Reduction in talent to brand conflicts: What lies ahead for Omnicom-IPG merger

The merger is poised to reshape the Indian advertising landscape. Experts suggest that while this consolidation may drive efficiency and innovation, it could also disrupt client-agency relationships, spark job losses, and offer opportunities for smaller, independent agencies to capitalise on potential gaps left by the merger.

The recent merger announcement between Omnicom Group and Interpublic Group (IPG), two of the biggest global advertising networks, has sparked conversations and drawn significant attention in the advertising world. This merger, expected to close in the second half of 2025, will create a global advertising powerhouse with over 100,000 employees and annual revenues reaching $30 billion. The combined entity will adopt the Omnicom name, with Omnicom shareholders owning about 60.6% and IPG shareholders holding 39.4%.

IPG's portfolio includes agencies like McCann Worldgroup, FCB, and MullenLowe Global, while Omnicom brings DDB, BBDO, and TBWA to the table. Together, this merger consolidates some of the strongest creative forces in the industry, setting the stage for an intense creative leadership race in India. This development is expected to drive innovation and raise the bar for advertising excellence in the region.

The merger aligns with the broader trend of consolidation shaping the global advertising sector, driven by growing pressure from big tech players, consulting firms, and advancements in AI. By pooling their resources and capabilities, IPG and Omnicom aim to remain competitive in a rapidly changing landscape.

The timing of this merger has sparked much speculation. Over the past 18 months, IPG has lost three of its most significant creative accounts: General Motors, Amazon, and Verizon, potentially leaving it seeking a strategic boost before the release of its full financial results, which could impact share prices and investor sentiment.

Consolidation like this typically centres on two objectives: achieving scale or cutting costs. In this case, the focus seems to lean heavily toward scale. Major advertisers increasingly favour top-down agency network deals that grant them access to the best talent, comprehensive services, and actionable insights across the business rather than relying on a fragmented network of single-service agencies.

India’s advertising market is likely to feel the ripple effects of the combined might of IPG and Omnicom. With increased scale and negotiating power, the new entity could offer better deals to clients, but it also raises concerns about job losses and reduced competition. The merger’s cost-saving target of $750 million annually has sparked fears of potential job cuts.

The consolidation might also heighten competition for other major holding global companies like WPP, Publicis, Dentsu, and Havas. However, this could drive more innovation, improve services for clients, and spark new trends in campaign strategies. Some fear that the merger might stifle creativity by pushing the industry toward monopolistic tendencies.

Client conflicts are another challenge the merged entity must address, given the overlap in clients across both networks. These conflicts could create opportunities for independent agencies, which may attract brands seeking more tailored and agile solutions. As a result, smaller players in the market might benefit from this shake-up.

To gain deeper insights into the potential impact of this monumental merger on the advertising landscape, we reached out to industry folks. They shared their perspectives on the opportunities, challenges, and ripple effects that could reshape both global and Indian markets. Here’s what they had to say:

Amyn Ghadiali, Country Head - India (GZ Creative Digital), GOZOOP Group:

The Omnicom-IPG merger will significantly reshape the competitive landscape in India, creating a dominant force among media-holding companies. This shift may challenge existing agency dynamics, as larger firms will command greater market share, potentially sidelining smaller players. Managing overlapping client accounts in India will be a key hurdle to their partnership, particularly when dealing with potential conflicts between the media arms of both companies. Resolving such conflicts will require clear strategies and transparent communication. 

Operational SOPs have to be watertight, and culture has to be clearly established, as it can lead to teething issues. On the positive side, this consolidation could offer opportunities for regional and independent agencies to differentiate themselves by offering personalised services or more specialised expertise, especially as global or national clients may seek alternatives, agility, stability and innovation. In the long term, this merger may trigger further consolidation across the industry, with Indian agencies possibly exploring similar collaborations or acquisitions to stay competitive and ahead of the curve.

Chaaya Baradhwaaj, Founder - Managing Director at BC Web Wise:

The IPG-Omnicom merger consolidates two giants in the global advertising space, reducing the landscape from the “big six” to the “big five.” In India, such consolidation could offer the merged entity certain advantages, particularly in media deals where scale drives bargaining power. This could raise concerns about fair competition within the large network ecosystem, where the power dynamics shift toward the bigger players.

For clients, however, the strategic value of such a merger remains unclear. Beyond scale, there may not be significant advantages in terms of creativity or talent strategy. Independent agencies, on the other hand, continue to hold their ground by being agile, responsive and hyper-focused on delivering client-centric solutions.

For agencies outside these global networks, such mergers have little direct impact. At BC Web Wise, for instance, our focus remains on innovation and client success, independent of these industry dynamics.

KV Sridhar, Global Chief Creative Officer, Nihilent Limited:

In mergers like these, one of the primary goals is to increase the top line so billing revenue grows. Another objective is to enhance efficiencies by pooling resources and centralising as much as possible, thereby eliminating duplication. For instance, there is no need for three accountants, three HR personnel, or three of every role. As a result, many people will inevitably be let go.

