Now that the $13 billion merger between Omnicom and IPG is definitely taking place, all consideration turns to what the merged entity will seem like. 

It’s going to get bloody as a result of it is a merger of equivalents. 

Each have large artistic businesses, digital media, PR businesses, and so forth. Each run a “home of manufacturers” structure. And to make issues worse, the merging corporations aren’t geographically distinct both. 

I see three attainable situations.

Choice 1 – The Diplomatic Handshake

This mild possibility, the place everybody retains their nook workplace, preserves the massive six artistic networks basically untouched: BBDO, DDB, TBWA from Omnicom, and McCann, FCB, MullenLowe from IPG all survive the cull. 

This situation is the trail of cowardice, and that’s exactly why it has a preventing likelihood. 

The argument is straightforward: it’s designed to attenuate consumer defections and any expertise exodus. 

When WPP merged JWT and Wunderman, they misplaced Vodafone. When Publicis consolidated, shoppers fled. Retaining all six artistic networks intact means no CMO has to elucidate to their CEO why they’re abruptly sharing an company with their largest competitor. 

However right here’s why it received’t occur: Wall Road. Omnicom Chairman and CEO John Wren promised $750 million in synergies. You don’t get that by doubling headcount and maintaining all of the logos. You may’t preserve six P&Ls, six administration groups, six finance departments, and 6 egos whereas delivering the price financial savings that justified this whole $13 billion journey. 

Extra alarming nonetheless, this strategy fails to deal with the basic downside: Publicis has been consuming each corporations’ lunches with a simplified mannequin for years. 

Enjoying it protected now could be the riskiest transfer of all. Nobody thinks it’s going to occur.

Choice 2: The WPP Playbook