Celebrity-led brands in WROGN; faced with lackluster growth, consumer fatigue

Manish Tiwary to be Managing Director of Nestlé India; Suresh Narayanan to retire next year

Unearthing Mamaearth: Decoding consumer feedback

WPP and Omnicom bag Amazon's media account after marathon global review

Infosys, ITC, Titan, Biocon: Industry leaders join Storyboard18’s Share The Spotlight movement

Nobody’s Perfect Retro Porsche Ad

In Conversation With Raja Rajamannar, Mastercard

Shahid Kapoor And Varun Ganjoo Speaks On PokerBaazi's Campaign

In conversation with IHCL’s Puneet Chhatwal & GroupM’s Kate Scott-Dawkins

Why are brands including e-sports in their sports marketing itinerary?

Storyboard18 x The English Nut: How to pronounce these 10 brand names

Experts' Take On Reinvention Of Ad Campaigns Through Technology

Experts Speak On Key Emerging Trends In Cannes Lions Entries

Leaders of the future have to be outstanding human beings: Nestle MD

In conversation with VMLY&R’s Hari Ramanathan

Rupert Murdoch's attempt to amend his family trust and consolidate control of his vast media empire in the hands of his son, Lachlan, has been rejected by a Nevada court, as per reports.

The ruling, issued on Saturday by Nevada commissioner Edmund Gorman, came after a legal battle over changes to an irrevocable trust that could have allowed Lachlan to solidify his leadership at the expense of his siblings.

According to a report from the New York Times, the court concluded that both Rupert and Lachlan Murdoch acted in "bad faith" in their bid to alter the family trust, which was originally set to divide control of the Murdoch media empire equally among Rupert's four oldest children: Lachlan, James, Elisabeth, and Prudence.

Read more: <a href="https://www.storyboard18.com/digital/murdoch-family-succession-battle-kicks-off-in-closed-nevada-courtroom-42483.htm">Murdoch family succession battle kicks off in closed Nevada courtroom</a>

The proposed amendment sought to give Lachlan, who currently heads Fox News parent Fox Corp, greater control, thereby blocking any interference from his politically moderate siblings. This change was designed to ensure that Lachlan would retain dominance over the media conglomerate after this father's death, while minimizing the influence of his siblings.

A lawyer representing Rupert Murdoch expressed disappointment with the ruling, stating that they intend to appeal the decision. The ruling, which is still subject to approval by a district judge, could be challenged in court.

The trust, established in Nevada—a state known for its strict confidentiality rules—was intended to ensure a balanced inheritance of the Murdoch family’s media holdings.

However, the attempt to alter the trust has sparked conflict among the family members. Lachlan’s siblings—James, Elisabeth, and Prudence—released a joint statement following the decision, expressing hope that the family could now focus on mending relationships.

Read more: <a href="https://www.storyboard18.com/digital/rupert-murdochs-dow-jones-new-york-post-sue-perplexity-ai-over-copyright-infringement-45522.htm">Rupert Murdoch's Dow Jones, New York Post sue Perplexity AI over copyright infringement</a>

Rupert Murdoch's bid to consolidate control of media empire denied by Nevada Court

In the face of a challenging market environment, Prabha Narasimhan, CEO of Colgate-Palmolive India, is striking a note of cautious optimism. Despite the turbulence in the business landscape, Narasimhan expressed satisfaction with the company's performance and growth trajectory, emphasizing the importance of balanced growth as the company navigates these uncertain waters. 

"Despite the tough market conditions we've seen recently, I’m pleased with the progress we’ve made," Narasimhan remarked during the recent earnings call. Her optimism was fueled by a notable uptick in growth, particularly in the near-term, a key indicator of the company's ability to adapt. For Colgate-Palmolive, the leader in oral care, balanced growth remains the cornerstone of its strategy. This approach is rooted in a carefully calibrated mix of price, volume, and product positioning — a formula the company plans to continue refining as it moves forward. 

Narasimhan highlighted the importance of pricing strategy, especially when it comes to premium products in India. "The sweet spot for driving premiumization in the market lies between a price range of 140 to 170 index," she explained. "That’s the window where consumers are more likely to adopt premium products." This pricing insight, according to Narasimhan, is not just about profit margins but also about shifting consumer behavior toward higher-quality options. Colgate-Palmolive's ability to align its products with this pricing sweet spot has been integral to its success, she noted. However, she acknowledged that this pricing approach is dynamic and will evolve as market conditions change. "For the moment, it’s working well for us," she said, “but we remain open to adaptation."

When it comes to competition, Narasimhan does not believe there is a dramatic shift in the market. "All players in this industry have always been driven to win, and that hasn’t changed," she explained. In an industry where competition is fierce, she noted that growth is a zero-sum game — some brands will win, and others will lose. Still, Narasimhan believes the real differentiator for Colgate lies in understanding what drives consumer decisions.

"Consumers are ultimately buying benefits," she explained. Whether it’s cavity prevention, fresh breath, sensitivity relief, or whiter teeth, these are the tangible benefits that influence purchasing decisions. "Our focus is on delivering the best possible solution for these needs," Narasimhan asserted, emphasizing the company’s commitment to leveraging scientific innovation to meet consumer demands. The science behind the product — whether it’s a unique ingredient or a specialized delivery system — remains central to Colgate’s value proposition.

