REUTERS

The world’s largest advertising company said fourth quarter income fell to $271 million, or 88 cents a share, surpassing the 82-cents-a-share average analyst forecast, according to Reuters Estimates. A year ago, it posted income of $313.9 million, or 96 cents a share.

Omnicom, parent company of agencies such as BBDO Worldwide and DDB Worldwide, typically gets a boost in the fourth quarter from advertisers using up excess budget on special events before the year end.

But analysts have said that sort of spending likely crashed with the economy last year, taking a bite out of quarterly revenue across the advertising industry.

At Omnicom, revenue fell 7 percent to $3.37 billion, but also came in slightly stronger than Wall Street expectations of $3.36 billion. Organic revenue, a closely watched industry benchmark that excludes foreign currency impact and recent acquisitions, dropped 2.3 percent.

Omnicom’s client list includes such corporate titans as Anheuser-Busch Cos Inc BUD.N and McDonald’s Corp (MCD.N), as well as the troubled automaker Chrysler. Concerns that major clients, especially Chrysler, would scale back spending caused Omnicom to move ahead with dramatic cost-cutting plans late last year, sources have said.

The sources said that across its agencies, Omnicom cut between between 2,800 to 3,500 positions out of a total of about 70,000. Shares of Omnicom are down about 38 percent in the last year.

Reuters Group

Reporting by Paul Thomasch.

UPDATE: Here’s the Times story. 

“Omnicom has built its industry leadership by offering clients a truly comprehensive range of services and by consistently and creatively helping them take full advantage of the latest marketing channels and trends,” Omnicom president and chief executive officer John Wren said. “This latest example of that winning formula builds upon our Youth and Mobile Marketing work already underway with clients around the globe, and expands our ability to address the entire mobile communications spectrum. Mobile Behavior connects the dots across the full range of mobile enablers — media, advertising, sponsors, supply chains, OEMs, carriers, application developers, aggregators — to make them all better and more relevant in new and innovative ways.”

Alan Rambam is leading Mobile Behavior; most recently, he managed Omnicom’s Youth and Mobile Marketing practice and its research and insights arm, Next Great Thing.

Omnicom works with more than 5,000 clients in more than 100 countries.

The network has been going strong since January, but it didn’t launch a push into the public eye until recently. Kuzel (who has spent the majority of her career in pharmaceutical marketing, but also has a degree in chemical engineering just in case) has big plans for the network: it’s designed to help patients on their journey from their first symptom to life-long treatment.

“For someone who’s diagnosed with diabetes or high cholesterol, they need to commit to a lifetime of treatment to keep the condition under control,” Kuzel said. “Unfortunately, only 50% of patients stay on medication for a year, never mind a lifetime.”

That’s where Star Healthcare comes in. “We combine traditional and new media to support patients through their entire process — and make sure they stay in the process,” Kuzel explained. “These days, consumers are more empowered than ever. They want to take control of their own health but they also want the safety net and help of doctors and the medical establishment.”

Kuzel said Star saw a gap in the marketplace – the new patient reality wasn’t being served properly. “We’re enabling patients to engage in multimedia because that is what they want – through customizable programs that involve everything from social networks and mobile phone applications to viral emails and interactive learning campaigns with games. One in three Americans turns to social networking to manage their health – and we think that will only increase.”

Star’s charter clients are Roche Diagnostics and Spear Pharmaceuticals (two other companies are on board as well, but their names couldn’t be revealed). Star’s clients – who want to dive into the multimedia world – will no longer have to hire 14 plus agencies to cover the touchpoints Star’s network delivers, Kuzel explained. (The network draws on resources from Omnicom’s robust stable of agencies, including Javelin Direct, Critical Mass, Innovyx, SigmaWorks Group, ECI, OMD Digital, OMG Direct and Optima direct).

While brands can customize how/when they choose to interact with their patients, Kuzel stressed the relationship component of Star’s network. “Our model focuses on relationship management,” she said. “We have a Patient Advocate and a Client Champion – the advocate helps the patient learn what they need to now and down the road while the champion acts as the patient’s voice and as a point of accountability” in the web of relationship marketing agencies.

Sapient has appointed Jane Barratt as managing director of its Sapient Interactive New York office. Barratt will oversee the New York operations of Sapient’s marketing services group. She’ll lead biz development, agency operations and account management of leading brand clients. Previously, Barratt was a managing director of Euro RSCG 4D New York, at which she managed the growth of the digital and direct marketing agency.

HipCricket has announced the appointment of Kraig Kitchin to its board of directors. Kitchin served as president and COO of Premiere Radio Networks for 20 years before leaving to start an entertainment industry consulting firm earlier this year. Kitchin is the co-president of Big Shoes Productions and a founder of Sound Mind, LLC.

MRM Worldwide has snapped up Corey Mitchell as executive vice president, managing director. He’ll start his new gig in the Fall. Currently, Mitchell is president of Omnicom Group’s TBWAChiatDay and TBWA Health.

The Orchard, a digital music and entertainment company, has promoted three and hired two. The promos went to Brad Navin, who is now executive vice president and general manager, a role in which he’ll oversee licensing, marketing and corporate communications. Prior to this appointment, he was vice president of global licensing and operations. Dan Pifer has been named executive vice president of operations and technology; previously, he was vice president of the department. Steve Haase has been named senior vice president of business development; before, he was the vice president of business development.

The Orchard’s new hires: Alexis Shapiro, who joins as senior counsel (she hails from Pryor Cashman LLP) and Deana Graffeo as the director of corporate marketing and communications (she comes from AOL music).