The shake-up in the advertising world is underway. Speculation has swirled through the corridors of major agencies as the latest strategic moves by holding companies begin to take shape. In the aftermath of Omnicom’s dramatic proposed acquisition of IPG, which sent shockwaves through the global ad industry at the close of last year, Publicis Groupe has made its own bold maneuver.
The French advertising giant has announced the merger of two of its most prominent agencies — Leo Burnett and Publicis Worldwide — into a single, newly rebranded entity called Leo. According to the company, the move aims to better meet the evolving needs of global brands by offering “innovative solutions rooted in creativity, personalized content, and connected brand experiences.”
Read more: Publicis Groupe merges Leo Burnett with Publicis Worldwide agencies to create Leo
India remains a unique outlier in the global rankings of advertising holding companies. While WPP may have lost its position as the world’s largest ad group, it continues to dominate the Indian market, where its influence remains unquestioned. The advertising giant commands a formidable presence through its media agency brands, including GroupM’s Mindshare, Wavemaker, Maxus, EssenceMediacom, and creative powerhouses like Ogilvy.
Yet, a shift in the global landscape could arise from Omnicom’s acquisition of IPG, which has the potential to disrupt the industry balance— though not in a way that would threaten WPP’s stronghold in India, at least not in the immediate future.
However, the fallout from the proposed merger could deal a more significant impact to Publicis Groupe, which appears most vulnerable to any changes triggered by the Omnicom-IPG deal globally. This anticipated shift is especially relevant given that Publicis had just begun to dominate the global order after lagging behind WPP for several years.
Interestingly, it was just a few years ago that Omnicom and Publicis Groupe were the subject of intense speculation, with the prospect of a merger sending shockwaves through the advertising world. Those discussions, however, ended abruptly, with industry insiders pointing to irreconcilable cultural differences between the American and French giants, as well as differing views on leadership between Omnicom’s John Wren and Publicis’s Maurice Lévy.
Read more: Blockbuster Ad Deal: Omnicom’s takeover of IPG to reset global order
Fast-forward to December 2024, and the focus has shifted to Omnicom’s acquisition of the US-based IPG, which could have far-reaching consequences for Publicis Groupe.
Despite Publicis Groupe’s successes in India, including regaining momentum after a 2019 alleged accounting scandal, this merger could usher in a new competitive landscape. The deal remains subject to regulatory approvals, but if it goes through, it will likely undermine Publicis’s recent strides.
After a turbulent few years, Publicis Groupe had finally regained some of its lost ground in India, where it faced setbacks due to a crisis of credibility. A sudden overhaul in 2019 saw overnight exits of Groupe leadership and the appointment of Anupriya Acharya as chief executive for South Asia, Publicis Groupe. The company currently boasts a diverse portfolio, with Publicis Media’s Starcom and Zenith in media services, and Leo Burnett and Publicis India leading the creative stable which also houses BBH and Saatchi & Saatchi – both lacking in clout, clients and perception, as per industry insiders. Digitas and Performics bolster the portfolio in digital and performance marketing.
The Groupe, however, has failed to turn pitches into consistent victories in the highly competitive Indian market, an agency insider said, citing wins of rival firms. In contrast, WPP’s media services company Mindshare and Omnicom’s OMG India have consistently won major media accounts in 2023 and 2024.
Publicis Groupe’s record in converting pitches into wins stands in stark contrast to the performance of its media and creative rivals. For instance, the 2024 win with Spotify came about only after a global alignment, following Spotify’s decision to award its media mandate to Publicis Groupe on a global scale. Additionally, recent pitches for high-profile accounts in India — such as Maruti, Tata Motors, Air India, KFC, Amaron, and Tata Consumer Products — have seen IPG, WPP, and Omnicom outmaneuvering Publicis, winning either through new business or retaining clients.
A senior industry figure told Storyboard18 that Publicis’s struggles stem from a lack of technological advancement and innovation, with internal conflicts further clouding the vision of the group’s leadership in India. “They missed the boat to WPP,” the source added. In some circles, frustration within Publicis is palpable, with one anonymous insider claiming that numerous top-level employees are leaving due to “unrealistic promises made to clients.” A particularly contentious issue seems to be the expectation of overwork during high-demand periods, such festive seasons and tentpole events.
Meanwhile, industry sources suggest that Hero MotoCorp and Lenskart, both current Publicis Groupe clients, are considering a shift in their media service providers. Additionally, Ola is reportedly exploring other media agency partnerships, with rival firms now under consideration.
Storyboard18 reached out to Publicis Groupe in India for comments for this story, but the company declined to provide a statement.
Ashish Bhasin, founder of the Bhasin Consulting Group and ad veteran who led rival holdco Dentsu Aegis for several years, believes Publicis is “very strong” in India. “It has done very well in India over the last few years and I have been particularly impressed by the leadership shown by Anupriya Acharya… There are always account wins and account losses, and that’s a part of agency life,” he said. “But if you see the trajectory, by and large, it has been very positive.” Bhasin added.
As far as the impact of the IPG-Omnicom merger on Publicis is concerned, “only time will tell. But these are all big boys and girls,” said Bhasin.
Publicis Groupe’s post-COVID resurgence has been muted. Industry veteran and Rediffusion Group chairman, Sandeep Goyal observed, “None of the big creative networks — Leo Burnett, Publicis, Saatchi — have really made waves in India of late. I believe none of them have fully recovered from the pandemic. It’s true for all the large networks; after Covid, they seem to have lost their mojo.”
Goyal also warned of the increased competitive pressure following the IPG-Omnicom merger, suggesting that Publicis, along with its competitors, might have to reinvent themselves. “After the merger, some of the big networks, including Publicis, will wake up,” Goyal said, noting that a focus on consolidation and internal challenges might not be enough to secure long-term success in an increasingly competitive and digital-first advertising world. Whether Leo is the answer to that wake-up call or not, remains to be seen.
While agency mergers and consolidations have become a familiar pattern in the advertising sector, this latest shift feels particularly significant. It signals a disruption of the delicate balance within an industry already grappling with uncertainty, upending the dynamics of an ecosystem teetering on an edge. The question is who will stick the landing?