Omnicom CEO John Wren dismisses speculation about Omnicom-IPG deal leading to client attrition

Omnicom produced organic revenue growth of 3.4% in Q1, but net income decreased 9.7% year over year.

The holding company’s core advertising, media and CRM services continued to anchor growth in Q1.

Media and advertising led all business segments with 7.2% organic growth, followed by precision marketing at 5.8% growth, while branding, retail commerce, PR and healthcare all declined. In Q1 2024, media and advertising grew 6% organically.

“Media, by far, is very strong and continues to be very strong,” said CEO John Wren on an earnings call. “Last year, we topped the leagues in terms of new business wins and retention.”

Creative services—often seen as more vulnerable in an AI-influenced era—remain a foundational piece of Omnicom’s identity, Wren emphasised.

“Advertising needs to be separated into two different areas,” he said. “Both are being highly affected by technology, but creative is our IP. That’s always going to be at the centre of what Omnicom does. If everybody had the same generative AI tools on their desk, what would make a difference? A brilliant creative idea.”

Omnicom CFO Philip Angelastro noted that while creative growth was “close to flat, a little bit down” in early 2025, the segment is expected to rebound in the second half of the year. Production work, meanwhile, continues to grow rapidly, driven by Omnicom’s investments in content automation platforms.

“Production is a fast-growing component of the solutions we provide,” Angelastro said. “Media has been quite strong and we expect it to continue to be very strong. Together, those are two key components of the overall product mix that’s strategic to the business going forward.”

Wren also pushed back on industry speculation that the pending Interpublic merger might lead to client attrition. “That’s just nonsense fed by my competitors to the trade rags,” he said.

While the branding business saw continued softness—partly as a result of slower M&A activity—the company reported healthy volumes in new business and ongoing client interest in CRM.

Merger momentum and market context 

The Q1 results come as Omnicom moves toward closing its planned acquisition of IPG, announced in December 2024, which would create a combined organisation valued at around $13 billion. The deal, expected to close in the second half of 2025 subject to regulatory approval, is projected to deliver $750 million in annual cost reductions.

Five of 18 jurisdictions have already approved the deal, including China, Brazil, Saudi Arabia, Colombia and Egypt. “We remain on track to close the IPG acquisition in the second half of the year,” said Wren. IPG’s Q1 results are expected April 24.

The results arrive shortly after President Donald Trump announced sweeping new tariffs on April 2 — and a subsequent 90-day implementation delay one week later. While the S&P 500 fell sharply, WPP, Publicis Groupe and Dentsu stocks all dipped around 12%. 

Omnicom’s stock declined 4% during the broader April market pullback, which analysts say reflects investor confidence in the merger and the holding co’s steady management. IPG stock also bucked the market by only declining 4.4%.