17234: Omnicom To Declare DDBuh-Bye…?

 

Adweek reported Omnicom delivered a vague response to rumors that the White holding company will erase White advertising agency brands like DDB upon completing its acquisition of IPG.

 

Online chatter included weeping and gnashing of teeth over the possible obliteration of iconic mastheads.

 

Yet such probable moves should not be surprising, as Omnicom has been a leader in orchestrating the commoditization of Adland, building a global portfolio of generic, exchangeable White advertising agencies.

 

Indeed, the White holding company deemed once-storied Goodby Silverstein & Partners equal to Fathom Communications—a shop that ultimately folded its Chicago office before folding sister offices into assorted White ad agencies within the Omnicom empire.

 

The rumors reflect reality.

 

Omnicom Responds To Rumors That It Will Sunset DDB 

 

Following unconfirmed reports that the DDB brand could be retired, Omnicom says it is still evaluating its agency structure

 

By Audrey Kemp

 

Omnicom Group has responded to reports that it plans to retire the DDB agency brand following its $13.5 billion acquisition of Interpublic Group, which is expected to close by the end of November.

 

The company did not confirm or deny the reports, but said it is evaluating its agencies ahead of the deal closing.

 

International advertising publications speculated on Wednesday that Omnicom intends to consolidate its creative operations around three global networks—BBDO, TBWA, and McCann—once the acquisition receives final regulatory approval. If accurate, the move would eliminate DDB as a standalone global brand.

 

In a statement to ADWEEK, an Omnicom spokesperson said the company is “undertaking a rigorous and considered process to ensure we have the very best solutions for the future for us and for our clients,” adding that Omnicom and IPG remain independent companies until the acquisition is finalized.

 

Consolidation underway

 

Founded in 1949 by Bill Bernbach, Ned Doyle, and Max Dane, DDB is one of Omnicom’s three main creative agency networks, alongside BBDO and TBWA.

 

DDB has already begun consolidating some of its operations. Earlier this year, the network unified its North American agencies—DDB Chicago, adam&eveDDB, and multicultural shop Alma—under newly appointed North America CEO Caroline Winterton and COO Isaac Mizrahi.

 

In 2023, DDB New York merged with adam&eveNYC under the name adam&eveDDB.

Last year, Omnicom aligned its creative networks DDB, BBDO, and TBWA, as well as agencies including Goodby Silverstein & Partners and GSD&M, under an umbrella called Omnicom Advertising Group (OAG).

 

Further streamlining Omnicom’s creative portfolio would mirror similar moves by WPP, Publicis Groupe, and Dentsu to integrate creative, media, data, and tech capabilities under fewer brands.

 

A creative legacy

 

DDB operates in more than 40 markets worldwide, and its subsidiaries, such as adam&eveDDB London, are among the most awarded in the industry. It’s unclear how those entities would be integrated if the DDB brand was retired.

 

Over the past several decades, DDB has produced celebrated work like Volkswagen’s “Think Small” and McDonald’s “You Deserve a Break Today.”

 

More recently, however, DDB’s creative output has faced scrutiny.

 

In June, Cannes Lions withdrew the Grand Prix awarded to DDB’s São Paulo-based agency DM9 for Whirlpool brand Consul’s “Efficient Way to Pay,” after determining the case film contained AI-manipulated footage. DM9 chief creative officer Icaro Doria stepped down, but DDB retained the Cannes Lions Network of the Year title.

 

Omnicom’s all-stock acquisition of IPG, announced in late 2024, would create the world’s largest advertising holding company by revenue, overtaking rivals Publicis and WPP. The deal is projected to generate about $750 million in cost synergies.

 

Omnicom is in the final stage of gaining regulatory approval from the European Union, the last remaining market under review.

16762: Omnicom Puts The Con In Consolidation.

 

Campaign reported Omnicom—like other White holding companies—consolidated creative White advertising agencies under a single banner: in this case, Omnicom Advertising Group. Gee, there’s a name that screams creativity.

 

The maneuver is not surprising, as Omnicom has coordinated the consolidation and commoditization of creative services for decades. The White holding company mastered Corporate Cultural Collusion, serving a buffet of White advertising agencies to clients, often avoiding a competitive pitch. Why, Goodby Silverstein & Partners was once presented as interchangeable with Fathom Communications. The fact that Zimmerman Advertising is part of the mashup says it all.

