Duncan Painter: Yes. So yes, thanks for the question. Flywheel has always been very strong in CPG. We serve already 50 of the top 100, and we’re already seeing opportunities for us to combine, as John says, both our capabilities and Omnicom’s capabilities to further enhance those clients’ experiences. And also Omnicom does have a client mix that helps us expand into a number of the LPGs [ph] we haven’t served. So it’s — there’s a good combination there. But actually, what’s exciting for us is other categories where we’ve seen strong potential over time and Omnicom are very strong. And clearly, electronics is a big area. Tech and electronics, Omnicom has very good relationships there and primarily with the high-quality providers in those customers in those segments certainly, our ability to now work with potentially a number of the top 20 brands that actually sell through Amazon, for example, is very exciting.
And then in addition to that, opportunities that are definitely coming through the business transformation for the industry, particularly around areas like automotive, where if you look at the secondary parts markets and secondary service markets of automotive, marketplaces are becoming — it’s one of the fastest growth segments in marketplaces. And of course, Omnicom is perfectly positioned to position us in with those kind of organizations trying to work out how they really maximize that opportunity. So yes, we can see both strength in our existing segments but actually opening up beautifully some new segments for us.
Philip Angelastro: And then on your last question, I think certainly, media experienced very strong growth in the fourth quarter and had a great year. That growth was pretty consistent and strong across most of the media businesses and agencies we have in most markets for a number of reasons. And certainly, some of what you see in third-party service costs is a result of the gross media business is performing well also. There is a bit of a mix difference between those businesses within our media operation, but they complement each other quite nicely. And I think, we certainly have an offering that clients are very attracted to. And find very helpful and useful and valuable to meet their needs.
Michael Nathanson: Thank you.
Operator: And our next question comes from the line of Tim Nollen with Macquarie. Please go ahead.
Timothy Nollen: Hi, everyone. Thanks very much. I’ve got a numbers question and a broader question. Well. The numbers question is, if you could please comment a bit further on the shift in growth rates between the U.S. slowing in Q4 and a lot of international markets, it looks like accelerating Europe, Asia Pac. Just kind of curious, I heard what you said about the U.S. side, just maybe a bit more color on that. And then why conversely some of those international markets like they accelerated year-over-year. ? And then the broader question is about cookie deprecation and all the changes that Google is perhaps bringing about this year. I just wonder what your take is on the likelihood of cookies ending up being fully depreciated by year-end or some of the recent news flow is perhaps holding up progress there. Just curious how engaged Omnicom agencies may be in the privacy sandbox.
John Wren: Sure. When you look at where the strength was, the fourth quarter really has three components to it. Its clients releasing projects. New business wins in its impact. And then if you’ve lost anything where you’re feeling that impact as you net down to what we report as organic growth. I’d say that — the project work came in very strong, stronger than we expected in some parts of Western Europe. And we have a thesis about why, but it’s certainly not something we plan for. It came in decently in North America. But North America, is where we were cycling through a number of losses that occurred in the advertising sector over a year ago. And when you lose something that’s bad news, but then you have to live with it as you cycle through it.
So all that is the alchemy of how you get to organic growth and as a result, that makes us — we’re still cautious about this year because of all the unrest and the Fed hasn’t really started reducing rate yet. But in terms of what issues we had there for the most part, behind us. And some of the new business wins have not — we haven’t started benefiting from yet. So I’m very comfortable that 2024 will probably wind up looking more traditional than 2023 did. In terms of cookie deprecation, that’s something we’ve been fully expecting for a very long time, but I could chat about it, but I’m going to throw it to Paulo because he’s more of an expert and more closely deals with it on a day-to-day basis.
Paolo Yuvienco: Yes. So as John said, we have been expecting very long time. And to predict if it’s going to actually happen at the end of this year, I mean, frankly, your guess is as good as ours, but we’ve been preparing for it, and we’re ready for it. In fact, Omni has been purpose-built to actually address a cookie-less world just with respect to third-party cookies on Google. So in addition to that, we’ve been preparing in other ways like some of the deals that we’ve struck with clean rooms and the integration into various clean rooms that are helping us to facilitate first-party data. And then, of course, the acquisition of Flywheel and all the data that they bring directly from the marketplaces, that is helping to drive a better understanding of consumers without the need of those third-party cookies.
Operator: And the next question comes from the line of Craig Huber with Huber Research Partners. Please go ahead.
Craig Huber: Great. Thank you. John, I wanted to hear your thoughts, if I could, on two sectors; your pharmaceutical health care area, what your outlook is for this upcoming year. It’s obviously been very steady growth for a number of years. And also your thoughts on the auto sector. It looks like you had a very good year. Last year, you won the BMW account recently and stuff. How optimistic about auto sector for you guys this upcoming year? And I have a follow-up for Phil. Thank you.
John Wren: Pharma, we remain very optimistic on. The only headwind I think we face as we go into ’24 with Pharma was earlier in the year, we lost Pfizer, so we’ll be cycling through that. But the only limitations we are currently looking through, not things that we haven’t won or we haven’t been asked to work on, but have they gotten through the FDA because pharma. And just the simple science of things in the advances that are occurring give us tremendous opportunities to continue to grow. And I think that will be not only ’24 but ’24 and beyond a very strong sector for us. Autos, when it comes down to is, we’re very well represented in autos, and I think we have the best clients one could ask in the sector. There is this tension going on in the marketplace that most auto OEMs are dealing with in terms of what’s the mix between the electric cars that we’re going to be out in the market, more conventional cars and hybrid.
And there’s a lot of decision-making and a lot of long lead times that go into that. But in terms of the sector itself, there’s no question. It becomes an information platform for the OEMs as we go forward and the more merrier from my perspective. And as Duncan mentioned, now with the addition of Flywheel, there was a whole sector of aftersales parts that we could do a modest job on, but now we can do a much more robust job when you look through how those goods are distributed to the ultimate consumer, which is, in many cases, an increasingly in marketplaces. So it’s been a strong sector. It should even get stronger for us as we extend that over the coming months and years, and we’re very comfortable with it.
Craig Huber: And then, Phil, just I can just ask two quick housekeeping things. How would you sum up how your project-related work did for the whole company in the fourth quarter versus a year ago? And then a nit-pick question, your amortization for a number of quarters here has been sitting around $20 million. How much do you think it’s going to go up here with this Flywheel acquisition? Do you have that handy?
Philip Angelastro: We don’t have the final number. Because there’s a number of steps that we have to complete, given the acquisition just closed in early January. So we have some valuations and other things to do on the intangible assets which aren’t complete. I would say, it’s going to be a meaningful increase no question and amortization expense. And we obviously think the value of the Flywheel asset and team are going to prove to be a very wise investment. But amortization is going to go up in a meaningful way. We just don’t have a number yet to guide you with, but that’s something we’re working through and we’ll be working through quite diligently over the next few weeks and months before we finalize it. And then as far as project spend goes, I think similar to Q4 of ’22project spend was quite strong but probably not as strong as ’22.
