improved with all gamers (not just NBA 2K players) based on brand uplift results. The campaign delivered over 36M impressions, with over 10K live stream views on social media. The Shot Your Shot Locker Code Giveaway generated 23,202 entries with 47% of these opting in for future ANZ communications. This was +135% higher than the 20% opt-in KPI. PHD’s paid social campaigns reached 7.7m people, driving over 67k clicks to the ANZ Financial Wellbeing Page.
Case Study:
The Diageo Depletions Index
Project
Depletions Index
Client
Diageo
Region
Global
When looking at Diageo’s 1PD, it was observed that Sales & Sales penetrations (i.e. Depletions/Pop. 21+) vary greatly geographically, while national media buys usually align with census, creating media waste by focusing too heavily on areas with the greatest populations.
Working within Omni’s privacy-safe environment, Diageo’s consumer, depletion, and media data were combined within a Data Cleanroom to create scalable 1PD & probabilistic audience sets. The outcome was the Diageo Depletions Index (DDI).
To ensure the most precise targeting and highest possible return, DDI is applied to a bidding algorithm to prioritize geographic locations with the highest sales down to the zip code level, resulting in media delivery automatically aligned to geographic sales. The process future proofs Diageo for a world without cookies while simultaneously increasing reach among this highest propensity audiences. The data was applied across all standard programmatic spend.
Results
In a category-first, PHD re-imagined 1P sales data to accelerate growth beyond expectations, resulting in a +31% increase in Effectiveness and 170% ROI.
Over the past year the Omni Studio has significantly expanded its commerce capabilities to ensure a full funnel ecosystem that enables PHD to deliver on one of the most critical priorities for marketers today. Boosted by the launch of Omni Commerce – the industry’s first connected commerce orchestration solution – Omni Studio can now provide always-on insight, activation, optimization, and attribution across the entire commerce landscape, breaking down the silos between commerce and brand investment to enable seamless decisioning. Powered by Omnicom Media Group’s portfolio of retail media network partners – including Albertson’s, Amazon, Instacart, Kroger, Uber, Tesco and Walmart – and data vendors, Omni Commerce’s depth of data categories (media performance, operations, content, product inventory and sales) provides a single, standardized yet customizable view of the commerce journey – not only across commerce and brand investment, but also across retailers, and online/offline environments as well.
Please note: Should PHD be selected as Global Media Agency of the Year, this case study must be white labeled.
Case Study:
Diageo Global Amazon Supply Chain
Project
Global Amazon Supply Chain
Client
Diageo
Region
Global
Diageo had significant challenges with the supply chain on Amazon, specifically regarding out-of-stocks (OOS) and poor vendor confirmation rates. This resulted in OOS levels >10% and Vendor Confirmation Rate <60%. This had a significant impact on revenue globally and a direct impact on the efficiency and effectiveness of media campaigns.
Leveraging Omni Commerce real-time dashboards, PHD identified high levels of out-of-stocks that were impacting the efficiency and effectiveness of the Amazon media campaigns and reduced media spend on those items, subsequently re-distributing that media spend across slower selling products to boost incremental revenue. We also used the tool to identify overstocked items and then increased media spend on those items to clear through excess inventory in Amazon’s fulfillment network, reducing the risk of liquidation or markdown.
The agency then developed a bespoke Amazon Supply Chain Training Playbook that was delivered to Supply Chain teams and local market e-commerce teams, covering the following modules:
- Amazon Operations Overview
- Amazon Inbound Process
- Chargebacks and Shortages
- Fulfilment Programs
- eCommerce Packaging
- Returns
- Supply Chain Programs (Vendor Flex/Direct Import)
Once content was deployed and syndicated across all markets, we began to monitor the performance and assess the impact of the changes made to Retail-Out-of-Stock (ROOS) and Vendor Confirmation Rate. We partnered with Diageo to identify supply chain improvements and KPIs beyond ROOS and Vendor Confirmation Rate to ensure the overall profitability of their Amazon business and media investments.
