Legacy crumbles, Indies surge: Omnicom–IPG deal resets the agency power balance

December 1 marked a pivotal moment for global advertising. Omnicom’s USD 13 billion acquisition of Interpublic Group (IPG) made it the world’s largest advertising holding company by revenue, surpassing Publicis and pushing WPP into third place.

On the same day, three legacy agency brands—DDB, MullenLowe, and FCB—were retired globally. DDB, founded in 1949 by Bill Bernbach, will cease operations, while MullenLowe merges with TBWA. FCB, established in 1873, will be absorbed into BBDO.

Sean Donovan, President of Omnicom Advertising Asia, outlined India’s transition to a three-network architecture: TBWA\Lintas, BBDO Group, and McCann, supported by legacy names Lintas, Ulka, and Mudra. Lintas was revived alongside TBWA, rebranding as TBWA\Lintas.

The Legacy of Indian Advertising

Once independent powerhouses, these agencies shaped Indian advertising culture. Ulka spearheaded the FMCG era, Mudra championed brand-led entrepreneurship, and McCann redefined award culture and talent development.

India is home to over 40,000 advertising agencies, yet a few notable independents immediately come to mind: tgthr, Gozoop Group, Talented, Schbang, Atom Network, Enormous, Tilt Brand Solutions, FoxyMoron, and MANJA.

Opportunities for Independent Agencies

“Big global brands with complex governance still value holding companies for consistency, coverage, and compliance,” said Prathap Suthan, managing partner and CCO of Bang In The Middle. Yet independents continue to win on intimacy, creative daring, and freedom from intra-network conflicts.

Colvyn James Harris, former CEO South Asia, JWT India, explained that transferring brands is complex. “Strategic knowledge resides with people who’ve worked on the brand for years. Losing that continuity can be risky.”

He cited the PepsiCo–Taproot collaboration. In 2010, Taproot India (Mumbai-based) partnered with JWT Delhi for the ICC World Cup 2011 campaign. “The agency leadership—Agnello Dias and Santosh Padhi—were exceptionally talented. But scale mattered. A small independent cannot always provide the data and tech capabilities that legacy agencies offer,” Harris explained.

He also highlighted a key operational challenge: geography matters. “Brands are often distributed across cities. A Mumbai client may find it challenging to work with a Delhi agency, and vice versa. Independents without geographical spread can struggle.”

Planning, Scale, and Structure

KV Sridhar, global CCO at Nihilent and Hypercollective, noted that many independents thrived during the pandemic due to agility. “But when work volumes grew, many struggled because they were built around one or two strong individuals rather than a robust structure.”

He added that leadership is rarely the problem. “The gaps are in planning, strategy, and process. Many independents still treat planning as optional. You cannot win big accounts on creativity alone—you need sharp planning and structured thinking.”

Historically, independent agencies like Sistas Advertising, Chaitra Advertising, Clarion Advertising, and Ulka Advertising thrived on strong founders. Networks like Ogilvy, McCann Erickson, and Dentsu brought structured processes, operational discipline, and global knowledge, giving them an edge.

Trade-offs Between Scale and Agility

Suthan highlighted the classic trade-offs: scale vs specialization, process vs agility, global uniformity vs local nuance.

Arvind Krishnan, founder of MANJA, emphasized that the merger accentuates differences between network and independent models. “These agencies were all once independent,” he reminded.

Opportunities and risks are clear: networks face bureaucracy, talent flight, and creative blandness but offer data and scale. Independents risk capacity strain and client churn but deliver sharper ideas and accountability.

Amer Jaleel, former CCO and chairman of MullenLowe Lintas Group, sees optimism, “Indies are ruling and will continue to rule. Every shakeup leads to more independents and increased business for them.”

Krishnan also highlighted how global clients often pair independents for ideas with networks for execution, “Coke and McDonald’s collaborated with W+K (Wieden+Kennedy). Johnnie Walker, Axe (known as Lynx in the UK, Ireland, Australia, and New Zealand), and Surf worked with BBH (parent company of Axe and Surf – Unilever). Airtel and Pepsi partnered with Taproot India, which handled Airtel’s ‘Har ek friend zaroori hota hai’ and Pepsi’s ‘Change the Game’ campaigns. It’s a proven model where clients get the best of both worlds, combining independent agencies’ creative engine with networks’ execution scale. One can see this model being successfully implemented in India as well,” Krishnan added.

^atom network’s co-founder and CCO Yash Kulshresth confirmed that independents are increasingly trusted for complex mandates.

Redundancies and Restructuring

Post-merger redundancies primarily affect overlapping administrative roles and mid-level leadership. Anadi Sah, NCD, founding partner & Chief innovation Officer of tgthr, explained that consolidations centralize functions to boost profitability with minimal client impact.

Harris noted that small boutique shops struggle to scale, while mid-sized independents with geographical presence can thrive. Success depends on proximity to clients, talent depth, and integrated capabilities.

Indie Agency Life Cycles

Media reports suggest that independent agencies typically have a five- to seven-year lifecycle. Founders’ energy drives early growth, but without succession planning, agencies stagnate, stated Suthan.

Jaleel disagreed, citing Tilt Brand Solutions and Enormous as agencies just beginning their growth journeys.

Sridhar observed that independents can tire under constant client demands, while Krishnan emphasized that decline stems from diluting the culture that made them excel.

Ahmed Aftab Naqvi, CEO and co-founder of Gozoop Group, added, “Indie agencies can move with the speed of instinct and not with the weight of processes and red tape. Clients need partners who can think, decide, and build at the speed of opportunity. That’s where independents have the edge in a market dominated by mega-networks.”

AI and the Future

AI is becoming central to networks’ value propositions. Suthan noted that thriving independents must leverage AI tools for strategy, content, targeting, and measurement, even without proprietary stacks.

Kulshresth explained that the atom network has adopted AI through Aura AI, enabling smarter, faster solutions without diluting creativity.

“Any client who wants ideation and brand thinking first will gravitate towards independents,” said Suthan.

Looking Ahead

Suthan remains optimistic, “Those that articulate a differentiated proposition, institutionalize beyond founders, embrace AI, and position themselves as high-touch, conflict-free partners focused on original thinking will gain share and influence over the next decade.”

Kulshresth concluded, “Clients today demand speed, bold thinking, and multi-channel execution. Independents are wired for this, often at 10–20% lower costs, making them an even better proposition.”

In an era of consolidation, the message is clear: independence is not a liability—it is an asset. Agencies that retain culture, agility, and original thinking while scaling intelligently are poised to lead in the new advertising ecosystem.