Omnicom on Monday provided a deeper 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, according to a press release. The ad-holding group, now the world’s largest, estimates it will eliminate another 4,000 jobs globally to realize 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 am proud to welcome the people, agencies and clients of Interpublic to Omnicom and create a global community of the best and brightest professionals in the industry, all of whom will have access to the most advanced AI tools and Omni, our advanced intelligence platform,” Wren said in a press statement. “Together, we will be the go-to company that shapes how brands grow, people connect and culture evolves.”
Omnicom will have six capability based divisions moving forward: media, public relations, production, advertising, 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 group called the U.S. Advertising Collective. Notably absent from that list are IPG legacy shops MullenLowe and FCB and Omnicom’s DDB brand, which are being sunset. The Drum previously reported that Omnicom was considering retiring DDB post-acquisition.
The announcement also introduced two enterprise-wide teams that will work across groups: a Global Growth Team that monitors client needs and innovation solutions from a top-level view and Client Success Leaders that are tasked with managing Omnicom’s connected capabilities and developing tailored solutions for individual client strategies. The Global Growth Team will 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 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: building 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 includes retail media; accelerating enterprise-level generative AI capabilities; and leading the way 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 without needing to rely on third-party cookies.
Looking ahead, Omnicom will have a major presence at the Consumer Electronics Show in January where it will unveil the next generation of Omni.
