Omnicom Group remains bullish on the regulatory and strategic outlook of its proposed acquisition of Interpublic Group (IPG), even as it faces questions around client retention, global antitrust scrutiny, and macroeconomic headwinds, including tariff risks.
During the company’s first-quarter earnings call of 2025, Omnicom Chairman and CEO John Wren pushed back against speculation that the $10 billion-plus merger could trigger significant client defections, asserting instead that disruption has been minimal and that synergies are within reach.
“We have not had any client of any significance that we’re in fear of losing because of the transaction,” Wren said. “That’s just nonsense fed by my competitors to the trade regs… that I’m going to lose people and I’m going to lose accounts and I’m going to lose this and the other thing… not true.”
The comments come as Omnicom enters a critical phase in its effort to merge with its longtime rival, a deal that, if completed, would reshape the landscape of the global advertising industry. Together, Omnicom and IPG represent more than $30 billion in annual revenue and a client roster spanning Fortune 500 companies across categories like healthcare, auto, finance, and consumer goods.
This merger is expected to close in the second half of 2025.
Read more: Omnicom’s John Wren on IPG deal: ‘No fear of losing (clients) because of the transaction’
Upon being asked for updates on the regulatory review of the IPG deal, timing of integration, potential client conflicts that may have arisen, it was shared that so far, Omnicom has received five of 18 required global regulatory approvals, including a key clearance from Chinese authorities— a jurisdiction that had previously derailed Omnicom’s ill-fated 2014 merger attempt with Publicis Groupe.
“The most recent (approval) was China,” said Omnicom CFO Phil Angelastro. “Ten or 11 years ago, when we were trying to do Publicis, the place that we had trouble getting approval was China—and we’ve already received that in this process.”
The other four approvals have come from Brazil, Colombia, Egypt, and Saudi Arabia. While these markets are relatively small for Omnicom and IPG, Angelastro emphasized that the company is encouraged by the thoroughness and pace of the review process globally.
Wren added that neither Omnicom nor IPG has encountered any material antitrust red flags so far.
“We are 100—unless you go higher in percentages—committed to the completion of this transaction,” Wren said. “We haven’t heard anything… that would rise to the level of being a concern.”
He also reiterated that both companies are fully prepared to divest non-core assets if required, though he suggested any such move would be minor.
While major M&A deals often raise concerns about conflicts and account realignments, Wren and Angelastro maintained that current clients are largely steady and that the potential for disruption is low, given the broader economic environment.
“In an environment like this, unless you’re going to get some great efficiency by putting your advertising and marketing into review, you’re not going to proactively disrupt your own organization,” Wren said.
It was also shared that any client considering a switch would need to have already started that process independently, suggesting that the merger itself isn’t the driving factor in account movement.
Clients’ Sentiments – Cautious But Constructive Amid Tariff Uncertainty
On macroeconomic uncertainty, Omnicom executives acknowledged that trade tensions and the threat of tariffs, especially on Chinese goods are a watch point, particularly for auto and consumer packaged goods clients.
“With respect to tariffs, I think that’s still an open question,” Wren said. “We were planning for a glass that could be half empty, but we’re personally striving for… what we really believe and have believed for a long time—that we’re optimistic and that it will wind up half full.”
While Omnicom has not seen a material pullback in auto ad spending yet, Wren remarked that visibility is limited and that the company is monitoring the situation closely. He said multi-year contracts with major automakers provide some insulation against sudden shocks.
“These are terribly important long-term clients where we have multi-year contracts… if they have difficulty, we’ll work with them as best we can,” he said.
The consumer packaged goods (CPG) sector, Wren noted, comprises a smaller portion of Omnicom’s total revenue than for some peers and is not showing immediate signs of distress.
“I haven’t dug in as deeply into CPG… we’ll learn more in the next two to three weeks as earnings roll out,” he said, adding that CPG companies’ moves toward in-housing could become a liability if they need flexibility during uncertain periods.
Angelastro summed up client sentiment across sectors as cautious but constructive.
“Clients across industries are… looking for clarity. They want flexibility at this point in time, but ultimately they need to defend and grow their brands,” he said. “…the type of marketing spend may change, but we’ve got a diverse portfolio, we can help them in many different ways. I think this is going to evolve, and we’re going to know more in the near future, and we’ll adjust accordingly. I think we have a track record that shows that we can and will adjust depending on what the market brings.”
Creative, Media and AI Strategy
While media remains Omnicom’s strongest performing segment, Angelastro and Wren emphasized that creative continues to play a central role in the company’s value proposition—particularly as generative AI tools become more widely adopted.
“Creative is our IP. That’s always going to be at the center of what Omnicom does,” Wren said. “If everybody had the same generative AI tools… what would make a difference? A brilliant creative idea.”
Angelastro added that production is also a fast-growing part of Omnicom’s offer, driven by platforms like its content automation tool ArtBot. While Creative has grown low-single digits last year; in the first part of this year, he expects it to be close to flat, but is hopeful for it to pick up in the second half.
Overall, Omnicom is signaling confidence in its ability to close the IPG deal and ride out external challenges—from regulatory scrutiny to trade policy uncertainty— while emphasizing the importance of creativity and client stability as its core differentiators.
Omnicom’s revenue in the first quarter reached $3.7 billion, up 1.6 percent from the same period a year earlier. Organic revenue, which excludes the effects of currency fluctuations and acquisitions, rose 3.4 percent.
The New York-based holding company, whose portfolio includes prominent agencies such as BBDO, TBWA and Omnicom Media Group, said it now anticipates organic revenue growth of 2.5 to 4.5 percent for the year. The company’s previous projection, issued earlier in 2025, had placed that range between 3.5 and 4.5 percent.