Seeking Alpha

Can Omnicom rep Coca-Cola and PepsiCo?

  • A rather interesting byproduct of the mega-merger in the advertising industry between Publicis and Omnicom (OMC) is that Pepsico (PEP) and Coca-Cola (KO) will now share the same ad firm.
  • Though it's not unheard of that two large rivals will count on Chinese walls to protect their strategies from leaking at an agency, it also stands as a risk for the combined company that it could lose a gigantic account.
Comments (1)
  • Moving a large account from one agency to another is not painless for the client; it takes a while and can be quite complicated.

     

    Plus, if the Omnicom-Publicis deal is the opening round of a new wave of consolidation within the agency industry, the client who moves has no guarantee that the "new" agency won't one day merge itself into yet another conflict, forcing yet another disruptive move.

     

    Best bet: Omnicom and Publicis will do whatever it takes (short of scuttling the merger) to ensure that major clients are comfortable.
    30 Jul 2013, 09:31 AM Reply Like
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