The news: The Omnicom-IPG merger is expected to close in November, Omnicom CEO John Wren announced in the company’s Q3 earnings release, which showed organic revenue growth of 2.6% YoY. Wren stated actual underlying growth was closer to 4%.

Zooming out: The Omnicom-IPG saga has undergone much turbulence since the companies first announced merger plans in December.

• The Federal Trade Commission took special interest in the deal, and placed a condition on the merger in June that would block it unless the new entity agreed to a ban on politically motivated ad boycotts.
• Additional restrictions were placed on the companies in September, when the FTC approved a consent order to finalize the acquisition on the condition that Omnicom does not deny ad dollars to publishers for ideological or political beliefs unless clients explicitly instruct otherwise.

A defensive move: Even amid heightened scrutiny, the companies are going full steam ahead on a merger as a defense strategy, not merely a growth plan.

• US digital ad spending growth is expected to fall below 10% this year for the first time since 2009, per our forecast. Economic headwinds are requiring major holding companies and agencies to defend their position as brands across the board shrink ad budgets because of tariffs and uncertainty.
• Meanwhile, the agency model is losing relevance in the age of AI. Companies like Alphabet and Meta are building automation capabilities that threaten traditional agencies, while major brands are deploying AI tools to generate marketing materials at scale, reducing brands’ reliance on agencies for content production.
• With agencies like Publicis posting consistently strong results on the back of major client wins and AI investments, Omnicom and IPG need to prove their value in a competitive agency landscape where brands are less willing to spend without proven results. The merged company will be the world’s largest advertising agency by revenues, and could offer a broader, more attractive array of services to clients.
• And with projected savings of $750 million within two years of the merger, the move would better protect Omnicom and IPG against economic headwinds.

What it means for marketers: The merger seems to have crossed its last hurdle—and the new Omnicom-IPG entity stands to benefit marketers in many ways, though brands must keep some considerations in mind.

• A merged Omnicom-IPG would provide a wider range of advertising, media, and marketing services, simplifying how advertisers access integrated solutions. This could streamline campaign management and improve efficiency for clients seeking multi-channel or global campaigns.
• But marketers must note the risks of the merger, such as weakened client relationships if key talent is lost due to resulting layoffs. The ultimate benefit to advertisers is yet to be seen and will depend on whether the combined company can maintain service quality and innovation during the transition.