By Erik Oster
26 mins ago
Next year’s largest review may already be here.
Creative and media accounts across Coca-Cola’s brand roster appear up for grabs as part of the company reimagining of its agency models amidst larger structural changes.
In a statement, a spokesperson confirmed that Coca-Cola is launching a full global review of its media buying and planning services. The creative portion of the review encompasses creative, experiential marketing, production management and shopper marketing. “We are on a journey to fundamentally transform and dramatically improve the effectiveness and efficiency of our marketing investments,” a Coca-Cola spokesperson told Adweek. “By improving our processes, eliminating duplication and optimizing spend, we will generate significant savings to fuel reinvestment in our brands.
“Media and creative agency services require significant investment from our brands. They are also a crucial component of our ongoing digital transformation journey to drive our business. With that in mind, we have decided to undergo a complete redesign of our media and creative agency models in an effort to align the strategic, operational, and commercial needs of our new, networked organization,” the Coca-Cola spokesperson added. “This will necessitate a full review of our media and creative planning and buying practices, as well as our media and creative agency appointments and commercial relationships around the world. We expect this process will be completed by the end of 2021.”
The spokesperson confirmed that Coca-Cola is working with MediaSense on the media review process, while PricewaterhouseCoopers is overseeing the brand’s creative review. Incumbent media agencies will be participating in the review. These agencies include Dentsu media agency Carat, Group M’s MediaCom, IPG Mediagroup’s UM and Publicis media agency Starcom.
In August, Coca-Cola awarded U.S. creative duties on its flagship Coke brand to MDC Partners’ Anomaly. The change was made after 15 years with Wieden+Kennedy, although W+K continued to work on brands including Sprite and Vitamin Water. Anomaly already worked on Diet Coke and Minute Maid. Coca-Cola used a number of other creative agencies globally. A Coca-Cola spokesperson declined to comment on which creative incumbents would be participating in the review process.
Coca-Cola spends around $2.5 billion globally on media per year, according to data consultancy COMvergence, including $1.8 billion on traditional media and $700 million on digital media. It’s unclear how the changes to Coca-Cola’s model could impact its spending. The pandemic’s impact on out-of-home venues, an important part of Coca-Cola’s business, hit the company hard in 2020. Coca-Cola reported a net revenue decline of 28% for Q2 this year.