 

In recent years, Omnicom even proceeded to consolidate office spaces.

 

Finally, Pioneer of Diversity John Wren tapped former TBWA Worldwide CEO Troy Ruhanen to serve as OAG CEO, completing the Caucasian cronyism consolidation.

 

Omnicom consolidates creative agencies globally under Omnicom Advertising Group

 

EXCLUSIVE: Led by former TBWA Worldwide CEO Troy Ruhanen, OAG aims to scale innovation and knowledge sharing across the holding company’s creative networks.

 

Omnicom on Tuesday (27 August) unveiled the Omnicom Advertising Group (OAG), a new structure that aligns its creative agencies globally under one leadership team.

 

Troy Ruhanen, formerly CEO of TBWA Worldwide, will lead OAG as CEO. Deepthi Prakash, international president and chief product officer of TBWA Worldwide, is promoted to COO of OAG, and Denis Streiff, CFO of TBWA Worldwide, is promoted to global CFO OAG.

 

OAG will oversee Omnicom creative networks including BBDO, TBWA, DDB and The Collective, which includes Goodby Silverstein & Partners, GSD&M, Merkley & Partners and Zimmerman.

 

In addition to TBWA US CEO Erin Riley, who is promoted to fill Ruhanen’s post as TBWA Worldwide CEO, Omnicom global creative agency leaders will report to OAG leadership.

 

This includes BBDO’s recently-promoted global CEO Nancy Reyes, DDB global CEO Alex Lubar and The Collective CEO James Fenton.

 

The new structure will take effect on January 1.

 

According to Ruhanen, OAG aims to bolster Omnicom’s agency brands while scaling access to tools, technology and talent that sits around the network globally.

 

“We know that certain talent are attracted to certain agency cultures, and our clients prefer to have lots of choices rather than just the one solution on offer. So, it’s really important that the agency brands are strong,” he said. “But we have the ability to use scale to our advantage.”

 

With the new structure, OAG leadership will be able to more easily identify and scale existing solutions, platforms or investments across its creative agencies and clients globally. For instance, if a team in Finland or South Africa has developed a cutting-edge platform or way of working, OAG can bring that to clients and teams around the world.

 

“There are a lot of innovations that bubble up in markets that you wouldn’t expect,” Ruhanen said. “It’s a matter of being able to identify those innovations and say, ‘OK, we really think that this is something that’s quite cutting-edge. Let’s move that around the world. Let’s start to educate people about this way of working.’”

 

OAG is a response to AI and digital transformation that has reshaped the creative industry and competitive landscape. Particularly for creative agencies, scaled access to investments in generative AI, data and other technologies is becoming a competitive advantage.

 

“It’s probably more relevant than ever to be able to benefit from our scale,” Ruhanen said.

 

Additionally, as clients seek more integrated and tailored solutions from agencies, OAG will help facilitate access to talent and teams across the network, while simultaneously providing talent with mobility across different agencies and client teams.

 

“In the past, a lot of us tended to hold on to the [talent] that we have because we were fighting for our personal brand success,” Ruhanen said. “How do we really look at getting the best talent for our clients, the best solution and collaborating together?” He pointed to his nearly nine years at BBDO and Reyes’ recent move from TBWA to BBDO as examples of Omnicom’s track record with talent mobility.

 

Omnicom does not plan to merge or sunset any agencies as part of the new structure, and will pitch solutions as OAG or as individual agencies, depending on the client’s needs. “We have far greater flexibility to be able to meet the needs of the client,” Ruhanen said.

 

The model follows a structure Omnicom has implemented in other disciplines, including Omnicom Media Group, Omnicom PR Group and Omnicom Health Group.

 

“The [creative] agency world really is—I wouldn’t say it’s the last area—but it’s close to being that,” Ruhanen said, adding that Omnicom’s creative agencies have already started to work this way behind the scenes.

 

While OAG will add leaders in specialist areas in the months to come, the intention is not to build a “holding company within a holding company,” Ruhanen said.

 

He added that he will judge his own and the group’s success by each of the individual agencies' success, and that as competitors merge agency brands and allow them to fade to the background, maintaining strong brands and cultures is a competitive advantage.

