Prime Highlights-
- Omnicom has won Coca-Cola’s U.S. and Canada media account, which is worth an estimated $700 million to $800 million.
- WPP will keep Coke’s global media work outside Japan and South Korea, where Dentsu remains in charge.
Key Facts-
- Omnicom begins work on the account on Dec. 1.
- Omnicom is the world’s largest media house after absorbing IPG, with billings of $75.6 billion, or about 31% of the total among global marketing groups.
Background-
Omnicom has won Coca-Cola’s U.S. and Canada media business, while WPP will keep running the company’s global media work outside Japan and South Korea, two sources familiar with the deal said.
Omnicom takes charge of the North American account on Dec. 1, a contract analysts put between $700 million and $800 million.
Omnicom’s leaders, including chief executive John Wren, pitched Coke’s senior marketing team a dedicated group built only for the brand. They promised senior talent, cost savings and tech innovation.
Size helped Omnicom’s case. After absorbing IPG, it is the world’s largest media house, with billings of $75.6 billion, about 31% of billings among global marketing groups.
That scale gives it strong bargaining power with TV networks, publishers and social platforms. Coke’s chief marketing officer, Manolo Arroyo, said last year that social ads and creator content take 70% of the company’s media spending, compared with a TV-heavy mix six years earlier.
The win follows a recent change at Omnicom. PepsiCo moved its media account to Publicis seven weeks ago after nearly 30 years with Omnicom. COMvergence estimates put Coke’s North American media spend at about $785 million a year, close to the $780 million PepsiCo spent there.
Wren said the win adds to Omnicom’s revenue and the firm feels “very bullish.” WPP skipped the North American pitch and focused on keeping its international work. Dentsu keeps Japan and South Korea. WPP chief executive Cindy Rose said the firm is proud to build on the partnership.
