Showing posts with label mergers and buyouts. Show all posts
Showing posts with label mergers and buyouts. Show all posts

Tuesday, May 05, 2026

17461: OmnicoMusical Chairs.

MediaPost reported on more musical chairs at Omnicom, with a CEO departure activating a dominoes effect of succession for White executives.

 

So, now Omnicom is reeling with restructuring, redundancies, RIFs, resignations, and reassignments—creating an R-rated experience for worker drones.

 

Rising Omnicom Star Painter Out: Gambino, McCord Succeed Omni, Commerce Respectively

 

By Joe Mandese

 

Omnicom this morning announced long-time Flywheel Digital executive Christine Gambino has been named CEO of its homegrown artificial intelligence (AI) platform Omni, succeeding Duncan Painter, who is leaving Omnicom.

 

In a related move, Omnicom said long-time Flywheel CEO Alex McCord will now lead Omnicom Commerce, a unit that previously reported to Painter. 

 

Gambino, who joined Omnicom when it acquired Flywheel from Ascential PLC for $825 million in January 2024, has been serving as COO of Omni since October 2025.

McCord had been with Flywheel since 2016, when he joined from related company Compass Marketing Inc.

 

Painter, who had been a rising star inside Omnicom since he joined after serving as CEO of Ascential and negotiating the sale of Flywheel to Omnicom, has focused on integrating Omnicom’s commerce, retail media, and proprietary data companies -- including Flywheel and more recently, Acxiom (acquired as part of Omnicom’s purchase of Interpublic) had been seen by some as being a potential successor to Omnicom CEO John Wren.

 

In recent months, Omnicom executives have touted the company’s proprietary data companies as contributing to Omni’s competitive advantage vs. competing holding companies.

 

“I’m proud of how swiftly we launched the next generation of Omni following the Interpublic acquisition, establishing it as a unified asset for the combined group,” Painter said in a statement adding, that he has “complete confidence” in Gambino and McCord “as I move into my next chapter in the U.K., where I’ll be closer to my family.”

 

Omni and Flywheel will continue to operate as a core part of Omnicom’s Integrated Media capabilities. 

Friday, May 01, 2026

17457: On The Fabrication Of Lola USA.

 

MediaPost reported Omnicom executed another erasure-mashup involving two White advertising agencies—180 US and adam&eveDDB NY—to launch Lola USA.

 

The Lola agency brand was already established globally, with Lola Madrid and Lola\TBWA in Brazil.

 

The Lola name derived from combining the Lo from Frank Lowe of Lowe & Partners and the La in Latino. Lowe & Partners was a White advertising agency that IPG merged with Mullen Advertising in 2015 to create MullenLowe—which was ultimately erased and absorbed by TBWA after Omnicom acquired IPG last year. Oh, and IPG is gone too.

 

Pity the drones who shuffle through constant merging, erasing, restructuring, redundancies, and RIFs—including endless revisions to org charts, business cards, email footers, and LinkedIn profiles.

 

An executive at the new Lola USA declared, “We’re unashamedly ambitious. From top to bottom, there’s something beautifully irrational about how driven this team is to solve hard problems for our clients. We’re hungry. We’re obsessed. And we won’t rest until our friends jealously text us about what we’ve created.”

 

But first, the team must figure out who, what, when, where, why, and how they are.

 

Lola USA Debuts, Combines 180 US And Adam&EveDDB New York

 

By Fern Siegel

 

Lola USA has debuted, combining 180 US and adam&eveDDB New York into a micro-network within Omnicom. Lola Madrid and Lola\TBWA in Brazil are also part of the company.

 

The new agency is led by CEO Agathe Guerrier and CCO JD Jurentkuff. Lola USA reports 50% of the agency is dedicated to creative roles.

 

“Many marketers are feeling the squeeze, with shrinking ambition driven by tighter budgets and uncertainty,” said Guerrier, the former 180 US CEO. “We’re here to position a new type of agency. One that combines the artisanal culture of an independent, with the depth of technology and connected capabilities only Omnicom can provide. An agency reimagined for the future, with consultative acumen and cultural edge.”

 

Clients include Porsche, adidas, Molson Coors, JetBlue and Disney. First work is expected in the coming months.

