Omnicom-IPG Merger: What do they stand to gain or lose?

Omnicom Group’s annual revenue for 2023 was $14.692 billion, marking a 2.82% increase from $14.289 billion in 2022, which remained flat compared to the previous year. In 2021, the company’s revenue was also $14.289 billion, reflecting an 8.49% growth from $13.17 billion in 2020, according to reports sourced from the company’s website. At the same time, Interpublic Group’s annual revenue for 2023 was $10.889 billion, reflecting a slight decline of 0.35% from $10.928

billion in 2022, which saw a 6.71% increase compared to 2021. In 2021, the company’s revenue was $10.241 billion, marking a 13.02% growth from $9.05 billion in 2020, according to reports sourced from the company website. 

“India’s fast-growing economy, high-quality talent, and significant AI capabilities make it a key hub for Omnicom and Interpublic. Together, we will have a sizeable workforce across major cities, offering expertise in creative, media, and support services to drive value for clients globally. Interpublic brings over 5,000 professionals from networks like Mediabrands, McCann, and MullenLowe Lintas, complementing Omnicom’s 2,000 professionals from agencies like DDB Mudra, TBWA India, and OMD India. Omnicom’s Centers of Excellence in Hyderabad, Bengaluru, Chennai, and Gurugram already employ 5,500 professionals, while Interpublic centralizes its Global Capability Centre in Pune with 1,000 professionals. Combining these resources will leverage India’s talent pool, integrating business, creative, and technology-driven skills to deliver greater efficiency and innovation,” Omnicom spokesperson said.

What this merger means for the industry

If the merger is finalised, it will form a massive global advertising company with over 100,000 employees and revenues reaching $30 billion, along with a strong client base. The transaction is slated to close in the latter half of 2025, and the merged company will adopt the Omnicom name with Omnicom CEO John Wren on the throne. The joint statement released by Omnicom and IPG stated that shareholders of Omnicom will own about 60.6% of the new entity, while those of Interpublic will hold 39.4%. The merger’s main goal is to achieve $750 million in annual cost savings, highlighting the pressures businesses are facing amid the current global economic climate. “It is a major exercise in the consolidation of the giants. While I do expect significant efficiencies to come in across the board, there are concerns about the redundancies, specifically in the non-revenue functions, and the ability and the agility of the merged leviathan to innovate, disrupt and provoke. Size matters and consolidation is the way in the global advertising industry, but being too big can also sometimes lead to becoming unwieldy and overly templatised, hampering cutting-edge creativity,” Sanjay Trehan, digital and new media advisor, said. 

In theory, combining Omnicom’s creative and media buying dominance with IPG’s data-driven marketing expertise should result in a powerhouse capable of addressing modern advertising’s complex demands. Omnicom, whose clients include McDonald’s and PepsiCo, and IPG, known for its work with Microsoft, together represent a staggering portfolio of global brands. The logic of the merger is sound: as ad spending increasingly shifts to digital platforms like Google and Meta, traditional ad-holding companies face mounting pressure to deliver integrated solutions that rival the scale and efficiency of these tech giants. By merging, Omnicom and IPG aim to position themselves as a compelling alternative, leveraging economies of scale to innovate faster, invest more, and cut costs.

But one must not forget that the devil, as always, is in the details.

For clients, the merger presents a mixed bag. On the upside, it promises broader capabilities. With IPG’s renowned data subsidiary Acxiom and Omnicom’s creative leadership under one roof, brands might enjoy more seamless campaigns that foster both storytelling and precisely targeted media buys. However, there is an elephant in the room that still needs to be addressed: not all clients may benefit equally. Customer focus is one of the foolproof ways to improve mergers, according to AMA. Consolidation often brings focus to high-margin accounts, raising fears that smaller, less profitable clients might find themselves deprioritised. Lest we forget that the conflict of interest too should not be unseen. “Think of it like this. An elephant is powerful and robust, but it is a pretty staid and stolid creature. It would be interesting to watch how this ‘strategic opportunity’ pans out in the age of the influencers, short attention spans, cross-platform content consumption, programmatic advertising, Generative AI and short-form video monetisation,” Trehan noted. As both Omnicom and IPG serve competing brands across industries, reconciling these overlaps without alienating long-term clients will require deft manoeuvring.

The ghost of the ex-Publicis-Omnicom

This isn’t the first time a merger of this scale has been attempted. The ill-fated Publicis-Omnicom merger in 2014 offers a cautionary tale. Billed as an industry game-changer, that merger collapsed under its weight, undone by leadership conflicts, cultural clashes, and disagreements over the distribution of power. Omnicom and IPG claim to have learned from this debacle, emphasising alignment and a shared vision. But sceptics question whether two giants with distinct legacies and operating styles can truly integrate without compromising their agility and creativity.

