Are megalithic advertising holdcos killing agencies?

It is a common practice that whenever holding companies (advertising networks) acquire they try to synergise their brands to offer consistent global solutions.

Omnicom’s global takeover of rival holdco IPG is set to shake up the industry and deep-freeze many agency brands; the global market is not large enough to support so many brands with shrinking margins and struggle with talent pools, industry insiders say.

Omnicom to take over Interpublic Group; John Wren to continue as CEO and chairman

John Wren (left) will remain Chairman and CEO of Omnicom. Phil Angelastro will remain EVP & CFO of Omnicom. Philippe Krakowsky (pictured on right) and Daryl Simm will serve as Co-Presidents and COOs of Omnicom.

The combined company will retain the Omnicom name, with Omnicom Group CEO John Wren at the helm. The deal will create an advertising giant with combined annual revenue of almost $26 billion.