Michelle Sarpong is Commercial Lead, the7stars, and NDA’s new columnist.
Consolidation. It’s a word that often signals progress, efficiency, and strength. But beneath the surface of business strategy and boardroom logic lies a much more human story, one that affects not only the structures of companies but the lives, relationships, and identities of the people within them.
At its best, consolidation promises transformation for the better, streamlined operations, stronger capabilities, a more competitive, balanced ecosystem. And yes, there have been some clear examples where that promise has been realised.
Take this year’s Bauer Media and Clear Channel merger — a bold move that reshapes the UK media landscape for the better. By joining forces, they challenge the dominance of Global across both audio and OOH.
The result? A more balanced ecosystem, where market power is more evenly distributed. It’s a shift that many welcomed, a reminder that consolidation doesn’t have to equate to monopoly — it can mean fairness, competition, and better outcomes for advertisers and audiences alike.
In digital media, consolidation has become more than a trend — it’s a necessity. With thousands of digital suppliers operating in the UK alone, the market has long suffered from saturation. Too many players offering similar services has led to duplication, confusion, and inefficiency for agencies and clients alike.
The recent wave of mergers among rich media partners has helped reduce clutter and created clarity. It has also made it easier to differentiate offerings and build deeper, more strategic partnerships. In many ways, this movement was not only welcomed but was overdue.
But not all consolidation stories end in celebration.
Just last week, Microsoft announced the closure of Xandr, its demand-side platform effective February 2026. This marks not just the end of the platform but the beginning of a new chapter for Microsoft, one where AI-powered tools like Copilot will take centre stage.
It’s a clear signal: we’re moving away from traditional programmatic models, and toward a more controlled digital future. This pivot raises new questions. Is this the beginning of a larger withdrawal from the open web by Big Tech? Will other tech giants follow Microsoft’s lead?
And what about agencies? The consolidation trend is accelerating across holding groups too with some of the biggest changes occurring in the last 6 months.
In a surprise announcement last year, IPG and Omnicom revealed plans to merge, creating the largest advertising holding company in the world — eclipsing WPP in size and scale. This wasn’t just about survival. It was a strategic manoeuvre to combat the influence of Big Tech and meet the rising demand for data-led, AI-powered media solutions.
Not to be outdone, WPP responded with its own consolidation strategy, streamlining GroupM under a single unified brand, WPP Media, and combining EssenceMediacom, Mindshare, and Wavemaker into one profit-and-loss structure. Efficiency? Certainly. Simplicity? Arguably. But this new world of “super groups” leaves many asking: where does the client fit into all of this?
Because for all the operational logic and AI innovation, consolidation can feel deeply impersonal to the clients we serve. Clients don’t just choose an agency for its tools, tech or reach. They choose it for its culture, its chemistry, and above all its people.
When an agency wins a pitch, it’s often because they “get it” the brand, the ambition, the story and embark on this journey together. But when suddenly that handpicked agency becomes just one part of a much bigger machine — clients may feel blindsided or even abandoned.
And then there are the people behind the headlines and businesses.
Every merger leaves its mark on more than just the balance sheet. There are redundancies, restructures, roles absorbed, identities lost. For those who exit, it’s life-changing — sometimes painfully so. For those who remain, it can be equally disorienting. New leadership, new colleagues and a silent expectation to stay positive, be resilient, and carry the weight of change without missing a beat.
We often underestimate the emotional toll of consolidation. We forget that agencies aren’t just revenue machines. They’re communities. They’re places where people pour in their creativity, build friendships, push boundaries, and create work that leaves a mark. When that environment is suddenly upended, the impact is more than logistical — it’s deeply personal.
So — is consolidation a good thing?
It can be. When done with intent, transparency, and a clear focus on people — especially clients — consolidation can unlock meaningful progress. It can create stronger offerings, reduce inefficiencies, and level the playing field.
But when the driving force is purely financial — when decisions are made behind closed doors with shareholders in mind and not the people on the ground — the consequences can be damaging and long-lasting.
We must remember: this industry is powered by people, by talent, by relationships. Let’s not lose sight of that in the race for scale, efficiency, and AI-first futures.
Because if we’re going to come together — let’s do it for the right reasons, let’s do it to build something better, for clients, for talent, for the work and for the future of the industry we all care so deeply about.
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