It’s been an unprecedented and brutal week for the advertising industry. The finalization of Omnicom Group’s $13 billion acquisition of Interpublic Group (IPG) (the biggest takeover in advertising history) is affecting tens of thousands of workers—most immediately the 4,000 expected to be laid off by the end of the year.
Both Omnicom and IPG own many different ad agency brands, all of which will be profoundly impacted by the merger. Omnicom is retaining only McCann from the IPG roster of agency networks, while folding FCB into BBDO, and both DDB and MullenLowe into TBWA, in order to achieve Omnicom Chairman and CEO John Wren’s goal of $750 million in synergies.
These are more than just a collection of acronyms, though. They are major agency brands, built over decades and generations, that will now disappear as their parent holding company fights to grow, survive, and remain competitive.
You’d be forgiven if you think the ad world is an alphabet soup of who’s eating who. But there is another side to the business that’s steering clear from the publicly traded drama. Independent agencies are growing in number, and in the scale and scope of work they’re being assigned by major brands.