Beyond the benefits, however, lies another important factor in shaping consumer preferences: sensorial experience. Narasimhan pointed out that toothpaste, as a category, is one of repertoire — consumers do not typically buy the same brand for 12 months. This dynamic is especially true in India, where a single consumer may use multiple brands based on flavor, texture, or personal preference. For Colgate, this understanding has informed its product development efforts. 

“Sensorial experience is key. Consumers are looking for different tastes and textures in their oral care products," Narasimhan explained. Just as one might seek out the perfect Mexican dish at a restaurant, she likened the quest for toothpaste to a desire for a specific sensory experience that meets personal preferences. 

"If I go to a Mexican restaurant, I want good Mexican food. I don't want that restaurant to necessarily serve me the best dosa. So what we need to do is to make sure that what we are offering is superior to what competition is offering. That's where all the effort goes in - on product development, taste and flavor, and essentially developing superior sensorial in the family in which we operate and not moving to a family that other people operate." 

For Colgate-Palmolive, ensuring that its offerings provide superior taste and sensory satisfaction is paramount in staying ahead of competitors. "We've focused our efforts on creating a sensorial experience that is unmatched," she said, underscoring that it’s this commitment to taste, flavor, and overall satisfaction that has contributed to the company's ongoing success. "Our approach to product development — focused on sensorial superiority — is central to our strategy, and so far, it’s working." 

A significant 90% of the company's packaging has been upgraded, with the evolution from basic caps to more sophisticated stand-up and flip-top designs. In the premium range, the brand has even introduced double-walled acrylic caps. Additionally, tube artwork has been refreshed to further elevate the product’s appeal.

This push for quality extends beyond product design. Narasimhan emphasized that Colgate's advertising strategy plays a critical role in driving its topline growth. "We test every piece of advertising before it goes on air, and 90% of our ads rank in the top quartile of FMCG advertising," she said. The company further noted that the buzz surrounding the Colgate brand is a direct result of the high-quality advertising and products that the company consistently delivers.

As Colgate-Palmolive India moves into the future, Narasimhan remains confident that this approach—balancing innovation, pricing strategy, and sensory appeal — will allow the company to continue to flourish, even in uncertain times. For now, the company is riding a wave of premiumization success, but with an eye on flexibility and responsiveness to shifting market demands. 



90% of our ads rank in the top quartile of FMCG advertising: Colgate's Prabha Narasimhan

The global advertising industry is poised for a reset with ad holding company Omnicom set to acquire its rival, Interpublic Group (IPG), in a deal which values the combined entity at approximately $30 billion. However, in the immediate future, the deal is unlikely to affect the dominant WPP Group in India, which has build a seemingly unshakable leadership presence in the market over the decades.

The deal, if it goes through following regulatory approvals, will create the world's largest advertising holdco, giving traditional ad firms a better chance to compete against the Big Tech monopolies in a challenging market. 

In a joint statement, Omnicom and IPG described the move as a “tremendous strategic opportunity” for stakeholders, underscoring their commitment to enhancing platform capabilities and talent as part of a far-reaching network expansion. The merger promises to create a "uniquely comprehensive portfolio of services," positioning the new entity as a powerful "marketing and sales partner" in a rapidly changing world. 

Omnicom's takeover of IPG will likely be complete by 2025's second half and potentially trigger a series of mini-mergers among its global network of agency brands. 

<a href="https://www.storyboard18.com/brand-makers/blockbuster-ad-deal-omnicoms-takeover-of-ipg-to-reset-global-order-49865.htm">Read more: Blockbuster Ad Deal Explained: Omnicom's takeover of IPG to reset global order</a>

Omnicom may be larger globally, but in India, IPG has a robust presence with brands like IPG Mediabrands, McCann, Lowe Lintas and FCB. However, rival holdco and market leader WPP sits pretty on top of the ad order.

Still, industry watchers believe the merger will have significant impact on the India market as both Omnicom and IPG control key agency brands such as McCann, Lowe Lintas, FCB, DDB Mudra, and leading media firms Omnicom Media Group (OMG) and IPG Mediabrands, which contributes to almost 20% of the country’s Adex, the latter media investments firm has claimed. 

IPG Mediabrands, which operates agencies such as Lodestar UM, Initiative, Interactive Avenues, Rapport, Ansible, and Magna Global, has recently expanded its presence with the opening of its largest global capability center in Pune this past August. OMG, which houses PHD and OMD, has made notable gains in the Indian market, securing key clients in the automotive and BFSI sectors over the past four years. OMG also recently launched the global sport and entertainment agency Fuse, to capitalise on the burgeoning potential for sports marketing in India. 

Directions from global

The leadership of the groups' firms in India remains tight-lipped about the potential impacts of the impending merger, awaiting clearer direction from their global counterparts. This uncertainty is particularly striking for a key market like India, where clarity is often paramount. 

Yet, India has long been a stronghold for WPP, with the British conglomerate maintaining dominance through brands such as Ogilvy and Mindshare. 

Meanwhile, competitors like Publicis Groupe and Havas have steadily gained ground, and Omnicom Media Group recently secured the Tata Motors media buying and planning account, after besting incumbent IPG Mediabrands in a competitive pitch. The ramifications of the Omnicom-IPG deal on client relationships remain to be seen, as industry observers adopt a "wait-and-see" stance. 

