Omnicom ended 2023 with positive organic growth in both Q4 and the entire year, beating analyst expectations.

The company’s organic revenues increased 4.4% year-over-year in the three months ended on December 31, with full-year organic growth of 4.1%.

Operating expenses climbed 5.9% in Q4 and 3.1% for the year. Salaries and related costs also increased 2.8% in the quarter, mainly due to an increase in headcount as a result of acquisitions.

Omnicom’s Advertising and Media segment, the largest contributor to the company’s revenue, increased 9.3%, aligned with the segment’s full-year growth of 6.5%. Experiential revenues fell 8% in Q4, but increased 3% for the year.

Precision Marketing also declined by 1.1% in Q4, although the company has said the segment will benefit significantly from investments in generative AI this year. In 2023, the category increased 3.1%.

PR remained below the previous quarter’s growth, at 2.9%, and organic revenue in Execution and Support (which covers research, field marketing, point of sale, sales support and merchandising) fell 0.4% in the quarter.

By region, the “Euro Markets & Other Europe” segment grew 14.1% in the quarter, outpacing other regions’ growth. “Other North America,” which includes Canadian operations, declined 1.3%, partially offset by a 0.6% growth in the U.S. segment.

For the year, the category that grew the most was “Latin America” (13%), followed by “Euro Markets & Other Europe” (7.2%).

Omnicom has been growing its business by investing in AI recently. It kicked off the year by officially acquiring Flywheel Digital, Ascential’s digital commerce business. According to the company, the addition of Flywheel will help it integrate retail and branded media offerings, digital and in-store commerce, as well as precision marketing. Last June, Omnicom also launched the app Omni Commerce, a connected commerce solution that incorporates tools, technology and data.

“Looking out to full year 2024, we are set up well with solid fundamentals, tremendous opportunities in digital commerce and retail media from our Flywheel acquisition, and momentum in new business wins,” said Omnicom CEO John Wren.

“Our accelerated investments in analytics and AI will enhance our ability to drive the best outcomes for our clients, while shareholders remain supported by our profitable operations and balanced deployment of capital through dividends, acquisitions, and share repurchases.”