How PepsiCo’s In-House Agency Works with External Partners For Better Business Results | On Scope

Why It Matters

The blended in‑house/external model lets brands like PepsiCo cut costs while delivering culturally resonant content, forcing agencies to evolve from gatekeepers to agile creative partners.

Key Takeaways

• PepsiCo's Content Studio creates 10,000+ assets annually, boosting brand relevance.
• In‑house agency partners with Vayner, doubling post impressions to 1.4 M.
• Collaboration with external firms reduces costs while enhancing creative impact.
• Internal‑external hybrid model addresses silo challenges, fostering faster storytelling.
• Industry shift: 61% of ad work now done in‑house, reshaping agencies.

Summary

PepsiCo’s New York Content Studio, launched in 2020, has become the brand’s creative nerve center, producing hundreds of projects and over 10,000 unique assets each year. Led by Lou Arbiter and strategist Jane Ambrosini, the team has doubled its staff to nearly 50 and now tackles everything from flagship ads to feature films and documentaries, earning festival recognition at Sundance and Tribeca.

A cornerstone of the studio’s success is its hybrid partnership model. By embedding Vayner Media within its workflow, PepsiCo boosted post‑impressions by 200%, reaching an additional 1.4 million viewers for Pepsi and Mountain Dew. The studio’s approach reflects a broader industry shift: roughly 82% of major advertisers now run in‑house agencies, handling about 61% of creative work internally while still leveraging external expertise for scale and cultural insight.

Key voices underscore the philosophy. Arbiter emphasizes “creating cool shit and having fun,” while Ambrosini stresses breaking down silos to create strategically sound, insight‑driven work. Vayner’s Rob Lanoy calls the model a blueprint for faster, culturally sharp storytelling, and BBDO’s Chris Berris Ford Hill highlights the value of seamless collaboration without turf battles. Even as Keurig Dr Pepper dismantles its internal agency, the overall sector remains robust.

The hybrid model signals a new paradigm where brands retain strategic control and cultural relevance while tapping external partners for speed and specialized expertise. Agencies must adapt, offering nimble, insight‑rich services to stay indispensable in an ecosystem where sustained creative excellence drives both top‑line growth and brand relevance.

Original Description

In a special segment for On Scope, Matthew Schwartz, editor of ANA magazine, provides an on-the-ground report of PepsiCo’s in-house content agency, the Content Studio, and an in-depth look at broader trends within the in-house agency space. Matthew sits down with Lou Arbetter, head of the Content Studio, Jayne Amrosini, head of strategy at the Content Studio, and representatives from BBDO and Vaynermedia to learn how in-house and external agencies are collaborating to power stronger business results and what the future of in-house agencies looks like.

Check out the full episode of On Scope, including a conversation with Infolinks Media CEO Bob Regular his take on how marketers can build smarter media supply paths, by visiting us here: https://shorturl.at/MhS6H