What: After a 7-month large-scale review, Mars Inc. has announced it will consolidate all media buying and planning duties with GroupM by January, 2019. Why it matters: Mars Inc. is one of the biggest advertisers in the world, with an average yearly spent of US $1.5 billion on paid media.
Giant CPG conglomerate Mars Inc. has announced the end of a global media review that started in January of this year. The company, which spent US $745 million on paid media in 2017 according to Kantar Media, is consolidating all its media planning & buying duties with WPP’s GroupM.
“This partnership will be a crucial accelerator in our ambition to be quicker, bolder and even more innovative when it comes to meeting our consumer needs,” stated Andrew Clarke, chief marketing and customer officer at Mars. “It brings thought leadership and actionable use of data and insights to meet our media needs.”
The review launched in January and was managed by the Mars Media and Commercial teams, supported by IDComms and Ebiquity. The three agencies that managed Mars Inc.’s media planning duties, MediaCom, Starcom and OMD, were invited to re-pitch for the business, however, the company was looking to consolidate media spend under one agency.
“GroupM created a custom operating model for us which enables us to put data at the heart of our decision making, drive speed at a global, local and campaign level, and use our resources efficiently,” said Mars global media director Rob Rakowitz.
The new arrangement goes into effect on January 1, 2019. MediaCom will retain the business and serve as global media agency of record. The move marks another big win WPP’s GroupM arm, with its agency MediaCom having recently retained Shell’s multi-million dollar account.
Just a few days ago, Mars suspended all YouTube advertising after a Starburst ad was shown before a drill rap video by a group called Moscow 17, reportedly linked to gang violence in London. GroupM’s Chief Digital Investment Officer, Susan Schiekofer, has joined the brilliant speakers of Portada New York; on September 25, she will lead a panel on Inventory Quality and Brand Safety. To hear her expert perspective, click on the banner below.
Adsmovil has announced the return of Andrew Polsky as its first Chief Revenue Officer. In this newly-created role, Polsky will oversee monetization, national sales, agency partnerships, and client services in the U.S.
Intermarkets has welcomed Luke Rosche-Ritchie as Junior Account Executive. He’ll be responsible for serving the needs of the firm’s advertisers and helping them reach their marketing goals.
Liz Blackerhas been tapped by Univision as SVP of Branded Content revenue. She will be responsible for all aspects of UCI’s Branded Content Revenue and Experiential Studio with a primary focus on driving new and incremental revenue for the company.
Omnicom Media Group’s OMD U.S. has hired former WPP executive Rolf Olsen as Chief Analytics Officer. In this newly-created position, he will lead a team of more than 120 marketing and data scientists.
Laurie Rosenfield has been named Senior Vice President, People Development, Human Resources, at CBS Corporation. In her role, she will focus on senior executive development, using her blend of skills as a certified executive coach, talent evaluator, and communicator.
Publicis Media (PM) is promoting Ben Cronin to global head of the group’s Media Sport and Entertainment (PMSE), replacing Robin Clarke. Cronin will look to further accelerate the sport and entertainment practice.
Endeavor Global Marketing has appointed Robin Clarke as its new senior vice president.In his new role, Clarke will be based in London and will oversee the company’s international team of brand marketers.
Doug Sweeney has been appointed as CMO of One Medical, a growing healthcare company. Sweeny will be building out the startup’s in-house marketing practice while continuing to work with agencies.
VaynerMedia has created a new role specifically for Ryan Fey, who departed Omelet, the creative agency he co-founded, last year. In his new role, Fey will serve as executive vice president to oversee the Los Angeles office’s client services team.
Herb Scannel has been appointed CEO of Latino media company mitu. He was most recently president of BBC America. Prior to that he was CEO of online video platform Next New Networks, vice chairman of MTV Networks and president of Nickelodeon.
Victor X. Cerda, SVP of Corporate Strategy at V-me Media has been named to the Federal Communications Commission (FCC) Advisory Committee on Diversity and Digital Empowerment (ACCDE). The ACDDE will hold its first meeting on Monday, September 25, 2017.
Havas Media has launched its out-of-home division Adcity in the U.S., following its rollout in Europe, Asia and Latin America. Alissa Ananieva, a media and OOH advertising veteran, has been appointed Director to run the U.S. operation. Previously, Ananieva was director of growth programs at UK OOH media company Exterion Media.
