During the second week of November, OMD, a unit of Omnicom Media Group, the media services division of Omnicom Group Inc. (OMC), announced a new research partnership with CBS Vision, the research division of CBS Corp. (CBS). The partnership will allow OMD's clients access to the CBS Television City research facility housed in the MGM Grand Hotel in Las Vegas.
 
The new venture combined with the capabilities of CBS Vision with one of the county's leading agencies, will be called Communications Lab@OMD. CBS's Television City is a well-established research facility that incorporates traditional qualitative and quantitative methods like focus groups and surveys, as well as advanced bio-metric techniques such as eye tracking and brain scanning using NeuroFocus technology, in a transparent research environment.
 
Omnicom Group continues to acquire complementary companies with strong entrepreneurial management teams to expand its client base. Moreover, management remains committed to further expand its business and relationships in Asia, where operating conditions remain extremely favorable. This should improve long-term profitability of the company.
 
Omnicom Group is one of the largest providers of advertising, marketing and corporate communication services in the world. The company continues to generate new business wins, despite the current challenging economic environment.  In addition, the company has acquired complementary companies to expand its client base. In reaction to the current economic challenges, management has aligned the company’s cost structure by right-sizing headcount and reducing compensation pools. Our current recommendation for Omnicom’s shares is Neutral, reflecting that the stock will perform in line with the broader market.
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