 

“This doesn’t come at the sacrifice of the agency brands,” he said. “It’s there to help them.”

15008: Proximity + RAPP = PAP.

Campaign reported Omnicom dumped Proximity into RAPP, designing another example of downsizing disguised as dynamic. Redundancies to follow. RAPP CEO Marco Scognamiglio gushed, “Unifying these agencies under the RAPP brand accelerates the opportunity for our clients and our talent to benefit from a breadth of skills that rival any agency’s.” Yeah, the newly excreted dung heap can match any White agency in the Omnicom outhouse—including Fathom Communications.

Omnicom folds Proximity into Rapp

Newly formed agency will have 500 staff in UK.

By Gurjit Degun

Omnicom is dropping the Proximity name and merging the agency with Rapp to create a shop that fuses customer experience and engagement.

In the UK, the business will be led by the agencies’ former chief executives, Chris Freeland (who becomes executive chairman) and Gabby Ludzker (who remains in the role of CEO).

Mike Dodds, global CEO of Proximity, takes on the role of CEO of Rapp EMEA.

The UK agency will have 500 staff, making it one of the biggest in the Omnicom portfolio. Proximity has 208 and Rapp has 307 employees, meaning there will be some redundancies.

Campaign understands that the merged shop will have one creative leader in London but this has not yet been confirmed. John Treacy and Al Mackie currently lead the creative output for Proximity and Rapp respectively.

The move is believed to have been in the works since February, before the impact of the coronavirus outbreak hit the ad market. The newly formed agency aims to “create a more compelling proposition around data, technology and strategy”.

Globally, the agency, which has 19 offices around the globe, will be led by Rapp CEO Marco Scognamiglio.

He said: “Unifying these agencies under the Rapp brand accelerates the opportunity for our clients and our talent to benefit from a breadth of skills that rival any agency’s.

“We already partner together on a number of clients globally and this will clearly establish our UK office, with more than 500 employees, as a flagship agency within the Rapp worldwide global network.”

The two UK agencies are located in different buildings at Omnicom’s Bankside headquarters in London. Freeland and Ludzker will now work on how the two shops will come together on a practical level once the lockdown measures are lifted.

Rapp will continue to operate within the Omnicom Precision Marketing Group. Its CEO, Luke Taylor, said: “At OPMG, we are always strategically reviewing how we can deliver a more competitive and relevant offering to our clients. This union aligns highly complementary skills and services, and will benefit both our people and clients worldwide.”

14678: Go Sell It On The Mt.

Adweek reported “Pepsi Sends Mountain Dew Account to TBWA After 46 Years With BBDO—Decision followed a closed Omnicom review.” Wow. What a shocker. Expect BBDO to soon pick up duties for Propel—provided Fathom Communications isn’t available.

14336: TTFN VMLY&R.

Adweek reported PepsiCo is dumping WPP’s VMLY&R ASAP. The former VML served as digital agency for Gatorade and Tropicana for over 8 and 4 years, respectively. Soon-to-be-fired staffers will need Gatorade’s electrolyte-replacing benefits when required to quickly pack their belongings and hurriedly vacate their cubicles. The geniuses behind the recent merger likely aren’t sweating, so they’ll just sip Tropicana juices in their safe offices. No word yet on where the businesses might shift. Omnicom is probably checking to see if Fathom Communications is available.

PepsiCo to End Its Relationship With WPP’s VMLY&R After More Than 8 Years

Agency ran digital and social for Gatorade and Tropicana

By Patrick Coffee

PepsiCo has moved to end its relationship with VMLY&R after eight and a half years, a client spokesperson confirmed today.

The WPP-owned agency has counted Gatorade and Tropicana digital as two of the larger accounts run out of its Kansas City, Kan. headquarters.

“Gatorade and digital agency of record VML have enjoyed a successful relationship over the past eight and a half years (Tropicana for four and a half years),” the Pepsi representative wrote.

She also said the company is “proud of our work together and the business results it has achieved” but has “agreed to part ways,” adding: “As we look ahead to 2019, we will be evaluating a differentiated model within the digital space. The companies will begin to transition work but continue to work together throughout the remainder of 2018. We wish VML continued future success.”

