Industry Update Volume 80 | January - February
Agency Mania Solutions
Leading software solutions (SaaS) to manage agency / supplier partnerships.
At AMS, we approach the agency management discipline as four distinct but complementary practice areas – Talent, Work and Performance, Financials, and Agency Reviews and Roster Changes – which is how we categorize the following developments.
Table of Contents
Talent……………. page 2
Work and Performance………………… page 8
Financials…………………………. page 10
Agency Reviews and Roster Changes……………… page 14
Executive Summary
Hello, 2025! The race is underway. In the US, the newly elected president declared a new “golden age” across the board, including the nation’s economy. “Sorry, Mad Men. The Ad Revolution Is Here.” was the headline of a Wall Street Journal article announcing the merger of advertising giants Omnicom Group and Interpublic Group of Cos., bringing together over 100,000 employees to form the largest agency in the world. That’s right. The biggest agency deal ever and the largest holding company in the world. The new entity will be called Omnicom.
Whether you are a brand advertiser, a small agency, a big agency, or a platform provider, this megamerger will likely affect you at some level. The move has strategic benefits to the two players. With a combined $26.5 billion in revenue, the two holding companies will merge their talent, investments, budgets, and technology to become a powerhouse with some of the largest agency brands under one roof.
The merger is also expected to drive $750 million in cuts, ranging from back-office consolidation and adjustments in vendor partnerships and real estate. Both companies have much to do to make the merger happen, pass regulatory approval, and create shareholder value, without being a source of major distraction to their clients, and without losing key talent in the process. We will be watching with great attention how the marketplace and clients respond.
Disclaimer: Our annual AMS Industry Update booklet provides a summary and analysis of noteworthy client-agency developments gathered from recent trade-related publications and news media. The information presented is based on publicly available sources and should not be considered exhaustive.
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