John Osborn has been appointed CEO at OMD U.S. He will succeed Monica Karo, who was appointed chief client officer at OMD Worldwide. Osborn was most recently CEO of BBDO New York. He had spent more than 20 years at BBDO.
Kirsten Flanik was promoted to succeed Osborn as CEO at BBDO New York. She was previously president and will also retain that title.
Florian Adamski has been named global CEO of OMD, succeeding Mainardo de Nardis, who was elevated to the newly created position of vice chairman of Omnicom Media Group, of which OMD is a part.
Kyung Soo (Kenny) Lee has been named president and CEO of Hyundai Motor America. Mr. Lee will be responsible for Hyundai’s U.S. sales and marketing and will take over president and CEO duties starting on September 18. Jerry Flannery has returned to his position as the company’s executive vice president, chief legal and safety officer.
UNITED COLLECTIVE has hired Kristin Jackson as Chief Financial Officer and Chief Operating Officer. UNITED COLLECTIVE was formed in January and consists of creative agency GALLEGOS United, business planning consultancy POLY United, content creation and post-production offering LUNA United, digital agency CANVAS United and public relations firm ROX United. Jackson comes from Huge, where she spent three years as Group Vice President, Finance for the West Coast. Prior to Huge, she was Vice President of Business, Finance & Administration at EDC Communications a division of Vision 7 International.
Yale Wang has joined sports-first streaming live service fuboTV as VP and head of North America marketing.
Paul Alfieri has joined advanced TV ad company Cross as chief marketing officer.He was previously senior VP for the Turn Marketing Platform (now Amobee Marketing Platform).
VML has hired Fabio Seidl as executive creative director, overseeing VML New York‘s creative department and work for brands such as New Balance, Greater Miami Convention & Visitors Bureau, AMC cable television, LEGOLAND Florida Resort and the United Nations. Originally from Rio de Janeiro where he started as a copy writer, Seidl brings global experience and a unique perspective, having worked at Ogilvy Brazil in Sao Paulo and McCann Europe. Most recently, Seidl was at 360i in New York as a group creative director.
Gina Oliva has been named Senior Director of Marketing for NBCUniversal Owned Television Stations, effective Monday, September 18th.In this role, Gina will provide strategic marketing guidance and support to NBC and Telemundo station Brand Directors. She will also collaborate with our cross-divisional and syndication partners on marketing priorities. In addition, she will lead the strategic development and management of all division-wide initiatives and tent pole events. She will report to Therese Gamba, Senior Vice President of Marketing and Acquired Programming and work with Kelly Bohling.Gina joins NBCUniversal from WABC-TV where she worked as marketing producer and account executive for the last three years.
Anheuser-Busch InBev, one of the world’s largest brewer, has kicked off a global media planning and buying agency review for its’ US$2 Billion Global Media Assignment. The number of agencies the company aims to consolidate its’ business globally has not been determined.WPP’s MediaCom, the current U.S. incumbent, has held the account since late 2014. Globally, the company has eight agencies(from the six major groups: Mediacom, WPP, Publicis, Omnicom, Interpublic, Havas and Dentsu) spanning all major holding companies to handle media operations in more than 50 countries.
Casa Modelo announced the launch of its newest ready-to-serve chelada, Modelo Chelada Tamarindo Picante. The second chelada flavor to join the Casa Modelo portfolio, Modelo Chelada Tamarindo Picante celebrates traditional Mexican ingredients – chipotle peppers and tamarind – to offer fans of Modelo a spicy yet sweet taste profile that embraces one of the most popular and growing flavor trends: the desire for unique, authentic flavor combinations. Casa Modelo is also home to America’s fastest-growing beer, Modelo Especial[i]. Modelo has been brewing distinctive high quality beer ever since, including Modelo Especial®, Modelo Negra™, Modelo Chelada Especial™ and most recently, Modelo Chelada Tamarindo Picante™. Modelo is is distributed and marketed in the by Crown Imports in the U.S.
With the return of baseball season, Budweiser will introduce customized, specialty MLB team cans featuring unique designs created by local artists who each represent Budweiser’s values and celebration of the pursuit of the American dream. Budweiser’s limited-edition cans will arrive on Opening Day.Budweiser’s support of Major League Baseball is engrained in the brand’s DNA, with a rich heritage and history of partnership spanning more than 30 years.Team cans will be available on March 27 in the following markets: Baltimore, Boston, Chicago, Cincinnati, Dallas/Ft. Worth, Houston, Los Angeles, Minneapolis, New York, Oakland, San Diego, St. Louis, Tampa Bay and Washington D.C.