Gautam Reghunath, Co-founder & CEO, Talented, says, "I've got no dog in this fight, but it’s hard not to acknowledge how much this alters the landscape of our industry. Big holding companies are recognizing that in a market they perceive as saturated, combining resources, capabilities, and market reach trumps head-to-head competition." 

Industry experts predict that deeper consolidation and integration across networked agencies are inevitable, as holding companies streamline operations and restructure to maintain competitiveness in an increasingly challenging market. 

Ashish Bhasin, a veteran of the ad industry and former CEO of Dentsu Asia-Pacific, notes that while India will eventually reflect global trends, these shifts will take time. "The key to any merger or acquisition of this scale is people management," he says. "Omnicom may be larger globally, but in India, IPG has a robust presence, with a legacy spanning 70 to 80 years." 

IPG's key brands in India are IPG Mediabrands' media planning and buying firms Lodestar UM and Initiative and top creative stablemates like the Prasoon Joshi-led McCann Worldgroup.

Managing talent is the critical challenge

Bhasin emphasizes that the more time spent addressing issues like managing talent, the higher the likelihood of a successful integration. "Failing to manage these aspects can result in disaster," he cautions, recalling the ill-fated merger attempt between Omnicom and Publicis a decade ago. "The merger was a total failure—employees rebelled, clients departed, and talent left. However, with the experience gained since then, I believe companies are better equipped to handle such situations today."

Furthermore, Bhasin argues that the industry's need for consolidation is pressing. "Agencies must grow larger to wield greater pricing power," he asserts. "In my view, agency services are undervalued, and larger entities will be better positioned to extract more value, make smarter investments, and have a more lasting impact."

An influential figure in the Indian advertising landscape, Sandeep Goyal offers a nuanced view on the potential consequences of brand mergers. He acknowledges that while such consolidations can strengthen the balance sheets of holding companies, they often come at the expense of legacy brands. "In the process, some brands are 'rationalized,' 'right-sized,' or even eliminated. It's unfortunate—just look at how iconic names like JWT and Y&R have disappeared," he observes.

He cautions that the impending Omnicom-Interpublic merger could similarly lead to the demise of long-standing advertising brands. "In India, too, there's a real risk that some agencies may lose their identity. It's a very real and imminent possibility," he warns.

Conflict of interest and clients

IPG Mediabrands's roster includes legacy brands like Mahindra, BMW, Amul, and ITC, among others. It also retained Ather Energy this year after a competitive pitch, while another major auto account, Hero MotoCorp, currently with the group, is on pitch. 

OMG has the recently won Tata Motors PV business and it has Amazon, VW Group, Shriram Finance Limited, McDonalds, Royal Enfield, Oppo and Groww, among others. Omnicom Group's Indian subsidiary OMG reported a more than 133% rise in profit in the past four years.

An industry veteran rightly pointed, resolving conflict of interest is another challenge that Omnicom and IPG will have to look at. TATA Motors recently handed over their entire passenger vehicle's media mandate to Omnicom Group, while IPG's Team Dynamic on the other hand manages the media mandate for BMW. Additionally, IPG has its own automotive division. The agency has built a strong connection with automobile OEMs and tier 1 suppliers. 

However, client conflicts are managed with different agency networks within the group servicing the accounts. WPP Group, which owns Ogilvy, VML, GroupM agencies Mindshare, Maxus, EssenceMediacom, Wavemaker and others, has managed to juggle conflicting client accounts, cornering the market in sectors like FMCG and consumer tech. 

But the likes of the Omnicom-IPG deal we haven't seen before and the threat of talent pool erosion, internal conflicts and culture clashes, looms large as with any significant merger.

While WPP won't lose its leadership in the India market in the near term, despite the growing encroachment on its market share by other holdcos; there are others who stand to gain from a reset of the old order. 

As Reghunath points out, this moment of industry consolidation is a nice strategic opening for indies and yet-to-be-born ones. "The timing couldn’t be more perfect. As major agencies blur into indistinguishable monoliths and become more homogenized, there's an increasing appetite for distinct, meaningful creative partnerships that feel truly unique. Good indies offer something these mega-mergers can't manufacture: genuine connection, nimble creativity, and a distinct cultural energy."

<a href="https://www.storyboard18.com/brand-makers/blockbuster-ad-deal-omnicoms-takeover-of-ipg-to-reset-global-order-49865.htm">Read more: Blockbuster Ad Deal Explained: Omnicom's takeover of IPG to reset global order</a>

Omnicom-IPG Deal: Will it reshape the ad order in India?

The tectonic plates of the advertising world are shifting, signaling a dramatic reset in the industry's global hierarchy. Omnicom and its chief John Wren's long-standing ambition to establish an American global advertising powerhouse could soon come to fruition, with the holding company set to acquire its rival, Interpublic Group (IPG). The blockbuster deal values the combined entity at approximately $30 billion, with $65 billion in global media billings.

