UM wins Hershey, to be included in new Programmatic Buying Model
What? UM won Hershey's Media buying and planning account, previously held by OMD.
Why it matters: The Hershey company spends more than US $500 million in media in the U.S. only and is growing substantially overseas, particularly in Latin America. Interestingly, the Hershey account will be included in Initiative(UM's) recently announced Programatic Trading program. Initially in North America (including U.S. Hispanic market), Puerto Rico and Mexico.
The Hershey Co. said it has switched ad agencies after an eight-month review process, hiring New York-based Universal McCann for all of the chocolate giant's global paid media planning and buying. The assignment includes all paid media, including TV, print, digital and Hispanic for the U.S.--the company’s largest market--as well as Hershey’s growing international businesses. Key growth markets include China, Mexico, India and Brazil. Hershey has previously worked with OMD.
The company spends an estimated US $500 million in measured media in the U.S. alone. Global spending wasn’t immediately available but the company said on a recent earnings call that it planned to spend 20% more on ads in 2013. That's after a significant hike in spending last year.
Inclusion in new Programmatic Program, also for U.S. Hispanic
IPG Mediabrands last week announced that it has formed a consortium of 'like minded companies' including A+E Networks, AOL (including Adap.tv), Cablevision, Clear Channel Media and Entertainment, to work with MAGNA GLOBAL to create an end-to-end, integrated programmatic-buying business model. The arrangement will allow IPG Mediabrands access to Consortium members select media and data, and the inventory will include display, video, mobile, digital out-of-home, radio and TV, some of which hasn’t been previously available to buy programmatically before. Sources at UM/Mediabrands in Miami tell Portada that Hershey's will be included in the recently announced program. This will gradually also be done for the U.S. Hispanic market as well as for Puerto Rico and Mexico. Later on, the programmatic buying roll-out will include the rest of Latin America.