 

The agency specializes in brand and marketing strategy, creative campaigns, brand design, and social and editorial storytelling, supported by Omnicom’s AI capabilities.

 

“We’re unashamedly ambitious,” added Jurentkuff, a former 180 US TBWA\Worldwide and Apple agency executive. “From top to bottom, there’s something beautifully irrational about how driven this team is to solve hard problems for our clients. We’re hungry. We’re obsessed. And we won’t rest until our friends jealously text us about what we’ve created.”

 

Additional staff includes Kimmy Harvey as head of creative operations, with Mike Bokman and Jason Ashlock as ECDs. Mitch Horton leads as head of design. On the business side, Elliott Bastien is head of strategy, Laura Cona is Chief Growth Officer, Devon Hay is managing director, Caroline Jackson is Chief Client Officer and Margaret Coleman is head of account management.

Sunday, April 19, 2026

17444: FCB Health Transformed To Olixir.

 

Omnicom published a press release announcing the White healthcare agency formerly known as FCB Health New York is being renamed Olixer New York, partly because the FCB masthead was erased when Omnicom acquired the White holding company formerly known as IPG.

 

The name combines the Omnicom ‘O’ with ‘elixir’ to underscore the mediocre creativity prevalent in pharmaceutical marketing.

 

The move also underscores the shuffling shitshow resulting from the acquisition.

 

Most of the White advertising agencies were blended into legacy mastheads including TBWA, BBDO, and McCann—all under the umbrella of Omnicom Advertising.

 

Olixir likely launched to appease clients and address conflicts—also underscoring Omnicom’s commitment to the health and wellness of its shareholders.

 

BTW, the name isn’t original, as evidenced by the logos below.

 

FCB Health New York Becomes Olixir New York, Launching a New Global Brand for Omnicom Health

 

Rebrand marks the evolution of one of healthcare marketing’s most awarded agencies, with plans to expand the new brand beyond the US

 

NEW YORK, April 15, 2026 – Omnicom Health today announced that FCB Health New York, one of the most awarded agencies in healthcare marketing, is rebranding to become Olixir New York – the first chapter of a new global brand that’s launching in the US and will soon expand to additional markets. The move marks the next evolution of Omnicom Health’s healthcare professional and consumer advertising offering, pairing the agency’s legacy of creative excellence with the scale, connectivity and AI‑enabled capabilities of the broader network. Proven network veterans Linda Bennett and Kathleen Nanda will continue to lead as President and Chief Creative Officer, respectively.

 

“FCB Health NY has never stood still, and Olixir NY reflects that same drive to keep evolving for clients and relentlessly seeking what’s next,” said Bennett. “We’re building on a powerful legacy with a brand designed for what modern healthcare marketing demands – bold thinking, deeper connectivity and access to the full strength of Omnicon Health’s talent, capabilities and intelligence.”

 

Olixir takes inspiration from the word ‘elixir’ and marries it with the Omnicom ‘O’ to demonstrate the magic that happens when its storied success, creative and strategic prowess and commitment to innovation are paired with the breadth and depth of the interconnected network’s vast resources and AI‑enabled capabilities.

 

“Our evolution to Olixir NY reflects exactly who we are – fearless creators and thinkers who stop at nothing to improve lives,” said Nanda. “Our clients trust us to spark understanding, shift mindsets and show people there is a better way. That drive comes from one question we ask ourselves every day: Where else? Where else will you find a bench this deep that leads with grit, passion and ingenuity? The answer has pushed us into our next era.”

 

This transformation comes on the heels of a momentous 2025 for the agency, with wins including “Agency of the Year – Category I” at the Manny Awards and multiple prestigious creative award wins across shows including The One Show, D&AD, London International Awards, MM+M Awards, Creative Floor Awards and more. Its renowned and award‑winning Snowball, The Trial for #ClinicalEquality and Disappearing Doctors campaigns are in their second, fifth and seventh year, respectively, demonstrating the agency’s longstanding commitment to important causes and using their creative firepower for good.

