Omnicom responds to reports it may retire the DDB brand once IPG merger completes late Nov
Omnicom has addressed industry speculation that its historic DDB brand could be retired as part of the holding company’s upcoming merger with Interpublic Group (IPG).
The rumours surfaced following reports that the nearly 80-year-old network, founded in 1949 by Bill Bernbach, James Edwin Doyle and Maxwell Dane, may not continue in its current form once the Omnicom–IPG deal closes.
DDB is widely regarded as one of the creative industry’s most iconic agencies, responsible for defining work for Volkswagen, John Lewis and McDonald’s. This year DDB was named Network of the Year at Cannes Lions and Pacific Agency of the Year, with standout performances from both DDB Group Australia and DDB Group Aotearoa.
The suggestion it could disappear has sparked significant industry reaction, with many industry veterans taking to social media to express concern over the potential retirement of one of advertising’s most influential names.
According to The Drum, Omnicom did not confirm the reports but issued a formal statement, noting that regulatory approvals for the merger are still pending and both companies continue to operate independently.
“As it relates to our brands, we are undertaking a rigorous and considered process to ensure we have the very best solutions for the future for us and for our clients,” Omnicom said, adding that once plans are finalised, communicating them to staff and clients will be the first priority.
The response suggests active internal discussions on brand architecture and future positioning as the merger proceeds, though no formal decision has been announced.
According to The Drum, Omnicom chief Troy Ruhanen had previously stated in March that the company “won’t be backing away from creative agency brands,” adding that sibling rivalry between networks like BBDO, DDB and TBWA would remain healthy.
Omnicom’s agency groups include BBDO, DDB and TBWA, while IPG’s include FCB, McCann Worldgroup and MullenLowe Group. Any consolidation across the combined portfolio would represent one of the most significant brand restructures in holding company history.
As of a few weeks ago, all email addresses belonging to staff at BBDO, DDB and TBWA across both sides of the Tasman, have changed to the omc.com domain, as reflected in the most recent update on Portfolio & Reel.
While no confirmation has been given on the fate of the DDB brand, the agency’s legacy, and its continued creative relevance, make this one of the most closely watched narratives in global advertising as the Omnicom-IPG merger advances.
Further details are expected to be communicated once the merger process is finalised.
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1 Comment
Some history for the kiddies.
Decades ago, the stated reason for the big global networks buying other big global networks was expansion.
It is vital to have an agency group for every need, they declared
Unstated was that by owning, say, Y&R, JWT and O&M and a couple of token creative hotshops it didn’t matter if clients moved since there was a decent chance of them remaining within the overall network.
Of course, whilst this perhaps worked on a global level, it was never going to on a regional or local one.
The only way to make more money from George Patts, Y&R and the Campaign Palace collectively than you would individually is to merge them, sack as many staff as possible and hope the salary savings outweigh any client losses.
Sometimes it works. Maybe it did with the above example. Sure Patts/Palace/Y&R may have lost most of their clients and most of their staff, but maybe WPP earned more.
Either way we all lulled ourselves. The big networks almost overnight saw the light! They targetted Cannes. They, and the big clients, were now true believers. Cannes went from two categories to two thousand. Scams were bad, but initiatives could be construed as partnership. Life was sweet!
But then social media became cool and the social media giants did a brilliant job of convincing many clients that there was a new creative paradigm. Quantity was now measurably better than quality.
Ideas could be replaced by technology for 1/8 the price. AI, potentially, could replace average creatives, average suits, average planners, average clients and average production companies.
The only people whose jobs are safe from AI are those at the very highest level.
So now the big networks have abandoned all pretence and are racing each to buy the networks with the most sackable people.
Omnicom were seen as one of the good guys because of DDB and TBWA. But the only conceivable business reason for them buying Interpublic is to sack as many people as possible.
They care no more about the history of DDB than WPP did about the history of JWT.
The business as we know it is going to go through a contraction equivalent to that when the commission system disappeared.
Great time to start your own shop or join a funky independent.