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Nissan Inks Deal with Omnicom

Zacks Equity Research

Japan's second-largest automotive company Nissan Motor Co. Ltd. (NSANY) recently roped in the advertising firm Omnicom Group (OMC) for a multi-year agreement for communications, advertising, marketing, media, promotions and digital services. The financial terms of the deal have not been disclosed yet.

Nissan United, a newly created multi-disciplinary group of agency leaders created by Omnicom, will oversee the global relationship and will build brand value for Nissan. Omnicom has appointed Jon Castle as the President of Nissan United.

As per the agreement, Nissan United will work as a global leadership group to supervise various Omnicom agencies including TBWA, OMD, Interbrand, Emanate and other non-Omnicom agencies such as Japan-based Hakuhodo.

Nissan believes that its partnership with Omnicom will enable it to build a strong brand, which is crucial to its business as well as the “Nissan Power 88” – Nissan’s six-year  strategic business plan.

The Omnicom-Nissan partnership will expectedly boost Nissan’s growth, while enabling it to deliver more innovative products.

Nissan recently ranked #65 in the Interbrand Best Global Brand 2013 list. The company also won recognition as one of Interbrand’s 2013 Best Global Green Brands for superior environmental practices. Omnicom is thus expected to play a key role in further enriching Nissan’s brand success.

Omnicom is an advertising, marketing and corporate communications bellwether. The company has a strong 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 the growing markets. In addition, the company’s efforts to control expenses and its global reputation are both commendable.

Omnicom currently has a Zacks Rank #4 (Sell). Other notable companies in the industry that warrant a look include WPP plc (WPPGY) and Huron Consulting Group Inc. (HURN). Both these stocks carry a Zacks Rank #2 (Buy).

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