The European Union’s antitrust regulator on Monday unconditionally approved Omnicom Group’s $13.25 billion all stock acquisition of rival Interpublic Group, clearing the way for the merger of two of the world’s largest advertising agencies.
The deal, first announced in December, combines the third largest ad buyer, Omnicom, with the fourth largest, Interpublic, creating a global advertising giant amid growing competition from Big Tech and the accelerating use of artificial intelligence.
“The commission has carefully reviewed the proposed merger and concluded it does not raise competition concerns,” the EU Commission said in a statement. “The deal will not reduce choices for advertisers or consumers in Europe.”
Omnicom, headquartered in New York, has built its portfolio over decades through global brands such as BBDO, DDB, and TBWA. Interpublic, also based in the US, owns agencies including McCann Worldgroup, FCB, and MullenLowe.
Both companies have increasingly faced pressure from digital giants like Google, Meta, and Amazon, whose dominance in online advertising has reshaped the global market.
“The advertising landscape has changed dramatically in recent years,” said Clara Rodriguez, an industry analyst at MarketEdge Research.
“Traditional agencies must scale up and innovate to stay relevant, particularly with AI tools reshaping media buying and creative services.”
The deal, valued at $13.25 billion in stock, was initially met with scrutiny from regulators in the US and Europe due to concerns about market concentration.
Analysts noted that while the merger consolidates two major players, the overall advertising market remains fragmented with numerous competitors.
Industry experts say the merger will allow Omnicom and Interpublic to compete more effectively with tech companies dominating digital advertising, while also providing enhanced services to clients.
“Combining resources will give them a stronger global footprint and advanced data capabilities,” said Peter Langford, a media strategist at AdInsight Consulting.
“Clients will likely benefit from more integrated campaigns, but the agencies will need to manage culture and talent integration carefully.”
Some critics argue that consolidation could put smaller agencies at a disadvantage, though others point out that scale may be necessary to compete with the efficiency and reach of AI driven advertising platforms.
“AI is not just a tool, it is transforming how campaigns are developed and delivered,” said Monica Zhang, professor of marketing at the University of London. “A larger agency can invest in AI capabilities faster than smaller competitors.”
Omnicom reported $15.6 billion in revenue in 2024, while Interpublic posted $10.3 billion. Combined, the new entity will generate nearly $26 billion, surpassing previous leaders such as Publicis Groupe of France, which reported $12.5 billion in 2024.
Global ad spending continues to grow despite economic uncertainties. According to Magna Global, worldwide advertising expenditure reached $790 billion last year, with digital channels accounting for 63 percent.
AI driven programmatic advertising has been a key growth driver, with investment rising 40 percent year over year. Employees and clients of both agencies expressed cautious optimism about the merger.
“I see opportunities for professional growth and access to new markets,” said Julia Fernandez, a senior account manager at Interpublic. “At the same time, there is uncertainty about how overlapping teams will be consolidated.”
Advertisers also welcomed the potential benefits of a larger network. “For global campaigns, having a single point of coordination across multiple regions is a huge advantage,” said Mark Henderson, chief marketing officer of a multinational consumer goods company.
The merger positions Omnicom IPG to lead in creative innovation, digital media buying, and AI driven marketing solutions.
Analysts predict potential acquisitions of smaller specialized firms to strengthen capabilities in areas like AI analytics, influencer marketing, and immersive media experiences.
“Regulators’ approval is only the beginning,” said Rodriguez. “The next challenge will be integrating operations efficiently while maintaining creativity and client satisfaction.”
Some experts warn that increased consolidation in the advertising sector may spur further regulatory scrutiny in the future, particularly around AI driven ad targeting and consumer privacy.
With EU approval secured, Omnicom and Interpublic are set to form the largest advertising agency in the world, combining resources to compete with Big Tech and leverage artificial intelligence for innovative marketing solutions.
While challenges remain in integrating teams and maintaining competition in the industry, the merger signals a significant shift in the global advertising landscape.
The deal highlights the growing importance of scale, technology, and AI in advertising, and reflects broader trends in the industry as agencies adapt to a rapidly evolving market.
