WPP CEO Mark Read tells staff Omnicom-IPG deal is ‘good news for us’

WPP boss Mark Read described Acquisition by Omnicom Group of Interpublic Group (IPG) as a “moment of opportunity” for the UK-based ad network, urging employees to continue meeting customer expectations “without distractions”.

“Customers will have noticed that over the past two weeks, several of our competitors have spent a lot of time talking about themselves. This is an opportunity for WPP to differentiate itself by relentlessly focusing on our clients and their interests, not ours,” Read told staff in a memo seen by ADWEEK.

Last week, WPP, along with the four other ‘big six’ ad agency networks, suffered a major blow when the mega-merger was confirmed.

New Omnicom merger company posts $25.6 billion in revenue based on 2023 figures, giving it the ability to unseat WPP, which has long held the title of the world’s largest holding company by revenue.

WPP raked in $18.5 billion in 2023. For 2024, it is poised to be toppled by Publicis Groupe, with financial research platform Visible Alpha forecasting that Publicis will report $14.5 billion in revenue. dollars by the end of 2024, compared to $14.17 billion for WPP.

Last week, Arthur Sadoun, CEO of Publicis Groupe, warned staff that the network’s move to the top of the rankings could be short-lived following the acquisition of Omnicom-IPG. However, he was optimistic about the broader impact of the agreement on the industry, in a context of transition towards “three main global players”.

Speaking to WPP’s 114,000 employees in 100 countries, Read struck a similarly optimistic tone. He was optimistic, saying the deal was “good news” for the owner of Ogilvy and VML.

“Over the next two years, as [Omnicom and IPG] We will focus on finding $750 million in annual savings and building on the hard work we have already done across our business – simplification, integration, consolidation – we will double down on our strategy: getting work done remarkable for our customers, defending creativity, investing in the future. through AI, data and technology, and creating great careers for our people,” he said.

He added that while peers were “distracted and inward-looking,” WPP teams “continued their work of delivering exceptional results and value” to clients. “And that’s how we will win in 2025,” he continued.

ADWEEK has reached out to Omnicom for a statement following Read’s memo. He did not immediately respond.

The ink is expected to dry on the deal within 12 months, pending regulatory approval.

You can read the full memo Read shared with staff Friday (Dec. 13) below.

To everyone at WPP

As we approach the end of the year, I would like to thank you for your part in the brilliant work we have accomplished together over the past 12 months.

At the Cannes Lions Festival, WPP was named Creative Business of the YearOgilvy was named Network of the Year, GroupM was the leading media group and our clients The Coca-Cola Company and Unilever were Brand and Marketer of the Year respectively. An extraordinary achievement shared by everyone at WPP.

Our ability to provide the highest level of service to customers has enabled us to achieve success in the two biggest media pitches of the year: Amazon and Unilever. There have been other significant new media assignments for Nestlé, Henkel and Honor, major creative wins include Unilever and AstraZeneca’s beauty portfolio, and we have secured the hugely important 10-year recruitment mandate of the United States Marine Corps. WPP Open – our AI-powered marketing operating system – has been at the heart of these victories and many others, as it powers our capabilities in media, creative, PR, production and brand image.

This time of year is a wonderful showcase for what we do, as our agencies’ amazing festive campaigns highlight why clients trust us. This year, AKQA brings us the drama and beauty of Chile mountain ranges for UGG; Burson continues to lead the cultural phenomenon that is Spotify wrapped; Wavemaker and Ogilvy join forces once again celebrate Diwali for Cadbury; while the Christmas makeover for Boots of VML and Hogarth got everyone talking. Ogilvy’s funny campaign for Verizon ensures that it remains “the most beautiful time of the year”; WPP Open The world needs more Santas; and Mindshare teams up with the M&S Food creative team to plan the ultimate Christmas party.

As we look ahead to 2025, we know the coming year will bring many changes within and beyond our industry. All major companies are thinking about how to take advantage of the opportunities offered by AI; the impact of geopolitical developments; the best ways to work in the post-pandemic era; regulatory developments affecting marketing and the use of AI in particular; and how and when to engage on social issues in a more complex and contested public space.

Meanwhile, customers will have noticed that over the past two weeks, several of our competitors have spent a lot of time talking about themselves. This is an opportunity for WPP to differentiate itself by relentlessly focusing on our clients and their interests, not ours.

The big news in our industry, that Omnicom is buying IPG, is good news for us at WPP. Over the next two years, as they focus on delivering $750 million in annual savings and building on the hard work we’ve already done across our business – simplification, integration, consolidation – we’ll double down effort on our strategy: to do remarkable work for our clients. , champion creativity, invest in the future through AI, data and technology, and build great careers for our employees.

And we’re not standing still: On Wednesday we learned that we beat Publicis and IPG to win Johnson & Johnson’s prize. media company in the United States and Canada, and yesterday we announced a new partnership with the world’s largest music company, Universal Music Group, to create even more innovative solutions for our customers.

In other words, while our peers are distracted and withdrawn, we are focused on delivering exceptional results and value to the world’s leading brands. And this is how we will win in 2025.

So thank you for your hard work in 2024 and let’s look forward to next year with optimism and confidence. As always, if you’d like to share any thoughts, send me an email.

I wish you a very happy and peaceful holiday.

Brand

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