The makeover of Madison Avenue continues apace. In case you somehow missed it: Omnicom’s deal to buy IPG closed late last month, meaning that two of the biggest ad agency holding companies have now, finally, become one. The $13.5 billion deal is the latest in a long line of agency consolidations, shuttered agency brands, talent exodus, and reorganized priorities across the advertising landscape. “This is a significant unprecedented contraction in the size of the entity formerly known as Madison Avenue,” Andrew Essex, former CEO of Droga5 and the Tribeca Festival, told Marketing Brew. “This is like California falling into the ocean.” The new Omnicom has already axed well-regarded creative agency brands, including FCB, DDB, and MullenLowe, as well as several IPG-branded shops, and there are roughly 4,000 additional jobs expected to be cut as part of the latest restructuring, per Adweek. IPG had already reduced its headcount by 3,200 this year, while Omnicom cut some 3,000 roles. Essex described the industry contraction as “part of the inevitable shift from a collection of firms into large platforms,” which other experts note is increasingly focused on prioritizing data over creative output. In other words, the Madison Avenue the industry once knew is officially dead and gone. “The message [that] has come out of here is that media, cloud, and data matter more than ever before,” Greg Paull, president of global growth at MediaSense, told Marketing Brew. Continue reading here.—KM |