Omnicom posts 3.4% growth, gets regulatory approvals in key markets for IPG acquisition

New Delhi: Omnicom Group reported a 3.4% organic revenue growth for the first quarter of 2025, driven by performance in its media and advertising (7.2%) and precision marketing (5.8%) divisions. 

Alongside its financial results, the company announced significant progress in its $13.3 billion all-stock acquisition of rival Interpublic Group (IPG), securing regulatory approvals in key markets including China, Colombia, Brazil, Saudi Arabia, and Egypt. 

The deal, which aims to create the world’s largest advertising agency network, remains on track to close in the second half of 2025, according to Omnicom CEO John Wren.

Omnicom reported Q1 revenue of $3.69 billion, a 1.6% increase from $3.63 billion in Q1 2024.

The company’s media and advertising segment led growth, bolstered by major clients like Apple, Chanel, and Volkswagen, while precision marketing benefited from data-driven campaigns. 

Operating income was $452.6 million, down 5.5% from $478.9 million in Q1 2024, impacted by $33.8 million in costs related to the IPG acquisition.

Regionally, the US led with 4.6% organic growth to $2 billion, while APAC’s 6% rise underscored its growing importance. European markets grew 1.7% to $599.1 million, and Latin America saw a 14.8% jump to $96.4 million. However, declines were noted in other North America (3.6% to $104.5 million), the UK (0.7% to $395.9 million), and the Middle East and Africa (9.3% to $70.8 million). 

By discipline, media and advertising and precision marketing shone, but healthcare (down 4.3% to $305.7 million), public relations (down 4.5% to $362.7 million), experiential (down 1.5% to $154.2 million), and branding and retail commerce (down 10% to $159.5 million) faced challenges.

However, Omnicom adjusted its 2025 organic revenue growth forecast to a more conservative range of 2.5% to 4.5%, down from an earlier projection of 3.5% to 4.5%, citing potential tariff impacts and global economic volatility. “We’re taking a prudent approach given the uncertainties,” Wren said during an investor call.

The Omnicom-IPG merger is expected to generate $750 million in annual cost synergies, enhancing operational efficiency and competitiveness against tech giants like Google and Amazon, which have increasingly encroached on traditional advertising dollars.

The deal, which received shareholder approval in March 2025 (93.5% for Omnicom and 99.6% for IPG), will combine Omnicom’s agencies like BBDO, TBWA, and OMD with IPG’s McCann, Weber Shandwick, and Mediabrands, creating a powerhouse with over 100,000 employees and $25.6 billion in combined 2023 revenue.

Regulatory approvals in China, Colombia, Brazil, Saudi Arabia, and Egypt mark a critical step forward, though approvals are still pending in up to 17 markets.