17615: On Escalating The Exclusivity Of Account Reviews In Adland.

 

Advertising Age spotlighted a twist on account assignments, whereby a brand charged its White media agency to conduct a creative review for its first White advertising agency.

Or was it really a twist? It’s not the first time a pitch turned into an exclusive, closed, and clandestine affair—although the scenario offered an uncommon maneuver to maintain the status quo in Adland.

The brand is Humann. Yet the new partnerships appear to favor White humans.

P.S. to Humann: Your self-hype boasts being “The trusted name in cardiovascular health.” Research shows people of color in the US are at increased risk of cardiovascular disease and poor disease outcomes. Did you choose the best media and advertising partners to reach such critical audiences?

How media agency Eden Collective conducted a creative review for one of its clients

By Brian Bonilla

When cardiovascular-health supplement company Humann went looking for its first creative agency of record late last year, it did not hire a consultant or issue a request for proposal. Instead, it took the unusual step of asking its media agency, Eden Collective, to conduct the search.

Launched in 2009, Humann built its business around a supplement called SuperBeets that supports healthy blood pressure. The company has seen strong growth lately, expanding from a limited retail presence to more than 180,000 points of distribution in the past 20 or so months, said CEO and co-founder Joel Kocher. Humann is also diversifying into cardiovascular health more broadly, with cholesterol, blood sugar, omega and CoQ10 products.

“Our aspirations changed. Our ambitions changed. So naturally, the way you run your business has to change along with that,” Kocher said.

Eden was managing Humann’s media when Kocher began reconsidering the company’s in-house creative model. When he laid out his ambitions to Eden CEO and founder Alison Monk over coffee in New York, she was frank: “I don’t think you’re going to get there without an ad agency; a creative agency that can deliver the goods,” she recalled telling Kocher.

Monk initially suggested hiring a search expert. But Kocher persuaded Eden, which it had already entrusted with its strategy and business data, to lead the assignment. (Eden was hired as Humann’s media AOR in February after previously working on a project basis.)

How the process worked

That coffee meeting led to a four-week process that replaced lengthy questionnaires and rounds of pitching with a detailed video briefing and two primary interactions: an initial chemistry meeting designed to become a working session, followed by an in-person presentation by the finalists.

Six independent agencies were initially invited before the field was narrowed to three, with Humann ultimately selecting independent agency WorkInProgress as its creative AOR. Kocher declined to identify the other contenders.

Monk, who felt up to the task because she also spent much of her career on the creative agency side at shops including Grey and Digitas, said the review’s scope was intentionally broad because Humann hadn’t yet determined if it was looking for a long-term creative agency or a shorter-term solution.

“It was an amorphous ask: What do we need?” Monk said. “So we went through a range, and Joel and I sat down and said, ‘OK, let’s look at a couple of folks that skew more project-based, and let’s also look at deeper, more AOR-like partners.’”

The review began in mid-December with a mandate to reach a decision by February, ahead of Humann’s planned retail launch of a broader cardiovascular product suite in April. Monk said Humann’s executives spent “dozens, if not 100 hours” preparing for the process.

Rather than ask agencies to complete what Monk called a “27,000-page RFI,” Eden sent agencies a video featuring Kocher and his executive team, along with supporting materials.

The extensive briefing covered Humann’s history, its origins from research conducted at the University of Texas, its Nobel Prize-winning scientific roots, and information on how nitric oxide—a key ingredient in its products—works. It also detailed the brand’s past creative, evolution from direct-to-consumer to Amazon and retail, recent packaging redesign, consumer research and customer profiles, product expansion, media strategy and competitive landscape.

Agencies had one week to review the material before a two-hour meeting with the company.

“It was a chemistry meeting, but it became a work session because of the information we were given,” said Evan Russack, co-founder and partner at WorkInProgress. “As an agency, we value those moments deeply because they allow us to ask a variety of questions—important backgrounders—but also to determine if this is right for the agency.”

Russack said the video conveyed the leadership team’s personality, passion and communication style while giving agencies unusual access to Humann’s founder and CEO from the outset.

“It was really helpful that a media agency was running the pitch, because we typically have a ton of questions related to media, and we were able to get them all answered,” Russack said.

Each of the three finalists received a $15,000 stipend. WorkInProgress used the money to research consumers’ relationship with the supplement category, then incorporated the findings into its communications strategy and creative, Russack said.