<a href="https://www.storyboard18.com/advertising/omnicom-ipg-deal-will-it-affect-the-ad-order-in-india-49900.htm">Read more: Omnicom-IPG Deal: Will it reshape the ad order in India?</a>

In a joint statement, the companies described the move as a “tremendous strategic opportunity” for stakeholders, underscoring their commitment to enhancing platform capabilities and talent as part of a far-reaching network expansion. The merger promises to create a "uniquely comprehensive portfolio of services," positioning the new entity as a powerful "marketing and sales partner" in a rapidly changing world. With the industry evolving at breakneck speed, the newly formed company aims to leverage its scale and resources to meet the demands of a dynamic market.

The announcement comes more than a decade after Omnicom attempted, but ultimately failed, to merge with the French Publicis Groupe in a $35 billion deal that collapsed in 2014 due to disagreements over terms.

<a href="https://www.storyboard18.com/advertising/omnicom-set-to-announce-ipg-acquisition-john-wren-to-be-ceo-of-combined-entity-reports-49823.htm">Read more: Omnicom set to announce IPG acquisition</a>

<a href="https://www.storyboard18.com/advertising/omnicom-acquires-interpublic-group-to-create-premier-marketing-and-sales-company-49847.htm">Read more: Omnicom to take over Interpublic Group; John Wren to continue as CEO and chairman</a>

Omnicom's takeover of IPG will likely be complete by 2025's second half and potentially trigger a series of mini-mergers among its global network of agency brands. The combined company will retain the Omnicom name, with Omnicom Group's long-serving CEO John Wren at the helm. Philippe Krakowsky, current IPG CEO who assumed the role in 2021 will be Co-President and COO of Omnicom, sharing the dual title with Daryl Simm. Krakowsky will also be Co-Chair of the Integration Committee post-merger. 

The deal, if it goes ahead after regulatory approvals, will give Omnicom shareholders 60.6% ownership of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis. 

Publicis Groupe, currently the industry leader with a market capitalization of $27 billion, may soon face a challenge to its dominant position, paving the way for further consolidation in the advertising world. As Omnicom and IPG join forces, temptations and opportunities for strategic mergers are likely to arise, and all eyes are on WPP Group, once the reigning titan of the advertising sector before being dethroned by Publicis. Today, WPP — proudly declaring itself as "the creative transformation company" — boasts a market cap of just $12 billion, slightly smaller than IPG, which is part of the recent Omnicom deal.

Meanwhile, Tokyo-based Dentsu continues its years-long transformation, striving to catch up with global competitors after lagging behind in the early stages. On the other side of the Atlantic, the French agency Havas is gaining momentum globally, propelled by a series of acquisitions and new ventures aimed at strengthening its creative and commerce capabilities. The shifting dynamics of these advertising giants suggest an industry poised for further upheaval, with consolidation and strategic repositioning on the horizon. 

In his analysis of the Omnicom-IPG deal, journalist and ad industry expert Stephen Lepitak writes that there have long been rumors that Publicis, and even Havas, have explored potential partnerships with IPG over the years. Should the proposed merger falter due to antitrust concerns, industry insiders suggest that Omnicom may pivot to target IPG Mediabrands in a standalone deal. The prevailing sentiment is that IPG is underperforming, leaving room for others to extract more value from its assets.

Meanwhile, Lepitak points out, as Accenture Song continues to expand its presence in the advertising space, attracting top talent and bolstering its offerings, the competition between traditional holding companies and consulting giants is poised to intensify further.

What Omnicom's packing 

The advertising landscape is undergoing significant disruption, with pressure on business exacerbated by big tech's dominance in the ad market, hyper fragmentation and clients who are turning to in-housing, AI-powered tools and digital platforms for cost-effective solutions. Traditional models are decaying fast. The gameplan with the merger is not just scale but transformation. It's more about cost synergies than revenue growth, as industry experts put it.

Reflecting holdcos' focus on building complementary data and technology platforms and powerful ad tech systems, both Omnicom and IPG have made significant investments in proprietary platforms as Omni and Acxiom for targeting, analytics, media planning and delivery. 

In its investor presentation, the companies said the integration of Omni, Interact, Acxiom and Flywheel will effectively position Omnicom for an AI -driven future. "Omnicom will have an industry - leading identity solutions platform with the most comprehensive understanding of consumer behaviors and transactions, allowing us to deliver superior outcomes for our clients at scale and speed."

Omnicom's portfolio includes three global advertising agency networks – BBDO, DDB and TBWA – as well as a global media network, Omnicom Media Group, which is composed of three providers of media services: OMD, PHD and Hearts & Science. Omnicom also manages a global diversified group of agencies under the DAS Group of Companies, which is comprised of: the Health Group, the Precision Marketing Group, the Commerce Group and the Advertising Collective. 

In 2021, it created the Communications Consultancy Network (CCN) comprised of Omnicom Public Relations Group – with agencies including FleishmanHillard, Ketchum, Marina Maher Communications, Porter Novelli and more. 

As the advertising and media landscape's tech-driven metamorphosis accelerates, holding companies are increasingly focusing on retail, commerce media, and automation. Meanwhile, the escalation of generative artificial intelligence use continues to drive down the value of traditional creative development. This shift has left conventional creative agencies grappling with what can only be described as a crisis.

Industry heavyweight Omnicom has made waves in performance marketing with its roughly $900 million acquisition of Flywheel, a digital commerce business, in January 2024. The acquisition, which Omnicom has described as a key investment, is already paying dividends, positioning the company at the forefront of the rapidly expanding commerce and retail media sectors.

