On the Omnicom Group and Interpublic Group of Cos. investor conference call Monday to discuss the merger, there was little talk of creativity. Omnicom CEO John Wren mentioned the “creativity, innovation and effectiveness” of both companies in his opening remarks, but the words “creativity” and “creative” were not mentioned again as the call was largely devoted to synergies, scale, areas of growth and cultural alignment.
Both Omnicom and IPG boast moj phone number data well-known creative agency brands, including BBDO, DDB, Goodby Silverstein & Partners and TBWA on Omnicom’s side, and Deutsch, FCB, The Martin Agency and McCann on IPG’s side. During the call, Omnicom and IPG executives said they value the power of those agency brands and their individual cultures.
But many observers outside the holding companies said the merger is being driven by business efficiencies that have nothing to do with creativity.
One independent agency chief executive, speaking on condition of anonymity, said the deal is being driven by desperation as the business has evolved and clients are less willing to pay for the bundled advertising services offered by holding companies, many of which, like media buying, have become highly automated (and will become even more so with AI).
“Decades ago, these companies were creative. They’ve become digital and media companies with a little bit of creativity on top — the creative part gets an inordinate amount of attention in a business that has very little to do with it,” the CEO said. “The service-based nature of the business is where holding companies always make money. With [this they’ll feel even more like data/tech companies in a very short period of time.”
It has long been a cliché that agencies in holding companies cannot be as creative as independents, because the pressure to generate regular profits makes creative risk-taking dangerous. But the independent agency chief executive said the shift in the business has heightened those pressures, putting even more pressure on creative agencies.
“Everything was fine when the holding companies were doing well, it was easier for them to protect the creative side of their business. But they are not in that business now,” this person said. “What I have been hearing [from holding companies] over the last few years is: ‘They are milking us dry.’ It is difficult to protect the creative culture in creative agencies from the pressure that has built up in these holding companies.”
“It’s becoming increasingly clear that independent companies and holding companies serve different gods,” said Greg Hahn, co-founder and chief creative officer of Mischief, who spent many years in senior creative roles at BBDO. “Generalization warning, but for the most part, independent companies are built on growth through passion, people and freedom. The holding company model is built on math.