Avocados from Mexico
Ivonne Kinser, the digital strategy & innovation director at Avocados From Mexico, talks to Portada about the brand’s upcoming marketing strategies, and how sports might be among them.
Omnicom’s OMD has won the global review of Italian eyewear giant Luxottica’s global media business.Luxottica, one of the largest global retailer of glasses, has an important brand roster, which includes LensCrafters, Sunglass Hut, Pearle Vision, Sears Optical, Target Optical, Glasses.com, etc. as well as Ray-Ban, Persol, and Oakley. The company also has a license to distribute glasses created by such fashion houses as DKNY, Chanel and Ralph Lauren.According to Kantar Media, the company spent US$135 million on measured media in the U.S. in 2015 and approximately US$100 million last year. Its global spend is estimated to be around UD$250 million across more than 150 countries.OMD will also handle the programmatic buying portion of the client’s business.
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Darden Restaurants, an American multi-brand restaurant operator headquartered in Orlando, has appointed Knoxville, Tenn.-based agency The Tombras Group as its’ media agency of record for five of its brands following a competitive review. The agency will handle media planning, buying and optimization for Bahama Breeze, The Capital Grille, Eddie V’s Prime Seafood Restaurant, Seasons 52 Fresh Grill and Yard House. U.S. marketing for these five brands is handled separately from that of Darden’s two biggest properties, Olive Garden and LongHorn Steakhouse. Neo@Ogilvy served as media agency of record for the five brands prior to the review, which included 16 agencies. Darden managed the process internally. Darden spent approximately US$3.5 million on paid media supporting the five chains in 2015 and US$4.2 million from January to November 2016, according to Kantar Media.
NEW FEATURES TO PORTADA’S INTERACTIVE DATABASES We have incorporated new features to the interactive database of corporate marketers and agency executives targeting U.S. consumers: –New Leads: Weekly more than 20 new leads uploaded to the Database by the Portada team as well as the contacts related to the above weekly Sales Leads column written by our editorial team. Download the Database: Download the full Database in Excel Format. Search Database: You can search through a user-friendly interactive Interface: Search Fields include: Name, Company/Agency, Job – Title, Address, Zip, E-mail, Accounts (Agency), Phone, Related News.
What consumer categories are seeing increased demand from Hispanics? We talked to Packaged Facts’s Daniel Grandson, Ana Crandell of OMD Multicultural and Isabella Sanchez of Zubi Advertising to find out.
1.Latinos Are Increasingly Adopting Financial Tools
A recently published study by research firm Packaged Facts has revealed data that should serve as further incentive to allocate significant time and money to targeting Hispanic consumers. One of the biggest takeaways from the report is that Hispanic consumers are increasingly adopting financial tools like credit cards. Packaged Facts analyst Daniel Granderson noted that “Hispanic consumers have recently registered an exceptionally high increase in credit card ownership, when historically they had a below-average tendency to own and use credit cards.”
US-Hispanics are also buying life, health and automobile insurance at a faster rate than non-Hispanic households. In fact, “Latino households were responsible for 65% of the growth in the number of households with automotive insurance, 52% of growth in the number of households with health insurance and 31% of growth in households with life insurance,” Granderson added.
2. Hispanics Buying More in ‘Nesting,’ Less in Household Products Categories
When it comes to allocating effort and budgets to reaching Hispanic consumers, Ana Crandell, Group Account Director at Optimum Media Direction (OMD) Multicultural (foto), asserts that she has seen increased interest in prioritizing Hispanic consumers across a wide range of sectors: “It really has been across the board, though I would say the retail and CPG categories seem to be the ones that are starting to allocate more of their marketing dollars toward this segment.”
Crandall’s observations go along with the Packaged Fact’s study findings, as Granderson highlighted that a “noteworthy pattern in recent spending shifts on the part of Hispanic households is an increase in spending on goods and services, such as furniture and in-home entertainment equipment, that fall in the category of ‘nesting.’”
Hispanics have also increased spending on personal services like childcare, and are buying new instead of used cars at an increasing rate, reversing a long-standing trend.
3. Hispanic Americans’ Households Are Growing – Quickly
If we look at the math, Granderson says, it’s easy to understand why the Hispanic consumer has become a priority for any marketing strategist.
I would consider 2010 to represent the tipping point, when marketers finally started to proactively acknowledge the business opportunity this segment represents to their respective brands. This latest set of data just further validates this.