 

About Olixir New York

 

Olixir NY is a full‑service healthcare marketing agency built on the legacy of FCB Health New York, one of the industry’s most awarded agencies. Combining creative excellence and strategic depth with the scale, connectivity and AI‑enabled capabilities of Omnicom Health, Olixir NY helps health and life sciences brands spark understanding, shift mindsets and drive meaningful impact. Powered by Omni and Acxiom’s unparalleled life sciences data, Olixir delivers faster, smarter, more human solutions for clients across the healthcare landscape. Olixir NY is part of Omnicom Health, the world’s leading healthcare marketing communications network. Visit OlixirNY.com to learn more.

 

About Omnicom Health

 

Omnicom Health is the world’s leading and most awarded healthcare marketing communications network designed to accelerate intelligent growth for health and life sciences brands. Uniting best‑in‑class healthcare professional and consumer advertising agencies and specialized capabilities including patient engagement and support, medical communications, market access and more – we deliver connected solutions that drive measurable impact across the full healthcare landscape. Powered by Omni and Acxiom’s unparalleled life sciences data, we drive faster, smarter, human solutions for clients including Fortune 500 pharma and life sciences companies and countless startups, biotech and biopharma companies. We are part of Omnicom (NYSE: OMC). Learn more at omnicomhealth.com.


Thursday, April 09, 2026

17431: How Omnicom Lost Its Car Keys To Acura.

 

Advertising Age spotlighted the latest escapade at Omnicom involving collateral damage from the acquisition of IPG, whereby the Acura creative account drove away from Omnicom and parked at independent White advertising agency RPA.

 

MullenLowe, formerly within the former IPG, had serviced Acura since 2013. The conflict pileup began when MullenLowe was absorbed by TBWA, the latter being a longtime partner of Nissan.

 

Omnicom sought to remedy matters via Corporate Cultural Collusion, offering other White advertising agencies like Deutsch. Acura wound up accelerating toward RPA, which has worked on parent brand Honda since 1987, and had already been handling Acura media duties since 2017.

 

Ad Age made no mention of the Omnicom drones who suddenly find themselves without a ride and may be forced to seek employment as Uber drivers.

 

How Omnicom tried—and failed—to keep hold of the Acura creative account

 

By Ewan Larkin

 

American Honda Motor Co. has moved Acura’s creative business to RPA, a longtime agency for the Honda brand and its media partner for both Honda and Acura, without a formal review.

 

The shift came after Omnicom couldn’t figure out where to park Acura within its expanded creative agency lineup. MullenLowe, which was part of Interpublic Group of Cos., had held the Acura creative account since 2013. After Omnicom acquired IPG in November, the holding company ran into an issue with MullenLowe’s creative relationship with the Honda-owned car brand.

 

Omnicom couldn’t place the Acura business with TBWA, which absorbed MullenLowe in the deal, because of that agency’s relationship with Nissan, which presented a conflict, according to people familiar with the matter. TBWA\Chiat\Day has worked with Nissan since it won the creative account in 1987, and that relationship has evolved into Nissan United, Omnicom’s bespoke creative and media team for the brand.

 

The situation follows the collapse of merger talks between Honda and Nissan in February 2025.

 

Instead, Omnicom proposed placing the account under IPG creative agency Deutsch, which has experience in the automotive sector from its time on the Volkswagen U.S. creative account, according to people close to the situation.

 

American Honda confirmed it had moved the Acura creative account to RPA, but pushed back on the idea that the shift stemmed from Omnicom’s acquisition of IPG.

 

“American Honda made a strategic decision to consolidate creative work for both the Honda and Acura brands within a single agency to better align with business objectives,” American Honda said in a statement to Ad Age. “Effective April 1, 2026, creative work will be led by our longstanding agency partner, RPA—which is already managing media buying for both brands.”

 

Asked about potential conflicts with Nissan and Omnicom’s plan to place the business with Deutsch, American Honda stated: “We would ask that you talk to Omnicom about its internal strategies.”

 

The auto company also thanked MullenLowe for its tenure: “We extend our sincere appreciation to the entire team at MullenLowe for 12 years of creative partnership and valuable contributions to the success of the Acura brand.”

 

The shift means Omnicom will move forward without an account MullenLowe had held since 2013, when Honda split its agency roster, keeping RPA on Honda creative but moving Acura creative to MullenLowe and media for both brands to MediaVest (now Spark Foundry). RPA took back media duties for both brands in 2017.

