Publicis Secures Coca-Cola‘s US and Canada Media Business, Ending WPP’s Reign

In a important shift within the advertising industry, Coca-Cola has awarded its media buying and planning business for the United States and Canada to Publicis, a French multinational advertising and public relations company, as of March 14, 2025. This win comes at the expense of WPP, a British advertising giant, marking a pivotal moment in the competitive landscape.

The Financial Implications

The deal is substantial; individuals familiar with the contract estimate Coca-Cola’s annual spending on overall billings to be near $800 million. This considerable investment underscores the strategic importance of media planning and buying in coca-Cola’s marketing efforts.

What This means for WPP

Despite this loss, WPP retains its role as Coca-Cola’s “global marketing partner,” handling media buying and planning outside of the U.S. and canada, along with the overall creative work for advertising. The soft drinks company is expected to renew its global partnership with WPP, representing a significant portion of the agency’s revenue.

Coca-Cola’s outlook

Coca-Cola acknowledged the continued partnership with WPP, stating that WPP was its only “global marketing partner” and confirmed being “in an advanced stage in the process of renewing its global partnership with WPP”.

Manolo Arroyo,Coca-Cola’s global chief marketing officer,emphasized the value delivered by WPP,stating,”Over the course of more than three years,the partnership with WPP has delivered significant value to Coca-Cola.” Arroyo also commented on the new partnership, “After careful consideration, Coca-Cola is adding Publicis as a complementary partner for its US and Canada media business.”

Market Reaction

The market responded swiftly to the news. Shares in WPP experienced a decline, falling just under 2% on the announcement date. Conversely, Publicis shares saw a boost, rising by 1.3% in afternoon trading, reflecting investor confidence in the company’s prospects.

WPP’s Challenges and Strategic Adjustments

WPP had previously warned that core revenues and profit margins “would be flat at best this year” due to uncertainties in key markets like the U.S. and the U.K. The group has since committed to cost-cutting measures and increased investment in AI-focused technology to enhance the effectiveness and targeting of marketing campaigns.

Leadership Changes at GroupM

In a move to bolster its media buying capabilities, WPP appointed Brian Lesser as the new chief executive of GroupM, its media buying arm, replacing christian Juhl last summer. This change signals a renewed focus on competitiveness, with WPP pledging to “improve the competitiveness of our media offer, globally, with a focus on the US” in its recent results.

Recent Wins and Regional Performance

Despite losing the Coca-Cola media business in the U.S. and Canada, WPP has secured other notable media accounts in North America, including johnson & Johnson’s business in both countries in December. The U.S. remains WPP’s largest market, accounting for approximately 39% of revenue. While the region experienced a slight decline in revenues in 2024, GroupM demonstrated growth during the same period.

Publicis’ Ascent in the Advertising World

publicis has been gaining momentum, securing several new media deals that significantly contributed to its full-year results. According to Chief executive Arthur Sadoun,Publicis is “the largest media buyer — we’re buying every one dollar out of three” in the U.S. advertising market.

The Future of Media Buying

The shift in Coca-Cola’s media business highlights a dynamic and competitive environment within the advertising industry.Agencies are continually vying for lucrative contracts, adapting to market changes, and leveraging technology to deliver value to their clients. This situation underscores the importance of strategic partnerships and the continuous need for innovation to achieve success.

Conclusion: Publicis’s acquisition of Coca-Cola’s media business in the U.S.and Canada represents a notable win, while WPP remains a key player globally. The move underscores the evolving dynamics within the advertising sector and the ongoing importance of adaptability and strategic partnerships. Stay tuned for further developments and analysis on the impact of this decision on the advertising landscape. Contact us today to discuss how these industry shifts impact your marketing strategy and how we can help you navigate these changes successfully.