What the agentic AI era means for ad agencies, with Omnicom’s Jonathan Nelson

The Digiday Podcast

Omnicom Group’s pending acquisition of Interpublic Group seems especially timely in the hindsight of last week’s Consumer Electronics Show in Las Vegas.

A major talking point among the brand and agency executives in attendance was the onset of the so-called agentic era of artificial intelligence, in which AI tools handle multi-step tasks for people like booking a full travel itinerary — or firing off a client brief. In this era, data will be at even more of a premium than it is today

“If you think about the IPG acquisition, we will have a broader platform to to do things. We will have the broadest dataset on the buy side anywhere in the world, and more expertise, more clients,” Jonathan Nelson, CEO of the agency holding company’s digital arm Omnicom Digital, said on the latest Digiday Podcast, which was recorded in person at CES.

The combined company will also have Omni AI, a product that Omnicom is developing to combine various foundational large language models. “We’re putting that on every employee’s desktop in Omnicom right now,” Nelson said.

Which gets at another aspect of how AI will affect agencies’ business. As agencies effectively outsource tasks to AI tools, the traditional agency compensation model — in which agencies are paid in accordance with the time it takes to complete client projects — will be under pressure. This is again where Omnicom is counting on the combination with IPG and the corresponding dataset — as well as its previous acquisition of commerce platform Flywheel — to be able to adopt a model in which its client fees are contingent on the results of its work rather than the time it takes to complete that work.

“Here we are sitting on this massive dataset. It’s coming together across audience, activation, outcomes. It has that purpose, which is driving towards outcomes remuneration,” said Nelson.