Omnicom, Publicis Merger Reveals Big Data's Influence on Ad Business The two advertising stalwarts are teaming up in a $35.1 billion merger to fight off digital competition from the likes of Google, Facebook and hundreds of ad-tech startups.

By Colleen DeBaise

Opinions expressed by Entrepreneur contributors are their own.

The merger of advertising heavyweights Omnicom and Publicis spotlights how much Big Data has disrupted the traditional ad landscape.

In announcing plans Sunday for a $35.1 billion merger, old guard stalwarts Omnicom (founded in 1944) and Publicis (established 1926) indicated that they hope to be better equipped to participate in an industry that's quickly become dominated by data analysis and automated ad buying.

In a recent series of videos, Entrepreneur.com took a look at advertising technology – the buzzworthy industry that's developed in large part because of consumers ' increasing use of smart phones and other mobiles devices. Advertisers now have the ability to deliver highly targeted ads to individuals over the Internet, using a treasure trove of data collected about that person's location, likes, age, gender and shopping preferences. Unlike, say, a splashy, expensive, static ad in a print magazine, today's ads served up on websites are super-customized, cheaper and sometimes updated in real-time (privacy concerns notwithstanding).

All of that means the new giants in the field -- and a competitive threat to Ominicom and Publicis -- are those with plenty of user data: Google, Facebook, Yahoo, Twitter, even Salesforce.com and Adobe Systems. And the innovators are not Madison Avenue's traditional "Mad Men" but rather nimble entrepreneurs, who are hiring data scientists and engineers to invent new technologies to perfect digitally driven ads. "We're only literally 1% of where we can be," Nihal Mehta, an entrepreneur at New York ad-tech firm Local Response and an investor in ad tech, told us. "There is infinite innovation that's happening right now for the future of ad tech."

Watch our video below to hear more about how Big Data is shaking up the advertising industry.

Colleen DeBaise is special projects director at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

AI Could Cause 99% of All Workers to Be Unemployed in the Next Five Years, Says Computer Science Professor

Professor Roman Yampolskiy predicted that artificial general intelligence would be developed and used by 2030, leading to mass automation.

Business News

Mark Zuckerberg 'Insisted' Executives Join Him For a MMA Training Session, According to Meta's Ex-President of Global Affairs

Nick Clegg, Meta's former president of global affairs, says in a new book that he once had to get on the mat with a coworker.

Buying / Investing in Business

From a $120M Acquisition to a $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Business News

United Airlines Says It Is Adding Extra Flights in Case Spirit 'Suddenly Goes Out of Business'

Rival airlines, including United and Frontier, are adding new routes as Spirit cuts 12 cities from its schedule.