Is Omnicom-IPG’s Alliance Creating A New Power Play In Adland?

Entering a new era of consolidation, Omnicom and IPG’s deal shakes the advertising industry, intensifying competition with WPP and Publicis while raising critical questions about the future of marketing, creativity and technology
Is Omnicom-IPG’s Alliance Creating A New Power Play In Adland?

The advertising world has entered a new era of consolidation with Omnicom Group’s acquisition of The Interpublic Group of Companies (IPG), bringing together two global advertising giants. While the deal is expected to close in the second half of 2025, its ripple effects are already being felt across the industry, intensifying competition among top players like WPP and Publicis and raising questions about the future of marketing, creativity and technology.

Industry experts assert that the sector has long been ripe for consolidation, driven by evolving client demands for efficiency, integrated solutions and the integration of AI into marketing strategies.

A Strategic Imperative
The merger, approved by both companies’ boards is a calculated response to technological disruption and changing market demands. John Wren, Omnicom’s Chairman & CEO and Philippe Krakowsky, IPG’s CEO are positioning their combined entity as a marketing powerhouse. It will offer comprehensive services spanning media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.

“What actually works very well for these guys are more things about looking at technologies, capabilities, talent, geographic footprints and data-driven elements”, observes Chandan Mukherji, Executive Vice President of Strategy, Marketing and Communication at Nestle India. His perspective highlights the strategic rationale behind the merger.

With the merger, the consolidated entity aims to deliver cost savings through backend efficiencies while driving synergy on the client-facing front. Such moves are not new to industries undergoing consolidation, where top players seek to redefine their value propositions to clients.

However, this development places added pressure on competitors like WPP, Publicis and Dentsu to differentiate themselves amidst a landscape where many players now boast scale and AI capabilities.

The Indian Market
In the Indian market, the merger is particularly intriguing. The combined Omnicom-IPG will control nearly 20 per cent of the country’s advertising expenditure, positioning themselves as a strong challenger to WPP's GroupM, which currently commands a 35 per cent market share.

CVL Srinivas, WPP’s Country Manager for India remains characteristically composed about the development. “We're seeing it across the sector, like many of the sectors are seeing consolidation, so it's pretty natural on the agency side. In the economics of any industry, you always have a certain number of players to run a business sustainably”, he remarks.

Srinivas reflected on 2024 as a successful year. “We've got over 130 new clients in the year 2024, this is of as WPP in India. If I were to name some of the significant ones, we won the Amazon media pitch in most markets, including India and probably one of the biggest spenders in the market. We also retained the Unilever media business.”

He highlighted WPP’s growth in end-to-end commerce, CRM and data mandates, leveraging advanced capabilities to deepen relationships with key clients. WPP’s strategy appears focused on client-centricity, deeper client relationships and leveraging global technology centres.

Job Market Tremors
Omnicom shareholders will hold 60.6 per cent of the merged entity, with IPG shareholders owning 39.4 per cent. The combined company will boast a workforce of over 100,000 professionals, creating a global marketing behemoth with an anticipated $750 million in annual cost synergies. Uncertainty around the integration process and job security may temporarily impact internal functions, creating a period of adjustment for the combined entity.

A senior marketer being an Omnicom client, candidly observes, “The buying organisation always tends to have a higher authority”. The projected cost synergies and integration process suggest inevitable workforce adjustments.

Window Of Opportunity For Marketers?
However, this uncertainty might also create unexpected opportunities. The same anonymous source notes, “Marketers will now have more options. Agencies will have to showcase their work more diligently, more creatively. It ultimately depends on the capabilities you present to the marketer.”

The acquisition represents not a threat, but a potential expansion of marketing capabilities and a perspective that turns industry consolidation from a challenge into an opportunity.

Mukherji offers a nuanced insider's view on how such industry consolidation impacts marketers' strategic choices. Despite being a long-standing Publicis client, he reveals that Nestle already has an established relationship with McCann for content and creative work. This existing connection provides a unique lens through which to view the potential implications of the Omnicom-IPG merger.

“We would be, of course, interested to see how the entire agreement brings in more capabilities and more strengths”, Mukherji explains. “With bringing in more capabilities, I think they can also strengthen some of the elements out there”, he observes, indicating that the merger is less about replacement and more about enhancement.

The Battleground
Industry insiders also believe the merger offers a unique window of opportunity for competitors. “While Omnicom and IPG will be busy on the acquisition and merger part, we can take advantage and concentrate on the client. This is a window of opportunity because in a merger it takes a long time for things to settle”, said a close source from WPP.

WPP, a leader in the Indian and APAC markets is particularly well-positioned to capitalise on this moment. With its stronghold on AI and creative technology solutions, the company boasts effective competitive advantages. Its recent successes in leveraging AI for client solutions highlight its readiness to fend off competition from the newly consolidated Omnicom-IPG entity.

Arthur Sadoun, CEO of Publicis frames the Omnicom-IPG deal as a positive development for the industry, suggesting that consolidation could enhance the sector’s reputation within financial markets.

India remains a critical market in the global advertising landscape. IPG’s stronghold with agencies like Lowe Lintas, McCann and FCB, combined with Omnicom’s brands such as DDB Mudra and Omnicom Media Group, will position the merged entity as a formidable challenger to WPP’s dominance. As agencies prioritise scale, technology and integrated solutions, delivering unique value propositions remains key to long-term success.

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Reema Bhaduri

BW Reporters The author is the Editorial Lead at BW Businessworld. Majorly writes on marketing, advertising, experiential marketing and retail. She closely looks upon the vertical of BW Marketing World and BW Retail World.

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