John Wren believes that the Flywheel deal has solidified the company’s market position, a move that has proven essential in securing new media accounts and bolstering its defenses against competitors. This strategy is paying off in a major way: Omnicom’s media planning and buying arm, OMG, recently emerged victorious in securing a portion of Amazon’s global media business, beating IPG’s Initiative, the incumbent. Additionally, OMG added to its roster with a significant win from Unilever, following a series of intense pitch competitions.

<a href="https://www.storyboard18.com/brand-marketing/unilever-global-media-review-results-in-all-six-ad-holding-companies-get-the-fmcgs-business-43632.htm">Read more: Unilever global media review results in; All six ad holding companies get the FMCG's business</a>

<a href="https://www.storyboard18.com/advertising/wpp-and-omnicom-bag-amazons-media-account-after-marathon-global-review-39785.htm">Read more: WPP and Omnicom bag Amazon's media account after marathon global review</a>

Where IPG stands

IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, R/GA, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of $10.89 billion in 2023. 

IPG has made significant strategic shifts. The company sold its digital agency Huge to private equity firm AEA Investors and, in nearly the same breath, acquired Intelligence Node, an eCommerce intelligence platform designed to bolster IPG’s commerce capabilities. The company’s broader strategy also includes ramping up investing in "principal buying," a practice gaining traction in which agencies negotiate bulk media deals with sellers and then resell the media to clients at a markup. Michael Krakowsky, IPG’s CEO, has indicated that the company plans to expand its focus on principal-based media buying in response to the rapidly evolving media landscape.

The Omnicom-IPG deal announcement also comes a few months after speculations of IPG off-loading key agency brands hit adland. In June this year, IPG denied a buyer who made an offer to buy global agency network MullenLowe. The company was also considering the sale of its digital marketing arm, R/GA, to Tata Consultancy Services (TCS), though reports suggested that negotiations faltered over disagreements on valuation. With R/GA valued at approximately $300 million, the potential deal marked another turning point in IPG’s ongoing efforts to adapt to the changing advertising ecosystem.

Why it matters

The merger of Omnicom and IPG is poised to deliver significant financial efficiencies, with an estimated $750 million in annual cost synergies and $3 billion in cash flow that would allow the company to continue to be "acquisitive". 

As of the end of 2023, Omnicom employed 75,900 people globally, while IPG's workforce stood at 57,400. Together, the holdcos employ 133,300 individuals worldwide.

In a joint announcement on December 9, the companies outlined their vision for the newly formed Omnicom, which is positioned as "the premier marketing and sales company." The merged entity will boast a team of over "100,000 expert practitioners" across the globe, offering an extensive array of services spanning media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations, and branding.

However, this consolidation raises an important question: What will happen to the remaining 33,300 employees? As with any major merger, there are inevitable concerns about job redundancies, restructurings, and shifting roles. The fate of these employees will likely depend on how the combined company manages its operations and integrates the workforces, balancing the pursuit of efficiency with the need to retain talent across its global network. 

In an analysts call to announce the merger on December 9, Omnicom chairman and CEO John Wren said, “Any employee listening to this, if you’re associated with any revenue stream at all, you’re gold, don’t worry about it.”

Blockbuster Ad Deal: Omnicom's takeover of IPG to reset global order

Omnicom and The Interpublic Group of Companies today announced their Boards of Directors have unanimously approved a definitive agreement pursuant to which Omnicom will acquire Interpublic in a stock-for-stock transaction. "The combined company will bring together the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, driven by the most advanced sales and marketing platform," Omnicom stated in its announcement of the deal. Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for global clients.

The deal will create an advertising giant with combined annual revenue of almost $26 billion.

<a href="https://www.storyboard18.com/advertising/omnicom-set-to-announce-ipg-acquisition-john-wren-to-be-ceo-of-combined-entity-reports-49823.htm">Read more: Omnicom set to announce IPG acquisition to create global ad giant</a>

Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis. The transaction is expected to generate annual cost synergies of $750 million.

The new Omnicom will have over 100,000 expert practitioners. The company will deliver end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding.

“This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth,” said John Wren, Chairman & CEO of Omnicom. 

Wren added, “Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family.”

“This combination represents a tremendous strategic opportunity for our stakeholders, amplifying our investments in platform capabilities and talent as part of a more expansive network,” said Philippe Krakowsky, Interpublic’s CEO. “Our two companies have highly complementary offerings, geographic presence and cultures. We also share a foundational belief in the power of ideas, enabled by technology and data. By joining Omnicom, we are creating a uniquely comprehensive portfolio of services that will make us the most powerful marketing and sales partner in a world that’s changing at speed. We look forward to working with John and the entire Omnicom team.”

John Wren will remain Chairman and CEO of Omnicom. Phil Angelastro will remain EVP & CFO of Omnicom. Philippe Krakowsky and Daryl Simm will serve as Co-Presidents and COOs of Omnicom. Krakowsky will also be Co-Chair of the Integration Committee post-merger. Three current members of the Interpublic Board of Directors, including Philippe Krakowsky, will be welcomed to the Omnicom Board of Directors.

The transaction is expected to generate $750 million in annual cost synergies and be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders. The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange.

