Omnicom lands Coca-Cola’s North American media business, as WPP retains its global remit

It also bought some other, obvious advantages in the room. Omnicom is the world’s largest media house following its absorption of IPG, and boasts billings of $75.6 billion, roughly 31% of billings handled by global marketing services groups. Work will commence Dec. 1.

That grants it leverage when it negotiates with TV networks, publishers and, most relevant of all for Coca-Cola, social platforms. Last year, Coke CMO Manolo Arroyo said the soda giant’s media mix now devoted 70% of its spending to social media ads and creator content — a radical change from just six years prior, when 75% of its budget had poured into TV.

Few in the industry will be surprised by the outcome. Omnicom was the favorite from the moment Coke reopened North America with Dentsu as its only serious rival. WPP chose not to pitch, focusing instead on holding on to Coke’s international media, data and tech business, which it has run since 2021 through a bespoke unit combining creative, media and marketing technology across the company’s brands. Reports last month had WPP on track to keep it. Since that held, Coke’s media remains split between two holdcos with Dentsu still handling Japan and South Korea. 

Seven weeks ago, Omnicom was the one getting dumped. PepsiCo told its media agency of nearly three decades that the account was going to Publicis and announced the move hours later. There was no pitch, just a capabilities review. Publicis then withdrew from Coke’s global media pitch, where it had been in a straight head-to-head with WPP.

The PepsiCo loss stung and Omnicom didn’t pretend otherwise. CFO Phil Angelastro admitted at an investor conference that the holding company couldn’t sugarcoat it, describing the account loss as “unfortunate” and a “disappointment”. That it went to Publicis cannot have helped. 

On paper, the swap almost evens out in North America. Coke’s U.S. and Canada media billions is worth an estimated $785 million a year, close to the roughly $780 million PepsiCo spent on media in North America, per COMvergence estimates. Globally, the picture is less kind. Omnicom handled about $1.1 billion of PepsiCo’s media billings, per COMvergence, so the Coke win covers most of the loss without replacing all of it. 

“Any business we win from Coke would be incremental to our existing revenue and our existing relationship,” said Wren on an earnings call. “We’re very bullish where we are.” He deferred any other comment about the win to Coca-Cola.

That WPP held onto the business represents somewhat of a relief for that holdco’s CEO Cindy Rose. “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 said in a statement. “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. That’s a responsibility we take seriously, and one we’re excited to build on together.”