The global advertising industry is poised for a reset with ad holding company Omnicom set to acquire its rival, Interpublic Group (IPG), in a deal which values the combined entity at approximately $30 billion. However, in the immediate future, the deal is unlikely to affect the dominant WPP Group in India, which has build a seemingly unshakable leadership presence in the market over the decades.
The deal, if it goes through following regulatory approvals, will create the world’s largest advertising holdco, giving traditional ad firms a better chance to compete against the Big Tech monopolies in a challenging market.
In a joint statement, Omnicom and IPG described the move as a “tremendous strategic opportunity” for stakeholders, underscoring their commitment to enhancing platform capabilities and talent as part of a far-reaching network expansion. The merger promises to create a “uniquely comprehensive portfolio of services,” positioning the new entity as a powerful “marketing and sales partner” in a rapidly changing world.
Omnicom’s takeover of IPG will likely be complete by 2025’s second half and potentially trigger a series of mini-mergers among its global network of agency brands.
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Omnicom may be larger globally, but in India, IPG has a robust presence with brands like IPG Mediabrands, McCann, Lowe Lintas and FCB. However, rival holdco and market leader WPP sits pretty on top of the ad order.
Still, industry watchers believe the merger will have significant impact on the India market as both Omnicom and IPG control key agency brands such as McCann, Lowe Lintas, FCB, DDB Mudra, and leading media firms Omnicom Media Group (OMG) and IPG Mediabrands, which contributes to almost 20% of the country’s Adex, the latter media investments firm has claimed.
IPG Mediabrands, which operates agencies such as Lodestar UM, Initiative, Interactive Avenues, Rapport, Ansible, and Magna Global, has recently expanded its presence with the opening of its largest global capability center in Pune this past August. OMG, which houses PHD and OMD, has made notable gains in the Indian market, securing key clients in the automotive and BFSI sectors over the past four years. OMG also recently launched the global sport and entertainment agency Fuse, to capitalise on the burgeoning potential for sports marketing in India.
Omnicom’s takeover of IPG would effectively make the combined media agency holdings in India the second-largest after WPP-owned GroupM. An industry insider told Storyboard18, “The real impact of the merger will only matter on the media side of the business as it will give Omnicom’s agencies significant leverage and bargaining power.”
Directions from global
The leadership of the groups’ firms in India remains tight-lipped about the potential impacts of the impending merger, awaiting clearer direction from their global counterparts. This uncertainty is particularly striking for a key market like India, where clarity is often paramount.
Yet, India has long been a stronghold for WPP, with the British conglomerate maintaining dominance through brands such as Ogilvy and Mindshare.
Meanwhile, competitors like Publicis Groupe and Havas have steadily gained ground, and Omnicom Media Group recently secured the Tata Motors media buying and planning account, after besting incumbent IPG Mediabrands in a competitive pitch. The ramifications of the Omnicom-IPG deal on client relationships remain to be seen, as industry observers adopt a “wait-and-see” stance.
Gautam Reghunath, Co-founder & CEO, Talented, says, “I’ve got no dog in this fight, but it’s hard not to acknowledge how much this alters the landscape of our industry. Big holding companies are recognizing that in a market they perceive as saturated, combining resources, capabilities, and market reach trumps head-to-head competition.”
Industry experts predict that deeper consolidation and integration across networked agencies are inevitable, as holding companies streamline operations and restructure to maintain competitiveness in an increasingly challenging market.
Ashish Bhasin, a veteran of the ad industry and former CEO of Dentsu Asia-Pacific, notes that while India will eventually reflect global trends, these shifts will take time. “The key to any merger or acquisition of this scale is people management,” he says. “Omnicom may be larger globally, but in India, IPG has a robust presence, with a legacy spanning 70 to 80 years.”
IPG’s key brands in India are IPG Mediabrands’ media planning and buying firms Lodestar UM and Initiative and top creative stablemates like the Prasoon Joshi-led McCann Worldgroup.
Managing talent is the critical challenge
Bhasin emphasizes that the more time spent addressing issues like managing talent, the higher the likelihood of a successful integration. “Failing to manage these aspects can result in disaster,” he cautions, recalling the ill-fated merger attempt between Omnicom and Publicis a decade ago. “The merger was a total failure—employees rebelled, clients departed, and talent left. However, with the experience gained since then, I believe companies are better equipped to handle such situations today.”
Furthermore, Bhasin argues that the industry’s need for consolidation is pressing. “Agencies must grow larger to wield greater pricing power,” he asserts. “In my view, agency services are undervalued, and larger entities will be better positioned to extract more value, make smarter investments, and have a more lasting impact.”
An influential figure in the Indian advertising landscape, Sandeep Goyal offers a nuanced view on the potential consequences of brand mergers. He acknowledges that while such consolidations can strengthen the balance sheets of holding companies, they often come at the expense of legacy brands. “In the process, some brands are ‘rationalized,’ ‘right-sized,’ or even eliminated. It’s unfortunate—just look at how iconic names like JWT and Y&R have disappeared,” he observes.
He cautions that the impending Omnicom-Interpublic merger could similarly lead to the demise of long-standing advertising brands. “In India, too, there’s a real risk that some agencies may lose their identity. It’s a very real and imminent possibility,” he warns.
Conflict of interest and clients
IPG Mediabrands’s roster includes legacy brands like Mahindra, BMW, Amul, and ITC, among others. It also retained Ather Energy this year after a competitive pitch, while another major auto account, Hero MotoCorp, currently with the group, is on pitch.
OMG has the recently won Tata Motors PV business and it has Amazon, VW Group, Shriram Finance Limited, McDonalds, Royal Enfield, Oppo and Groww, among others. Omnicom Group’s Indian subsidiary OMG reported a more than 133% rise in profit in the past four years.
An industry veteran rightly pointed, resolving conflict of interest is another challenge that Omnicom and IPG will have to look at. TATA Motors recently handed over their entire passenger vehicle’s media mandate to Omnicom Group, while IPG’s Team Dynamic on the other hand manages the media mandate for BMW. Additionally, IPG has its own automotive division. The agency has built a strong connection with automobile OEMs and tier 1 suppliers.
However, client conflicts are managed with different agency networks within the group servicing the accounts. WPP Group, which owns Ogilvy, VML, GroupM agencies Mindshare, Maxus, EssenceMediacom, Wavemaker and others, has managed to juggle conflicting client accounts, cornering the market in sectors like FMCG and consumer tech.
But the likes of the Omnicom-IPG deal we haven’t seen before and the threat of talent pool erosion, internal conflicts and culture clashes, looms large as with any significant merger.
While WPP won’t lose its leadership in the India market in the near term, despite the growing encroachment on its market share by other holdcos; there are others who stand to gain from a reset of the old order.
As Reghunath points out, this moment of industry consolidation is a nice strategic opening for indies and yet-to-be-born ones. “The timing couldn’t be more perfect. As major agencies blur into indistinguishable monoliths and become more homogenized, there’s an increasing appetite for distinct, meaningful creative partnerships that feel truly unique. Good indies offer something these mega-mergers can’t manufacture: genuine connection, nimble creativity, and a distinct cultural energy.”
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