Results
Improvement in ROOS and vendor confirmation rates translating to $2 million in revenue.
Advancing AI
”By 2029 we may begin to see a new breed of even smarter AIs — what we call “strong AI.”
Sentience: The Coming AI RevolutionPHD, 2015
These machines will start to become smarter than humans. They will then take over the role of making themselves smarter. Once we reach that point there’s no telling what the future will hold.
Eight years before Open AI launched the generative AI era, PHD was well ahead of the brave new world curve with this deep dive into the potential – and potential pitfalls – of AI. And with good reason. As PHD Chief Strategy Officer and lead Sentience author Mark Holden predicted in the book’s first chapter, “Although AI has largely been the domain of academics and large internet companies, it’s starting to trickle down into the consumer sphere, and that’s where the most noticeable applications will present themselves. Those applications will be largely ad-supported, meaning that marketing will be one of the first disciplines disrupted by AI.” As early thought leaders in the category, it’s not surprising then that PHD has been adept at leveraging machine learning to drive better outcomes for its clients.
Case Study:
VWG's Machine Learning Marketing Platform
Project
Machine Learning Marketing Platform
Client
Audi
Region
France
Case Study:
Audi Dynamic Destination
Project
Dynamic Destination
Client
Audi
Country
United States
PHD partnered with KERV to extend Audi’s national campaign into a hyper-targeted regional program across key local markets in a minimal heavy-lifting, cost-effective way across OTV & CTV. Together, the teams collaborated to launch a first-to-market ad experience that used KERV’s patented AI/ML image recognition technology to deliver a highly localized and personalized ad experience at scale, ultimately driving user engagement & regional awareness.
KERV created a hyper-targeted ad experience called Dynamic Destination that automatically links to personalized landing pages or websites based on inputs like location, time of day, and weather, allowing advertisers to achieve unparalleled personalization at scale.
The technology utilized just 1 VAST tag (i.e., the ad script that allows ad services to communicate with video players) to seamlessly integrate dynamic QR codes within Audi’s ads, connecting viewers directly to their local Audi dealership across hundreds of cities at no extra cost.
Results
The results blew away the benchmarks, earning a 98% video completion rate, +23K added time spent with the brand.
”Working with KERV and PHD Media allowed us to quickly and efficiently localize our interactive OTT experiences and guarantee consumers have a more personalized, relevant experience with the Audi brand.
Kayleen OblackMedia Manager, Audi of America
From Omni Assist to Omni Assistant
When OMG’s Annalect data and analytics leveraged Omnicom’s first-mover access to Open AI to launch Omni Assist – a generative AI virtual assistant that provides insights, recommendations and notifications to reduce the time from planning to activation – PHD saw an opportunity to take that capability to the next level.
With Omni Assist integrated within Omni, PHD is taking it further by incorporating it into studio to provide a range of cognitive assistants for desk research, strategic crystallization, and lateral thinking. This virtual team of AIs co-pilots strategy development, with each underpinned by carefully crafted prompts that enable the AI to generate remarkable thinking. And a reinforcement learning functionality, in the form of a user-level thumbs up/thumbs down mechanism, allows the AI to learn over time and tailor its prompts to each client, creating increasingly relevant brand campaigns.
The Omni Studio AI application is currently in beta and will launch companywide in early 2024. In the meantime, to ensure the brands we serve have the knowledge and comfort they need to unlock the power of generative AI to enhance marketing effectiveness, we are partnering with Annalect to conduct day-long AI workshops with our clients’ extended marketing teams.
