Back in 2013, ad networks Omnicom and Publicis tried to merge citing technological threats. The feeling was that by combining their armoury, they could manage the digital wave sweeping the world better. That merger did not happen, and British holding agency WPP, the lead ad network at that time, no doubt heaved a sigh of relief.

But a decade later, the ad world threatens to be shaken up as Omnicom has announced it is acquiring Interpublic Group (IPG). If the deal goes through, the all-stock takeover will create a global advertising behemoth with more than 100,000 people, annual revenues of $30 billion and a glittering array of high profile clients.

The deal is expected to close in the second half of 2025, and the merged entity would bear the Omnicom name. Omnicom shareholders would get about 60 per cent of the combined company and Interpublic shareholders 40 per cent.

Significantly the impetus for the merger this time around is cost savings – to the tune of $750 million annually. It’s a pointer to how everybody is feeling the pinch as the global economy faces headwinds.

But at the same time, there is no denying that by combining strengths, the two networks can take on the increasing threats posed by big tech firms like Google, Meta and consulting companies like Accenture better. In a joint statement, Omnicom and IPG had indicated as much when it said that the new entity could be a powerful marketing and sales partner to clients in a rapidly changing world and especially talked about data-driven outcomes.

The blockbuster merger will rattle the other players who make up the Big Six – WPP, Publicis, Dentsu and Havas – for sure. Though there could be some client conflicts, spelling opportunities for them. It all depends on how Omnicom and IPG manage the client relationships.

So how will it impact the ad landscape in India?

Watch out for job cuts

Sandeep Goyal, MD, Rediffusion, does not mince words. “The merger’s main stated purpose is $750 million in savings … which is really a euphemism for reducing headcount and therefore cost. So, in 2025 adland may be faced with a lot of job exits in India. And cuts will be across levels,” he says bluntly.

How will it impact independents like Rediffusion? “To independents like us it really makes no difference. Client shake-outs will get managed for sure. And the employees that get shed will most likely be unemployable. Global networks are smart – they will manage the integration well from their point of view,” he responds.

Naresh Gupta, co-founder and Managing Partner, Bang in the Middle, another independent agency, said, “The muscle that the new entity may carry in India may prove to be a game changer. Both the creative might and media might will be massive and the other three major holding companies will face enhanced competition. The clients will now have to deal with changing equations and changes in account handling. I do expect brands across the globe to review their relationship and that will impact India.”

 Gupta says that reduced agency choices will mean that independent agencies will have a slightly greater headroom. “However, I do not see the independents gain significantly as most changes will be driven from global markets,” he adds. 

Feeling the competition

 There is an overwhelming feeling among ad industry insiders that at last WPP, which is the dominant leader here, could be shaken out of its complacency — at least on the media side. Omnicom and IPG have within their fold creative houses such as McCann, Lowe Lintas, FCB, DDB Mudra, and media brands Omnicom Media Group (OMG) and IPG Mediabrands. “Together Omnicom and IPG’s media businesses could take on GroupM,” says the insider.

He also points to how IPG Mediabrands had recently opened a global delivery centre in Pune. India could get more such centres, he opines.

Within the Omnicom and IPG fold, we could see some smaller mergers happening between agencies. 2025 has already gotten interesting.