“Hispanic households have had and are likely to continue to have an outsize impact on growth in consumer spending in a wide variety of areas,” Granderson says, because Hispanic households are growing at a faster rate than non-Hispanic households, at 8.1% vs. 3.0%.
This is also true of the rates of spending when we look at Hispanics vs. non-Hispanics: while Hispanics still spend less than non-Hispanics, on average, between 2012 and 2015 average annual consumer expenditures by Hispanic households grew at a higher rate (9.7% vs. 8.6%). So this translates into a higher rate of growth in aggregate spending among Hispanics vs. non-Hispanics.
Crandell adds, “We started seeing a substantial increased interest in this particular segment immediately following the release of the last census, 6 years ago. In fact, I would consider 2010 to represent the tipping point, when marketers finally started to proactively acknowledge the business opportunity this segment represents to their respective brands. This latest set of data just further validates this.”
Isabella Sanchez, VP of media integration at Zubi Advertising (photo), affirmed that there is usually “renewed or refreshed interest” in Hispanic consumers whenever a census comes out. This particular report, Sanchez says, and its focus on Hispanics’ increasing income, “is great affirmation to the diversity of the Hispanic market.”
But that increasing income also means that luxury brands, which had operated under the assumption that Hispanics could not afford their products, have started singing a different tune.
The Hispanic market is not such a minority market anymore. Hispanics are the dominant market for the population segment in certain cities, and as companies look to grow their business, they’ve reached a point of saturation in the general market and may be as penetrated as they’re going to be. So the Hispanic market is the most logical…that’s where the growth is in every industry.
Sanchez highlights the case of Lincoln Motors, who turned to Zubi for support in a Hispanic marketing strategy to support their general campaign to compete with popular German brands like Mercedes-Benz and BMW.
Zubi’s work for Lincoln has been “very successful,” and serves as proof of the fact that Hispanic consumers are now a crucial demographic in the luxury market. Before, “luxury was under the impression that Hispanics could not afford these types of things, and that if they could, they could be reached with the general market advertising,” Sanchez remembers. Not anymore.
Are Marketers Really Paying Attention?
While marketing professionals, agencies and brands have generally recognized that the Hispanic consumer represents a key demographic, it has been difficult to keep up with the evolution of Latinos in America today.
Marketing professionals that target Hispanics still seem to have an incomplete understanding of who those in this demographic really are and how they make their purchasing decisions, which is why marketers that specialize in multicultural or Hispanic targeting find significant demand for their services.
Zubi Advertising’s Sanchez points out that the interest in the Hispanic consumer is nothing new, but that the key is that “the Hispanic market is not such a minority market anymore.” Today, Hispanics comprise “the dominant market for the population segment in certain cities, and as companies look to grow their business, they’ve reached a point of saturation in the general market and may be as penetrated as they’re going to be. So the Hispanic market is the most logical…that’s where the growth is in every industry.”
Crandell echoes that sentiment: “This is a very dynamic segment that is unlike any other and marketers are therefore continuously looking for a way to get a full grasp of what exactly it is that makes them so – and, more importantly, how to best engage with them.”
But she adds: “That said, I have definitely witnessed increased willingness among marketers to spend the necessary resources to gain a better understanding of them.”
Omnicom Media Group, the media services division of Omnicom Group Inc., has announced the launch of its third agency network, Hearts & Science. The new network will not be a single-account “dedicated” unit and will likely expand its roster in the future.
Designed to inform brand strategies with real-time insights, Hearts & Science is a data-driven marketing agency with expert media planning and buying capabilities, among other services that include shopper marketing, marketing innovation and content activation.Hearts & Science opens its North America based operation this month with Procter & Gamble as its inaugural client, four months after winning the US$2 billion P&G North America media review, and Scott Hagedorn as its CEO.
Additional offices will open starting shortly with Canada and Puerto Rico, followed by a number of key markets outside of North America in the second half of 2016
Hagedorn takes the helm at Hearts & Science following five years as the founding CEO of Annalect. While leading the effort to integrate data across multiple Omnicom network agencies, Hagedorn began crafting the vision for Hearts & Science, an enterprise that he describes as “the nexus between marketing science and consumer connections.”At Annalect, Hagedorn will be succeeded by Slavi Samardzija as global CEO and Erin Matts as North American CEO.
