Procter & Gamble, the world's biggest advertiser in terms of spending, will move the bulk of its media buying and planning in North America to Omnicom, following a competitive pitch.
Omnicom Media Group will handle the media for most of P&G’s products, while Carat, a roster agency, will work on other product categories.
The bulk of P&G’s media planning and buying in North America was handled by Starcom MediaVest Group, the Publicis Groupe network, which has been on the company’s roster for more than 15 years.
Starcom will continue to work on Duracell, cosmetics, fragrances, and some hair products in the US and Canada, but these business are due to be sold by P&G. It will continue to handle media for P&G outside of the US, which makes up about 40% of the global business.
P&G spent about $2.66 billion on measured media in the US last year, according to WPP’s Kantar Media.
The review began in May, when P&G said it planned to cull the number of agencies it works with to achieve savings of up to $500 million. In July, the company said that it had cut the number of agencies it works with by 40% globally.
The company also changed its chief executive last month, when David Taylor replaced AG Lafley, and also sold 43 brands to cosmetics giant Coty for $12.5 billion. ZenithOptimedia, another Publicis media network, picked up Coty's global media business from OMD in June.
"Omnicom Media Group will be the primary agency supporting the majority of P&G’s categories, with Carat supporting the others," said P&G in a statement. "We are integrating planning and buying, and operating across North America markets to streamline operations and increase efficiency. And we will tailor media capability category-by-category to meet their unique business needs to more effectively reach consumers for their brands."
"We will see cost savings by simplifying our agency structure and negotiating new rates for the services our brands need today, and continue to reinvest to drive brand growth," the release continued. "Starcom MediaVest Group will retain Duracell, as well as Cosmetics, Fragrances, Salon Professional and Hair Color in the US and planning in Canada. Both SMG and Mediacom, who also participated in the review, remain valued roster agencies supporting media in other regions."
This article first appeared on campaignlive.co.uk.
