Publicis Groupe’s Starcom MediaVest loses US$900 million Walmart North American Media Business

What:Publicis Groupe's Starcom MediaVest has lost Walmart, one of its largest North American accounts worth an estimated US$900 million a year. "We are taking a different direction and looking for new ways to use media to connect with our customers.", a Walmart spokesperson said.
Why it matters: Walmart recently moved to manage its digital media in-house, creating it's own exchange called Walmart Exchange. In 2015, MediaVest lost two other major clients: Procter & Gamble and Coca-Cola's North American accounts.

Portada-Online.com - HomePage - Image - 1200 x 628 - 1.9-1 - NewsAfter nearly a decade, Publicis Groupe's Starcom MediaVest has lost Walmart, one of its largest North American accounts.

The Walmart account is worth an estimated US$900 million a year. In 2015, the retailer invested US$401.5 million in media.

It is still uncertain  which agency has won the account or if there will be a formal review. "We are taking a different direction and looking for new ways to use media to connect with our customers.", a Walmart spokesperson said.  Walmart recently moved to manage its digital media in-house, creating it's own exchange called Walmart Exchange.

The decision to split with Starcom MediaVest comes shortly after  Walmart's CFO Stephen Quinn has stepped down from the company. Quinn has been replaced by Tony Rogers, who has taken over earlier this month.

It remains unclear what the retailer's new approach will look like. A Walmart spokesperson said: "We have made the decision to end our relationship with MediaVest. We thank them for their strong partnership over the past nine years.

In 2015, the retailer invested US$401.5 million in media.

"We will continue to work with Mediavest during the transition," said a Walmart spokeswoman.

"We continue to partner with Walmart as they transition to their new model and wish them the best in their future direction," said a Mediavest spokeswoman.

Bad Streak

These are hard times for Publicis Groupe. Last December, Mediavest lost Procter & Gamble's North America account against rival Omnicom following a competitive pitch.

In addition, the network lost North American media duties for Coca-Cola, another major client, in the same year.

Mediavest had been awarded Walmart North American account in January 2007. The creative account went to Interpublic Group's Martin Agency. Digital buying was brought in-house in recent years,  as the  retailer invested in its own digital targeting, buying and optimization platform, called Walmart Exchange, according to Adage.

Related articles:
Walmart To Close 269 Stores, 102 Are Smaller ‘Express’ Stores
Is Walmart’s Reinvigorated EDLP Strategy Neglecting Hispanic Audiences?
Research: How Effective Was Macy’s, JC Penney’s, Walmart’s And Target’s Hispanic TV Spend Over The Holidays?

Get ready for #Portada17 on Sept. 14 in New York City! The Hispanic Sports Marketing Forum on September 13, and the 11th Annual Hispanic Advertising and Media Conference on September 14 will provide you with the best content and unparalleled networking opportunities to succeed in Multicultural America.


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA


SALES LEADS: AFM, Honda, Pfizer…

SALES LEADS: AFM, Honda, Pfizer…

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Multicultural market and/or targeting Multicultural consumers right now.


SPORTS MARKETING BITS: Fox Sports, Adidas, FC Barcelona, Fiat, and more…

SPORTS MARKETING BITS: Fox Sports, Adidas, FC Barcelona, Fiat, and more…

A summary of the most exciting recent news in sports marketing and media in the U.S., U.S.-Hispanic and Latin American markets. If you're trying to keep up, consider this your one-stop shop.