It’s been getting on for a year since Omnicom’s takeover of IPG was confirmed, and it looks like the merged holding company – which will take over from Publicis Groupe as the world’s biggest – is finally taking shape.
Rumour is that only four creative brands will be on offer; two made up of Omnicom networks and two from IPG.
From Omnicom, BBDO will remain a standalone brand, while DDB and TBWA will merge to form another. Interpublic Group’s McCann will live on, while Mullen Lowe will merge with FCB and a conflict agency will be set up to handle the client fallout.
We’ve seen a steady stream of exits from most of the agencies, but the likelihood is that there will be a lot more to come. Omnicom shed about 3,000 jobs in 2024 and is reportedly aiming to cut staff costs by 10%. IPG reduced its workforce by 2,400 in the first six months of the year alone.
Alex Lubar was elevated from global COO to global CEO of DDB this year, possibly in preparation for running the merged DDB/TBWA network. He moved to DDB in 2021 after nearly ten years at McCann, latterly as president of North America, giving him a unique insight into both the IPG and Omnicom camps.
Top level departures have been fairly limited so far. In the UK, MullenLowe has lost Chairman Tom Knox and CCO Nicky Bullard, while DDB Australia’s regional leader, Andrew Little, left after 25 years with the network. It wouldn’t make sense to scare the clients too early by removing high-profile talent.
No wonder all the Omnicom and IPG agencies have been quiet this year. The changes make sense, but it’s pretty seismic for the industry and it’s as radical as the upheaval that former CEO Mark Read effected at WPP.