An agency spokesperson declined to comment and referred to the client. According to multiple parties close to the business, VML executives alerted employees to the change on Tuesday morning.

The news comes approximately two weeks after WPP announced that VML would merge with the more traditional creative network Y&R to form VMLY&R in the first major move made by incoming holding company CEO Mark Read.

It is unclear at this time what the “differentiated model” will entail and where the work in question will go. Sources did confirm, however, that it will not be handled by the two primary brands’ agencies of record, TBWA\Chiat\Day and BBDO.

Representatives for both Omnicom shops declined to comment.

TBWA\Chiat\Day handled the digital work on Gatorade from 2008 until 2010, when PepsiCo went outside its Omnicom stable to award the business to VML. The agency reportedly beat out Tribal DDB, Organic, Huge and Publicis Groupe’s recently-shuttered Odopod in a competitive review.

As noted in the quote above, the shop then added digital creative duties for Tropicana to its client roster in 2014, later picking up secondary beverage brands Brisk Tea and Propel.

Pepsi has been moving much of its social media work in-house over the past two years. In late October 2016, Adweek reported that the company would be handling social for its namesake brand internally, and Pepsi confirmed the news two weeks later.

13750: PepsiCo-Omnicom Exclusive Affair.

Advertising Age reported PepsiCo is executing an exclusive review, where only White advertising agencies from Omnicom will be “competing” for Pepsi brand work. “Omnicom has been our longstanding partner because we value the diverse array of agencies and talent they have under one roof,” claimed a PepsiCo spokeswoman. “We continually evaluate the best ways to market our brands, and in the U.S. on brand Pepsi, we are once again looking within Omnicom for custom creative solutions.” Well, it’s not the first time PepsiCo has engaged in Corporate Cultural Collusion with Omnicom. If Fathom Communications is still in business, the place is a definite contender. If they’ve gone out of business, Omnicom will simply build a new White ad agency to replace them. On the other hand, that the PepsiCo spokeswoman praised the holding company for its “diverse array of agencies” is pretty crazy. Yes, there are lots of stallions in the Omnicom stable, but mostly of a White horse variety—although the place is working hard to add White fillies and mares to the fold. Maybe Kendall Jenner will protest that Black lives don’t matter at Omnicom.

Pepsi Launches an Omnicom-Only Creative Review

By E.J. Schultz, Lindsay Stein

PepsiCo has put its flagship soda brand in creative review in the U.S., but the brand is only considering a handful of Omnicom Group agencies, according to people familiar with the matter.

The marketer has a long relationship with Omnicom, but in recent years has moved assignments around, including handing some work to non-Omnicom shops such as the independent agency Mekanism. The review signals that Pepsi could be returning to a lead agency model. Its restriction to participants from Omnicom is good news for the agency holding company, although there could be winners and losers within it.

“Omnicom has been our longstanding partner because we value the diverse array of agencies and talent they have under one roof,” said a PepsiCo spokeswoman. “We continually evaluate the best ways to market our brands, and in the U.S. on brand Pepsi, we are once again looking within Omnicom for custom creative solutions.”

Brand Pepsi spent $192 million on measured media in the U.S. in 2016, according to the Ad Age Datacenter.

Historically, Omnicom’s BBDO is most closely linked to Pepsi as the maker of famous campaigns like the “Pepsi Generation.” Pepsi moved away from BBDO in 2008 as it began working with TBWA/Chiat/Day Los Angeles.

The brand later adpoted a more flexible agency model within Omnicom, an approach it dubbed Galaxy, in which the brand uses various Omnicom shops, including 180LA. BBDO returned to Pepsi in 2015 when it won an assignment to make an ad starring Marshawn Lynch. It followed up with more NFL-related advertising last year. Other Omnicom agencies with links to Pepsi include Goodby Silverstein & Partners, which has worked on PepsiCo’s Frito-Lay brands over the years. (Lay’s is currently in an agency review of its own.)

The Pepsi review comes three months after the brand’s embarrassing Kendall Jenner ad flop, which many outsiders blamed on the brand’s reliance on its in-house agency. However, that ad was overseen by PepsiCo’s global team. The Omnicom review is confined to the U.S. market and overseen by U.S. executives. In the U.S., Pepsi is overseen by Greg Lyons, who took over as chief marketing officer for North American beverages in February. Lyons’ PepsiCo tenure includes a stint as VP-marketing for Mtn Dew, which has used BBDO over the years.

