OMD Mulls Pepsi Media Operation

LOS ANGELES–Omnicom media network OMD and client PepsiCo are discussing how best to integrate estimated $150-200 million in additional media billings following the client’s consolidation of all of its advertising at Omnicom Group, sources said.

OMD and sister shop BBDO already handle the $400 million flagship Pepsi soft drink account, but last month the client reassigned brands formerly handled by FCB, now a part of Coke holding company IPG, to Omnicom. They include Gatorade, Tropicana and Quaker, among others. Buying “will be consolidated within OMD,” a source said, but denied that a decision has been reached about creating a new PepsiCo-dedicated media entity within OMD. “Plans have been discussed but nothing is on the table,” the source said, adding that no decision has been reached about where media planning for the new brands will be housed as well.

OMD and the client are expected to meet within the next week or two to hammer out the details.