The Omnicom Group and the Interpublic Group are part of the ‘Big Four’ traditional ad companies that also include WPP and Publicis
Two of the world’s biggest traditional advertising agencies are merging to form the largest ad agency and to better compete with Big Tech. Omnicom Group announced yesterday that it reached a $13.25 billion all-stock deal to buy rival Interpublic Group.
The two firms are part of the Big Four traditional ad companies that also include WPP and Publicis. Omnicom’s clients include Apple, Chanel, Disney and Volkswagen. Interpublic has customers like Johnson & Johnson, Levi Strauss and Barbie maker Mattel.
The combined entity boasts over $25 billion in annual revenue. The deal is expected to close in late 2025 and generate $750 million in annual cost savings.
The Omnicom-Interpublic merger aims to counter Big Tech, which has been slowly taking away ad agencies’ market share. Tech giants like Google and Amazon dominate ad dollars with advanced tools and marketplaces. Now, they have added artificial intelligence to the mix, prompting traditional ad creators to take drastic steps to ensure survival.
As a result, agencies are integrating AI, transforming the advertising industry by enabling more realistic, faster and cheaper ad production.
Regulatory hurdles
Omnicom CEO John Wren will helm the new company, while Interpublic’s Philippe Krakowsky will step in as co-COO. Wren anticipates minimal regulatory scrutiny from the incoming Trump administration.
However, analysts warn that the scale of integration poses a challenge. In 2013, regulatory roadblocks forced Omnicom and France’s Publicis Groupe SA to call off their $35 billion merger.