Operationalizing Responsible and Equitable Media Investment
In 2023, PHD’s Global President, Francesca Hills led the development and launch of OMG Momentum, the ESG platform serving all OMG agencies. OMG Momentum is an industry first – an end-to-end solution that operationalizes Environmental, Social and Governance (ESG)-driven investment. Housed within Omni Studio and aggregating the best ESG tools and activations from across the network, OMG Momentum includes a global shared knowledge database; private sustainability and DE+I marketplaces; and customized tools for planning, optimization and measurement. Standouts in the Momentum portfolio include:
- The DE&I and Sustainability Planning and Activation Certification program that equips teams with the skills to successfully infuse DE&I and Sustainability into every stage of media planning and buying.
- A Carbon Calculator that enables teams to estimate the carbon emissions of media plans per channel. The tool can be used to set emissions benchmarks to track emissions over time, compare campaigns emissions, and can serve as a guide to reduce carbon emissions through various media channel combinations.
- A carbon scenario optimization tool that is integrated into Omni Studio to help teams optimize media plans to lower emissions while maintaining performance.
- The Diverse Creator Network is a purpose-driven initiative that advances investment in diverse creators, influencers, and minority owned and operated media. DCN drives marketplace results, while increasing access to media investments for a greater number of self-publishing media entrepreneurs who create content across digital platforms and owned channels.
- The Sustainability and DE&I supplier index that helps teams evaluate media partners that align most with clients’ ESG goals. This detailed assessment considers a wide range of sustainability topics, including commitment to the environment social impact; content; and ethics.
- Sustainability and DE&I Marketplaces that provides clients with a unique opportunity to access inventory that not only delivers the best price but also supports publishers striving for sustainability goals such as carbon neutrality or diversity-based objectives like minority-owned businesses.
Deploying the OMG Momentum suite of solutions, planners can deliver media strategies that support and advance clients’ sustainability and DE&I ambitions, as well as their media and business KPIs. In other words, it allows our clients to be accountable to the planet, to society, and to their shareholders. And it holds us accountable for the commitments that we have made as part of Ad Net Zero.
Case Study:
Air Ink
Project
Air Ink
Client
Diageo
Country
Nigeria
Activating in a city with one of the worst air quality indexes in the world, the objective was to create a sustainable initiative. Partnering with Air Ink – a sustainable tech company that converts air pollution into ink – and collaborating with local artists, PHD took over community gathering spot Freedom Park for an exhibit of sustainable art. Limited edition (2500) ceramic bottles designed with Air Ink were created for the initiative which effectively combined brand awareness with Diageo’s commitment to sustainability.
Results
70 cases (860 bottles, or more than a third of the inventory) of the limited-edition Johnnie Walker air ink bottles sold in the first week. Unique reach exceeded 17 million. And the equivalent of 40,000 minutes of air pollution from approximately 880 cars was converted into 25 liters of ink. The campaign has also been executed in high air pollution cities in Brazil and India.
Architecting the Platform of the Future:
Managing a Shifting Marketplace
With the 2021 publication of our ninth book – Shift|A Marketing Rethink – PHD offered strategies and solutions for the massively reorganized post-Covid marketing landscape.
In the two years since its publication, Shift has evolved from book to seminars to podcast series to emerging consultancy as PHD advises clients on how to best structure their marketing communications operations. In 2023, we conducted multiple Shift Organizational Design workshops for clients around the globe.
Also in 2023, PHD identified 17 Shift capabilities that will be essential to driving marketing transformation over the next decade – many of which are generative AI and machine learning related.
To help understand the extent to which marketers see the relative importance of these capabilities, PHD partnered with WARC to commission a targeted survey of over 200 senior client-side marketers with global decision-making responsibilities from large organizations.
The survey, conducted throughout 2023, demonstrates that marketers see a clear case for many diverse marketing requirements to be supported with assistance from agencies. Content Partnership Development and Conversational AI Development are the functions considered to most benefit from agency assistance.
Inhouse or agency?
The message to agencies couldn’t be clearer: the ability to organize as a platform – a multifaceted and flexible organization equipped to address marketers’ most complex issues using a combination of technology, tools, and talent – will be the difference between leading and following in the new marketing reality.