Omnicom to take over Interpublic Group; John Wren to continue as CEO and chairman

Omnicom is set to announce that it has reached an agreement to acquire Interpublic Group (IPG) in a deal that will create the world’s largest advertising agency group, followed by current leaders Publicis Groupe and Ogilvy-owner WPP. The two companies are expected to highlight their "complementary" assets and cultures in a formal statement to the U.S. stock market, as per a Campaign report, which also stated that Omnicom's CEO John Wren will assume the role of chief executive for the combined entity. A transaction could be announced as early as this week. 

The announcement comes more than a decade after Omnicom attempted, but ultimately failed, to merge with Publicis Groupe in a $35 billion deal that collapsed in 2014 due to disagreements over terms.

As reported in the trade publication, Philippe Krakowsky, IPG's current CEO, is expected to be named co-president, alongside Daryl Simm, Omnicom’s president and COO. Additionally, Krakowsky and two other senior IPG executives are expected to secure seats on the new board.

The deal is expected to give the combined company a market capitalization exceeding $30 billion, as per reports. Omnicom, valued at $20 billion, is reportedly set to pay between $13 billion and $14 billion for IPG, which is valued at roughly $11 billion, according to The Wall Street Journal.

The advertising landscape is undergoing significant disruption, with pressure on business exacerbated by big tech's dominance on the ad market, media fragmentation and clients who are turning to in-housing, AI-powered tools and digital platforms for cost-effective solutions. Traditional agencies are also facing stiff challenge from firms outside the holding companies' stables, leading many to cut rates in a race to the bottom.

<a href="https://www.storyboard18.com/brand-marketing/omg-india-records-over-133-rise-in-profit-in-4-years-revenue-surged-to-rs-405-5-cr-in-2023-37042.htm">Read more: OMG India records over 133% rise in profit in 4 years; Revenue surged to Rs 405.5 cr in 2023</a>

Omnicom's portfolio includes three global advertising agency networks – BBDO, DDB and TBWA – as well as a global media network, Omnicom Media Group, which is composed of three providers of media services: OMD, PHD and Hearts & Science. Omnicom also manages a global diversified group of agencies under the DAS Group of Companies, which is comprised of: the Health Group, the Precision Marketing Group, the Commerce Group and the Advertising Collective. In 2021, it created the Communications Consultancy Network (CCN) comprised of Omnicom Public Relations Group – with agencies including FleishmanHillard, Ketchum, Marina Maher Communications, Porter Novelli and more. Omnicom has 75,900 people worldwide connected by the parent entity and IPG had 57,400 by the end of 2023.

IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, R/GA, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of $10.89 billion in 2023. IPG recently sold digital company Huge to private equity firm AEA Investors. 

<a href="https://www.storyboard18.com/advertising/omnicom-media-group-wins-media-mandate-of-tata-motors-48693.htm">Read more: Omnicom's OMG wins media mandate of Tata Motors' passenger vehicles business</a>

<a href="https://www.storyboard18.com/advertising/wpp-and-omnicom-bag-amazons-media-account-after-marathon-global-review-39785.htm">Read more: WPP and Omnicom bag Amazon's media account after marathon global review</a>

Omnicom set to announce IPG acquisition; John Wren to be CEO of combined entity

The Indian media and entertainment industry is projected to grow at CAGR of 8.3 percent to hit Rs 3,65,000 Crore outpacing the global rate of 4.6 percent, according to PwC India’s report 'Global Entertainment & Media Outlook 2024–28: India perspective'. 

Despite economic challenges and geopolitical tensions, global E&M revenues grew 5.5 percent year-on-year, from Rs 13,891,000 crore in 2022 to Rs 17,359,000 crore in 2023. Currently, the US leads the global E&M market by revenue, with China in the 2nd place and India at the 9th.

Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India commented, “India’s Entertainment & Media sector is on the cusp of a major transformation. The key growth drivers such as digital advertising, OTT platforms, online gaming, and Generative AI are shaping the future of the industry. These rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape.”

With India’s improved connectivity, rising advertising revenues and favourable government policies around foreign direct investment (FDI), the country is predicted to see one of the highest growth rates in the next five years. The country’s large millennial and Gen-Z population base of over 91 crore has access to the world’s cheapest data costs. 

At present, India has 80 crore broadband subscriptions, 55 crore smartphone users and 78 crore internet users. In fact, Indians are spending 78 percent of their time on mobile phone apps related to E&M.  

With growing consumption and gross domestic product (GDP) growth in India, the advertising market is projected to grow at a 9.4% CAGR from Rs 1,01,000 crore in 2023 to Rs 1,58,000 crore in 2028, which is 1.4x the global average. Most of this growth will come from digital front (internet advertising), which is expected to grow at a 15.6 percent CAGR, rising from Rs 41,000 crore in 2023 to Rs 85,000 crore in 2028. 

Internet advertising’s year-on-year growth, which was 26.0 percent in 2023, will remain in double digits throughout the forecast period (2024–28), and is expected to be 12.2 percent in 2028.

This shift towards cord-cutting is expected to accelerate. Traditional TV advertising will grow at a 4.2 percent CAGR between 2023 to 2028, while global revenues are set to drop by 1.6 percent. India is poised to become the fourth-largest TV advertising market by 2026.

