The global advertising industry is facing a turning point — one that many insiders are calling “a funeral for traditional advertising.”
Following Omnicom’s announcement of 4,000 job cuts and the retirement of several legacy agency brands after its $13 billion acquisition of Interpublic Group (IPG), the mood across the global and Indian advertising fraternity is grim.
What once were creative powerhouses that built iconic campaigns are now being replaced by media-driven, AI-optimized systems. For many, it feels like the industry has lost its soul — and perhaps, its original purpose.
End of an Era for Legacy Agencies
For decades, agencies like DDB, FCB, and MullenLowe symbolized creativity, craft, and storytelling. They launched campaigns that shaped pop culture and defined brands. Today, many of those names are being phased out or merged under consolidated holding company structures.
Omnicom’s latest move to retire its legacy brands is being viewed as a historic restructuring, reshaping how global networks will operate in the coming decade.
While the company has justified the decision as a step toward efficiency and integration, industry veterans argue that something deeper — and more concerning — is at play.
“The obsession with efficiency is killing creativity,” said a senior Indian ad leader who has worked across global agencies. “When decisions are driven by media math instead of brand vision, the work loses meaning. We’re optimising impressions, not emotions.”
The Rise of AI and Media Efficiency
The shift in global advertising mirrors a broader trend: the rise of performance-driven marketing. Holding companies are now reorganising their businesses around media efficiency, automation, and artificial intelligence.
AI-led tools have already replaced traditional creative workflows in content generation, campaign optimisation, and audience segmentation. While these tools save time and cost, they also risk flattening creativity into uniform, algorithm-friendly templates.
“AI can write copy, but it can’t feel culture,” said a Mumbai-based creative strategist. “The industry is moving from inspiration to instruction.”
Furthermore, media agencies are gaining dominance inside the holding group ecosystem. As data, automation, and ad tech platforms take control, creative agencies find themselves with smaller roles — often reduced to producing assets for programmatic pipelines.
Impact on India’s Advertising Landscape
India’s advertising ecosystem — once defined by creative giants like Ogilvy, JWT, and McCann — is now undergoing its own transformation. The ripple effects of Omnicom’s restructuring are expected to reach Indian shores soon.
Leadership realignments are already visible. Several senior executives across creative and media networks are reportedly exploring exits, mergers, or independent ventures. Meanwhile, homegrown digital agencies and influencer networks are emerging as powerful alternatives to legacy creative shops.
As Indian clients shift budgets toward digital performance and influencer marketing, the role of the traditional agency model is shrinking fast.
“Clients now ask how many leads you can deliver — not how memorable your ad is,” said a Delhi-based agency CEO. “That’s a fundamental shift in mindset.”
A Battle Between Creativity and Efficiency
The tension between creative intuition and data efficiency isn’t new. But in 2025, it has reached a breaking point.
AI-driven media buying platforms promise real-time ROI. Yet, veteran creatives argue that brands built only on numbers rarely endure. “Algorithms can amplify a message,” said an industry veteran, “but they can’t invent one.”
Agencies that once thrived on emotional storytelling are now being judged by dashboards. In this system, ideas that can’t be measured get discarded, regardless of their cultural impact.
The result: an industry that looks more productive on paper but feels less inspired in spirit.
Holding Companies Under Pressure
The consolidation wave began as holding groups faced rising competition from consultancies, martech firms, and in-house brand studios. By merging operations and cutting costs, they hoped to future-proof their businesses.
Omnicom’s acquisition of IPG — one of the largest in advertising history — is a signal that the era of standalone creative networks is ending. The new reality is one of centralized data ecosystems, AI-assisted creativity, and shared resources.
But many insiders believe the move may accelerate talent erosion. “When creativity is centralized, individuality dies,” commented an executive from a rival network. “You lose the creative chaos that made agencies magical.”
What’s Next for the Industry
The collapse of legacy agencies doesn’t necessarily spell the death of creativity — but it does mark the end of a certain way of working.
Experts predict that the next wave of innovation will come from independent studios, digital-first networks, and creator-led brands. These new players combine storytelling with agility, building campaigns rooted in culture rather than corporate frameworks.
For India, this could be an opportunity. With a vast pool of creative talent and a growing digital economy, the country might lead the reinvention of the advertising model — one that balances performance with purpose.
Conclusion
The “funeral for advertising” isn’t about mourning the past — it’s a call to rethink the future.
Legacy agencies may be fading, but creativity will survive wherever curiosity thrives. As AI and media efficiency take center stage, the industry must rediscover its human side — emotion, empathy, and imagination.
Because while algorithms may guide the message, only creativity gives it meaning.
