Now that the $13 billion merger between Omnicom and IPG is actually happening, all attention turns to what the merged entity will look like.
It’s going to get bloody because this is a merger of equivalents.
Both have big creative agencies, digital media, PR agencies, and so on. Both run a “house of brands” architecture. And to make matters worse, the merging companies aren’t geographically distinct either.
I see three possible scenarios.
Option 1 – The Diplomatic Handshake
This gentle option, where everyone keeps their corner office, preserves the big six creative networks essentially untouched: BBDO, DDB, TBWA from Omnicom, and McCann, FCB, MullenLowe from IPG all survive the cull.
This scenario is the path of cowardice, and that’s precisely why it has a fighting chance.
The argument is simple: it’s designed to minimize client defections and any talent exodus.
When WPP merged JWT and Wunderman, they lost Vodafone. When Publicis consolidated, clients fled. Keeping all six creative networks intact means no CMO has to explain to their CEO why they’re suddenly sharing an agency with their biggest competitor.
But here’s why it won’t happen: Wall Street. Omnicom Chairman and CEO John Wren promised $750 million in synergies. You don’t get that by doubling headcount and keeping all the logos. You can’t maintain six P&Ls, six management teams, six finance departments, and six egos while delivering the cost savings that justified this entire $13 billion adventure.
More alarming still, this approach fails to address the fundamental problem: Publicis has been eating both companies’ lunches with a simplified model for years.
Playing it safe now is the riskiest move of all. No one thinks it will happen.
Option 2: The WPP Playbook
