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hhgregg Reverts to Omnicom's Zimmerman Advertising

Zacks Equity Research

Zimmerman Advertising, a unit of Omnicom Group Inc. (OMC), has been selected as Agency of Record by hhgregg Inc. (HGG), a leading retailer of home appliances, consumer electronics and furniture. Zimmerman, apart from meeting the company’s creative needs, will handle media planning and buying.

Zimmerman acted as hhgregg’s Agency of Record (AOR) for 2007 – 2013, following which hhgregg granted its advertising account to Leo Burnett and Spark SMG, both are units of advertising major Publicis Groupe SA (PUBGY).

According to media sources, hhgregg was not satisfied with lackluster performance from Publicis’ agencies, and thus decided to return to Zimmerman. More importantly, the decision was part of management strategy to shift its marketing focus from brand-building to retail promotion.

After a year’s sabbatical, Zimmerman is ready to take over the responsibilities of Agency of Record for hhgregg again. Zimmerman’s talented employee base, new proprietary software and systems, and profound experience are likely to pave the way for a smooth transition.

Headquartered in Fort Lauderdale, FL, Zimmerman is the largest agency in the southeastern U.S. Omnicom, a leading global marketing and corporate communications company, provides a range of advertising services through its creative agencies like Goodby, Silverstein & Partners, Martin Williams, GSD&M and others.

In an effort to create the world’s largest advertising agency, Omnicom and Publicis had sought to merge their operations last year in a $35 billion deal. However, the deal was terminated, reportedly due to regulatory and tax complications and management conflicts.

Omnicom currently holds a Zacks Rank #2 (Buy). Another notable stock worth considering in the sector is Hanesbrands Inc. (HBI), sporting a Zacks Rank #1 (Strong Buy).

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