Creativity in the crossfire as Omnicom–IPG jolts adland

New Delhi: Omnicom’s acquisition of Interpublic Group (IPG) isn’t just another corporate headline. It’s a seismic shake-up that could redefine how agencies operate, how talent thrives, and how creative ideas take shape, not just globally, but here in India.

On paper, the merger promises scale, efficiency, and eye-popping cost savings. But as any industry insider will tell you, the human and creative sides of advertising rarely fit neatly into spreadsheets.

In Mumbai, Delhi, and Bengaluru, agency offices are buzzing with speculation. Creative teams are whispering about what this means for their brands, their leadership, and their future. For some, it feels like déjà vu. 

The merger math vs. the creative heart

Colvyn James Harris, former JWT chief, remembers a similar shake-up years ago.  JWT, once India’s most revered agency, disappeared almost overnight, despite its legacy. “JWT was a $20 plus billion market-cap business. Suddenly it vanished,” Harris said, highlighting the vulnerability of long-standing brands in large networks.

He added that mergers inevitably carry both benefits and challenges. “You acquire talent, skill sets, and a base of business. But you also create conflicts across categories because not every client accepts these mergers, even if the stated intent is strict separation. In practice, that rarely works.”

The logic behind mergers is clear. The Omnicom–IPG deal promises $750 million in savings, most expected from job cuts rather than fresh business. Harris said, “Wall Street wants money. Talent wants to do great work. A creative person does not care about money; they want to win Cannes.”

And yet, it is not just about dollars.

Creative brands in the crossfire

For creative leaders, the implications are substantial. Rohit Ohri, former chairman and chief executive officer of FCB Group India, said the merger will inevitably reshape agency brands.

“Two of the top global networks coming together is a massive shift. The combined entity cannot realistically keep so many individual brands alive,” he said.

Ohri added that some historic agencies could be particularly affected. “Some storied brands will fall. If J. Walter Thompson can disappear within WPP, other long-standing agencies are also at risk. Networks cannot sustain seven to ten overlapping brands under one roof.”

He also highlighted the financial framing of the merger. “Clients want to know the value they will receive. Announcing cost savings first is not compelling. The next year will be a period of adjustment for both networks, as decisions are made on which brands continue.”

The human cost

KV Sridhar, a veteran creative director, stressed the human impact. “What gets affected first is creativity. Changes in leadership and team composition influence both the people and the clients they work with. Some employees will leave, and others may be let go, which affects client relationships.”

Sridhar said the move reflects business rationalisation rather than creative ambition. “This merger is happening to address underperforming segments, not to strengthen creative output. Reducing headcount in leadership roles can significantly shift an agency’s capabilities.”

Indian clients add another layer of complexity. Sridhar explained that multinationals may demand strict separation to manage competing brands, but Indian startups value agility. They often hire project-based expertise and shift quickly if smaller, nimble agencies deliver better creative work.

The challenges extend beyond creativity. Harris pointed out that mergers promise scale, but scale does not automatically deliver brilliance. “If you merge 100 plus 100, you might think you get 200. In reality, it is 80. They are doing it for efficiency and real estate, not for creative ideas,” he said.

Creativity evolves, not disappears

But not all hope is lost. Creativity, as Nima Dhendup Namchu, an independent creative consultant with experience working with top agencies, pointed out, is adaptable. Even when agencies merge, work continues, just in a different shape. “Headcount reductions are inevitable, but creative output does not disappear. The form changes. Digital, performance, and platform content dominate now. It is evolution, not death,” he said.

Namchu also noted that client responses are generally short-term. “The dust settles over time. Large corporations may continue to rely on network agencies for global alignment, while smaller agencies or specialists handle project-based creative work.”

He added, “Some clients will definitely try independent shops, small creative hotshops, collaborators, even individuals. The market today is full of fractional CMOs, consultants, and creator-led collectives.”

The challenge of scale and ideas

Harris highlighted broader industry challenges, including the dilution of creative ideas under consolidation.

“The emphasis today is often on celebrity endorsements rather than a brand story. The strongest creative work tells a story first, then aligns with a celebrity. Agencies need to focus on ideas that engage rather than interrupt,” he said, citing examples like Vodafone’s ZooZoos campaigns as benchmark creative work.

He also noted the structural drivers of the merger. “Networks pursue consolidation to achieve scale and efficiency, merging staff, infrastructure, and back-end operations. But scale alone does not guarantee creative growth. Protecting key brands and talent remains essential.”

He also cautioned against the risks of siloed growth in agency networks. He added that the logic of creating multiple brands to manage conflicts is now reversing.

Sridhar added that the impact on India is nuanced. “Multinational clients may require careful separation of competing brands, while startups prioritise agility and project-based work. Consolidation affects larger multinational operations more than local businesses.”

What comes next

Experts agree that the next 12 to 18 months will be a period of adjustment. “These mergers take time to settle, sometimes a year or more,” Sridhar said.

Ohri said the narrative presented by the new entity will be crucial. “They have largely finalised their plan. The key question is, how will they communicate their vision and purpose?”

Harris offered a cautionary note. “Unless some brands and talent are protected, the potential of scale will not be realised. Losing key skills can limit growth despite efficiencies.”

For India’s advertising industry, the Omnicom–IPG merger highlights the tension between scale and creativity. Efficiency will dominate strategy, but leadership, client relationships, and the ability to nurture creative talent will determine which agencies thrive and which fade into history.