Depending on who you ask, Omnicom Group’s proposed acquisition of Interpublic Group of Cos. is either the last gasp of a dying industry or a forward-thinking move that could set the company on a course to head off new competition from tech and social media giants.

One thing is for sure—the envisioned merger will be closely watched in the coming months, with employees, clients and competitors having big stakes in the outcome of the deal, which would create the largest agency holding company in the world with combined revenue of $25.6 billion in 2023.

More on the news:

• What Omnicom acquiring IPG means for clients
• Indie creative agencies react to the pending deal
• How the deal hinges on data and automation
• Key executives to watch
• How Omnicom-IPG would stack up against the industry

Ad Age compiled early reactions from 19 advertising executives, including agency CEOs and consultants. Opinions are far-ranging. They include predictions on how the acquisition might speed up AI and tech developments and debates around whether or not it would benefit clients. Experts also weighed in on the impact on the cultures of the agencies involved, and how independent shops might benefit.

Below are the highlights.

Biggest agency deal ever

This massive deal is expected to close in the second half of 2025. The companies have said that the all-stock deal is expected to generate $750 million in annual cost synergies.

“This will create a powerhouse in the market,” said Anjali Bal, an associate professor of marketing at Babson College, adding that it may give the new entity an edge to challenge the tech and social media giants that have been “gaining traction in the advertising market because of the confluence of digital marketing.”

The merger “will create the most powerful traditional marketing company in the world,” Bal said, adding the “new company will have some of the biggest talent and brands under one umbrella.”

The deal could lead to the acceleration of certain tech and AI developments in the ad space, according to some executives.

“Omnicom and IPG executives point out the combined resources will accelerate their technology investments,” Jay Pattisall, VP and principal analyst at Forrester, wrote in a Forbes blog. “This will accelerate the already underway AI arms race among the hold cos and independents: 61% of agencies already use gen AI in marketing, the most mature group compared to IT, marketing orgs and in-house agencies. Marketers should anticipate the proliferation of AI marketing in production, creative development and media activation.”

To some people, innovation will be imperative for Omnicom and IPG.

Tammy Madsen, a professor of management at the Leavey School of Business at Santa Clara University, said $750 million in projected cost synergies will not be enough for this deal to be truly successful to shareholders. She said these companies “must focus on developing new revenue streams—whether through cutting-edge AI tools or differentiated marketing solutions” to stay competitive.

“For instance, can the combined firm develop AI tools or data-driven platforms that rival those of the tech giants? Without such synergies, the merger risks being a defensive move rather than a proactive strategy,” Madsen said.

Some executives argued that the combination of two legacy holding companies is not what is going to move the industry forward.

“It creates the world’s largest company in yesterday’s industry,” The Brandtech Group Founder and CEO David Jones said. “Everything is possible in the world of business and it might work, but putting two big declining legacy companies together is unlikely [going to lead] to one high growth AI-first market leader. It’s a bit like going back in time and thinking that merging Kodak and Blockbuster together would lead to the world’s No. 1 internet or social media company.”

Some rejected that sentiment.

“The announcement reflects the ongoing transformation of the industry to address evolving client needs through strengthening capabilities,” 4A’s CEO Marla Kaplowitz said. “That’s what makes this industry exciting: the constant evolution of creativity leveraging technology and human ingenuity.”

Others are staying neutral.

“Cynics may say that this is a play to find shareholder value by financial engineering, and it’s a doubling down on the hold co model that is not working for clients and staff,” said Simon Francis, founder and executive chairman of consultancy Flock Associates. “Other, more optimistically, may argue that this gives advertisers more talent, more choice, more data and, in theory, more technology. Time will tell.”

Integration will be tough

Blending these two massive companies will be an uphill battle, several people said.

“This is the biggest agency deal ever and will be the largest and most complex integration in the sector,” ID Comms CEO Tom Denford said. “First job is to settle the nerves and communicate well to the talent within both groups with a timeline of the deal and what the proposed integration will look like.”

Because the integration will be so complex, it will likely take some time to carry out, and it could allow for competitors to swoop in, according to some executives. Madsen said tech giants such as Google and Amazon could “extend their leads in leveraging AI for personalized data-driven marketing,” for example.

Jones argued that the integration, at the very least, will be distracting to growth.

“At a time when they should be obsessively looking at how to reinvent their business for their clients to deliver gen AI marketing, this will have everyone focused on the integration of two large legacy organizations,” Jones said, “managing the talent concerns, having to reassure clients and explain what it means. Rather than obsessing about their clients and how to lead and drive growth in the gen AI marketing future, they will be consumed by integration and merger activity.”

Pattisall pointed out in his blog that, because Omnicom and IPG each leverage brand-centric, “agency-first go-to-market models, rather than integrated, holding company-first model like that of Publicis Groupe or Dentsu,” the integration could go smoother than naysayers predict.

Impact on culture

Of course, with any merger, especially one promising $750 million in annual cost synergies, layoffs are likely. So, as several executives including agency leaders and consultants pointed out, there is bound to be anxiety among the employees of these holding companies.

“While the focus will be on touting their newly combined capabilities and bench of talent, the real priority will be creating shareholder value,” said Rachel Huff, president and founder of in-house marketing and communications firm Victoire & Co. “Expect plenty of talk about optimizing the organization, creating efficiencies and reducing redundancies—corporate speak that often translates to layoffs.”

Huff had earlier taken to LinkedIn to share her immediate reaction to the merger news that broke on Sunday, writing: “It’s Sunday…I’m on my third cup of coffee…my brain isn’t prepared for this headline.”

Certain agency brands seen as duplicative will likely be sold off or folded into other entities, some people said.