Outside of Omnicom, PepsiCo uses WPP’s VML, which was named lead creative for Brisk last summer. Dentsu Aegis Network’s Firstborn has been the Pepsi brand’s lead digital creative shop since October. Cheil Worldwide’s Barbarian Group, which was undergoing a number of executive departures at the time, had been the incumbent on both Brisk and Pepsi digital.

In an earnings report on Tuesday, PepsiCo reported that organic volume growth in its North American beverage business was flat in the second quarter. Brand Pepsi’s volumes fell 2.8% in 2016, finishing with 8.4% market share in carbonated soft drinks, according to Beverage Digest. CEO Indra Nooyi said on an earnings call that the company is “encouraged by the performance of Pepsi Zero Sugar, but have more work to do on the carbonated portfolio overall.”

Nooyi added that the company will be “allocating a bit more marketing behind” Pepsi in the year’s second half. Pepsi is an NFL sponsor, so a good chunk of that new advertising will likely be occurring in the fall.

12833: Mega-Studio Meh.

Adweek reported “Omnicom Is Creating One Mega-Studio by Combining 3 Production Departments,” essentially pooling resources from BBDO, DDB and TBWA. Amazing that Fathom Communications wasn’t included. At this point, isn’t Omnicom essentially one big, White studio? Maybe the White holding company will combine its reception and mailroom departments to create the biggest minority entity in the industry. Now, that would be a pioneering endeavor.

Omnicom Is Creating One Mega-Studio by Combining 3 Production Departments

Pools resources to focus on content, real-time marketing

By Patrick Coffee

This week, the Omnicom Group revealed its not-so-secret weapon in classic Transformers style.

As part of an effort to more effectively serve a wide range of global clients across agencies, the holding company combined the New York-based production departments of BBDO, DDB and TBWA, forming a single entity called eg+ worldwide.

The production teams from those agencies will now effectively live under one roof. The main New York offices, which officially launched Aug. 31, are located at 1285 Avenue of the Americas, which doubles as the headquarters of BBDO. An Omnicom spokesperson told Adweek it will also open “satellite offices” at various agencies when needed as part of “a hub-and-spoke approach.”

The move is the latest phase of a project launched in 2014, when content marketing company E-Graphics merged with Hub Plus to form eg+. Omnicom calls the resulting group a “global implementation and production agency,” and the shop’s CEO, Paul Hosea, who formerly ran E-Graphics, told Adweek, “We focus on production strategies and plans for clients’ assets with KPIs around asset development,” adding, “We have 1,200 employees and offices in 14 countries.”

Two of those countries are England and Malaysia, and over the past nine months, Omnicom has pooled its resources in London and Singapore to create local eg+ units. Repeating the pattern in New York was a natural next step in the evolution of the project.

So, what’s the bigger story? eg+ is less a shift toward more efficient production capabilities than it is a companywide effort to address clients’ growing need for services that don’t fall under the traditional advertising banner. This means on-the-spot content creation, locally targeted campaigns and real-time marketing.

“We will work with the agencies to not produce commercials, per se, but to provide the distribution and applications of their messages both above and below the line,” Hosea said. “We work across media—digital, print, moving images and ATL work.”

The key issue for Omnicom is flexibility and a greater capacity for “quick turnaround.” Hosea said, “Global clients are requesting more channels, and we had to scale to distribute their messages in all mediums.”

Managing director George Ashbrook, who has worked on the project since its inception last year, will also oversee its New York operations while reporting to eg+ president of the Americas Miles Peacock (who, in return, reports to Hosea).

The agencies involved will maintain their independence, but production teams within each shop will now collaborate across accounts with the “capabilities of eg+ available to each client.” The larger company will continue working with third-party production studios while simultaneously handling more of its production duties in house.

Omnicom thinks the new unit will affect future pitches in which Hosea and others hope to highlight a “more competitive, more comprehensive offering.” As Omnicom senior vp of finance and controller Peter Swiecicki told Adweek, “The brain and the heart [of our company] is with the agencies,” and “the arms and legs are eg+.”

