Omnicom and Interpublic Join Forces. Will the Merger Be Enough to Catch Up with Big Tech?

The European Commission has granted unconditional approval for Omnicom Group’s 13.25-billion-dollar acquisition of Interpublic Group, paving the way for the largest consolidation in the history of the global advertising market. The combination of the world’s third- and fourth-largest buyers of advertising services will create the biggest global advertising agency, with ambitions to compete more effectively against the technology giants that dominate digital advertising.

The merger aligns with the broader trend of accelerating transformation across the marketing sector, where artificial intelligence and process automation are becoming increasingly central. The unified Omnicom–Interpublic structure will enable the company to offer a broad ecosystem of services spanning media, digital technologies, data analytics, public relations, and client management. This combination of capabilities enhances scalability and the potential for cost synergies, which investors are watching closely in an environment of intensifying competition.

Experts emphasize that integrating two large organizations brings significant operational and cultural challenges. Harmonizing systems, teams, and strategies may affect short-term performance dynamics. Regulatory reviews in several jurisdictions also remain open, meaning the transaction is not yet fully finalized.

Although the merger has the potential to strengthen the company’s competitive position, this year’s market reaction reflects a very different investor sentiment. Omnicom’s share price remains under notable pressure. Year-to-date, the company has recorded a clear decline in value, while major technology and broad-market indices such as the Nasdaq-100 and S&P 500 have delivered strong double-digit returns. This divergence again highlights that traditional advertising firms continue to lose the battle for investor capital to large technology companies, which attract substantial inflows thanks to their dominance in digital advertising and rapid progress in artificial intelligence.