It’s also thrown a spanner in the works for marketers who are currently in the middle of agency reviews.
CMOs already have to weigh up agencies’ tech savvy, their media buying capabilities and, in some cases, their creative chops in order to judge which shop’s best for their brand. They’re tasked with tempting an agency to make their best (and best value) offer, while seeing through the dazzle of the pitches themselves.
It’s a ritualized, lengthy and often expensive process for both sides. 
Now, marketers also have to consider whether an agency from the Omnicom or IPG stable will still exist in its current form in the coming year and beyond. For what it’s worth, Johnson & Johnson just officially awarded its media business to WPP this week; the business had been with IPG since 2015 under a dedicated group, J3, for the business.
After all, there’s little information on which shops are likely to be consolidated — or have their talent rosters gutted — to furnish the $750 million in “synergies” promised by Omnicom and IPG CEOs John Wren and Philippe Krakowsky.
How could this affect ongoing reviews?
According to pitch consultants who spoke with Digiday, uncertainty related to the Omnicom/IPG acquisition could affect agency pitch processes already underway and loom over reviews kicking off in the new year.
“Clients will proceed with great caution when it comes to IPG and Omnicom agencies,” said Lisa Colantuono, president of AAR Partners. “Clients are concerned about instability and unknowns when it comes to acquisitions and mergers.”
Clients are unlikely to boot Omnicom or IPG shops from a process already underway, according to Lucinda Peniston-Baines, founder and managing partner at The Observatory International.
“What they will be seeking, and we will be seeking on their behalf, is real clarity on what this could mean within this next nine months,” she told Digiday. “There is definitely a nervousness.”
Clients will, however, be taking the proposed acquisition into account when making their selection, worried as they might be about the impact of agency consolidations and staff redundancies.
“It’s a bit like buying a house that needs a renovation … you have to accept you’re going to be living under dust sheets for a period of time,” added Ryan Kangisser, partner at Mediasense.
Will uncertainty put clients off either holding company in 2025?
What about clients starting a review before the proposed deal closes? For incumbents already unhappy with their IPG or Omnicom agency, the expectation of search consultants is that the news of their potential merger will encourage those clients to put their business in review rather than wait out the transition to see if something changes for the better.
“We’ve gotten more inquiries than normal this month for reviews,” said Colantuono.
If marketers were thinking about putting their business in review say, a year from now, they’re not likely to wait and instead might do so now.
“The anticipated disruption of a merger … may induce some clients to put their business into review to get ahead of any possible messiness,” said Ken Robinson, partner at search consultancy Ark Advisors.
Omnicom’s Wren acknowledged that the acquisition might end up costing either holding company clients over the next year. “Could it happen? Yes. Will it happen? Yes. But I think people will be short-sighted in doing that,” he told analysts on a Monday call.
But despite Wren’s assurances to shareholders, non-incumbent clients shopping around for a new agency might well choose to exclude IPG or Omnicom agencies from a review process.
If they’re going to be part of the same entity by this time next year, the thinking goes, why bother to invite two teams into the pitch?
“I can’t see a client who’s looking to go to review their agency in the next few months that they would invite both holding companies. That would seem illogical,” said Kangisser.
That’s not to say we won’t see IPG or Omnicom go up against each other for new business at all in 2025, or that brands will exclude them from consideration across the board.
The strength and capabilities of an agency’s proposition are ultimately more important than the identity of their owners, Peniston-Baines said.
“I would not advise marketers against including IPG or Omnicom agencies in our reviews. I would simply want to ensure that my clients are making fully-informed decisions,” added Robinson.
Clients that do want to stick with — or join — IPG or Omnicom might well do so with extra cards in their hand. Executives at holding companies will be anxious to retain their clients through such a tumultuous period. CMOs might be able to leverage that to bargain for more generous terms.
Robinson suggested marketers will insert “specific language” into their contracts with agencies, should they opt to work with IPG or Omnicom in the near future — with the aim of guaranteeing staff continuity and shielding themselves from any conflict concerns.
There’s one more open question for marketers considering a review of their agency partnerships while the Omnicom-IPG deal shakes out: How will the competition respond?
Well, here’s one possible angle of attack: A common complaint among clients of big agencies is that they’re simply one customer among many. But while IPG and Omnicom’s executives work to convince clients they’re not distracted by the deal, their rivals will be able to offer clients their undivided attention.
In a video addressing Publicis staff released Thursday, the French holdco’s boss Arthur Sadoun made just that argument.
“This is a big opportunity for us. We know from the experience of Publicis-Omnicom Group that an acquisition of this size will require every leader to be focused internally on integration, if they want to be successful,” he said. “On our side, our transformation is behind us … now we can be laser focused on our clients and their needs for today and tomorrow.”
https://digiday.com/?p=563139