According to Hearts & Science Chief Operating Officer Kathleen Brookbanks, who joins the new agency from sister shop OMD as COO, the agency will open its 7 World Trade Center facility with a staff of 175, a number that is expected to top 300 by the beginning of Q3; Additional offices will open starting shortly with Canada and Puerto Rico, followed by a number of key markets outside of North America in the second half of 2016. Additional executive hires, recruited from leading companies across the technology, publishing and agency industries, will be announced in the coming weeks.Tara Levine and Grey New York chief digital officer Zachary Treuhaft have left their respective agencies to join Hearts & Science.
“As data-driven marketing and applied audience analytics in mass media have gone from a fringe to a core practice, the industry can’t lose sight of content’s role in creating connections between brands and consumers,” Hagedorn says.
“With the addition of Hearts & Science, Omnicom Media Group has three distinct agency brands all focused on driving client business results,” says Daryl Simm, CEO, Omnicom Media Group.
Asummary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Latin American market and/or targeting Latin American consumers right now.
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OMD has won the Latam & Europe media strategy and activation business for ‘smart alarms’ home security systems supplier Verisure Securitas Direct Group following a pitch, according to Mediapost. Markets include 11 territories in LatAm.
LINKS Worldgroup – a full-service marketing communications agency with focus in Latin America – has announced that it has been selected as the public relations agency of record for Grupo David, a Panama-based leader in distribution and retail marketing in Latin America and the Caribbean.The agency will develop and execute comprehensive public relations plans and support marketing campaigns in Latin America and the Caribbean (Barbados, Bolivia, Colombia, Costa Rica, Curacao, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana and Panama) for Grupo David’s brands — Victoria’s Secret Beauty and Accessories, Bath & Body Works, American Eagle, La Senza, Claire’s, Gymboree, Clarks, and The Children’s Place. LINKS Worldgroup has extensive experience in managing communications and marketing for top brands within the consumer goods, lifestyle, luxury and tourism sectors, such as Safilo Group; Ferretti Group Luxury Yachts; Olympus Digital Cameras; Armani Casa Miami; Marriott International brands; HighGate Hotels brands; JetBlue; among others.
LATAM Airlines Group has announced the creation of a new, single brand for its cargo affiliates. The LATAM Cargo brand will unite LAN CARGO, TAM Cargo, LAN CARGO Colombia and Mas Air, becoming the largest cargo airline group in Latin America. The move is part of LATAM Airlines Group’s identity consolidation process.With 140 destinations in 29 countries, the LATAM Cargo group of airlines brings together the best of the former brands and unites their identities, while connecting Latin America and the world through the transport of the region’s most emblematic products.Changes to the company’s image will start to become visible during the first semester of 2016 and will continue to be rolled-out during the next three years. These changes will not impact the operation or the service delivered to customers.
Dynamic International Airways
Dynamic International Airways announces connection to Latin America by launching new services to the Caribbean and Mexico starting summer 2016. Beginning early May, Dynamic will be servicing non-stop flights from New York JFK to Cancun, Mexico and Punta Cana, Dominican Republic. Further, in June, Dynamic International Airways will serve Los Angeles LAX to Cancun, Mexico. Dynamic passengers can also expect services to San Juan, Puerto Ricoand Punta Cana, Dominican Republic in the near future. All services will be non-stop and will give passengers the opportunity to connect to additional destinations throughout North and South America.
Westin Hotels & Resorts
Starwood Hotels & Resorts Worldwide, Inc. has announced that Westin Hotels & Resorts will expand its presence in Latin America with the development of the brand new Westin Monterrey set to open in 2019. The signing is part of Starwood’s aggressive growth strategy in Latin America and Mexico and marks the debut of the Westin brand in Mexico’s second largest city. Developed by Desarrollos Missouri and managed by Starwood, The Westin Monterrey will join the brand’s portfolio located in key markets, including Mexico City, Guadalajara, Los Cabos, Cancun and Puerto Vallarta.
Homewood Suites by Hilton
Homewood Suites by Hilton, part of Hilton Worldwide’s industry-first All Suites category, announced the signing of Homewood Suites by Hilton Cabo San Lucas. Now under construction, the property is scheduled to open in Q4 2016. The agreement is Homewood Suites’ third in the region and second in Mexico.Hilton Worldwide currently has a portfolio of approximately 90 hotels and resorts open and welcoming travelers in Latin America, including more than 40 properties in Mexico.
What: Sony has completed much of its media agency business review. The assignments were divided among incumbents WPP’s MediaCom, Interpublic Group’s UM, and Omnicom’s OMD. Why it matters: Sony spent US$620.3 million on U.S. measured media in 2014.The global review spanned Sony Pictures, Sony Electronics, Sony Mobile Communications, Sony Music and Sony Playstation.
