The cola war has reached the agencies. Coca-Cola is preparing to review its North America media account after Publicis Groupe was appointed to handle global media for PepsiCo, according to an Ad Age report cited by Brand Spur.
Publicis only won Coca-Cola's North America media business from WPP last year. It had also been competing with WPP for Coca-Cola's broader global media, data and technology work. Its place in that process is now uncertain, Brand Spur reports.
Who is in the room
Coca-Cola is reportedly in talks with WPP, Omnicom and dentsu. Dentsu already works with Coca-Cola in Japan and Korea, according to Brand Spur.
Why one agency for both is a problem
A media agency sees a client's budgets, timing, audience data and plans for the year ahead. Two direct rivals buying through the same group, in the same category, is the kind of conflict brands usually avoid, even when agencies promise separate teams.
Moving an account this size is not quick. It involves media plans already booked, data systems and staff. That is why the outcome matters beyond the two drinks companies: it will show how much a single big win can cost an agency elsewhere.