Why WorkInProgress won the pitch

To Monk, WorkInProgress stood out for its “funnel fluency” across different marketing needs. Specifically, she was looking for shops that understood the difference between what she called “salesmanship” versus “showmanship.”

“Brands with high awareness can do more showmanship and only focus on entertainment, because they don’t have to explain who they are and what they do,” Monk said. “We’re talking about a complex product in a quickly commoditized category, with lower-quality value players nipping at their heels.”

The strategic challenge was to make cardiovascular health relevant beyond older consumers or people already managing a medical condition. Humann also sought to differentiate itself in a supplement category where Kocher said few companies have meaningful clinical science. That said, he acknowledged that the company had “over-rotated on science” with previous creative focused on testimonials, especially from doctors and researchers.

All participating agencies argued Humann needed a stronger emotional connection with consumers, Kocher said.

“Our formula was: give me a point of relevancy, give me a benefit—a reason to care. Then give me the science. Then make it credible,” Russack said.

For Kocher, the defining moment came about 10 minutes into the first meeting, when he asked how the agency views the brand. WorkInProgress Creative Director Josh Shelton responded by characterizing Humann’s existing brand personality as “cool Cheerios.” Kocher embraced the comment, which he recognized as “ostensibly an insult,” because it defined the brand as a management tool for an existing condition rather than one relevant to consumers who think proactively about wellness, longevity and performance.

“I thought, ‘Finally, someone had the guts to call it for what it was,’” Kocher said. “For me, that was the defining moment. I’d made up my mind right then. Ten minutes in, it was game over.”

Kocher actually bought a box of Cheerios that he planned to send the agency—but WorkInProgress beat him to it. Two days after the meeting, a package arrived at Humann via FedEx, with Cheerios boxes decorated with what Kocher described as “cool Ray-Ban shades” stickers.

The process also convinced Kocher that Humann needed an AOR rather than a project shop.

The first campaign, backed by an investment “approaching $50 million,” according to Kocher, will break in early October.

Monk said Eden does not intend to turn agency reviews into a business line. Its role grew from its knowledge of Humann and its position as a strategic marketing partner, she said.

Russack had not previously encountered a creative review run by a media agency, but said he wouldn’t be surprised if this becomes more common.

“We’re all looking for really good partners who have subject-matter expertise we don’t possess, and have a working style that matches ours so we can deliver results for brands,” he said.

17605: On Exposing Ugliness Of PepsiCo Pageantry.

 

More About Advertising published a lengthy perspective titled, “Ad agency pitch theatre is not a sport, but a beauty contest,” providing a probing analysis of PepsiCo global media duties shifting from Omnicom to Publicis Groupe.

The title poses two inherent flaws.

First, the PepsiCo business was awarded sans pitch. To play off the content concept, a winner was crowned without having to appear in the swimsuit competition—or any other pageant event. Indeed, it’s unclear how the decision was made, rendering the entire affair suspicious and potentially scandalous.

Second, the opinion piece was illustrated by the AI-generated image depicted above. A more accurate cartoon would have presented three Old White Guys, an Asian man, and a White woman. It’s an exclusive—and not very pretty—spectacle.

17600: More Dizzying Dispatches From The Cola Wars.

 

Advertising Age reported WPP is primed to win The Coca-Cola Company global media, data, and technology review.

Although as previously noted by this blog, the “victory” is mostly the result of Publicis Groupe nabbing PepsiCo global media duties. That is, the single White operating company claims the Coke prize by virtue of a prime contender dropping out.

According to Ad Age, WPP will not participate in the upcoming review for Coke North America media chores—although the trade publication previously identified the global flaming dumpster as a participant—which are being phased out of Publicis Groupe, who took the business from WPP last year.

The dizzying antics are likely driving people to drink. But not drink Coke or Pepsi products.

WPP is set to win Coca-Cola’s global agency review

By Ewan Larkin and Brian Bonilla

WPP is set to win Coca-Cola Co.’s global media, data and technology review and will not participate in the food and beverage giant’s forthcoming North America media pitch, according to people familiar with the matter.

The decision comes nearly five years after Coca-Cola hired WPP for creative, media, data and marketing technology across its 200 or so brands, setting up a bespoke unit called Open X. In early 2025, WPP lost its grip on a significant chunk of that business when Coca-Cola Co. hired Publicis Groupe for its North America media account. WPP continues to handle Coca-Cola’s global creative and PR.