Sony has completed much of its media agency business review. The assignments were divided among incumbents WPP’s MediaCom, Interpublic Group’s UM, and Omnicom’s OMD.
The global review, which began in May, spanned Sony Pictures, Sony Electronics, Sony Mobile Communications, Sony Music and Sony Playstation. Sony Pictures will retain UM in North America and other markets, and add OMD in more international markets, Adage reports.
Playstation and Mobile will consolidate its global business with MediaCom, which also wins electronics in international markets. Carat and OMD had previously handled parts of PlayStation.
Sony Music and Electronics’ agency homes haven’t been decided yet. Dentsu’s Carat, another incumbent, was not assigned anything but sources familiar with the review said the agency may get Sony Music and Electronics assignments for the North America region, which are still pending.
Sony spent US$620.3 million on U.S. measured media in 2014.In 2015, Sony joined Procter & Gamble, Unilever, L’Oreal, Coca-Cola, 21st Century Fox and Volkswagen, among many more, in reviewing their media agency business.
What: Wells Fargo has shifted its Media and Digital Business after a review that started in February and has not yet been finalized. OMD will pick up Hispanic media from Acento Advertising. Why it matters: Acento Advertising has handled Well Fargo’s Hispanic Media buying for many years.
Following Wells Fargo latest review, Omnicom Group shops OMD and Organic are said to be in advanced negotiations to take on business handled mainly by Interpublic Group’s units.
OMD, lead agency on traditional media planning and buying, will add responsibility for digital and search, which was previously handled by Interpublic’s UM. In addition, OMD will pick up media planning and buying on multicultural ads, which had been split among agencies like Muse, DAE and Acento.Wells Fargo is also expected to shift its digital creative business from Interpublic’s MRM to Organic. Acento Advertising has handled Well Fargo’s Hispanic Media buying for many years. Oscar Mendoza, Interactive Media Buyer at Wells Fargo spoke last fall at Portada’s Evolving America Summit at Digital Hollywood about Wells Fargo’s Hispanic digital initiative. Mendoza has since moved to work as Digital and Social Media Strategist at Earth Island.
Wells Fargo spent US$177 million in media in 2013.
A year ago Wells Fargo replaced longtime creative agency DDB with its Omnicom sibling shop BBDO after a review.Wells Fargo is the 70th largest advertiser in the U.S., spending a total of US$610 million in 2013 on advertising and promotion, according to its 10-K. In the Hispanic market, Wells Fargo has sizable initiatives in the Financial Literacy and Sports Marketing sectors. The company spent US$170 million in U.S. measured media in 2013,according to Kantar Media, with more than half devoted to network TV, cable TV and digital display.
What: American retailer group JCPenney will launch a review of it almost US $450m media business after a decade. Why it matters: OMD has handled the account since 2000.The brand’s media spending was close to US$430 million last year, down from more than US$500 million in 2012.
Retailer JCPenney is said to be reviewing its US $450m media agency business for the first time in almost ten years. Longtime incumbent agency OMD is expected to defend in the retailer’s review of its media account, according to sources. Creative responsibilities will remain at Doner in Southfield, Mich. Doner has worked on the brand since last fall.
In August 2013, JCPenney appointed former Kraft Foods marketing boss Debra Berman as its senior vice president of marketing.Berman brought in a completely new agency team including Doner, Victors & Spoils and EVB. Earlier this month, Ms. Berman suggested that the company needs to appeal customers and ensure they keep coming back. According to Berman, the target customer is multi-cultural with “two little kids, too little time and too little money.”
Although the review is in the early stages, Berman will be in charge of overseeing and ultimately being part of the key decision-maker group.
JCPenney reported net sales of US $2.8bn in its most recent quarter, compared to US $2.66bn during the same time last year. Last year, the retailer spent more than US $435 million in media and about US $170 million in the first half of 2013, according to Nielsen. Those figures don’t include online spending, however, which rose 17% to US $249m.
Shifting to Multicultural customer
The change came after a pitch and as the retailer is getting ready for its vital holiday shopping season.This is part , too, of a whole restructuring of JCPenney’s marketing organization and a shift to a more multicultural clientele.
Although details are still sketchy, Walmart’s announcement that it will create and operate its own media exchange to help its suppliers spend its media dollars based on the data WalMart obtains, has gotten mostly positive comments. What are the implications for the multicultural sector?
