The decision, confirmed after a competitive review involving Omnicom and Dentsu, gives Omnicom responsibility for Coca-Cola’s media business in the United States and Canada. The account is estimated to be worth between $700 million and $800 million annually, with work scheduled to begin on December 1.
The move comes just weeks after PepsiCo transferred its media business from Omnicom to rival advertising group Publicis, ending a relationship that had lasted nearly three decades. The latest development effectively sees Coca-Cola and PepsiCo switch media agency partners in one of the industry’s most important advertising markets.
The review was managed by Mediasense, according to reports by Ad Age.
Omnicom Strengthens Position After PepsiCo Loss
Omnicom’s victory represents a major opportunity for the advertising holding company following the loss of PepsiCo’s media account. The company reportedly competed against Dentsu for Coca-Cola’s North American business, while WPP chose not to participate in the pitch, concentrating instead on retaining Coca-Cola’s international media operations.
According to people familiar with the matter, Omnicom’s senior leadership, including chief executive John Wren, met with Coca-Cola’s senior marketing team to present its case for the account.
During the discussions, Omnicom reportedly promised to assemble a dedicated team for Coca-Cola, with experienced senior personnel, cost savings and technological innovation. The company also sought to reassure the beverage giant that its account would receive independent attention rather than rely on resources previously assigned to PepsiCo.
Omnicom’s expanded scale following its absorption of Interpublic Group (IPG) is also understood to have strengthened its position. The group reportedly handles $75.6 billion in media billings, giving it considerable negotiating power with television networks, publishers and digital advertising platforms.
That scale is particularly important to Coca-Cola as the company continues to shift more of its advertising expenditure towards social media and creator-led content.
Social Media Takes Centre Stage
Coca-Cola’s changing media strategy has increased the importance of digital platforms in its advertising operations.
Last year, the company’s chief marketing officer, Manolo Arroyo, said social media advertising and creator content accounted for approximately 70 per cent of its media spending. That represents a substantial change from six years earlier, when television received about 75 per cent of the company’s advertising budget.
Omnicom’s extensive media-buying operations could help Coca-Cola negotiate with digital platforms and publishers while managing campaigns across an increasingly fragmented media environment.
The agency’s size and technology capabilities were among the factors that reportedly worked in its favour during the review, although the precise weighting of individual considerations in Coca-Cola’s final decision was not disclosed.
WPP Retains International Business
While Omnicom takes charge of Coca-Cola’s media account in the United States and Canada, WPP will retain the company’s international media responsibilities outside Japan and South Korea, where Dentsu will continue to manage the business.
WPP has handled Coca-Cola’s international media, data and technology operations since 2021 through a dedicated unit integrating creative services, media and marketing technology across the beverage company’s brands.
The decision to retain that business provides continuity for WPP, which has faced intense competition across the advertising and marketing services industry.
WPP chief executive Cindy Rose welcomed the continuation of the relationship, saying: “We’re proud to build on our partnership with The Coca-Cola Company and the trust they’ve placed in us to help drive their next chapter of growth.”
She added: “Our focus is on earning that trust every day — pairing WPP Media’s scale with Open Intelligence to bring a human dimension to data, so our partners understand not just who their consumers are, but what drives them.”
Rose further described the responsibility as one the company took seriously and said WPP was excited to build on the partnership.
The outcome leaves Coca-Cola’s media operations divided among two holding companies, with Omnicom overseeing North America, WPP managing most international markets and Dentsu retaining Japan and South Korea.
Financial Impact of the Agency Switch
The account changes have important financial implications for Omnicom and its competitors.
Estimates from media research firm COMvergence put Coca-Cola’s United States and Canada media expenditure at approximately $785 million annually. That figure is broadly comparable to the roughly $780 million PepsiCo spent on media in North America, meaning Omnicom’s new business could substantially offset the revenue opportunity lost to Publicis.
However, the comparison is less favourable when the companies’ global accounts are considered. COMvergence estimated that Omnicom previously handled approximately $1.1 billion in PepsiCo media billings worldwide. Winning Coca-Cola’s North American business would therefore replace much, but not all, of the billings associated with its former client.
Wren acknowledged the importance of new business opportunities while discussing the company’s position during an earnings call.
“Any business we win from Coke would be incremental to our existing revenue and our existing relationship,” he said. “We’re very bullish where we are.”
Wren deferred further comment on the Coca-Cola account to the beverage company.
A Competitive Industry Landscape
The developments underscore the growing rivalry among major advertising holding companies as global brands reassess their agency relationships, media spending and technology requirements.
For Omnicom, securing Coca-Cola’s North American account provides a significant new opportunity after losing PepsiCo, while Publicis gains from its acquisition of the latter’s media business. WPP, meanwhile, preserves its established international relationship with Coca-Cola.
PepsiCo’s departure from Omnicom was announced approximately seven weeks before Coca-Cola’s decision, following a capabilities review rather than a conventional competitive pitch. Publicis subsequently withdrew from Coca-Cola’s global media review, in which it had been competing directly against WPP.
Omnicom chief financial officer Phil Angelastro previously acknowledged the impact of losing PepsiCo, describing the outcome as “unfortunate” and a “disappointment” at an investor conference.
The Coca-Cola win now offers the group a substantial opportunity to rebuild its position in North America, although the overall financial effect will depend on how the new account performs and how it compares with the wider PepsiCo business Omnicom previously managed.
With the new arrangement due to begin on December 1, the focus will turn to how Omnicom deploys its resources, technology and media-buying capabilities for Coca-Cola, while WPP and Dentsu continue their respective international responsibilities.