 

Omnicom, Nissan and RPA declined to comment on the account move. Deutsch deferred calls to comment to Honda.

 

Acura spent $128 million on U.S. measured media in 2025, down from $152 million in 2024, according to MediaRadar. The brand recently reported its best first-quarter performance in four years, with deliveries rising 5.2%.

 

Omnicom’s acquisition of IPG, which closed in November, has necessitated some reshuffling of accounts. For instance, McCann, not FCB (which has been folded into BBDO), is now leading the Kimberly-Clark Co. business.

 

Marketers don’t seem to be as concerned about conflicts these days—Omnicom itself works with a spate of automotive brands—but the Acura account move serves as a reminder that sensitivities still exist.

 

“Conflict is an ongoing challenge for clients and agencies,” said Greg Paull, president of global growth for consultancy Mediasense, adding that as holding companies have leaned harder into integrated services, managing those conflicts has only gotten harder.

 

When Omnicom announced its plan to acquire IPG, Chairman and CEO John Wren downplayed conflict concerns. “I’m not aware or threatened by any conflict as a result of us announcing that we’re joining forces,” he said on a December 2024 call with investors. He went on to acknowledge that some clients may ultimately move their business elsewhere because of the deal, which created the world’s largest agency company by revenue when it closed last year.

 

“Could it happen? Yes. Will it happen? Yes,” Wren previously said. “But I think people will be short-sighted in doing that.”

Wednesday, April 01, 2026

17422: Pickpocketing John Wren’s Wallet.

Mediapsssst reported Omnicom Chairman and CEO—and Pioneer of DivestitureJohn Wren pocketed $69,865,846.00 in total compensation for 2025.

 

To put the figure in perspective, Wren’s jackpot is roughly $50.7 million more than the incentivized loot WPP CEO Cindy Rose could collect in 2026.

 

Additionally, the amount is roughly $69.9 million more than the average salaries of thousands of Omnicom and former IPG drones who lost their jobs after the mega-acquisition.

 

Finally, Pioneer of Diversity Wren received a gazillion dollars more than the Omnicom diversity budget.

 

John Wren’s Big Payday

 

By Richard Whitman, Columnist

 

Omnicom CEO John Wren received a very big pay raise in 2025 with total compensation of $69,865,846.00. That’s more than triple his total pay package for the prior year, according to the company’s recently issued 2026 proxy statement.  

 

Most of his 2025 pay came in the form of option awards valued at nearly $69.3 million.  

 

The big pay bump is part of what the company called a “redesigned” compensation package for Wren that extends through 2028 when Wren is expected to step down from the CEO post after 30 years while remaining executive chairman. 

 

From 2026 through 2028 Wren will receive a $1 annual salary and $169,180.00 in total compensation. 

 

According to the proxy statement “The Compensation Committee believes that the CEO’s compensation structure should be based on strategic context, and given the strategic transformation that the Company is undergoing, the Compensation Committee believed that a special grant of stock options in lieu of base salary and all other incentive compensation through the end of fiscal year 2028 was the most appropriate form of compensation for Mr. Wren to drive long-term shareholder value creation.” 

 

With the completion of the IPG acquisition, Wren’s to do list includes overseeing the full integration of the combination and its continuing transformation in what the company called the “new era of marketing and sales.” He’ll also work closely with the board in identifying a CEO successor.   

 

The document also lists the next three highest compensated executives at the company last year including Chief Operating Officer Daryl Simm ($10 million), CFO Phil Angelastro ($8.95 million) and General Counsel Louis Januzzi ($2.2 million). 

Wednesday, February 25, 2026

17381: On Omnicom WARN WTF BS.

 

Adweek reported Omnicom clarified a WARN notice filed with New York State in December—indicating 100 layoffs for IPG’s former NYC headquarters—is just part of the 4,000 pink slips to be issued in the months ahead.

 

Still no clarification, however, on how restructurings, redundancies, and RIFs impact DEIBA+ Human Heat Shields.