The retailing giant still is working on the software for Walmart Exchange, or WMX, which execs have described as “in beta.”
It’s just the natural evolution in Walmart’s decades-long big data initiative, according to Cesar Sroka, group account director for OMD. He says, “A lot of folks out there are not comfortable with it, but data can help drive a lot of decisions and effectively target who you’re going after. Walmart has millions of shoppers every week, so they have lots of data.”
Walmart will combine its own retail and online sales, gathered in close to real time, with social media data – and the new data stream coming from its Savings Catcher, an online service that gets consumers to input in-store receipts to see if they could have gotten a better price elsewhere. WalMart is a top ten Hispanic advertiser and many of its suppliers in the CPG and other categories are major advertisers.
Sroka thinks that WMX could help the retailer – and the brands that sell products through Walmart – better target African-American and Hispanic customers, allowing it to move beyond language preferences to consumer attitudes and behaviors. For example, the data could reveal whether some of the accepted wisdom on Hispanic shoppers, such as they shop in families and have larger basked sizes, are really true. “It’s raising the standard for everyone,” he says.
WMX could help the retailer – and the brands that sell products through Walmart – better target African-American and Hispanic customers
OMD isn’t worried that WMX will cut out media agencies, according to Sroka. “They’re just cutting costs out of the business. I believe they’ll still need an agency for strategy,” he says. “Programmatic doesn’t do that for you. Anybody can buy a thousand points. We are advisers: We look at your business holistically, from products being developed through consumer experiences.”
Below is the list of the Brand Marketers and Agency executives who are going to lead the speednetworking Tables, one of the most popular functions at the Portada Latam Summit . Make sure you meet them! If you have not registered to #Portadalat yet, do so at the special online promotional price!
Table 1:Annika Blockstrand, Regional Media Director Mondelez
Table: 2:Guadalupe Hernandez, Account Director Mediacom
Table 3:Jose Luque, Senior Client Service Director Havas Media International
Table 4:Edmond Handwerker, Production Project Management Director / Digital Content Strategy” Starcom
Table 5:Anita Geller, Head Digital Marketing Sandoz Latin America
Table 6:Mindshare (TBD)
Table 7:Adriana Ortega, Media Supervisor, Universal McCann
Table 8: BREAK (take a break, fill out Conference Evaluation forms)
Table 9:Luis Ortuzar, Regional Marketing Director “Christian Dior Parfums Latin America & Caribbean
Table 10:Max Gómez Montejo, Planning Director Ariadna
Table 11: BREAK (take a break, fill out Conference Evaluation forms)
Table 12:Jeannette Xenodakis, Head of Trading, MEC
Table 13:Ana M. Ramirez Zapata, Regional Digital Marketing Manager Americas Melia Hotels International
Table 14:Jose Cabanillas, Client Services Director, Havas Media International
Table 15: BREAK (take a break, fill out Conference Evaluation forms)
Table 16:Ricardo Rivera Alaniz, Volaris, Marketing Director
Table 17:Carlos Espindola, eHub Manager, Latin America
Table 18:Vanessa Gonzalez, OMD, Managing Director Omnicon Digital
Table 19:Helber Diaz, Media Director, Mediabrands
Table 20:Paola Hernandez, Ariadna, Managing Director
What: Johnson & Johnson shifted its US $1 billion-plus U.S. media buying account holding from Interpublic’s J3 to OMD, to be effective immediately. Why it matters: This means a major win for Omnicom Media Group, specially after the failed merger with Publicis group last month.The media-buying account includes all the J&J U.S. businesses.
Johnson & Johnson has shifted its US $1 billion-plus U.S. media buying account holding from Interpublic’s J3, a J&J-dedicated unit of UM, to OMD. The shift is effective immediately. Still, J3 will continue to handle media planning, which is the largest piece of the media business concerning revenue. The media-buying account includes all the J&J U.S. businesses.
The decision was made less than 19 months after J&J last reviewed its U.S. media business and less than two months since Kim Kadlec, who had been point person on that review, left her position as worldwide VP-global marketing of J&J to become head of relationship marketing at AOL. But the change doesn’t have anything to do with Ms. Kadlec´s departure, according to a J&J spokeman. Actually, her position at the company hasn’t yet been filled. Michael Sneed, Ms. Kadlec’s boss at J&J, will continue in his role as VP-global corporate affairs overseeing marketing and communications throughout J&J.
