Advertising In Five

The daily five-minute brief on the advertising business.

Daily brief · 5 min
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The day's stories

01

Omnicom Moves AI Platform Staff to Endava

Adweek reports Omnicom is outsourcing hundreds of the engineers and product staff behind its AI platform to IT firm Endava — a test of whether an in-house AI build is an asset or a cost line.

Adweek reports that Omnicom is transferring hundreds of engineers and product staff to the IT services firm Endava. According to the report, those staffers built the AI platform the holding company has positioned as central to its future. The move places the people behind that platform with a third-party contractor rather than inside the holdco. Omnicom's rationale for the transfer is not detailed in the report.

02

Dentsu Weighs Cutting Up to 160 Overseas Entities

Marketing Magazine Asia reports Dentsu is considering eliminating as many as 160 additional international entities by 2028, signalling how far network consolidation may run.

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Marketing Magazine Asia reports that Dentsu is preparing to become a considerably smaller global organisation. Per the report, the Japanese advertising group is weighing the elimination of as many as 160 additional international entities by 2028, accelerating an existing restructuring. Fewer entities would mean fewer local P&Ls and fewer local points of contact for clients. The report describes the figure as under consideration rather than confirmed.

03

OpenAI to Serve ChatGPT Ads in 31 European Markets

Digiday reports OpenAI will begin showing ads to ChatGPT users across 31 European markets on August 24, giving buyers a first read on chat-assistant ad inventory under EU rules.

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According to Digiday, OpenAI will begin serving ads to people using ChatGPT across 31 European markets beginning August 24. The date arrives roughly six months into the company's ads business. The rollout gives media buyers an early look at how the format is placed and measured under EU privacy and advertising rules. Details of pricing and measurement were not specified in the reporting.

04

Australia Passes Law Requiring Platforms to Pay for News

Australia has passed legislation requiring Meta, Google and other large tech companies to strike deals with local publishers or face a levy — a precedent agencies will track for media economics.

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Reports from Tribune Online, Yahoo! Finance and International Business Times say Australia has passed legislation covering major technology companies including Meta and Google. Per those reports, the companies must either reach commercial agreements with local media organisations for news content or face a levy on their Australian revenue. The measure touches the economics of media inventory agencies buy for clients. Implementation timing and levy mechanics are not detailed in the summaries available.

Also moving today

  • Lawsuit alleges Sony investigated WPP's media operation and said it ran a 'global crime scheme' DNyuzBusiness InsiderAdweek
  • Novo Nordisk Appoints Omnicom For GLP-1 Medication Awareness healthcare-digital.com
  • Kopp, Parkinson Propel Brand Growth For Ogilvy Group MediaPost
  • Lily Collins Signs on as Face and Shareholder of IM8, Rethinking the Celebrity Deal Adweek
Read the transcript
Welcome in, today is Friday, August twenty-first, and we begin with an Adweek report that Omnicom has handed the people who built its AI platform to an outside contractor. Adweek reports that Omnicom has offloaded hundreds of the engineers and product staff behind its Omni AI platform to the IT firm Endava, and we have not seen that account matched elsewhere. According to documentation obtained by the outlet, at least four hundred and sixty-eight staffers across the United States, the United Kingdom, India and Malaysia moved across in June and July, most of them product and engineering talent. The same documentation shows a separate layoff of around fifty United States employees from the Omni Platforms Product and Engineering Division on the ninth of June. Omnicom has positioned the overhauled platform as a keystone of its client offering, showing the revamped version at CES in January, which puts a hard question on the table: whether a holdco's in-house AI build is a durable asset or a cost line. Industry reaction leans skeptical of the strategic logic rather than of AI itself, with a recurring view that handing off the builders of a platform pitched as central to the company's future looks short-sighted. A contrarian strand reads it as plain cost discipline once the build is finished. Also today, the shape of the global network business is being redrawn. Dentsu is weighing the removal of as many as a hundred and sixty more international entities by twenty twenty-eight, according to Marketing Magazine Asia. That reporting puts seventy to eighty of them in twenty twenty-six, with another fifty to eighty by twenty twenty-eight, on top of a count already halved from more than a thousand since twenty twenty-one. Roughly three thousand of the three thousand four hundred announced international job cuts are complete, per the same account, which also has Dentsu targeting a thirty percent reduction in global headquarters costs by fiscal twenty twenty-eight and redirecting part of the savings into AI, data and technology. Fewer entities means fewer local profit-and-loss lines, and fewer local points of contact for clients. Industry reaction leans skeptical of the streamlining framing. Some argue holdco complexity was the operating model itself rather than accidental overhead, and a recurring practitioner concern is prolonged internal disruption for client teams. On the platforms side, OpenAI turns its ads business on across thirty-one European markets from Monday the twenty-fourth of August, Digiday reports, following our earlier coverage of the product carousel it built for ChatGPT ads. That reporting says buying runs through agency partners, Publicis, Omnicom, WPP, Havas, Dentsu and MediaPlus, rather than self-serve, repeating the pattern set in the United Kingdom in June, with a small-business tool promised but undated, and a new European Union privacy policy posted on the fourteenth of August. Among practitioners already testing the format, reaction leans skeptical of its maturity, citing thin targeting controls and shaky conversion tracking. Staying with the platforms, Australia's Parliament passed the News Bargaining Incentive on Thursday. Tribune Online reports that qualifying platforms which do not strike commercial deals with local media will pay a levy of two and a half percent of their Australian digital advertising revenue. The threshold is more than two hundred and fifty million Australian dollars in local ad revenue, about a hundred and seventy-eight million US, which puts Meta, Google, TikTok and Microsoft's LinkedIn in scope. Deals covering at least eight publishers before the end of a platform's reporting period can offset the charge, with a larger offset for smaller newsrooms. The International Business Times reports the obligation now survives a platform pulling news entirely. It is a precedent that reaches the economics of the inventory clients buy. A recurring observation in the trade is that AI developers sit outside the scheme. Now, a few more headlines moving the trade today. Business Insider reports that a new filing in a fired executive's lawsuit alleges Sony investigated WPP's media rebate practices and concluded the group ran what Sony called a global crime scheme. WPP calls the lawsuit baseless. Novo Nordisk has named Omnicom agency of record for its United States media, ending a WPP relationship held since twenty twenty, per healthcare-digital dot com. MediaPost reports Ogilvy has promoted Kappie Kopp to global head of communications and hired Nicole Parkinson as global head of marketing. And finally, Adweek reports Lily Collins has signed as face and shareholder of supplement brand IM8, taking an undisclosed equity stake in parent company Prenetics.