“The immediate impact of this merger will be internal for IPG and Omnicom, as they grapple with duplicative offerings, agency brands and staff,” Simone Mandel and Rachel Segall, co-founders of consultancy NBZ Partner, wrote in a joint email to Ad Age. “But the ripple effect will likely extend across the industry, with other holding companies responding through divestments, mergers or restructurings. Private equity firms will play a growing role in acquiring divested assets/companies, reshaping the agency landscape even further.”

Scale is king

The most obvious benefit clients will get out of this deal is scale, several executives including consultants said.

“A larger combined entity will most likely foster greater investment in technology and innovation, benefiting clients with cutting-edge solutions and strategies,” Lisa Colantuono, president of agency search firm AAR Partners, told Ad Age.

Colantuono said clients will benefit from more negotiation power with vendors and media companies as well as the likelihood of “greater investment in technology and innovation, benefiting clients with cutting-edge solutions and strategies.”

Some of those weighing in, including consultants, argued that bigger isn’t always better.

“You know what we never hear? We want bigger,” Mandel and Segall wrote. “The communications around the IPG-Omnicom merger fail to articulate a clear client benefit. The focus on scalability feels tone-deaf—no clients are asking for bigger or more scale. They want flexibility, innovation, and creativity, none of which this merger addresses.”

“The size and scale of hold co-agencies are becoming unwieldy which clearly inhibits innovation, creativity and differentiation,” added Alison Monk, founder and CEO of Eden Collective.

Mark Penn, chairman and CEO of rival holding company Stagwell, which merged with agency group MDC Partners in 2021, even weighed in on LinkedIn, arguing that bigger isn’t always better.

“At Stagwell, we have always believed scale of services is important, but there is a size at which bigger becomes slow, antiquated and homogenized … Clients never get lost in the halls of Stagwell brands because we believe in offering clients personalized services that AI can never replace,” Penn wrote.

Who’s really winning?

Several people argued that Omnicom and IPG are benefitting more from the deal than clients.

“There’s going to need to be some real magic to identify $750 million in synergies,” said Greg Paull, co-founder and principal of consultancy R3. “The group’s biggest challenge is going to be serving their client base while at the same time serving their shareholders.”

Flock’s Francis said in the near term, he doesn’t see clients or staff “winning” in this deal scenario.

“Longer term, it depends on how well Omnicom and IPG can integrate and transform at the same time, in comparison with other holding companies, consultancies and companies like Adobe, Google, Meta, OpenAI and a host of AI start-ups enviously eyeing the $25.6 billion in revenue that they hold.”

Exclusive for Ad Age All Access subscribers: Revenue by client sector for five major holding companies from Agency Report 2024

“There’s a real risk of losing the intimacy and agility that clients and employees value most,” said Pattie Kushner, chief strategist at her strategic marketing communications firm, Pattie Kushner Consulting. “Employees are likely to feel heightened fear and fatigue as they navigate potential redundancies, while clients may question whether they’ll still receive the personal attention and value they expect from their agency.”

Denford said he’s advising clients of Omnicom and IPG to ask “their agency group for clarification on the impact of the proposed merger and what benefits can be realized for their brands in 2025 and beyond.”

Communication will be key, as it is with anything.

“One thing is certain: advertisers and staff hate a vacuum and uncertainty,” Francis said. “Omnicom and IPG will need to move fast and surely to communicate any integration plans, and benefits to staff, shareholders and, above all, clients. Clients will want to know about conflict of interests, key personnel and resources, and the benefits of the claimed cost savings as soon as possible.”

How independent shops could stand to gain

Some independent shops are rejoicing in the deal news, thinking it could benefit them. First, they have the ability to scoop up some unsatisfied clients from Omnicom and IPG, some people said.

“Let’s just say IPG had 10,000 clients and Omnicom had 10,000 clients,” Jared Belsky, CEO and co-founder of digital marketing and analytics agency Acadia, said. “Now they have 20,000 clients. Once they do layoffs around leadership, a smaller leadership group will now be thinking about 20,000 clients, which mathematically means the last 200 clients are that much less important.”

Those 200 clients that are now deemed less important to this combined Omnicom and IPG conglomerate may opt to shift their accounts to independents, where they can get better service, Belsky said. “That’s just what happens.”

Indie shops can poach top-tier talent from these companies, as well, according to some people.

“As Machiavelli says, ‘one change always leaves the toothing for another,’” said Toby Barlow, CEO, chief creative officer and co-founder of Detroit-based independent shop Lafayette American and its brand studio, Scorpion Rose Studio. “Clients will see this as unnecessary disruption, brands that are already dissatisfied will have one more reason to leave. The consolidation will lead to a lot of ‘efficiencies’ which, sadly, means layoffs. For small shops and independents, this means access to great talent, new relationships and institutional knowledge.”

Stephen Goldblatt, founder and creative director of independent shop Partners in Crime, said the proposed merger is “proof that big agencies have become completely interchangeable. These holding companies are all about revenue and scale—not about creativity or people, which is a shame for an industry that’s supposed to thrive on those things,” he said.

Goldblatt argued that “this kind of merger is great news for independents and smaller shops.”

Still, other independent shop leaders were not so quick to celebrate.

“I’m not sure it’s black and white,” said David Suarez, founder and co-chief creative officer of Bandits & Friends. “It could benefit us in some ways … clients and people will move around as things settle, whether it’s by forced consolidation or voluntarily. But I also think the brands that would benefit from the scale of a merger like this were already going to big global networks for their RFPs. So I’m happy to let the big holding companies of the world fight over their billion-dollar pitches.”

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