Estée Lauder reviews EMEA media amid spend hike in growth markets

Estée Lauder Company is reviewing its media-buying account across most of Europe, the Middle East and Africa.

The estimated €30m (£26m) review, which does not include the UK, comes at a time when the US beauty group is looking to increase its spend on advertising in growth markets.

Omnicom's OMD handles Estée Lauder Company in much of EMEA.

Fabrizio Freda, the chief executive and president of ELC, which owns brands such as Clinique and MAC, said on its earnings call this month that advertising spend "will increase significantly" during the rest of this financial year, particularly in digital around what it called influencer strategies.

The focus of extra spend will be "in the markets where there is momentum". ELC added that it plans to increase advertising slightly in terms of percentage of sales.

ELC generates $4.65bn, or about 39% of global sales, in EMEA. The group said most countries in the region, including Italy and the Nordics, grew in the last quarter.

Germany, meanwhile, had "challenges" and the UK slowed.

ELC was a founding client of M2M in the UK in 2003 but moved its account to sister Omnicom shop Manning Gottlieb OMD in 2016. A day after Campaign revealed the account had moved, Omnicom announced that M2M was shutting down in the UK.

The beauty group spends $2.7bn (£1.93bn) annually on "advertising, merchandising, sampling, promotion and product development".

ELC did not respond to requests for comment from Campaign.

ID Comms is said to be managing the pitch.

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