Why now?

Timing is critical in understanding this deal. Interpublic Group (IPG) reported total revenue, including billable expenses, of $2.63 billion for the third quarter of 2023, with net revenue (revenue before billable expenses) at $2.24 billion, remaining flat year-over-year. Net income for the third quarter of 2024 stood at $20.1 million, while adjusted EBITA reached $385.8 million, reflecting a 17.2% margin on net revenue. On the other hand, Omnicom reported revenue of $3.9 billion for the quarter, reflecting organic growth of 6.5%. The company achieved a net income of $385.9 million as per the third quarter financials of 2024 revealed by the company. Operating income for the period was $600.1 million, while EBITA stood at $622.3 million. While IPG seems to have faced stagnant growth, Omnicom did experience organic growth.

Furthermore, according to media reports, over the past two years, IPG has lost three of its largest clients, including General Motors, Amazon and Verizon, resulting in a fall in its share price and market sentiments. Experts also claim that this merger can be a defensive move to consolidate resources and fight against the likes of WPP while attempting to claw back market share from Google and Meta. “I hope this merger doesn’t trigger a rush to scale ever-larger companies, prioritising size over substance. Publicis’ position as a leader could be at risk, and I trust that WPP, which has branded itself as “the creative transformation company,” will continue to build on its creative strengths. While mergers may offer strategic advantages in achieving massive scale, I see significant potential in the emerging convergent landscape. Here, print, broadcast, digital, mobile, video, social, and outdoor media are coming together to create meaningful, engaging conversations with consumers,’ Trehan commented. Communication is evolving from a one-to-many model to a more personalised, one-to-one, interactive experience, where campaigns move away from blanket approaches to fostering interest-based, sustainable communities for brands, he added.

The competitive ripple effects

As much as this merger might create ripples in its own ecosystem, it can create challenges for its rivals as well. Market competitors for this newly merged entity such as WPP, dentsu, and more will face competition from a leaner and more efficient entity. “WPP is ahead of others in integrating technology in brand solutions in India, followed by Publicis. While the dust settles, WPP and Publicis have a huge advantage in converting brands sitting on the fence. Vulnerable opportunities like these come rare, and I’m sure the boardrooms are busy crafting strategies to maximise the opportunity. Beyond advertising, the consolidation will continue with the PR brands of Omnicom and IPG,” Chetan Mahajan, founder, The Mavericks, said. Experts also claim that this merger can prove competition for the likes of Google and Meta. These platforms dominate the digital ad market, collectively accounting for over 50% of global digital ad spend, according to a report by PwC. While the merger may help Omnicom-IPG slow the shift of ad budgets to these tech giants, it’s unlikely to stop it entirely. 

Can two giants co-exist?

Integrating two industry leaders is never easy. Omnicom and IPG are not just businesses—they are ecosystems with distinct cultures, processes, and client portfolios. Merging these systems without losing momentum or alienating talent will be one of the deal’s biggest challenges. “Scale is becoming more important. It enhances efficiency as well as enables investment in the tools, processes and talent needed to manage the new realities – changes in the demand side (consumer behaviour, growing SME advertiser base, and removal of geographic boundaries) as well as the supply side (entry of non-media companies into advertising, mergers, and automation),” Ashish Pherwani, Partner, M&E, EY, commented. Then there’s the matter of leadership. While both companies have publicly committed to a unified vision, insiders suggest potential friction over who gets to steer the combined entity. Such power struggles have derailed mergers in the past, and stakeholders are watching closely to see if history repeats itself.

Queries sent to Omnicom and IPG remained unanswered till the time of publishing this story. 

In a statement issued by both parties, John Wren, chairman and CEO, Omnicom, stated that the strategic acquisition would create significant value for shareholders by combining complementary data and technology platforms, enabling new offerings to better serve clients and drive growth. He emphasised the timing of the merger, which will accelerate innovation and leverage new technologies to deliver superior, data-driven outcomes for clients. Philippe Krakowsky, CEO, Interpublic, echoed this sentiment, calling the merger a tremendous strategic opportunity that amplifies investments in platform capabilities and talent. He highlighted the complementary nature of both companies’ offerings, cultures, and geographic presence, and expressed excitement about creating a comprehensive portfolio of services to position the new entity as the most powerful marketing and sales partner in a rapidly changing world.

The bottom line

As the ink dries on the Omnicom-IPG merger, one must know that its success hinges on more than just scale and resources. While it presents opportunities to counter industry giants like Google and Meta, history and evidence suggest that client focus and cultural integration are pivotal for long-term gains. For the merged entity, the real challenge lies in proving that bigger can also mean better—not just for profits but for clients across the board. Only time will tell if this bold move sets a new standard or serves as a cautionary tale in the annals of advertising.