Suzanne Breslin, GM Media at Contagion, offers a seasoned perspective on the recently announced Omnicom Group (OMG) and Interpublic Group (IPG) merger. Drawing from over two decades of experience—both at global agencies and nimble independents—she explores what this consolidation might mean for clients, the local market, and the future of marketing as a whole. Please continue reading to learn more…

Earlier this year, I took a significant step in my career, leaving behind an incredible six-year journey at OMD to join Contagion, a local independent full-service agency. Just this week, as I was catching up on industry news, I came across the headline about Omnicom Group (OMG) merging with Interpublic Group (IPG). It got me thinking about what each type of agency brings to the table for marketers.  Having spent considerable time throughout my 20+ year career on both sides, I ‘ve attempted to be unbiased in my thinking.

I can’t help but appreciate the substantial advantages that OMG and IPG will gain by joining forces. With their combined capabilities, clients can expect a wider array of services under the one roof, operations become streamlined, which can lead to significant cost savings—a win-win for clients looking for efficiency.

The merger also expands their combined knowledge banks, which will allow them to further even more insights from around the world. For large multinational clients, this ability to tailor strategies that resonate globally while still fitting local needs can be a game changer. Plus, a larger entity brings increased bargaining power; they can negotiate more favourable terms with media and tech partners, which could benefit their clients. However, I do wonder how this might affect local media partners, who could find themselves feeling the pinch even more than they do already.

So, there are plenty of upsides, but I can’t overlook some of the risks involved, both for marketers and for the group.

Standardisation and streamlining of tools and processes may result in unique approaches and flavours that each agency offered getting lost in the shuffle. While larger agencies might promise brawn, they sometimes lack the distinctive spark that smaller agencies cultivate.

And then there is managing conflicts of interest. While Chinese walls have always been a thing within agencies, when you consider the share volume of clients that will now sit under OMG it will be interesting to see how the streamlining of services will be managed. With a merger of this size, reduced competition in our market also comes into play. This can quickly lead to feelings of price fixing and predatory pricing which has potential to further drive smaller competitors out of the market.

However, I know many of you will have the same thoughts as me on this one: focus only on price is a race to the bottom.

Independent agencies will continue to shine with their unique advantages. We thrive on flexibility and agility, allowing us to pivot quickly to meet client needs and adapt to ever-changing market conditions. This nimbleness is something that continues to delight me in my new role at Contagion.

There’s something quite special about the personalised service independent agencies offer. I am loving the close, meaningful relationships with our local Kiwi clients.  There is real joy in ensuring everyone feels valued rather than just another number in a massive portfolio. This intimacy is completely free from bureaucratic limitations.  I am really enjoying the teams’ ability and agility when it comes to having the space to think outside the box and deliver with enthusiasm and speed.

Specialisation is another hallmark of independent agencies. For example, at Contagion we have a raft of local B2B clients. This focused knowledge can be a significant advantage, enabling us to provide tailored B2B insights that resonate with local businesses.

So, in my humble opinion, there’s definitely a role for the (very) big guys AND the Indies. It’s about selecting the right one to meet your business needs and remembering that supporting local also means growth for New Zealand economy. That wasn’t too bias now, was it?

Source: Suzanne Breslin, 16 December 2024