Dive Brief:
- PepsiCo President of the Global Beverage Group Bradley Jakeman sees continued trouble for agencies.
- At the Association of National Advertisers’ Masters of Marketing conference he told the audience the agency model “is going to break.”
- The news should be troubling for an industry that just underwent one its most tumultuous years ever after this summer’s unprecedented “reviewageddon.”
Dive Insight:
This year has been a rough year for agencies, particularly with the brutal “reveiwageddon” process that found more ad spending via agency relationships under review than the past three years combined. And if PepsiCo's Bradley Jakeman is correct, things aren’t going to be getting any better. At the Association of National Advertisers’ Masters of Marketing conference in Orlando, Jakeman told the audience, “The agency model is not going to bend, it’s going to break.”
Jakeman pointed out the content model is changing out from under agencies and questioned why those firms aren’t in the process of buying content producers, citing Disney’s purchase of Maker Studio, a group Pepsi has worked with on video content. He said, “Agencies will continue to see more and more projects leaving them. They will get a smaller and smaller share of the pie.”
Pepsi is one of several brands, including Toyota, leveraging the tie-in between October 2015 and the 1989 film, “Back to the Future II.” Its campaign featured a limited edition collectors’ bottle that mimics a future version of Pepsi that appeared in the film.