WPP’s retention was expected by many after Publicis Groupe, which it had been competing against for the business, agreed to take over global media duties for PepsiCo. The French holding company’s decision prompted Coca-Cola to launch a review of its media account in North America, where Publicis is the incumbent, Ad Age first reported this week.

Coca-Cola and WPP declined to comment.

Coca-Cola has also been in discussions with Omnicom and Dentsu about the North America media business. Dentsu already works with the company in Japan and Korea, which were excluded from the global review.

PepsiCo last week announced it had moved its global media to Publicis from Omnicom without a formal pitch, relocating one of the industry’s most coveted accounts. PepsiCo spent $1.7 billion on global net media in 2025, according to COMvergence, making it a significant account for Omnicom to lose. Omnicom “remains a critical strategic partner across many of our marketing drivers, from creative to sports and PR,” PepsiCo stated.

17599: On Adland Analysts Seeing Industry Shifts And Shits.

MediaPost presented more common sense posing as color commentary on the stunning PepsiCo media shift.

A spotlighted analyst provided obvious insights such as:

“…[O]ne can reasonably assume that pricing was a major factor.”

“…[M]arketers are focused on price and performance over transparency and control.” 

“…[T]he loss could have more significant repercussions as it may lead to either more aggressive efforts with non-transparent trading activities, more significant investments in new capabilities or both.”  

“…[M]any hundreds of people at Omnicom [are] likely to be laid off.”

Sorry, but delivering duh as expert opinion warrants layoffs at consultancies and analyst firms.

Analyst Sees Industry Shifts In The Wake Of PepsiCo’s Media Move

By Steve McClellan

Omnicom’s stock remains down about 6% since news broke last week that one of its biggest clients—PepsiCo—abruptly shifted its entire media account to Publicis Groupe without a formal review. Omnicom ran the account for 20-plus years. 

According to the latest figures from COMvergence, Pepsi spent an estimated $1.7 billion on media in 2025. Of that total, Publicis had already been handling about $540 million, mostly attributable to the $500 million of spending in the Asia Pacific region.  

Omnicom had about two thirds of the business, including the $780 million U.S. market. 

PepsiCo has not explained specifically what led to the shift. But according to a rundown by analyst and marketing consultant Madison And Wall, “one can reasonably assume that pricing was a major factor.” 

Which isn’t a big surprise, given M&W’s premise that generally, “marketers are focused on price and performance over transparency and control.” 

According to M&W’s analysis, PepsiCo accounted for about 2.4% of Omnicom’s gross revenue last year—or approximately $400 million, which includes creative, media and other services. The lost media assignment probably accounts for under $100 million in gross revenue “unless principal-based trading was already a significant component of the existing relationship.” 

While a nine-figure revenue loss is clearly a blow, Omnicom’s sheer size mitigates it to some extent. It’s a $26-billion-plus revenue company thanks to its acquisition of IPG last year. 

The PepsiCo media loss could be made up for “in many ways,” per M&W. Strategically, the firm added, “the loss could have more significant repercussions as it may lead to either more aggressive efforts with non-transparent trading activities, more significant investments in new capabilities or both.”  

And to the extent that non-transparent activities helped Publicis offer better pricing to PepsiCo, similar tactics are likely to expand industrywide, M&W surmises.  

The firm also believes there’s a high likelihood that WPP will retain its $1.7 billion Coca-Cola media account, currently in review, and likely win back TCC’s $800 million North America business, which shifted to Publicis in 2025.  

The PepsiCo shift will affect jobs with “many hundreds of people at Omnicom likely to be laid off,” says M&W. The good news: Many of those same people will likely migrate to Publicis, along with the PepsiCo business.

17597: On Omnicom Experiencing PTSD (PepsiCo Termination Shockingly Delivered).

 

Digiday reported on Omnicom conducting a post mortem after being dumped by PepsiCo sans formal review or advance notice.

Expect the final analysis report to succinctly read: WTF.

‘Certainly a disappointment’: Omnicom CFO’s verdict on losing PepsiCo to Publicis

By Seb Joseph

 

Omnicom’s CFO is still trying to get his head around what went wrong. It’s been a little over a week since the holdco lost one of its longest running clients to Publicis. He called the loss “disappointing” and “unfortunate.” Now, he and the rest of the C-suite are doing a post-mortem to figure out why it happened. 

