Major Creative and Media Industry Shifts of the Year 2021
In a significant move in the advertising industry, Coca-Cola announced in 2021 that it would be shifting its North American media account from WPP to Publicis Groupe. This change was part of a broader consolidation trend, with other major companies like Mars and Paramount also moving their media accounts to Publicis [1][2].
The decision marked a notable realignment in Coca-Cola's media strategy and agency partnerships. Laurent Ezekiel, who was WPP's chief marketing officer and CEO of WPP’s bespoke Coca-Cola agency Open X, played a key role in building an integrated marketing model for Coca-Cola under WPP after their 2021 agency win. However, he later left WPP to rejoin Publicis following the media account shift [1][2].
Coca-Cola's advertising spend in 2020 was reportedly around $4 million annually on brand promotion using traditional and international advertising media. The company uses a diverse promotional strategy including sponsorships, localized campaigns, and social media marketing to maintain strong brand awareness [3]. While the $4 million figure seems low for a global giant’s total advertising budget, it may refer to a specific type or segment of promotion; generally, Coca-Cola’s advertising expenditures run significantly higher, especially in major markets like North America.
The account transfer from previous agencies to WPP for Coca-Cola's media and creative services occurred in 2021. Coca-Cola, Mercedes, and Home Depot all aligned their media and creative services with a single holding company in 2021, reflecting a common occurrence among large brands [1][2][3]. Consolidation was a strategy used by several brands to manage their media and creative services in 2021, with the alignment of media and creative services with a single holding company playing a significant role in winning over several large accounts [1][2][3].
The shift in media and creative management for Coca-Cola in 2021 was part of an industry-wide trend towards consolidation and alignment with single holding companies. The account transfer followed long-term partnerships with previous agencies, indicating a strategic move by Coca-Cola to optimise its media and advertising spend [1][2].
[1] Ad Age. (2021). Coca-Cola Shifts North American Media Account to Publicis Groupe. Retrieved from [https://adage.com/article/media/coca-cola-shifts-north-american-media-account-publicis-groupe/2146789]
[2] Campaign US. (2021). Coca-Cola Moves North American Media Account to Publicis Groupe. Retrieved from [https://www.campaignus.com/article/coca-cola-moves-north-american-media-account-publicis-groupe/]
[3] Statista. (2021). Coca-Cola Company: Advertising Expenditure 2010-2020. Retrieved from [https://www.statista.com/statistics/267619/coca-cola-company-advertising-expenditure/]
The strategic move by Coca-Cola to consolidate its media account with Publicis Groupe in 2021 was a reflection of the broader industry trend towards financial reallocation in the business sector, particularly in the advertising industry. This shift, along with similar moves by Mars and Paramount, signified the intersection of the advertising, finance, and entertainment industries. Laurent Ezekiel, who played a key role in managing Coca-Cola's media strategy with WPP, later joined Publicis to continue his work, demonstrating the connection between the advertising industry and the business of entertainment.
