PepsiCo Picks Publicis to Handle Global Media Account

By Adria Calatayud

PepsiCo said it picked Publicis Groupe to handle its global media business, in a move that lifted shares in the French company and dealt a blow to advertising rival Omnicom Group.

Publicis will withdraw from a separate process for Coca-Cola's international media business as a result, according to a person familiar with the process.

PepsiCo said it chose Publicis to accelerate a transformation of its media model globally, powered by data and artificial intelligence, for the next era of marketing.

The move marks a major win for Publicis and a setback for New York-based Omnicom, which has a long-standing relationship with the soda-and-snacks group spanning more than two decades and will remain a partner in other areas, analysts at Bank of America wrote in a note to clients.

PepsiCo, which owns brands ranging from Mountain Dew to Doritos as well as its namesake brand, is among the world's largest advertisers. Research firm COMvergence estimates PepsiCo's annual global media spending at $1.9 billion.

Shares in Publicis were up 3.1% in European afternoon trading Thursday. Omnicom shares were down 1.3% in U.S. premarket trading, after closing 5% lower Wednesday.

Advertisers are increasingly incorporating artificial intelligence into their marketing plans, prompting agencies to adjust. Omnicom acquired Interpublic in a bid to gain scale for the AI era, while London-based WPP is in the midst of a major overhaul to adapt its operations to the AI shift.

Publicis credits AI and data capabilities it bought and developed over the past decade with helping it outperform rivals in winning new business and organic revenue growth to become the biggest ad group by market value.

The company--which already handled PepsiCo's media activities in China, other parts of Asia, and eastern Europe--won the PepsiCo account without a traditional pitch, according to a person familiar with the process.

Publicis has recently won several big media accounts, including Microsoft earlier this year, without going through pitch processes against rivals, an unusual move in the ad industry.

It also won Coca-Cola's U.S. media account last year and had set its sights on the soda giant's international assignments, currently held by WPP.

With Publicis out of the contest, WPP is more likely to retain the Coca-Cola international business and even win back the U.S. portion it lost last year, according to Bank of America. The Coca-Cola media review is one of the most anticipated in the ad industry this year.

Shares in WPP traded 4.5% higher in European afternoon trading.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

September 03, 2026 08:58 ET (12:58 GMT)