Speaking at the Goldman Sachs’ Communacopia and Technology Conference earlier today, Phil Angelastro gave a sobering take on PepsiCo’s decision to walk away after more than 25 years. 

“The Pepsi situation is an unfortunate one,” he said. “It’s certainly a disappointment from our perspective — you cannot sugarcoat it.” 

The comments all but confirm that this move blindsided Omnicom’s execs. Holdco bosses like Angelastro usually see this kind of switch coming. Sources with knowledge of the matter said his team didn’t, and has spent the past week trying to work out why. Why would PepsiCo after all those years walk away from Omnicom without even giving it the chance to fight for it? Speculation has been rife. Was it because PepsiCo’s CMO had a relationship with Publicis in a previous role? Or maybe the advertiser simply wasn’t impressed with whatever Omnicom was pitching in the wake of the IPG acquisition.

Whatever the reason, Omnicom will want it nailed down fast. 

“We are doing a detailed kind of deconstruction of how it happened and what we should have been doing differently to prevent it from happening,” Angelastro said at the conference. “We are not completed with that process but we are going to learn some lessons from this, and certainly we are going to take them very seriously.”

In short, he said the holdco isn’t looking for excuses during this analysis. The aim, Angelastro continued, is to do a root cause analysis so that we can improve the business and our processes going forward.” That matters most for holding onto what’s left of the PepsiCo relationship since Omnicom still handles the company’s PR, creative and some sports marketing. 

It could also help the holdco get ahead of other CMOs who might be watching PepsiCo’s move and wondering if they should follow suit. Those clients will want to know what happened and whether it changes anything for them. Needless to say Angelastro has some tough questions in the weeks ahead. 

“We don’t think it’s going to have a significant impact on the business going forward when we get to 2027 and our expectations,” the ad exec said. “There is still quite a bit of time between now and ‘27 and we will be aggressively pursuing new business as we always do.”

His confidence lines up with the numbers, even if the underlying figures come from outside estimates rather than Omnicom’s own disclosures. According to ComVergence, PepsiCo’s core global media spend sits at roughly $1.8 billion. Madison and Wall estimates Omnicom’s actual fee revenue from that business at closer to $100 million, a fraction of the headline figure, against a company running a 21% EBITA margin. That’s an abosrbale hit on the holdco’s bottom line based on the numbers available. The exposure that is harder to model is reputational — more than 25 years with a client, Apple, Renault-Nissan, McDonald’s and several others all running on the same kind of long, unreviewed relationship Omnicom just watched come apart. 

Whether that means Omnicom goes after Coca-Cola’s media business, which is now in play following Publicis’ decision to relinquish its North America media account and back out of contesting the rest of it after the PepsiCo deal remains to be seen. If it is, Angelastro offered scant detail. 

“We value the relationship [with PepsiCo] but certainly there will be a little bit more flexibility in terms of what we pursue in the future.”

17596: For WPP, TGIF’d Up.

 

MediaPost reported increasing motion sickness in the WPP whistleblower lawsuit.

Previously, the single White operating company sought to seal all references to an alleged Sony Pictures investigation, insisting the “whistleblower” acquired the information via improper means.

The “whistleblower” countered by claiming Sony Pictures brought the investigation details to his legal team earlier this year—completely unsolicited and sans confidentiality request.

WPP boasts being “The Trusted Growth Partner For The World’s Leading Brands.”

Sony likely questions the “Trusted” claim.

Sony Briefed Foster’s Legal Team On Its WPP Rebate Probe

By Steve McClellan

Last month WPP “whistleblower” Richard Foster submitted evidence in his wrongful termination suit against the company of a previously undisclosed investigation by client Sony that concluded WPP pocketed $350 million in media rebates in China belonging to clients.   

A week later WPP demanded that the New York State Supreme Court judge hearing the case seal all documents related to the Sony probe, alleging that Foster likely acquired documents improperly.  

But according to Foster, that’s not the case. In a court filing yesterday opposing WPP’s demand to seal, Foster said that Sony brought the findings to Foster’s legal team earlier this year, without any prior solicitation or request for confidentiality.  

