What the Omnicom-IPG mega-merger could mean for agency talent and clients

The recent announcement of Acquisition of IPG by Omnicom made me think about my early days working for both holding companies. I started my media career at BBDO, buying television. At the time, media and creative were working together under one roof, and holding companies were only beginning to consolidate their power. It was a simpler time in many ways, although it was far from smooth.

The advertising industry is on the cusp of another seismic shift. If approved, the deal would create the world’s largest advertising group, generating over $20 billion in revenue. As agencies celebrate ladder and the innovation that this merger could bring, customers might see it differently. Could they become collateral damage in this consolidation, or will they seize the opportunity to regain control through specialized agencies and internal teams?

The rise of internal agencies and boutiques

Advances in AI and digital tools have already leveled the playing field in advertising, allowing small teams and independent agencies to compete in ways once thought impossible.

When I first started in-house, we had to rely on our instincts and our spirit of discouragement. We couldn’t afford the tools that agencies had and we did everything manually. By giving up the ladder, you gained something irreplaceable: ownership. You understood the brand inside and out and controlled supplier relationships without competing agendas.

Today, in-housing is no longer about being disjointed. AI and digital tools make it a strategic choice, since 66% of multinationals now have internal agencies, according to a WFA investigation. Brands can now use their first-party data to drive precise targeting, attribution and campaign automation, once the exclusive domain of large agencies. This irreplicable ownership now extends to what many consider their most valuable asset: their data.

Not all brands are ready to bring everything in-house. For those looking for a more personalized and creative approach, boutique agencies offer an interesting alternative. Recent reports highlight how specialist agencies excel by proposing innovative ideas and tailor-made solutions. Their independence allows them to focus on creative problem solving and deeper customer partnerships without the complexities of larger organizations.

For brands worried about being disadvantaged in a large-scale agency portfolio, boutique agencies offer the type of individualized attention that is increasingly difficult to find at scale. This dynamic reflects a larger shift in how clients evaluate agency partnerships.

Changing client-agency dynamics

Omnicom CEO John Wren describes the merger as an opportunity to “accelerate innovation” and “achieve better results” for clients by combining talent and technology. For some marketers, breadth and breadth of expertise is desirable, especially for international marketers who seek seamless integration across channels and regions.

This level of consolidation is not without trade-offs. Smaller clients may feel overshadowed in a portfolio dominated by larger budgets. As agencies expand their services, internal alignment has become a balancing act. While client goals remain the priority, browsing agency offerings sometimes means the first call is to another team within the agency rather than to an independent vendor.

Transparency is another consideration. Many brands are reluctant to share their proprietary data with large conglomerates, fearing it will be used to inform global models. Practices like capital-based purchasingalthough effective, can further blur the line between client objectives and agency profits.

Agencies that align their broad capabilities with client objectives and foster trust will remain essential partners. By leveraging their scale to deliver innovation and measurable results, they can address concerns and strengthen customer relationships in this evolving ecosystem.

Look back and look forward

This acquisition could trigger a new wave of consolidation. If past is prologue, Omnicom has been here before. In 1996, they separated the media departments of BBDO and DDB Needham to create OMD, paving the way for others like Leo Burnett’s Starcom and WPP’s Mindshare in 1997. This centralization revolutionized media buying, allowing agencies to negotiate better rates, but it also reduced competition and forced customers to adapt to the holding company model.

Will this deal repeat the cycle? Maybe. As the industry contracts, small and mid-sized agencies may feel pressured to consolidate to compete with the scale of larger networks.

Once the dust settles, the key question will not only be what impact this will have on competition, but also whether the resulting changes will strengthen or constrain customers in the long term.

The talent equation

I’ve been through enough mergers know that they create ripple effects within the talent pool. Restructuring, layoffsand attrition are almost inevitable, leaving many top creatives and strategists to explore new opportunities. These changes could encourage the growth of specialty agencies, as savvy creatives hang their own shingle.

Cost synergies, estimated at 750 million dollars per yearoften means smaller teams. Automation and AI expected to boost a 7.5% reduction in advertising agency roles by 2030. While these efficiencies streamline operations, they risk diluting the human aspect that customers still value.

For clients, this represents an opportunity to build or strengthen internal teams. Many brands have existing relationships with agency professionals, making it easier to onboard seasoned talent who bring new perspectives and expertise.

Agencies, for their part, struggle to retain the best talent. When I was in an agency, turnover was a constant struggle, as tech giants frequently poached colleagues with promises of higher salaries, innovation, and benefits. Promoting staff before they are ready, while necessary, has created gaps in expertise. Retaining institutional knowledge will be critical to realizing the efficiencies promised by the merger.

The acquisition of Omnicom-IPG represents a turning point for the advertising industry. This promises scalability, integration and innovation, but it also raises questions about customer priorities, transparency and talent. For marketers, now is the time to reevaluate their strategies. Investing in digital tools, improving internal capabilities or refining external partnerships can help them stay agile while maintaining control of key assets such as first-party data.

As the industry evolves, success will come to those who adapt, leveraging diverse models to stay ahead of a rapidly changing landscape.