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What Pepsi said to Ad Agencies

January 4, 2010

Pepsi said something huge to the typical ad agency a few days ago, they basically said “we don’t like your business model” we want a search and social media advertising agency (sorry self plug but it was well deserved).

One of the NFL’s biggest sponsors, PepsiCo, sent a shudder through the television industry last month when it said it was benching its soft drink ads after 23 years and tens of millions of dollars of air time during the championship games. Pepsi plans to shift its marketing budget to less costly digital venues, such as Facebook and other Internet social networking sites, according to the LA Times

Well no kidding? The problem is down to ROI. What’s the ROI on a superbowl ad compared to a real social media campaign.

We said back in 2006 “We figure we have at least 5 years left to rake in the cash.” in our initial spoof to Ad Agencies, well according to the above article, we were spot on as 5 years have passed, and clearly we are directly on the right path.

Now just last week it was noted that one of our competitors, Icrossing was the target of a potential WPP group plc purchase. We figured this was starting to take place in light of recent developments over the past few years.

Now the funny thing is that this potential purchase has sparked a huge M/A demand for firms that do search and social media to be purchased by ad agencies, how else is anyone going to get Pepsi (and firms like minded with Pepsi, AKA: everyone?).

5 years ago we were called idiots, now clearly the ‘idiots’ were right.

It looks like the guy below works at an ad agency.

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Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • https://www.TaylorYou.com/ CYTaylor

    The big agencies are always going to want to supplement their service offering by gobbling up a smaller agency that specializes in a particular area, in this case social media. The problem though is the bureaucracy that comes with such mergers and acquisition to the point of stiffling a small agency that once had autonomy to make quick decisions and not have to shoot everything up the flagpole for approval. I love when the little guys are able to out maneuver the big guys!

  • Federico

    Social media is here to stay but there's no magic there. If you have no idea about social media, then start talking about it. You'll become an expert instantaneously.

  • Federico

    Social media is here to stay but there's no magic there. If you have no idea about social media, then start talking about it. You'll become an expert instantaneously.

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