According to the documents Sony made initial contact with the Foster’s law firm (Brewer Attorney’s & Counselors) in February. In May Sony requested a meeting which took place remotely when company representatives briefed Foster’s legal team on the rebate investigation that Sony undertook. 

“Sony, a sophisticated client, examined the same Rebate and Purchase Risk practices Plaintiff reported, reached the same conclusions about them, and presented those findings to WPP’s two most senior lawyer,” Foster’s motion states.  

“That evidence bears on three contested elements of this case. It supports the objective reasonableness of Plaintiff’s belief, because a disinterested third party with access to the underlying data interpreted the practices the same way Foster did. It bears on Defendants’ knowledge, because the findings went to the officers Defendants say exercised “robust formal internal controls.” And it bears on causation and pretext, because the executives Sony identified are the same executives Plaintiff alleges removed him.” 

Foster also argued that WPP’s demand to seal discussions he had with company attorney Nicola McCormick should be denied. “Defendants presume that because Nicola McCormick is a lawyer, her communications with Plaintiff are privileged. That is not the law,” per the filing.  

“Defendants identify no communication in which she rendered legal advice and submit no affidavit from her. Plaintiff approached her as a business executive, and she answered in that capacity.” 

Foster also argued separately that WPP’s motion for sanctions should be denied, submitting that no orders were violated, that discussions with McCormick were not privileged and that the Sony probe materials were obtained properly, among other reasons.  

In addition to the filings, Brewer attorney William A. Brewer III, issued a comment: “Mr. Foster alleges that on multiple occasions, he reported through appropriate channels what he reasonably believed were systemic problems in WPP’s trading practices, Mr. Foster named names and provided specific, detailed reports of undisclosed profiteering by Defendants in the form of rebates. He believes those reports led to retaliation against him by his former employer — and ultimately resulted in his termination.” 

17594: On The Front Lines Of The Cola Wars.

 

Advertising Age reported obvious news: The Coca-Cola Company is launching a review of its North America media account following incumbent Publicis Groupe nabbing global media duties for PepsiCo.

Or maybe not, as PepsiCo handed its media business to Publicis Groupe sans a formal review.

Ad Age stated potential pitch participants include WPP, Omnicom, and Dentsu.

For WPP, it would be a comeback of sorts, as the global flaming dumpster lost the North America media assignment to Publicis Groupe last year.

Despite losing PepsiCo global media responsibilities, Omnicom is still a “critical strategic partner” for the brand, so there could be potential conflicts picking up Coke media chores.

The scenario poses a unique challenge. As repeatedly noted by this blog, competitions for major chunks of business are typically closed affairs, exclusive privileges available only to a handful of White holding companies.

Yet in this case, the iconic Coca-Cola might have to settle for a lesser choice because the stronger players are unavailable.

Another unique aspect is Publicis Groupe essentially dumped Coke in favor of PepsiCo.

Coca-Cola was once consumed for medicinal purposes. Now it’s just making everyone feel sick.

Coca-Cola to review North America media after Publicis wins PepsiCo

By Ewan Larkin and Brian Bonilla

Coca-Cola Co. is readying a review of its North America media account after incumbent Publicis Groupe agreed to take over global media duties for PepsiCo, according to people familiar with the matter.

The beverage giant is said to be in discussions with WPP, Omnicom and Dentsu, the last of which works with Coca-Cola in Japan and Korea. Publicis won Coca-Cola’s North America media business from WPP, the primary global incumbent, just last year.

Coca-Cola declined to comment for this story.

Publicis had been pitching for Coke’s global media, data and tech business, competing against WPP, but the status of Publicis’ involvement is now unclear following the PepsiCo win. It also wasn’t immediately clear whether WPP, which also handles Coca-Cola’s global creative and PR, will assume those global duties.

Publicis, Dentsu and Omnicom declined to comment. WPP wasn’t immediately available for comment.

PepsiCo last week announced it had moved its global media to Publicis from Omnicom without a formal pitch, relocating one of the industry’s most coveted accounts. PepsiCo spent $1.7 billion on global net media in 2025, according to COMvergence, making it a significant account for Omnicom to lose. Omnicom “remains a critical strategic partner across many of our marketing drivers, from creative to sports and PR,” PepsiCo stated.

In a statement last week, an Omnicom spokesperson called PepsiCo’s move “one client’s decision in a year in which Omnicom Media has built tremendous momentum [with] leading brands across multiple categories,” pointing to wins with brands including Adidas, Dyson, IBM, Subway and Uber.