 

Omnicom Clarifies WARN Notice Detailing 100 Job Cuts 

 

Holdco confirms redundancies were part of the 4,000 announced in December following its IPG acquisition

 

By Rebecca Stewart

 

UPDATE: IPG has confirmed that a newly-published WARN notice filed with New York State pertains to redundancies that already occurred as part of its $13 billion November acquisition of Interpublic Group (IPG).

 

Based on the WARN data, which Omnicom filed in December but WARN did not make public until Feb 23, ADWEEK previously reported that Omnicom planned to cut an additional 94 jobs in the U.S. starting March 1.

 

However, an Omnicom spokesperson has since clarified: “This is nothing new as the filing is a compliance requirement for actions we made back on December 1, 2025.”

 

The notice detailed how 92 of 251 employees at IPG’s former NYC headquarters at 909 Third Avenue were laid off as part of its sweeping restructuring, along with two of 84 staff at the former holdco’s 100 West 33rd Street office.

 

‘New Omnicom’ Doubles Cost-Cutting

 

In December 2025, the new Omnicom announced 4,000 redundancies as part of a business reset, which saw it retire major creative agency brands including FCB, DDB, and MullenLowe.

 

The job cuts came in addition to the 3,200 roles IPG shed earlier last year, ahead of the acquisition, and the 3,000 staffers Omnicom let go after announcing the deal last fall.

At the time, Omnicom chief executive (CEO) John Wren estimated the total number of eliminated positions to around 10,000, or roughly 8% of the combined companies’ 2024 headcount.

 

During Omnicom’s first post-acquisition quarterly earnings update in February, Wren revealed that he had doubled the company’s cost-cutting target to $1.5 billion by 2028. This includes saving $900 million in 2026.

 

Wren told investors that $1 billion of Omnicom’s savings would come from “reductions in labor costs,” achieved by cutting corporate, network, and operational roles.

 

He also said that a simplified regional, country, and brand structure, and a more “unified” business model, along with outsourcing and offshoring to lower-cost markets, would help Omnicom reach its goal in the next 30 months.

 

CORRECTION 10:43 AM ET: A previous version of this story stated that Omnicom planned to cut an additional 94 roles. The article has been updated to clarify that the WARN notice reflected previously announced, public redundancies.

Thursday, February 19, 2026

17368: Additional Thoughts On Omnicom 4Q WTF BS.

 

MediaPost reported on the Omnicom 4Q report featuring an upcoming $2.5B Fire Sale, whereby the White holding company will unload non-strategic and underperforming assets.

 

The report sparked additional thoughts from this blog’s editorial board.

 

Wonder if any non-White assets—e.g., minority-owned enterprises like Spike DDB or alma—will be deemed non-strategic or underperforming.

 

What is the impact on psychological safety and morale as Omnicom drones wait to learn if they are part of non-strategic or underperforming assets—and experience their ultimate employment fates?

 

Omnicom Chairman and CEO John Wren is changing his honorary title from Pioneer of Diversity to Pioneer of Divestiture.

 

Omnicom To Sell $2.5B In ‘Non-Strategic,’ Underperforming Assets

 

By Steve McClellan

 

Omnicom issued its fourth quarter and full-year results late Wednesday without providing formal organic growth figures or its outlook for 2026.  

 

The firm said there would be more to come on that at an investor day event in March, although it’s likely that the firm will not be issuing formal organic growth estimates — seen by many as a key metric of ad industry health — throughout 2026. Informal estimates on earnings calls are more likely. 

 

One reason: Planning for this year is not yet complete because executives have been busy wrapping up the Interpublic Group merger and integrating its businesses into the company. 

 

On an earnings call, CFO Phil Angelastro estimated that fourth-quarter organic growth was about 4% for the businesses that the firm intends to hang on to for the long term. 

 

Not included in that growth estimate are businesses that Omnicom is planning to dispose of — about $2.5 billion (revenue) worth of businesses in the combined portfolio.

 

It also plans to reduce its ownership to minority stakes in another $700 million worth of businesses, mostly in smaller markets. The latter actions are more about “simplicity issues,” than underperformance, Angelastro said.  

 

The outright sales are related to both non-strategic and underperforming assets. The firm has already sold about $800 million of that total, including experiential marketing firm Jack Morton. 

