Omnicom, IPG forecast modest growth despite merger
By Felicia Nwosu
Omnicom Group and Interpublic Group of Companies (IPG) have projected modest revenue growth in the coming years, even as they combine to form an advertising behemoth.
Ad age in its report revealed that Omnicom anticipates a 4% annual revenue increase, while IPG forecasts a 3% annual net revenue growth.
Both leading agencies said this tempered outlook reflects the challenges facing traditional advertising companies as they navigate the evolving digital landscape and compete with new market entrants.
Recall also, that the two companies recently announced a merger, with Omnicom acquiring IPG in a stock-for-stock deal.
Both agencies affirmed that the combined efforts will have a significant presence in the advertising market, with projected annual revenue of almost $26 billion.
The deal is expected to be completed in the second half of 2025, assuming shareholders and regulators approve the merger.
In the third quarter of 2024, Omnicom reported revenue of $3.9 billion with organic growth of 6.5%. IPG posted revenue of $2.24 billion with flat organic growth for the same period.
The merger discussions reflect broader industry consolidation trends as traditional advertising holding companies seek scale and technological capabilities to compete in an increasingly digital marketplace.
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