“After an extraordinarily long and successful partnership, PepsiCo has decided to move its media business elsewhere. We are proud of the work we have done together over three decades as partners in innovation and impact,” the spokesperson stated last week. “Nothing about yesterday’s decision changes that.”

17591: More Motion Sickness At WPP.

MediaPost reported on motion sickness at WPP, whereby the single White operating company filed more motions to dismiss the whistleblower lawsuit.

The latest filings presented two versions of the motion to dismiss: one version available to the public redacts all mentions of the alleged Sony Pictures investigation, and a second version not available to the public features no redacted material.

At this rate, any future actions will probably involve AI-generated motions.

Given WPP’s fascination with AI, it’s surprising legal duties haven’t been executed by the wondrous technology. WPP certainly has enough data from countless past lawsuits and court proceedings for creating the algorithms to make it happen.

WPP Files Motion To Dismiss Foster Case (You Can Read The Redacted Version)

By Steve McClellan

WPP has filed a motion to dismiss the wrongful termination case brought by former GroupM executive Richard Foster.  

The firm filed two versions of the motion including one that redacts all references to a previously undisclosed investigation by WPP client Sony that Foster brought to light in an amended complaint last month. That version is available to the public. A second version of the motion with no redacted material has been filed with the court but is not available to the public. 

Many of the points made by WPP in the latest motion have been argued by the firm in previous filings. For one, the firm argues that Foster is not a “whistleblower,” who was dismissed in retaliation, as he alleges. Instead, the firm argues he was one of many let go in a reduction in force event that occurred in 2025 and is seeking an outsized payout rarely offered to laid-off employees ($100 million). 

All direct references to the Sony probe are redacted in the latest filing. The motion indirectly refers to it as a set of allegations that are “incendiary...scandalous, prejudicial, and utterly irrelevant,” to Foster’s claims. In earlier filings WPP asked the court to seal all references to the Sony probe. It has also demanded that Foster reveal how he obtained the heretofore undisclosed investigation materials, suggesting that he and his legal team acquired them improperly. 

Foster alleges that Sony’s investigation concluded that WPP pocketed $350 million in rebates belonging to clients in China in 2024. He asserts that the probe supports his own case that he exposed rebate schemes at the company that were inappropriate, which he alleges was the main reason he was let go.  

“Richard Foster’s seventeen-year run at GroupM was marked by his constant self-promotion, often through opportunistic business proposals advocating for greater investment in his division, Motion Content Group (“Motion”), over larger and more profitable divisions of GroupM,” WPP states in its latest motion. 

“In the wake of his ignominious termination—the result of Defendants’ global restructuring and reduction in force (“RIF”)—Plaintiff tried to extract a seven-figure severance from Defendants by threatening to file a messy public lawsuit. Those efforts failed, and this case (the “Action”) is the result.” 

Foster’s amended complaint, WPP adds, “suffers the same inevitable defects as Plaintiff’s original pleading, recasting Plaintiff’s longstanding self-advocacy as “whistleblowing,” construing ordinary workplace disputes as retaliation, and failing to allege any causal connection between Plaintiff’s activities and his termination. Setting aside those shortcomings, the Amended Complaint further piles on sensational and irrelevant accusations [the Sony probe] based largely on information obtained after Plaintiff’s termination.” 

Foster also fails to plead “essential elements” required for a retaliation challenge under both New York and California laws, WPP stated.  

William A. Brewer III, partner at Brewer, Attorneys & Counselors and lead counsel to Foster issued a response to WPP’s latest filing: 

“In the three weeks since Mr. Foster filed his Amended Complaint, WPP has filed a flurry of motions which portray a Defendant panicked by the strength of Mr. Foster’s allegations against them—which include findings of clients that support his claims.”  

Brewer added that, “Mr. Foster alleges that on multiple occasions, he reported through appropriate channels what he reasonably believed was a systemic problem in WPP’s trading practices—naming names and providing specific, detailed reports. He believes those reports led to retaliation against him. Mr. Foster remains confident that he will prevail.”

17588: Useless Expert Analysis On PepsiCo Media Shift.

 

Advertising Age continued to examine PepsiCo shifting its global media business from Omnicom to Publicis Groupe via color commentary delivered by consultants, analysts, and industry experts.

