Back to top

Analyst Blog

Zimmerman Advertising, a unit of Omnicom Group Inc. (OMC - Analyst Report), has been selected as Agency of Record by hhgregg Inc. (HGG - Analyst Report), 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 - Analyst Report), sporting a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIM'S P… PPC 31.52 +3.72%
CLAYTON WIL… CWEI 138.97 +3.55%
FLAMEL TECH… FLML 14.02 +3.16%
CALLON PETE… CPE 11.50 +3.14%