Luckily, PHD has a head start – and a leadership team to ensure we maintain that lead, starting with our new CEO Guy Marks.
Named CEO in Q3, the former CEO of Omnicom Media Group EMEA succeeded Philippa Brown, who had served as PHD’s global CEO since 2019, leading the agency through COVID, bringing it back to take Media Network of the Year honors at the 2021 Cannes Festival, and landing the Diageo, Chanel, and Unilever business during her tenure. Having joined OMG in 2014 following Omnicom’s acquisition of Mobile5, the global UX, design, and tech consultancy service that he co-founded, Guy remains an entrepreneur at heart, with a leadership style that is focused on quickly identifying, adapting, and responding in real-time to the challenges of a dramatically changing consumer marketplace. His appointment exemplifies the fluidity between the group and agency talent and expertise that AaaP enables; while his experience leading the adoption of Agency as a Platform across EMEA and driving the development of the best of breed skills, knowledge and technology that empowers it, made him the ideal choice to lead the agency where the model was born.
”The thread that can be pulled through all my professional experience is driving growth through transformation. As the CEO of PHD – an agency that was born from a transformative concept of media as a strategic tool – my priority will be assuring that every PHD account team around the world has the talent, tools, technology and collective commitment to excellence needed to deliver the transformative ideas, solutions and services that drive growth for our clients, our agency, and our people.
Guy MarksCEO, PHD
You’ve seen the technology and the tools. Now let’s take a look at the talent that’s architecting PHD’s platform of the future.
The Architects
Global Client Business Leads
Our client business leads also participate in the OMG global leadership community — a collaborative initiative enabled by Agency as a Platform. Understanding that global brands across OMG agencies are facing many of the same challenges in terms of dealing with marketing complexity, a radically changing consumer landscape and meeting their transformation ambitions, this cooperative enables better sharing of thought leadership and innovative solutions across the group.
With a series of new hires in 2023, we’ve added more expertise to our bench strength.
PHD is currently female-led in the fourth (UK), fifth (Germany), sixth (France) seventh (Australia), eleventh (Canada), and twelfth (India) largest markets for ad spend; and in one of the world’s fastest-growing consumer economies (India)
Investing in Gen Next
While one generation of leaders is defining the future, the next generation must be prepared to lead in it. That’s the goal of PHD Learn, our self-service learning and development portal.
It consists of two key elements: a competency framework, that tells our people which skillsets are needed to succeed in every role; and training to match each competency. The competency-based framework enables us to hire against and evaluate performance to ensure we deliver actionable outcomes and accelerated knowledge.
In essence, it’s about building a foundation of shared expectations around team members’ skills and performance, which gives development plans a common framework.
Within each framework, there are levels of mastery, from foundation (which is entry level, new or learning in the role) through to Expert (being a recognized authority), explaining WHAT individuals need to do and HOW they need to do it.
Additionally, all PHD professionals have access to OMG’s global Learning & Development initiatives, designed to support personal growth and development at every stage of the career path.
The impact of these initiatives can be seen in two key – and interconnected – metrics: responses to our most recent employee engagement survey, in which our commitment to professional development was given high marks, and our steadily declining turnover rate, which is projected at 28% for 2023 – an 8-point improvement vs 2022, and below the industry average of 30%.
Where We Are:
PHD 2023 by the Numbers
Where We Are Going:
PHD 2024
PHD’s continual focus on the future is central to its structure and culture – remember, we’re the people that wrote two books with the word “Overthrow” in the title. As the agency who has been most proactive, prescient and provocative in its exploration of the forces of change that will drive and define our industry in the coming decade, we understand that it’s always better to plan your next evolution when you’re at the top – after all, that’s where you have the best view of the road ahead.
Here’s how our leaders described the next stage of PHD’s journey – and the invitation they issued to help map out our road to the future.























