AD Agencies
Dentsu Aegis Network restructures rural marketing under Hyperspace
Mumbai: Dentsu Aegis Network recently announced the restructuring of its Rural Marketing under its shopper marketing agency, Hyperspace. This development has been introduced in the light of opening avenues for brands to create a shopper experience in the emerging markets.
Keshav Chandorkar, who was heading the Rural division under Fountainhead Entertainment will continue to lead this new operation along with his original team. Chandorkar has 24 years of experience in activation, rural marketing and strategy planning.
“Retail is facing headwinds, particularly in rural areas because the consumers in these markets witness the premium retail experience through mobile connectivity today. Moreover, with the increase in the purchasing power of the consumers, the disparity between urban and rural India is reducing manifold. As leaders in the Industry, we are committed to review the market, pick out the gaps and do the needful. We are positive that this recent rejig will be beneficial to the fast-evolving consumers,” said Keshav Chandorkar, Vice President – Rural Division, Hyperspace.
Speaking on the restructuring strategy, Haresh Nayak, Group MD – Posterscope – South Asia, said, “Hyperspace being in the industry for 10 years now, having an experience of working with more than 200 + clients, rural marketing was a natural extension. The agency has had a fair presence in the smaller markets but given the scope that still more than 90% retail takes place in the physical space, our rural marketing services will only help our clients to reach in deeper markets. As a brand we are chasing multiple priorities at the same time, so even as the company expands, we will stay agile and we will continue to discover the new preferences of our clients and consumers.”
At Hyperspace, the rural marketing division specializes in delivering memorable and engaging consumer experiences driven through insight, data and innovation. The division positions itself as a 360-degree solution provider to brands, with an in-house capability of conceptualization as well seamless on ground activation across the length and breadth of the country.
AD Agencies
Omnicom doubles synergy target to $1.5 billion, flags more job cuts after IPG deal
Advertising giant targets deeper job cuts and restructuring by mid-2028
NEW YORK: Global advertising group Omnicom Group has sharply escalated its cost-cutting ambitions following its acquisition of Interpublic Group, doubling its annual synergy target to $1.5 billion by mid-2028, according to media reports.
The bulk of the savings, $1 billion a year, will come from labour costs, according to Omnicom’s fourth-quarter earnings presentation. This signals further job cuts, restructuring and the relocation of roles to lower-cost markets.
The tougher stance comes just months after Omnicom announced 4,000 redundancies in December, immediately after closing the IPG transaction.
Presentation slides show labour-related synergies accelerating over the next three years, rising to $645 million in 2026, $920 million in 2027 and $1 billion by 2028. The company said the savings will be delivered through a mix of headcount reductions, offshoring and near-shoring, alongside outsourcing selected back-office functions.
Beyond payroll, Omnicom expects to extract $240 million from real estate consolidation and a further $260 million from IT, procurement and operational efficiencies.
The revised $1.5 billion target is double the $750 million estimate flagged when the IPG deal was announced in late 2024, underscoring a more aggressive integration push than previously signalled.
Chief executive John Wren said Omnicom aims to deliver $900 million of the synergies by the end of 2026, with the full run-rate achieved within 30 months. On the earnings call, Wren and chief financial officer Phil Angelastro said early integration efforts had focused on eliminating duplicated corporate and operational functions.
“Unfortunately, you couldn’t keep two of everything,” Angelastro said, pointing to executive and structural overlaps created by the merger.
The restructuring has also led to a simplification of agency brands and reporting lines. Legacy networks such as DDB Worldwide, FCB and MullenLowe Group have been dismantled as standalone entities, with the group reorganised around nine “connected capabilities”, including Omnicom advertising and Omnicom media.
Omnicom is also expanding a unified resourcing model built around offshore hubs in Colombia, Costa Rica and India, which are expected to take on a larger share of delivery and support functions.
Angelastro said artificial intelligence was not the primary driver of staffing reductions, though automation and AI are being explored to lift productivity.
Omnicom expects total headcount to settle at about 105,000 employees, down from a combined 128,000 at the end of 2024. Around 10,000 roles will fall off payroll through divestments and exits from non-core agency assets.
Investors cheered the expanded savings plan. Omnicom shares jumped more than 15 per cent to close above $80, buoyed by the higher synergy target and a separate $5 billion share buyback programme. Analysts at Bank of America called the moves “key positives”, though flagged the absence of organic growth guidance for 2026.
The New York–headquartered group reported an annual net loss of $54.5 million on revenue of $17.3 billion, reflecting one month of IPG contribution and heavy one-off costs linked to the merger and restructuring.
Omnicom will host an investor day on 12 March, where it is expected to outline further integration milestones and capital allocation priorities.