As per report, the total online gaming and esports revenue in India stood at Rs 16,480 crore in 2023 and is expected to reach Rs 39,583 crore by 2028, growing at a CAGR of 19.2 percent. With the inclusion of real money gaming (as per PwC’s India Gaming Report ‘24) the total gaming and esports revenue would amount to Rs 33,000 crore in 2023 and is expected to reach Rs 66,000 crore by 2028 at a CAGR of 14.5 percent. Globally, video games and esports revenue will increase at a CAGR of 8.0 percent.

In addition to this, over-the-top (OTT) will be the third-fastest growing segment with a CAGR of 14.9 percent, putting the country in lead by 2028. Infrastructure enhancements have supported massive growth in India’s out-of-home (OOH) advertising market which grew by 12.9 percent in 2023. It is expected to continue to grow at a 7.6 percent CAGR.

When it comes to print advertising revenues, despite a global decline at a CAGR of 2.6 percent, India’s market is expected to grow at a rate of 3 percent, making it the third largest print market in the world by 2028. Meanwhile, India’s cinema market continues to expand, growing at a 14.1 percent CAGR. The total music (live, recorded and digital)  revenue grew from Rs 2,416 crore in 2019 to Rs 6,686 crore in 2023. It is expected to cross Rs 10,899 crore by 2028, growing at a CAGR of 10.3 percent.

At a 5.6 percent CAGR, India will stand out as having the highest B2B revenue growth rate in the world over the next five years. In contrast, global B2B revenue growth is forecasted at a 1.9 percent CAGR.

Furthermore, internet advertising emerges as the fastest-growing market in Asia-Pacific and the second globally, with a projected 15.6 percent CAGR (2023–2028). OTT platforms in India saw a 20.9 percent rise in 2023, reaching Rs 17,496 crore, and are projected to double by 2028.  

Online gaming and esports are rapidly expanding, projected to represent 9 percent of the E&M sector by 2028. Promoting responsible gaming and investing in high-quality AAA games will position Indian studios on the global stage. Lastly, generative AI (GenAI) is set to transform content creation, personalisation and monetisation, with over 70 percent of global companies expected to adopt it by 2025. Early adoption of GenAI in India can drive hyper-personalised content and dynamic advertising campaigns.

Indian M&E industry to grow at 8.3% CAGR to reach Rs 3,65,000 cr by 2028: PwC Report

YouTube Shorts is facing growing challenges, particularly in terms of advertiser confidence, as it struggles to compete with Meta’s Reels. The platform's difficulties are compounded by the widespread use of ad blockers, which have permeated across various browsers and deeply penetrated the consumer base. This trend has prompted many advertisers to question the platform’s effectiveness, often rendering brand campaigns less impactful.

In response to growing user frustration and in a bid to bolster revenue from non-Premium users, YouTube has reportedly intensifying its efforts to combat third-party ad blockers by integrating advertisements directly into video streams. This new approach aims to circumvent the effectiveness of popular browser extensions designed to block ads. These measures are widely seen as part of YouTube’s ongoing effort to curb the rise of ad-blocking tools worldwide. In a community update, YouTube stressed the detrimental effect of ad blockers on content creators' ability to generate revenue. 

On the global stage, YouTube’s ad revenue, while substantial, remains behind Meta’s earnings from Reels on Facebook and Instagram. Industry experts indicate that YouTube’s ad revenue, which reached $8.7 billion in Q2 2023, fell short of investor expectations but still reflected a 13% year-over-year increase. Despite its growth, YouTube’s performance lags behind TikTok, and its ad revenue pales in comparison to that of Meta. In India, Reels has supercharged much of Meta's growth while YouTube's Shorts has lagged behind. 

Meta's acceleration of Reels as a growth engine seems to be paying off. "Reels is big for Meta globally, but Reels is certainly huge for Meta in India," Sandhya Devanathan, Meta's India head said in an interview in September. She told PTI, having recognised the power of Reels in influencing buying decisions, brands are including it early in their campaign blueprint and customer outreach plans. 

On the other hand, a senior brand marketer, speaking on the condition of anonymity, described YouTube Shorts’ advertising model as a "spray and pray" approach, wherein brands often prioritize reaching a broad audience over ensuring the consistency of their messaging. Ad blockers, they argue, only exacerbate the platform’s limitations, further diminishing the effectiveness of campaigns.

In a similar vein, a senior media planner told Storyboard18 that YouTube Shorts suffers from inconsistent ad placement, a problem often driven by the lack of regulation around sensitive content. This inconsistency, coupled with the platform's reliance on broad-reaching advertising strategies, is alienating brands that increasingly favor performance-driven marketing tactics. "Brands today are more focused on direct results, and YouTube Shorts struggles to deliver that," the planner said.

An analyst specializing in Internet of Things (IoT) technology added that the growing trend of premiumization in the Indian market has reduced the effectiveness of generic advertising strategies. In this environment, precise audience targeting has become essential, yet YouTube Shorts’ algorithm-driven model offers little control over this crucial aspect. "Advertising on YouTube Shorts tends to work best for inexperienced marketers," the analyst noted, adding that many small and medium-sized enterprises (MSMEs) are turning to homegrown platforms that prioritize regional relevance and more targeted advertising.

Further complicating YouTube Shorts’ standing in the market is the shift in content creator loyalties. According to industry insiders, many creators are increasingly flocking to Meta, enticed by its robust incentives and the strong sense of community it fosters, leaving YouTube Shorts at a disadvantage in the battle for talent.

