Bold call: The holdco era is over. The operating company age is here — for real this time

When consultant Matt Ryan emerged from last month’s meeting with the CEOs of Omnicom and IPG, one thought stuck with him. Between their fanfare over the proposed union and the swift clap backs from rivals, it’s clear the holding company era is finished. The future belongs to operating companies, where agencies function as a cohesive whole rather than a collection of loosely connected firms.

“I came away from it [the meeting] thinking they’re really pitching this new company as a unified one — they’re really going to operate it like, like, one big company as opposed to lots of smaller ones,” said Ryan, founder of advertising consulting firm Roth Ryan Hayes.

If all this sounds familiar it’s because agency CEOs have been preaching the gospel of operating models for years. Some have inched closer to the ideal, but none have quite nailed the landing — yet. That’s why all eyes are on Omnicom’s planned acquisition of IPG. Should it all go through, it’ll be another test of whether agency leaders can finally break free from the holding company playbook — or just rewrite it.

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