What exactly qualifies someone to be labeled an industry expert? The ones who’ve worked in Adland are industry failures, no?

A closer look at the professional quips shows insights that could’ve been generated by AI—or any A-hole with minimal awareness of the field.

Appropriately enough, the identified consultants, analysts, and industry experts are White men.

What PepsiCo’s global media shift means for Omnicom

By Ewan Larkin

PepsiCo’s decision to move global media to Publicis Groupe—made without a formal pitch—diminishes one of the industry’s most durable client-agency relationships and takes some of the sheen off the new Omnicom.

Although significantly scaled back, Omnicom’s relationship with PepsiCo isn’t over; the holding company will continue to support creative, PR and sports marketing, the food and beverage company said. Still, Omnicom’s OMD has lost a top-three client with $1.7 billion in global spend last year, according to COMvergence, making it a significant financial loss. In the U.S. alone, OMD has roughly 130 people working on PepsiCo, Ad Age has learned.

Omnicom Media declined to comment on potential layoffs stemming from the account shift.

“PepsiCo had already become increasingly promiscuous on the creative side, regularly working outside Omnicom,” said a former PepsiCo executive speaking on condition of anonymity. “Omnicom tolerated those infidelities because media planning and buying was the far bigger prize. Now that prize is gone—and with it, a partnership that lasted decades.”

Of course, Omnicom could recoup that loss, and it has already notched wins with brands including Adidas, IBM, Subway and Novo Nordisk this year. In a statement, an Omnicom spokesperson called PepsiCo’s move “one client’s decision in a year in which Omnicom Media has built tremendous momentum as leading brands across multiple categories.”

“After an extraordinarily long and successful partnership, PepsiCo has decided to move its media business elsewhere. We are proud of the work we have done together over three decades as partners in innovation and impact,” the spokesperson stated. “Nothing about yesterday’s decision changes that.”

Ultimately, though, the blow extends beyond billings, experts said.

Omnicom’s relationship with PepsiCo has been an outlier in an industry known for client churn, and an especially rare one given the integrated nature and size of the account. As a result, the sudden shift will sting morale and perception just as much as its bottom line. Omnicom executives were officially informed about the media account move on Wednesday morning, according to people familiar with the matter.

“There’s some accounts that your business is built around. They’re almost part of the furniture,” said Brian Wieser, principal at advisory and consulting firm Madison and Wall. “Pepsi is one of those.”

“There can’t be very many billion-dollar-plus accounts that have this kind of tenure,” Wieser added.

PepsiCo is “a marquee account” for Omnicom, said Ruben Schreurs, CEO of media consultancy Ebiquity, comparing the PepsiCo shift to WPP’s loss of the Coca-Cola North America account to Publicis last year. “It was a very high-profile account, right? Every agency has only a few of those, and PepsiCo was absolutely one of those for Omnicom.”

While hardly a ringing endorsement of the deal, some industry experts stopped short of calling PepsiCo’s decision an indictment of Omnicom’s $8.9 billion acquisition of Interpublic Group of Cos. They said it was too anecdotal to draw any firm conclusions, especially considering that Publicis’ pursuit of the account may have predated the merger.

However, Jay Pattisall, VP and principal analyst at Forrester, said the shift is not a “strong vote of confidence in the integrated proposition Omnicom has been putting together” since acquiring IPG.

“What this suggests is the integration with [IPG data firm] Acxiom is still underway,” Pattisall said. “One particular client loss, although it’s a significant one in size, is not an indictment by any means of the strategy to acquire and integrate Acxiom, but it might suggest that it’s just not complete yet.”

In announcing its appointment of Publicis, PepsiCo emphasized the need to bring together “data, connected identity and technology across markets.”

Both Omnicom and Publicis “position themselves as a leader in media, technology, data—and AI to facilitate it—and Pepsi has chosen the one that it thinks has the superior offer at this stage,” Pattisall added.

An Omnicom spokesperson pointed to “approximately $4 billion in media billings awarded this year through a combination of incremental wins and retentions” as “evidence that its offer is resonating.”

“All of these decisions followed thorough, months-long review processes that included the major holding companies, putting the competing organizations through a rigorous test of their capabilities across data and analytics, AI technologies and transformation," the spokesperson stated.

Contributing: E.J. Schultz and Brian Bonilla