The new Omnicom, post-merger with Interpublic Group, is set to become “the largest supplier” of media buying in the UK agency sector, outstripping WPP’s share of media spend, according to the Competition and Markets Authority.
While the CMA didn't give specific figures for UK media spend or billings, and some statistics were redacted, its analysis of the deal, published today (26 August), revealed percentage ranges for each holding company's share of the UK market.
According to its data, the combination of Omnicom and IPG would have had a share of 30-40% of media spend in 2024 versus an estimated 20-30% share for WPP.
Campaign understands media spend in this instance refers to the sum paid to media owners to purchase media, excluding revenues for services provided by the agency or other costs.
By media billings, Omnicom/IPG combined and WPP were estimated to have the same share, between 30-40%, in 2024.
It is understood that media billings refers to the total amount paid by clients to the agency for media buying services, inclusive of spend and services provided.
The UK watchdog announced it had greenlit the merger on 6 August, after a regulatory inquiry, but has only released its ruling now in a 16-page document.
In the full text of its decision, the CMA added that it approved the deal on the basis that the enlarged Omnicom would face competition from other agencies, “particularly from other holding companies”, and it does not expect a “substantial lessening of competition” in the UK.
By media spend, the CMA reported that Publicis had an estimated 20-30% share of the UK market, Dentsu had 10-20%, Havas 0-5% and independent media agencies 0-5% in 2024 (full table below).
By billings, Publicis had an estimated 10-20% share of the UK, followed by Dentsu with 10-20%, then Havas and independent media agencies, which both represented a range of between 0% and 5% of the market each.
The CMA noted its estimate for “independents’ share of supply could be underestimated” because it received a “low response rate” from smaller agencies to its “competitor questionnaire”.
The CMA’s investigation focused chiefly on competition in media-buying services (MBS), rather than creative, which the regulator calls media creative services (MCS).
The regulator stated that it was not concerned about competition among creative agencies. “On the basis of the evidence gathered by the CMA, the CMA considered at an early stage in its investigation that there are no plausible competition concerns in respect of the supply of MCS as a result of the merger and this is therefore not discussed further in this decision,” the CMA ruling explained.
New Omnicom and WPP are likely to be closely matched in terms of UK media scale
Previous industry data has suggested that the new Omnicom and WPP will be closely matched in terms of media-buying scale.
According to Campaign's most recent School Reports, which are based on Nielsen data, WPP was the largest holding company with $4.13 billion (£3.07 billion) in UK media billings in its home market.
US-listed Omnicom was the next largest, with $2.7 billion (£2 billion), and IPG, also a US-based company, had £672 million, resulting in a combined spend of $3.64 billion (£2.7 billion) in the UK.
WPP did lose some significant accounts, including Sky and L'Oréal, midway through 2024, but it also won Amazon, globally, alongside Omnicom, from IPG.
Omnicom's acquisition of IPG has received regulatory approval in 15 of the 18 markets needed for the deal to go through.
The largest of the markets still awaiting approval is the European Union.
