"Both Omnicom and IPG own many different ad agency brands, all of which will be profoundly impacted by the merger. Omnicom is retaining only McCann from the IPG roster of agency networks, while folding FCB into BBDO, and both DDB and MullenLowe into TBWA, in order to achieve Omnicom Chairman and CEO John Wren's goal of $750 million in synergies."
"These are more than just a collection of acronyms, though. They are major agency brands, built over decades and generations, that will now disappear as their parent holding company fights to grow, survive, and remain competitive. You'd be forgiven if you think the ad world is an alphabet soup of who's eating who. But there is another side to the business that's steering clear from the publicly traded drama."
Omnicom finalized a $13 billion acquisition of Interpublic Group, prompting consolidation across both companies' agency networks and expected to affect tens of thousands of workers, including roughly 4,000 layoffs by year-end. Omnicom will retain McCann, fold FCB into BBDO, and merge DDB and MullenLowe into TBWA to realize $750 million in synergies. Long-established agency brands built over decades will disappear as holding companies restructure to remain competitive. Meanwhile, independent agencies are expanding in number and taking on larger, more strategic work from major brands, positioning themselves away from publicly traded holding-company dynamics.
Read at Fast Company
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