WPP has suffered a significant setback as Publicis secures Coca-Cola’s North American media account, valued at $785 million last year, in a closed pitch. This marks a major shift, as WPP’s GroupM previously held the account as part of its 2021 global media deal with Coca-Cola through the bespoke agency Open X.
Coca-Cola, which spent approximately $4 billion on advertising last year, remains a key WPP client, but this loss delivers a notable blow. While no official statements have been made, speculation surrounds whether Publicis’ substantial investment in first-party data, particularly through its $4 billion acquisition of Epsilon, influenced the decision.
WPP, on the other hand, has taken a different strategic approach, divesting a majority stake in research firm Kantar to Bain and exploring further options to offload its remaining shares, potentially valuing Kantar at $6.5 billion. CEO Mark Read, who took charge six years ago, has focused on reducing WPP’s debt while maintaining high dividend payouts to shareholders.
The challenge of managing an all-encompassing global account is evident, as even the most capable agencies struggle to deliver across every facet of a client’s needs. Publicis, which recently secured Santander’s global marketing business, has pursued a similar full-service strategy.
For WPP’s GroupM, which is undergoing leadership changes, this development signals yet another hurdle. Once a dominant force in global media, the agency now faces increasing competition and the critical challenge of regaining momentum in securing and retaining major accounts.
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