"There's a genuine sense of anticipation": Omnicom CEO John Wren says IPG merger is on track as optimism grows among clients and shareholders

With 13 of 18 global jurisdictions cleared, Omnicom’s H2 close of the IPG acquisition looks imminent. Backed by 3% organic growth, strong media performance, and rapid AI expansion, Wren and CFO Phil Angelastro chart a confident course through macro uncertainty.

By  Akanksha Nagar| Jul 16, 2025 10:12 AM
To prepare for the IPG integration, Omnicom incurred $89 million in Q2 repositioning costs.

In a major development for the global advertising and marketing services industry, Omnicom Group Inc. CEO John Wren confirmed that the company’s acquisition of Interpublic Group (IPG) is entering its final phase, with regulatory clearance secured in 13 of the 18 jurisdictions needed for closure.

“We remain fully on track to complete the transaction in the second half of this year,” Wren said during the Q2 2025 earnings call. “Phil and I have continued to speak with our clients and our people. The response has been overwhelmingly positive. There's a genuine sense of anticipation and excitement about the opportunities our combined company will create that has only intensified as we approach the closing.”

While the largest remaining approval is pending from the European Union, Wren expressed little concern. “Getting through the United States was probably the biggest hurdle… and I think a lot of these remaining governments look to see the US has approved it before they finalize whatever their decisions are,” he said. “We're pretty damn confident that we're well along in the process.”

"Contrary to the early speculation that the transaction might distract our professional staff, our agencies remain fully focused on delivering exceptional service to our clients and securing new business" Wren noted, highlighting that recent wins for the ad holdco include Under Armour, Bimbo Global, and ASDA.

The executive also pointed out that effective July 1, Omnicom Group Inc. reorganized most advanced data and technology assets: Omni, OmniAI, Artbot, and the Flywheel Commerce Cloud into an end-to-end platform organization to drive its strategy forward. "This move is designed to directly support our clients' marketing and commercial ambition while accelerating our own growth trajectory."

Integration moves ahead; restructuring begins

To prepare for the IPG integration, Omnicom incurred $89 million in Q2 repositioning costs. CFO Angelastro added, "As we get closer to closing the acquisition of IPG, we'll be evaluating ways to accelerate savings opportunities prior to the closing date. We continue to expect to achieve our cost savings target of $750 million."

Wren noted that the groundwork for integration is already well underway: “Where we have to reorganize ourselves to make it easier to ingest our new colleagues, that's what we're doing.”

Angelastro also highlighted that recent restructuring and cost optimization are already reflected in the company’s margin guidance for the year.

Additionally, Flywheel, a strategic commerce asset Omnicom acquired in 2024, “continues to perform well,” and is expected to unlock even greater synergies when introduced to IPG’s CPG-heavy client base.

Financials show stability, media and AI lead growth

Omnicom reported a solid Q2 performance despite global macroeconomic uncertainties. Organic growth was 3%, driven by strong 8% growth in media and advertising, 5% in precision marketing, and 3% in experiential. Adjusted non-GAAP EBITDA rose 3.7% to $613.8 million, with a steady margin of 15.3%. Adjusted diluted EPS grew 5.1% to $2.05.

“In an uncertain market, our performance through the first half was solid,” said Angelastro. “As we begin the second half, less uncertainty in the macro environment may allow marketers to normalize spending levels.”

The company expects to maintain organic growth between 2.5%–4.5% for the full year, and aims to raise EBITDA margins by 10 basis points over 2024’s 15.5%.

While public relations and healthcare saw declines, Omnicom’s media business remained a standout performer. “Media is probably the strongest area within the industry,” said Wren. “Our media products get more and more sophisticated every single day… If I ask you to spend a dollar, but I can prove to you that you're gonna get $2.20 back, you're gonna reinvest that money.”

He added that proof of return on investment continues to make clients more confident in increasing their spending, especially in digital and AI-driven activations.

AI builds Omnicom’s future

Omnicom has also doubled down on artificial intelligence as a key growth engine. The company recently reorganized its top-tier data and tech platforms, Omni, OmniAI, Artbot, and Flywheel, into a single platform organization led by Duncan Painter. This infrastructure will be further enhanced by IPG’s data assets, including Acxiom and Real ID.

“Our long-standing strategy has always been rooted in the belief that data and technology supercharge creativity,” Wren said.

Chief Technology Officer Paulo Juveienko emphasized that Omnicom’s AI agentic framework is already delivering measurable impact. “We are incorporating generative AI agents into every stage of campaign lifecycles,” he said. “From synthetic focus groups to predictive campaign scoring and real-time market simulations, our teams now have access to tools that allow them to operate with intelligence embedded into every decision.”

He also highlighted how in the holdco's health group, the teams have been able to create a multi-agent reasoning engine that helps in recalibrating campaigns and assets at significantly greater speed when the market conditions change by simulating market scenarios, modeling stakeholder responses, and synthesizing existing signals.

Responding to concerns that rapid AI advancements might cannibalize agency revenue by enabling clients to do more with fewer resources, Wren offered a clear perspective, “We're not caught in time, incapable of changing our compensation models... Our models will increasingly shift to outcomes, however defined.”

He reinforced that Omnicom’s AI investments aren’t just driving efficiencies, they’re unlocking new levels of creativity and scale. “...with every technological revolution, the expectations of consumers typically moving faster than brands can keep up with. And the only way that brands can keep up is to create more personalized content that can deliver on what they're trying to ultimately sell. So with that, there's more and more content that needs to be created and generated. So it's not necessarily about creating the same content for cheaper. It's about being able to create more content to drive true mass personalization at scale."

Clients look beyond tariff fears

Addressing macro concerns, particularly around tariff threats that dominated headlines earlier this year, Angelastro was candid. “I didn’t hear the word ‘tariff’ once” at this year’s Cannes Lions Festival, where he interacted with thousands of professionals, marketers, and tech leaders. “People were looking past this current situation to the future… It was kind of refreshing.”

Angelastro added nuance: “Some (clients) paused a little when the first round of tariffs came out… others pulled forward investment. It depends on their industry, geography, and strategy.”

Wren concluded saying that the Trump administration hasn't issued final guidelines nor conclusions about some key markets that its clients operate in, so it business as usual for the most part. "... there's a little bump in the road someplace, it's nothing more than just that."

With strong financials, robust AI infrastructure, and media momentum, Omnicom is entering the final lap of its historic merger with IPG from a position of strength.

First Published onJul 16, 2025 10:12 AM

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