Omnicom’s acquisition of Interpublic Group (IPG) has positioned it as the largest advertising agency network globally. However, in India, the challenge remains significant as British WPP continues to lead in revenue generation, according to media reports. But beyond revenue, the question of creative dominance remains—who truly leads in abstract talent that defines the advertising industry?

In India, many believe WPP holds the creative crown. With legendary campaigns by its agencies JWT and Ogilvy, WPP has left an indelible mark on the industry. JWT created iconic works like Air India’s Maharaja and Pepsi’s “Oye Bubbly” that went viral before the advent of social media. Ogilvy’s memorable contributions include Asian Paints’ “Har Ghar Kuch Kehta Hai” and work for Cadbury and Fevicol. The agency’s chairman, Piyush Pandey, has become a household name, synonymous with advertising creativity.

But IPG’s footprint in India’s creative landscape is also notable. “IPG has a stronghold in India’s top five creative agencies, including McCann, FCB, and MullenLowe,” notes Rohit Ohri, former global partner and chairperson of FCB Group India. Campaigns such as McCann’s “Thanda Matlab Coca-Cola” for Coke, BBDO’s “Share The Load” for Ariel, and Lowe Lintas’s innovative Tanishq campaigns highlight IPG’s creative excellence.

Now, with Omnicom’s acquisition of IPG, these creative agency brands join an already formidable roster that includes DDB, BBDO, and TBWA. This bolstered lineup sets the stage for a potential creative leadership battle in India. Ohri believes these strong agency brands will give Omnicom the creative firepower to lead the market. “This new entity could become the creative leader,” he says.

However, others remain cautious. Virat Tandon, founder of marketing services platform Curativity and former CEO of MullenLowe Lintas Group, raises questions about the future of this consolidation. “IPG and Omnicom have strong agency brands. I do not know whether they stand to gain or whether we will see more consolidation amongst these brands,” he remarks. Tandon predicts the biggest impact will be on the media side, where Omnicom’s enhanced buying muscle and negotiating power will become key advantages. With media assets like OMD and PHD from Omnicom and UM, Magna, and Initiative from IPG, the combined entity has significant clout in India’s media landscape.

Saurabh Varma, founder of Wondrlab and former CEO of Publicis Communications and Leo Burnett, envisions a broader shift. “The difference between creative and media has to go away because everything will become about digital platforms,” he asserts. He emphasizes the need for a scale-driven, non-siloed approach to problem-solving as clients increasingly prioritize integrated solutions.

This consolidation comes amid a backdrop of significant structural changes in the industry. For instance, WPP’s earlier mergers of JWT with Wunderman to form Wunderman Thompson, and VML with Y&R to launch VMLY&R, have demonstrated the impact—and sometimes the challenges—of bringing major agency brands together. In 2023, WPP further merged Wunderman Thompson with VMLY&R to create VML. These changes have resulted in some iconic brands being “rationalized” or even “eliminated,” as Rediffusion chairperson Dr. Sandeep Goyal highlighted in a recent interview.

While Omnicom’s acquisition of IPG promises enhanced scale and capabilities, there is also the risk of venerable old advertising brands fading into oblivion. Goyal warns that the industry may see similar “right-sizing” as clients demand more value and innovation in a competitive market.

Despite these concerns, the combined Omnicom-IPG entity has the potential to redefine the advertising landscape in India. With a robust creative and media lineup, it could challenge WPP’s long-standing dominance. The emphasis on digital platforms, data-led investments, and artificial intelligence further adds to its arsenal.

As the lines between creative and media blur, agencies must adapt to a changing market. The Omnicom-IPG consolidation could pave the way for new approaches to creativity, innovation, and client engagement, potentially ushering in a new era for Indian advertising.

Author: Sonali kamble