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November 10, 2009

After app snafu, Pepsi shuffles agency roster

In an effort to focus more on digital advertising, PepsiCo is making big changes to its agency roster and handing the digital efforts of three of its brands -- Pepsi, Sobe, and Amp -- to smaller, independent digital shops.

Firstborn, an independent digital agency, is in as Sobe's agency of record, while previous agency Arnell Group, an Omnicom company, is out, Ad Age reports. At the same time, PepsiCo is conducting a digital agency review for another of its brands, Amp energy drink.

Amp's digital efforts were previously helmed by R/GA, which was responsible for Amp's much-maligned "Amp Up Before You Score" iPhone app. Pepsi pulled the app after a PR storm, but R/GA reportedly resigned the account before the app even launched, according to Ad Age.

Just last month, PepsiCo announced that digital agency Huge would build an online platform for its flagship Pepsi brand, casting aside its communications agency, TBWA/Chiat/Day. PepsiCo spent $18 million on digital advertising last year, and already has plans to invest $20 million in a new campaign with a large social media presence.

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