• Brandweek, Tuesday, January 17, 2006 11:30 AM

A relationship that rocked Madison Avenue when it was formed almost 15 years ago is showing major signs of strain. The revolutionary partnership between Coca-Cola Co., and talent agency Creative Artists Agency that led to the now-famous "Always" campaign is fading due to CAA's high price tag and its apparent inability to deliver substantive marketing results to the soft drink marketer. In addition, Coke, which has been reevaluating several vendor relationships in a bid to cut costs, is bringing more of its entertainment capabilities in-house as it continues to rebuild its once-vaunted marketing operations. Coke has "taken significant steps to right-size" its relationship with CAA, according to an internal Coke memo obtained by Brandweek. The marketer was said to be paying the Beverly Hills, Calif.-based shop an estimated $5 million a year until two years ago, but that number had recently dwindled to roughly $3 million annually. The amount was said to rankle Coke executives in Atlanta. Coke originally hired the powerful talent agency to gain a bigger profile in Hollywood and gave it free rein to produce much of flagship Coke's advertising during the 1990s, a move that sent shockwaves across Madison Avenue. Through the years, CAA helped secure plum spots to showcase Coke's brands in film and TV shows and got assorted stars to endorse the soda.

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