InBev and PepsiCo gang up on media owners and agencies

InBev, owner of Budweiser, Michelob and Stella, and PepsiCo are grouping their US media expenditure to extract savings from the US’s biggest media owners.

The two spend a combined $1.15bn in US media and last year were the two biggest spenders on the top-rating Super Bowl.

The new deal, which follows a ‘paper clip’ joint procurement deal signed last October will also impact on media agencies. Both companies currently use Omnicom’s OMD.

Marketers have succeeded in steadily eroding the margins of both creative and media agencies over the last two decades.

A further round of reductions is certain if other advertisers follow in the footsteps of InBev and PepsiCo.

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About Stephen Foster

Stephen is a former editor of Marketing Week and London Evening Standard advertising columnist. He wrote City Republic for Brand Republic and is a partner in communications consultancy The Editorial Partnership.