Holding pattern: Omnicom, IPG and the deal that’s leaving marketers on edge

“We’ve had a few people reach out to us [since the news],” said Kangisser, playing coy about naming names.

What they’re asking for reads like a greatest-hits playlist of curiosity and trepidation. 

How will this shake up their agency model? What’s the ripple effect on competition? Will consolidation mean fewer options or better services? Will there be further M&A? What’s the fallout for the smallest players? And the question on everyone’s mind: what’s next? 

The speculation is endless — and that’s exactly the problem. Marketers are stuck in their all too familiar position: waiting to see how the chips fall.

Sure, the “platform not a holdco” vision both Omnicom and IPG CEOs are pitching might resonate with some CMOs. And yes, the promise of a heftier, principal-based buying unit could appeal to marketers who’ve made their peace with agencies operating in what might generously be called transparent opacity. Even the prospect of an expanded Flywheel might spark interest among those doubling down on retail media as a cornerstone of their strategies.

But for now, those benefits remain theoretical — just one more layer of uncertainty in a deal that’s leaving the industry on edge.

Both Omnicom and IPG’s top brass know this, of course. In fact, Omnicom Media Group CEO Florian Adamski spent the first 24 hours after the announcement personally reaching out to clients to reassure them.

“Florian made calls to some clients the day after the news broke, walking them through the potential changes,” said a person familiar with the discussions. 

But those calls didn’t stray far from the script his bosses have followed: promises of greater media buying power and vague nods to scale driving innovation. Eventually, something will have to deliver something more than promises — because marketers won’t wait forever.

They’ve got decisions to make about agency models. Media pitches to conduct. Budgets and plans for next year that are still in flux. If Omnicom and IPG can’t prove they’re still the best partners for these needs, there will be no shortage of rival holding companies ready to swoop in and fill the void.

“It wouldn’t surprise me if rival holding companies try and weaponize the move by creating instability amongst their existing clients — I’ve seen it happen before,” said a media consultant who works with those businesses and their clients on media reviews and strategies. “That will become an even bigger problem as pitches ramp up again.”

But even if Omnicom and IPG’s clients spur those advances, loyalty won’t come cheap — they didn’t ask for this merger, after all. Now, they’ll expect to be rewarded for sticking around. Those at IPG, in particular, will want to see tangible benefits.

Some are already optimistic about those possibilities. According to executives at MediaLink, many marketers who already work with IPG are excited about the idea of having the added heft of Omnicom behind them, should the deal go through. 

And this sentiment isn’t isolated.

“Some marketers will see a potential for enhanced resources, enhanced capabilities, a broader range of services, increased speed for content development” as a plus of the acquisition, explained Lisa Colantuono, president of search consultancy AAR Partners.

But it’s the favored few with ties to both camps who may be best positioned to benefit. These clients are “sitting in the best spot of anybody,” according to MediaLink execs. They’ll expect any savings or advantages generated by the deal to flow directly back into their business. 

Obviously, not every CMO will see it this way. 

For some, the safest play might be sitting tight and doing nothing — at least for now. 

“My company was definitely thinking about putting the IPG media business up for review next year, but I’m not so sure that’s going to happen now,” said a senior marketer who declined to go on the record over concerns their comments could jeopardize current and future relationships with agencies. 

Even the specter of conflicts of interest, once a significant concern, is unlikely to shake advertisers like this from this cautious stance. 

Unlike 11 years ago when Omnicom’s last major M&A attempt with Publicis Groupe faltered, today’s marketers appear less worried. Bespoke teams, dedicated agencies, paper walls and stricter disclosure agreements have made those conflicts easier to manage — or at least easier to overlook. As a result, they’re likely to keep any suspicions at bay until they’re forced to make a decision.

“I don’t think clients will be thrilled about this — at least not initially,” said Brian Wieser, media analyst and author of the Madison and Wall newsletter. “But if I’ve learned anything, it’s that the holdcos need to go to clients and say, ‘Here’s what’s in it for you.’ What’s in it is positioning resources in the places clients really need their agencies to invest.”

Overall, there are essentially two sets of marketer reactions to the acquisition news. 

There are those who are involved in some way — maybe they have their business with Omnicom or IPG or both — so they’re paying close attention, waiting to see what will come and what the agencies have to say to them. 

The other set are marketers who aren’t involved in any way as their business isn’t with Omnicom or IPG. Those marketers will be watching and waiting to see how Omnicom evolves its pitch to marketers but in the interim they’re mostly just happy they aren’t involved and don’t have to deal with the distraction of the acquisition.

For both camps, nothing is set in stone, and a sea of ifs, buts and maybes lies ahead.