Apparently, this move comes after former Coca-Cola executive Alison Lewis´ hiring as the first chief marketing officer of J&J’s consumer business, which is by far the biggest media spender in the company.
“Our marketing leaders who have responsibility for what the marketing plan looks like across the enterprise made the decision based on the suite of offerings of each agency. We’re taking a look at everything we’re doing and trying to figure out the best mix,” a J&J spokeman said.
“Interpublic remains a highly valued partner to Johnson & Johnson around the world and will continue to play an important role for us in the U.S. and globally,” interpublic, the holding company behind J3 and UM, said in a statement.
“J3 is proud to continue to provide the most strategic services to J&J including strategy, planning, content development and activation,” said a UM spokeswoman.
Interpublic is said to have lost much of its creative work with J&J in recent years, including accounts such as Tylenol in 2010 and some brands .However, it will remain on the creative roster with Acuvue, and digital shop R/GA has several J&J assignments.
What? Hasbro has consolidated the majority of its global media business at OMD. Why it matters? The media decision trails Hasbro’s shift of a sizable part of global creative business to WPP’s Grey.
Most of Hasbro’s global media business has been consolidated at OMD, holder in 15 international markets, including Europe and China. The U.S. is among the new markets recently added by the Omnicom media agency, which had formerly been handled by Interpublic Group’s Initiative. Meanwhile, GroupM’s Mediacom is retaining the toy maker’s business in Latin America. According to Nielsen, Hasbro’s annual media spending worldwide is estimated at US $300-$350 million and its’ last year expenditure in the U.S. alone was of nearly US $100 million in media. This media decision follows Hasbro’s intended shifting of a substantial share of global creative business to WPP’s Grey. In the media field, WPP offered a broader GroupM solution to the Pawtucket, Rhode Island company. Agencies either did not return calls or brought up calls to Hasbro, which could not immediately be reached.
What? Hasbro has consolidated the majority of its global media business at OMD. Why it matters? The media decision trails Hasbro’s shift of a sizable part of global creative business to WPP’s Grey.
Most of Hasbro’s global media business has been consolidated at OMD, holder in 15 international markets, including Europe and China.
The U.S. is among the new markets recently added by the Omnicom media agency, which had formerly been handled by Interpublic Group’s Initiative. Meanwhile, GroupM’s Mediacom is retaining the toy maker’s business in Latin America.
According to Nielsen, Hasbro’s annual media spending worldwide is estimated at US $300-$350 million and its’ last year expenditure in the U.S. alone was of nearly US $100 million in media.
This media decision follows Hasbro’s intended shifting of a substantial share of global creative business to WPP’s Grey. In the media field, WPP offered a broader GroupM solution to the Pawtucket, Rhode Island company.
Agencies either did not return calls or brought up calls to Hasbro, which could not immediately be reached.
Publicis Group and Omnicom agreed to merge and the combined global Advertising Holding is expected to be called Publicis Omnicom Groupe. The merger has important implications for the Hispanic advertising and marketing sector. Publicis Omnicom Groupe will have more than 60% of Hispanic Media Buying Power as both Publicis and Omnicom manage some of the largest Hispanic media buying and planning accounts (see Table below).
Already before the merger Publicis combined agencies had by far the largest media buying power in the Hispanic market. The merger announced yesterday adds Omnicom’s media agencies OMD Multicultural and Bromley to the new group. Calculated by client billings, the new combined Publicis-Omnicom entity will have a 61.1% media buying power among the top 16 Hispanic media buying agencies.
Omnicom and Publicis Agencies among Top 16 Hispanic Media Buying Agencies
2012 Revenues (in US$ million)
Gilette, Novartis, Procter & Gamble, Burger King, Red Lobster
P&G, Post Foods, CoverGirl, Olay, Kraft, Continental, Wrigley
Sonic, Verizon Wireless, Pizza Hut , Denny’s, General.Mills
Coors, Western Union, Telefonica, NBA
Total Billings Publicis
Domino’s Pizza, Kimberly-Clark, Lowe’´s
State Farm,McDonald’s, HR&Block
Total Billings Omnicom
Share of Top 16 Hispanic Media Agencies
Source: AdAge estimates and Portada Interactive Directory of Media Buyers
In terms of creative agency services, Omnicom agencies do have higher billings than Publicis agencies in the Hispanic market. Combined billings of both groups amount to US $134.1 millon
Omnicom and Publicis Agencies among Top 50 Hispanic Advertising Agencies