Omnicom’s Monday announcement of its plans to acquire Interpublic Group became the latest tremor in the already shaky ground of the agency world. If the deal goes through, it’ll create the largest ad shop in the world and one that, to quote the joint press release, will “bring together the industry’s deepest bench of marketing talent and the broadest and most innovative services and products, driven by the most advanced sales and marketing platform.”

Such optimistic rhetoric drove IPG’s share price up by 10% following Monday’s announcement. But partly because the deal would reduce advertising’s Big Four (WPP, Publicis, Omnicom, and IPG) to just three. But it faces a host of operational and organizational challenges—to say nothing of the regulatory ones.

Big merger, long process

Internally, the biggest hurdle is how to put these two colossal companies together. Beyond realizing the $750 million in “annual cost synergies” promised by the official statement, the new entity needs to “create long-term value beyond cost-cutting measures—a baseline expectation of a merger of this scale,” said Tammy Madsen, Professor at the Leavey School of Business at Santa Clara University.

“The size and complexity of the integration could take significant time, allowing tech leaders such as Google and Amazon to extend their leads in leveraging AI for personalized data-driven marketing,” Madsen added.

What’s more, the difficulty of “aligning processes, technologies, and cultures could slow down execution, distracting from innovation and customer service,” she said. “In an industry that demands agility, this is a significant risk.”

Another risk is shedding creative talent—intentionally or not.

“From an organizational perspective, you’re talking about aligning workforces, systems, and corporate cultures and rationalizing office space, which requires careful planning and clear communication to minimize disruption, said Tom Allen, chief education officer and head of content for the Zurich-based Institute for Mergers, Acquisitions & Alliances.

“Cost savings of $750 million might sound attractive,” Allen continued, “but if that involves large-scale job cuts, it could impact morale and create operational challenges. Retaining top talent and ensuring clients feel secure during the transition will be critical to keeping everything on track.”

A case of conflict avoidance

Then there’s the issue of potential client conflicts—meaning, the risk of competing brands that had contracted these two agencies separately only to find themselves under the same umbrella after the merger.

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