How Omnicom’s IPG buy will change Indian advertising

Two of the advertising world’s Big Four holding companies—Interpublic Group and Omnicom—officially merged this week. The combined entity, formed almost a year after Omnicom Group announced it would acquire IPG, is now the world’s largest media and ad agency network, with a global revenue of over $25 billion.

- Soumya Gupta

Why is this deal important for India’s ad industry? Mint explains.

What are the details of the Omnicom-IPG deal?

Omnicom Group acquired IPG in a $13.5 billion deal this week. Both companies are listed on the New York Stock Exchange. Omnicom shareholders will own a little over 60% of the combined entity that will trade on the NYSE.

Together, this is now the world’s largest advertising agency business, with annual global revenue of over $25 billion. Last year, digital newbie Accenture Song surpassed all legacy media holding companies with annual revenue of $20 billion.

How big are these companies in India?

By most estimates, Omnicom and IPG together will be the second-largest media and ad agency network in India. London-based WPP is still the largest, with media agencies such as Ogilvy and Burson and the GroupM network of agencies, which was rebranded to WPP Media this May.