Centralised resources mean that smaller agencies may have one Executive Creative Director (ECD) instead of two, or one Chief Creative Officer instead of three. This leads to a reduction in talent, with some individuals being let go. Additionally, cultural conflicts can result in some talent leaving voluntarily. Smaller agencies have an opportunity to grow during this time by absorbing experienced talent and taking on conflicting business accounts.

When three brands manage three different types of businesses and are then consolidated into one, conflicts of interest may arise. While precautions are likely taken at a corporate level to address this, overlaps are still expected at retail, country, or regional levels. Although major global clients will be safeguarded, smaller Indian clients might not receive the same attention. This creates an opportunity for smaller agencies to capitalise on these clients and the available talent.

It’s anticipated that 15–20% of people could be laid off due to centralised resources. While this might take time, it’s an eventual outcome. Small agencies will gain access to talent that larger agencies let go. Experienced professionals, regardless of their exact fit, will become available to agencies and clients alike, providing new opportunities for forging better teams and strengthening operations.

This cycle of bundling and unbundling is a recurring trend. Companies grow by acquiring smaller firms, scale up, and eventually become too large, prompting them to downsize or spin off parts of their business. Many people leaving larger firms go on to start their own agencies or companies, which they build up over time. Some of these become successful and are eventually acquired back into larger groups.

This phenomenon is not unique to advertising but occurs across industries. As people leave and start their ventures, they address specific gaps—whether in AI, regional advertising, or production—building expertise that larger firms may lack. Once these new companies have proven themselves, they are often acquired to bring in specialised skills or boost revenue.

Ultimately, this cycle fosters innovation and entrepreneurship. Talented professionals leaving large firms create new opportunities, and the ecosystem continually renews itself. It’s a natural and inevitable process, ensuring the emergence of new businesses and ideas that feed back into the larger system.

Prathap Suthan, Managing Partner & Chief Creative Officer, BangInTheMiddle:

The impact of the IPG-Omnicom merger can have significant implications. Here’s my analysis:

Business Fallout

•Brand Conflicts: Competing accounts within the merged network will lead to realignments. Smaller brands may be farmed out to independents or deprioritised altogether.

•Selective Client Retention: High-value accounts will take precedence, while mid-tier and smaller clients may be dropped or shifted, creating opportunities for independent agencies.

•Media Buying Power: The combined entity will dominate media negotiations, potentially raising costs for smaller players and squeezing local media outlets.

Talent Turbulence

•Leadership Redundancies: Overlapping CXO and senior creative roles will lead to exits or reshuffles. Some senior talent may migrate to independents or start their own ventures.

•Layoffs: Non-client-facing roles in HR, finance, and real estate will face consolidation-driven redundancies.

•Creative Exodus: Disillusioned talent may seek opportunities in independent agencies, infusing them with expertise and potential clients.

Opportunities for Independent Agencies

•Client Gains: Mid-tier and smaller brands displaced by the merger could gravitate toward independent agencies, strengthening their portfolios.

•Talent Boost: Redundant professionals from the merger could bolster independent teams, bringing in seasoned expertise.

•Competitive Threat: However, the merged entity may still target smaller accounts aggressively, leaving independents to carve niches or focus on hyper-specialisation.

Client Perspectives

•Uncertainty: Clients will face disruptions in account management and execution during the integration phase.

•Stability Advantage: Agencies offering continuity and consistent service will gain client trust in this period of flux.

Industry-Wide Dynamics

•Market Monopoly: The merger concentrates power, raising concerns about monopolistic behaviour in sectors like FMCG and telecom.

•Efficiency vs Creativity: The merged entity’s focus on scale and efficiency might leave room for independents to shine with creative innovation.

•Digital Shift: Agencies with strong digital-first capabilities will benefit as clients prioritise localisation and quick-turnaround campaigns.

Key Takeaways

•Talent and Business Realignment: Redundancies and account conflicts will redefine the talent pool and client portfolios.

•Independent Agencies’ Moment: They must position themselves as agile, creative alternatives while competing with the scale of the merged network.

•Unpredictable Future: The merged entity likely has plans to address these conflicts, making definitive predictions premature.

This merger has the potential to reshape Indian advertising, tilting the scales of power while creating opportunities for those ready to adapt. Independent agencies, in particular, must act decisively to capitalise on this moment of transformation. 

Of course, all this is mere speculation. None of us know what they have decided and what they will do. For all you know they might have a completely different and unexpected plan in the works.

Rahul Vengalil, CEO & Co-founder, tgthr:

I have been part of one of the largest network mergers in 2012/13, when Dentsu bought Aegis Media. Such global mergers will take a couple of years to really show an impact at ground level. Here are the few areas that will have an impact

1. A few of the really powerful brands in different countries will be put to rest.

2. There would be efficiencies of resources, leading to some sort of joblessness.

3. There would be a churn in client/agency relationships, and hopefully, the indies will come to the attack across countries.

4. There is going to be a power struggle at the top, like in any merger. We saw that recently in the Jio-Star merger as well. 

How soon or how far, time will only tell.