Omnicom on Monday provided a deeper take a look at how its leadership and agency structure are changing following the close of its $13 billion-plus acquisition of rival Interpublic Group last week, in response to a press release. The ad-holding group, now the world’s largest, estimates it would eliminate one other 4,000 jobs globally to appreciate its cost synergy targets, CEO John Wren told Adweek. Omnicom is aiming for $750 million in annual cost savings with the addition of IPG and expects to generate a combined revenue of over $25 billion.
“I’m proud to welcome the people, agencies and clients of Interpublic to Omnicom and create a worldwide community of the most effective and brightest professionals within the industry, all of whom may have access to essentially the most advanced AI tools and Omni, our advanced intelligence platform,” Wren said in a press statement. “Together, we will probably be the go-to company that shapes how brands grow, people connect and culture evolves.”
Omnicom may have six capability based divisions moving forward: media, public relations, production, promoting, diversified agency services and a unit focused on the Omni operating platform and Flywheel Commerce Network. Diversified Agency Services includes Omnicom’s healthcare, branding and precision marketing agencies.
Omnicom Advertising, led by former TBWA CEO Troy Ruhanen, encompasses creative agencies BBDO, McCann, TBWA and a gaggle called the U.S. Advertising Collective. Notably absent from that list are IPG legacy shops MullenLowe and FCB and Omnicom’s DDB brand, that are being sunset. The Drum previously reported that Omnicom was considering retiring DDB post-acquisition.
The announcement also introduced two enterprise-wide teams that can work across groups: a Global Growth Team that monitors client needs and innovation solutions from a top-level view and Client Success Leaders which might be tasked with managing Omnicom’s connected capabilities and developing tailored solutions for individual client strategies. The Global Growth Team will probably be led by George Manas, who will transition out of his role as global CEO of OMD Worldwide effective Feb.1, while Client Success Leaders will probably be spearheaded by Chief Client and Business Officer Jacki Kelley and Client Experience Officer Andrea Lennon.
These changes are intended to support five core directives for the newly expanded Omnicom: constructing the industry’s most robust media network, enhanced by IPG’s Acxiom data-marketing arm; developing more influential content, including through use of generative artificial intelligence; excelling in connected commerce, a category that features retail media; accelerating enterprise-level generative AI capabilities; and leading the way in which in identity solutions. On the latter front, the Omni platform and Acxiom’s Real ID solution together reach some 2.6 billion verified global IDs while not having to depend on third-party cookies.
Looking ahead, Omnicom may have a significant presence on the Consumer Electronics Show in January where it would unveil the following generation of Omni.
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