Recently, YouTube has ramped up its efforts to promote Shorts, through aggressive advertising across various platforms, including print, with a clear focus on capturing the attention of marketers and brand managers. The push comes amid growing competition from domestic SFV platforms, which has dampened advertiser enthusiasm for Shorts in key markets. 

A November 2023 report, Demystifying India’s SFV Platforms, published by Redseer Strategy and Consultants, offers a snapshot of the rapidly growing short-form video (SFV) landscape in India. The report notes that platforms such as Moj, Chingari, MX Takatak, Josh, and ShareChat boast a combined user base of over 250 million, with a particularly strong presence in Tier-2 and smaller cities. These regions account for around 70% of all online transactions. Following the 2020 ban of TikTok, Indian SFV platforms have surged in popularity, with 65-70% of their user base hailing from these areas.

The report highlights that Indian SFV platforms have managed to carve out a niche by offering content that resonates with local audiences, fostering positive customer sentiment. The platforms are lauded for their original, relevant, and non-inflammatory content, with the market leader, Josh, registering an impressive net promoter score (NPS) of 62%, well above the average NPS of 55% for the sector.

YouTube Shorts made its global debut in 2020, a month after Reels was first introduced, and surpassed a trillion views in 2024. As the digital video landscape evolves, YouTube Shorts faces a complex set of challenges. To navigate these challenges YouTube may require significant shifts in its advertising strategy to gain the confidence of both marketers and creators. A strategy that may call for more than an ad blitz shouting for brands' attention.

<a href="https://www.storyboard18.com/digital/cricket-content-one-sec-reels-booming-on-our-platforms-in-india-meta-40942.htm">Read more: Cricket content, one-sec reels booming on our platforms in India: Meta</a>

Low marketer-confidence weakening YouTube Shorts’ grip on the Indian market?

Interpublic Group has sold the digital company Huge to AEA Investors, a leading global private investment firm, and is joining forces with Hero Digital, an existing AEA portfolio company. Terms of the deal are not being disclosed.

“We’re pleased for the team at Huge and look forward to seeing the next phase for this storied digital brand as the company continues its evolution under new ownership,” commented Philippe Krakowsky, CEO of Interpublic.

IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe Global, Octagon, R/GA, UM, Weber Shandwick and more. IPG is an S&P 500 company with total revenue of $10.89 billion in 2023.

Omnicom Group, the global advertising and marketing giant, is reportedly in advanced talks to acquire its rival, Interpublic Group, in an all-stock deal, according to The Wall Street Journal. The deal could value the IPG between $13 billion and $14 billion, excluding debt.

If finalized, the deal would combine the world’s third-largest ad holding company, Omnicom, with the fourth-largest, Interpublic. The potential merger is expected to draw significant regulatory scrutiny, particularly given the size and scope of the two companies, which own a wide array of advertising agencies and media buying and planning firms. Interpublic’s portfolio includes McCann, Weber Shandwick, and Mediabrands, while Omnicom owns high-profile agencies like BBDO and TBWA and Omnicom Media Group. As of Friday, Interpublic was valued at $10.9 billion, while Omnicom stood at $20.2 billion.

The combined entity’s revenues would exceed $20 billion, according to 2023 figures, making it a formidable competitor to industry leaders WPP and Publicis Groupe, which posted revenues of $15 billion and $13 billion, respectively, as per reports.

IPG sells digital company Huge to private equity firm AEA Investors

Omnicom Group, the global advertising and marketing giant, is reportedly in advanced talks to acquire its rival, Interpublic Group, in an all-stock deal, according to The Wall Street Journal. The deal could value the IPG between $13 billion and $14 billion, excluding debt.

If finalized, the deal would combine the world’s third-largest ad holding company, Omnicom, with the fourth-largest, Interpublic. The potential merger is expected to draw significant regulatory scrutiny, particularly given the size and scope of the two companies, which own several leading advertising agencies and media buying and planning firms. Interpublic’s portfolio includes McCann, FCB, Mullen Lowe, Weber Shandwick, and Mediabrands, while Omnicom owns high-profile agencies like BBDO, DDB and TBWA and Omnicom Media Group. As of Friday, Interpublic was valued at $10.9 billion, while Omnicom stood at $20.2 billion.

The combined entity’s revenues would exceed $20 billion, according to 2023 figures, making it a formidable competitor to industry leaders WPP and Publicis Groupe, which posted revenues of $15 billion and $13 billion, respectively, as per reports.

The advertising landscape is undergoing significant disruption, with pressure on business exacerbated by big tech's dominance on the ad market, media fragmentation and clients who are turning to in-housing, AI-powered tools and digital platforms for cost-effective solutions. Traditional agencies are also facing stiff challenge from firms outside the holding companies' folds, leading many to cut rates in a race to the bottom. 

Omnicom had attempted to merge with Publicis in 2013, but it was derailed by regulatory concerns. The $35 billion deal back then would have created the world’s largest advertising conglomerate.

Read More: <a href="https://www.storyboard18.com/agency-news/ipg-denies-offer-to-sell-mullenlowe-amidst-r-ga-sale-talks-35664.htm">IPG denies offer to sell MullenLowe amidst R/GA sale talks</a>

MEDIA