In December 2024, Omnicom announced its acquisition of Interpublic Group in a US$13.25 billion all-stock deal creating the largest advertising agency in the world with over US$26 billion in annual revenues. Omnicom’s acquisition announcement was widely reported in the press as a direct response to declining ad revenues within traditional media conglomerates like Comcast, Paramount Global and the Walt Disney Co. and increasing competition from tech giants like Google, Meta and Amazon .
Traditionally, corporate merger and acquisition (M&A) activity is an indication of industry contraction often resulting in pressure for consolidation by competing groups to protect existing market share as conditions change. For many business journalists, this explanation was readily accepted as a conforming narrative preferred by legacy media companies. Recognition of the spin is important here. If advertising revenues decline at legacy media companies and tech giant platforms, it must be a result of declining advertising spend.
Right?
