Strange Bedfellows: How IPG and Omnicom Should Navigate Active Pitches

At any given time, agency holding companies have several arguments of different scale at play and, more often than not, they are pitted against each other.

As Omnicom decides to acquire Interpublic Group (IPG), the two undoubtedly clash in various media and ongoing creative journals – in which case do they precede as enemies or friends?

According to industry experts, it will likely depend on the client, the agencies involved and what happens once the deal is officially closed.

It is not uncommon for two agencies of the same holding company to clash. In fact, according to a manager at a marketing consultancy, Omnicom’s creative workshops have a habit of clashing in reviews.

While it’s unclear exactly where Omnicom and IPG are currently competing for the same business lines, pitch consultants say the reviews are continuing as usual. However, some caution that customers who have not yet initiated reviews may be hesitant to invite IPG due to the distraction of the acquisition.

Full disclosure is completely necessary

According to pitch consultants, the IPG and Omnicom agencies currently battling each other should allow the client to decide how the review will move forward.

Since the acquisition may not be finalized until mid-to-late 2025, the brands currently in play may opt to proceed as usual, Paul Williamson, managing director for North America at Ebiquity.

“In other cases, customers themselves may dictate a different approach,” he explained.

In the meantime, Williamson said the new Omnicom will likely form a joint business development committee to review what’s at stake, what’s in their respective pipelines, share updates on live presentations and develop plans action in each case that will benefit both parties.

Any conflicts with clients, whether during live pitches or on each firm’s current roster, will likely be resolved before the closing date, said Lori Murphree, founder and managing partner of Evalla Advisors, which advises on mergers and acquisitions.

“They would go to each client and try to convince them that there would be a barrier to the information being provided to the respective teams,” she said. “In some customer contracts, the customer must give consent to the change of control. »

The ball is in the customer’s court

Andrea Kerr Redniss, managing director of MediaLink and partner at UTA, said some brands she spoke with were excited about the combined company because it will open up the capabilities and talent they have.

The fields where they are currently pitted against each other present “a really wonderful opportunity for them to pick the teams they like the most and move forward,” Redniss told ADWEEK.

Although the acquisition could create some distraction and instability for customersRedniss added that brands currently dissatisfied with a single holding company could stay and avoid the cost and disruption of a review and see what the combined entity would bring to the table.

Zach Rubin, who grew up in the IPG network and is now head of business development for agency Bonfire Labs, said that if there is a competition, both companies should recruit top talent to show what a team of combined dream.

“The client wins because they see the work of the best agencies at Omnicom and IPG. Shareholders win, because the network guarantees a victory. And not much change for agencies: big spend for land where your chances are 50/50 at best,” Rubin said.