Omnicom Emerges as the Global Leader in Agency Holding Companies

With its $13.25 billion purchase of Interpublic Group, Omnicom has surpassed WPP, claiming the title of the largest agency holding company globally. Previously, Omnicom and Interpublic ranked as the third and fourth largest ad buyers in the world. This merger is likely to face regulatory examination.

Omnicom’s portfolio includes renowned agencies such as BBDO and TBWA, while Interpublic is known for brands like McCann, Weber Shandwick, and Mediabrands. The newly formed conglomerate will compete against the remaining “big six” agencies: Dentsu, Havas, IPG, Publicis, and WPP.

Technology at play. These holding companies and their agencies are navigating significant competition from emerging tech firms like Google and Meta, which have fundamentally transformed into major players in advertising. Currently, Google and Meta provide advanced tools for crafting ad content and expansive platforms for distribution.

A noticeable trend among these holding companies is the merging of agency functions with marketing technology. They are increasingly investing in artificial intelligence capabilities. For instance, Publicis Groupe revealed in January its intention to transform into an “intelligent system,” committing 300 million Euros to develop AI resources. Dentsu has been an early adopter of Microsoft 365 Copilot. WPP plans to allocate $317 million annually towards the foundational data and technology for its AI initiatives. In 2023, Omnicom introduced Omni Assist, an AI-driven solution crafted in collaboration with Microsoft.

Explore further: The approach of major holding companies towards genAI

Why it matters. As Google and Meta increasingly resemble media enterprises (especially considering the implications of Google’s antitrust verdict), the holding companies and their affiliated agencies are becoming akin to martech entities. As we’ve long maintained, martech encompasses both marketing and advertising.

The analyst’s perspective. Jay Wilson, a VP analyst at Gartner’s marketing division, remarked: “This is undoubtedly significant — holding companies have been consolidating their agencies to provide clients with a more cohesive and streamlined service. This move appears to diverge from that direction, leading to a single, multifaceted holding company.”

He also hypothesized that this development might benefit larger independent agencies, which could become more attractive to clients than a “mega agency holding company.”

Similar sentiments were echoed by Jeremy Haft, CRO at the performance marketing firm Digital Remedy. “The acquisition indicates a shift towards more concentrated power within the advertising sphere. While larger organizations will continue to dominate, this may also create avenues for independent agencies. With the combined Omnicom/IPG organization wielding more influence over major brands, smaller clients might seek out independent agencies for tailored services — unlocking new opportunities for those that had previously been sidelined. Ultimately, the merger could stimulate greater competition, motivating agencies to innovate and enhance effectiveness, rather than solely competing on cost.”