 

The integration of the company’s major platforms — including Omni, IPG Interact, Flywheel and Acxiom ID — are expected to be completed by the end of the current quarter.  

 

Omnicom’s total full-year revenue was $17.3 billion — versus about $15.7 billion in 2024.

 

The 2025 total includes 12 months of Omnicom revenue and one month of IPG revenue (the merger closed on November 26, 2025).

 

A more detailed pro forma comparison of the numbers will be provided in the firm’s 10K annual report to be filed with the SEC in the coming weeks. 

 

The pro forma analysis will provide numbers that assume the merger was closed in January of 2024 to provide investors with a more apples-to-apples comparison of Omnicom’s performance over the past year. 

 

On the conference call, CEO John Wren said the company has now determined that it can double the size of achieved synergies to $1.5 billion over the next 30 months. About $900 million in synergies will be achieved in 2026. 

 

About $1 billion of the total synergies will be labor-related, including eliminating duplicative roles, offshoring and automation. The remainder will come from operational efficiencies and real estate consolidations.  

 

In Q4 the company posted $5.5 billion in revenue and an operating loss of $1 billion, due mostly to merger-related costs. 

 

The company is also launching a $5 billion share repurchase program. Company shares were up more than 3% today and another 2.6% in after-hours trading following the earnings release. 

 

Wren said media operations continued to be a standout performer in 2025. He estimated that media and related components (precision marketing and commerce) would account for a “mid-fifties” percentage of the company’s revenue going forward. 

 

When pressed about the impact of AI on jobs, Wren acknowledged that the technology will help cut some positions but that the bigger impact is enabling employees to be more productive.  

 

Company Chief Technology Officer Paolo Yuvienco elaborated that creative teams that used to present three concepts to a client can now present 25 to 50 concepts to that client in the same amount of time. “It’s about the ability to do more with a higher degree of confidence,” he said.

17366: On Omnicom 4Q WTF BS.

 

Advertising Age reported on the Omnicom 4Q report, which included plans to double its cost-saving target to $1.5 billion, as well as sell or exit unspecified smaller markets and non-strategic operations. Details were not provided, countering the White holding company’s honchos who promised transparency to the troops.

 

To translate and summarize the corporate hype, expect more rampant restructuring, reckless ruin, and radical RIFs—with little rhyme or reason.

 

Omnicom doubles its cost savings target and plans to exit some smaller markets and non-strategic businesses

 

By Ewan Larkin and Brian Bonilla

 

All eyes were on Omnicom’s fourth-quarter report following its acquisition of Interpublic Group of Cos., and on Wednesday, the agency industry’s new giant offered a look at cost savings, plans to streamline its sprawling portfolio and its recent results.

 

The key numbers—and the key missing ones

 

The agency group, now the world’s largest by revenue, announced it is doubling its prior $750 million cost-savings target to $1.5 billion, including $900 million expected in 2026. John Wren, Omincom’s chairman and CEO, said the savings will come from $1 billion in labor cost reductions, including more offshoring; $240 million from real estate consolidation; $260 million from general, IT and procurement efficiencies; and additional savings from automation and AI.

 

Omnicom did not provide a 2026 forecast and did not include organic revenue growth figures in its latest report, citing the recent close of the IPG acquisition. For the same reason, Philip Angelastro, Omnicom’s chief financial officer, said the company will not report organic growth metrics in its 2026 quarterly presentations.

 

“Had we calculated organic growth consistent with our prior practice, excluding planned dispositions and assets held for sale, organic growth in Q4 2025 would have been approximately 4%,” Angelastro said.

 

Omnicom reported fourth-quarter 2025 revenue of nearly $5.53 billion, up 27.9%—or nearly $1.21 billion—from a year earlier. Full-year revenue rose 10.1%, or $1.58 billion, to $17.27 billion. The results were boosted by just over one month of revenue from IPG. Omnicom posted a net loss of $941.1 million for the fourth quarter and of $54.5 million for the year.

 

Selling and exiting certain markets, businesses

 

Omnicom announced plans to sell or exit certain smaller markets and non-strategic operations, though executives speaking on the company’s conference call did not specify which ones. The company will reduce its ownership in smaller markets representing about $700 million in annual revenue, Wren said, with Angelastro emphasizing that the move is about simplifying the organization.