Swiecicki called the new arrangement “business as usual but better,” noting that Omnicom’s ultimate goal is to have the ability to more easily achieve global scale with clients’ marketing efforts. Hosea said his fellow holding company executives see this as “a key role” in the market moving forward—though he can’t speak for competitors like WPP, which recently arranged a “preferential media pricing” (read: BFF) relationship with BuzzFeed and its in-house production studios.

Most of the employees working in the production departments at BBDO, DDB and TBWA have already relocated to the “hub,” with more moves expected in the coming months.

This isn’t your standard round of staffing changes, though. Hosea told Adweek, “There will be some restructuring in terms of titles and responsibilities,” but “we don’t see any redundancies. So there will be no reduction in staffing at all.”

12826: Humana Hearts Omnicom.

AgencySpy reported Humana chose White advertising agency BBDO as its lead creative shop, replacing White incumbent RAPP. Both agencies are within the Omnicom network. Moving from RAPP to BBDO is like upgrading from Fathom Communications to, well, any Omnicom enterprise. A client spokesperson announced, “BBDO joins fellow Omnicom Network partners and incumbent Humana agencies PHD and GMR Marketing in helping to advance the brand and the business.” Humana presents another healthy example of Corporate Cultural Collusion at work. Oh, and selecting a White advertising agency where exclusivity reigns flies in the face of the insurance company’s alleged commitment to diversity and inclusion.

12479: Omnicom To Play Ace Card.

Adweek reported Ace Hardware has launched a creative account review. GSD&M—an Omnicom shop and proud creator of Annie the Chicken Queen—has serviced the client since 2009. Look for Omnicom to use the pitch as an opportunity to revitalize Fathom Communications. Why, the holding company will dig into its full toolbox of tricks to retain the hardware chain.

Ace Hardware Has a Creative Review Underway

Retailer spends over $50 million in media annually

By Kristina Monllos

Ace Hardware is in the early stages of a creative review, according to sources, who said a request for proposals is likely out to agencies. It is not immediately clear how long the search will take or if the brand is using a consultant.

The home improvement retailer spent $57 million in media during the first nine months of 2014 and $52 million in 2013, according to Kantar Media.

GSD&M in Austin has handled the business since 2009. The Omnicom Group shop declined to say if it will defend the business.

The brand’s media business, which Spark has run since 2013, is not included in the review.

A representative for Ace could not be reached for comment.

11955: Whites Storming The Castle.

Advertising Age reported White Castle is placing its account in review, and incumbent Zimmerman from Omnicom will compete to hold the business. Should be a fierce showdown between Zimmerman and Fathom Communications—like watching Curly and Shemp battle for the role of the third stooge.

White Castle Begins Agency Review

Omnicom’s Zimmerman Has Handled Account Since 2009

By Malika Toure

Burger chain White Castle is conducting an agency review, the company confirmed Friday.

The incumbent, Omnicom’s Zimmerman, has led the fast-food brand’s creative and media efforts since 2009. Prior to that, JWT spent 15 years as White Castle’s agency of record.

“We always look at all of our partners on a regular basis, every five to seven years,” said Kim Bartley, White Castle VP-marketing and menu development. The marketer issued a request for proposals to agencies in June and has seven shops in the running, she said. It plans to make a decision by October.

“Zimmerman is one of the agencies being considered,” she added. “It’s a very good partner.”

Zimmerman called the review normal procedure for White Castle. “We’re very proud of the work our companies have done together,” a Zimmerman spokesman said in a statement, “and we’re happy to go in and present additional work, confident that our successful partnership will continue.”

White Castle spent more than $9 million in measured media in 2013, according to Kantar Media. The company has no plans to increase its ad spend in the short term, according to Ms. Bartley. “But we’re long-range planners,” she said. “This year, we are 93 years old.”

The review comes five months after Zimmerman lost the much larger Papa John’s business to Grey.

Part of the criteria will be plans to broaden White Castle’s appeal and contemporize the brand, Ms. Barley said. “It’s about showing business acumen, combining traditional and digital,” she said.

Rojek Consulting Group is assisting the effort, the third White Castle review for Rojek President Lorraine Lockhart. “What used to be a more operationally-driven company is now more marketing and brand driven,” Ms. Lockhart said.