 

“Those businesses are solid businesses. They service some of our important clients,” Angelastro said during the call. “We just don’t need to be in all the markets with subsidiaries that come with a lot of compliance requirements.”

 

Omnicom will also sell or exit “non-strategic or underperforming” businesses generating roughly $2.5 billion in annual revenue, having already completed deals for businesses representing more than $800 million in annual revenue, Wren added.

 

Experiential agency Jack Morton recently separated from Omnicom in a private equity-backed transaction, and the remaining deals are expected over the next 12 months, Wren said.

Wednesday, February 04, 2026

17337: Omnicom Post-Merger Postmortem.

Advertising Age reported on the new business cycle—as well as old business losses—at Omnicom after its acquisition of IPG.

 

Seems the only people benefiting from the mess are analysts, Monday morning merger quarterbacks providing clueless color commentary.

 

The progressing post-merger postmortem will likely expose increased casualties and collateral damages. It’s death by 4,000+ cuts.

 

How Omnicom’s new business is faring post-merger

 

By Brian Bonilla

 

The newly formed Omnicom has had a mixed new business cycle to start the year—the type of performance analysts believe was to be expected as the industry adjusts to the realities of its acquisition of Interpublic Group of Cos.

 

While the new No. 1 agency company may well prevail in any number of major pitches it’s currently going after—including IBM, Dyson and Delta—it’s also faced existing accounts going into review or moving.

 

The latest is Smirnoff, which launched a global creative review, parent company Diageo confirmed with Ad Age. The vodka brand’s account has been with McCann, which declined to defend the business, since 2022.

 

“We’re incredibly proud of the partnership and the globally recognized work we developed with Smirnoff over the past 3 years,” McCann shared in a statement. “While we’ve chosen not to participate in the pitch, we wish them every success moving forward.”

 

The news of the Smirnoff review comes on the heels of The Home Depot departing from BBDO. Plus, SC Johnson is moving its U.S. media account from Omnicom to WPP, according to multiple sources close to the situation, though WPP and the client declined to comment. (Omnicom did retain SC Johnson’s international business.)

 

Delta launched a media agency review in October, after most recently working with Omnicom’s PHD. In December, Kenvue picked WPP and Publicis to handle its creative and media; Omnicom was unsuccessful in defending the business, which had been at IPG. Then, in January, MondelÄ“z International launched a creative agency review spanning its U.S. business, including Ritz, as well as global duties for Oreo. Those accounts were housed at Omnicom’s The Martin Agency, which is handling Ritz’s upcoming Super Bowl spot.

 

On the flip side, Omnicom has notched some important wins and retentions. Since last year, it added American Express on the creative side, NatWest and Clarins in terms of media, and BBVA and BNY for integrated remits. Mercedes-Benz has also extended its contract with Omnicom without a review until 2029, Omnicom confirmed.

 

This jumbled scorecard isn’t a surprise, said analysts, as clients take stock of the late November mega-merger.

 

Dan Jeffries, founder of Jeffries Consulting, predicts that Omnicom will be in “defense mode” throughout the year due to clients being unsure of the merger and how it might affect talent disruption within the holding company.

 

Brian Wieser, principal of Madison and Wall, said the changes underway at Omnicom could “absolutely be a catalyst for a client to look on someone else with more favor … or to be disgruntled or to expect that you’re just not going to get what you signed up for when you picked the agency during the last review.”

 

He added that the merger might also give clients an excuse to push for a better deal. “There is always an effort, especially with media, to reduce costs on the fees that are being paid and there’s also always an openness to a new offering.”

 

The most significant loss for Omnicom from a perception standpoint was Kenvue, Wieser said, noting that the account carried added weight given IPG’s historical ties to Johnson & Johnson. J&J’s media business had been with IPG in some capacity since 1973.

 

Omnicom did not respond to comments about its new business strategy, review performance or relationship with Kenvue.

 

“For anyone who remembers the role that J&J had within Interpublic over the years, it was somewhat foundational,” Wieser said. While he acknowledged “Kenvue itself changed and separated from J&J,” he described it as the type of marketer “where you kind of built your offering around them.”