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What: The Kraft Heinz Company has consolidated its U.S. media agency assignment with Starcom.
Why it matters: UM was Heinz’ incumbent while Starcom held the Kraft account.  Kraft and Heinz announced their merger earlier this year. This caps a great week for Starcom which also gained Visa’s global media buying account.

The newly merged Kraft Heinz Company has consolidated its media agency assignment with Publicis Groupe’s Starcom without a review, the company confirmed Friday. Starcom had handled Kraft, while UM was the Heinz incumbent. Combined, the companies spent over $600 million on ads in 2014, according to Kantar — with most of that spending placed by Kraft.  The newly combined company will have eight brands each worth more than $1 billion, as well as five brands worth between $500 million and $1 billion. The company’s products include Kraft Macaroni & Cheese and Heinz Ketchup among many other brands.

(When Berkshire Hathaway and 3G Capital acquired Heinz in 2014, it shifted its global media account, worth $250 million, to OMG, and gave U.S. media to IPG’s Universal McCann)

Data, and the company’s and agency’s ability to analyze it, is critical to optimizing future media planning and buying.

The win caps a huge week for Starcom, which earlier won the $200 million global Visa media AOR assignment after a review. Michael Mullen, SVP corporate and government affairs at The Kraft Heinz Company, issued a statement about the move: “As we work to build something truly special at The Kraft Heinz Company, we are examining every aspect of our business to ensure we are operating efficiently and effectively, and best positioning the Company to deliver on the needs of our consumers. In this spirit, we have decided to consolidate all media planning and buying for Kraft Heinz with Starcom, effective immediately.”

Mullen added that the company believes data, and the company’s and agency’s ability to analyze it, is critical to optimizing future media planning and buying.

“Kraft Heinz has partnered with Starcom to make unprecedented strides in unlocking the value of data in the industry, and we will continue to leverage groundbreaking data innovation to enable our brands to achieve more effective consumer connections at the most effective cost. “By working with Starcom and harnessing the power of the newly merged Kraft Heinz, we believe data will help us improve targeting, gain insights and refine our exposure and engagement with consumers, ultimately improving the overall quality of media. We fundamentally believe in investing in marketing to drive our business, and we look forward to partnering with Starcom to grow our unrivaled portfolio of iconic brands.”
Mullen added that the decision to consolidate “was not made lightly. We have enjoyed a great relationship with Universal McCann and we thank them for their partnership and dedication to our business over the years.”

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What? OMG has settled in one of the most growing territories for digital marketing in the world by opening its new branch in San Pablo, Brazil.
Why it matters? Performance marketing is growing in Latin America and this opening shows the opportunities Brazilian market offers.

brazil.flagOMG, the performance marketing group, has opened a new branch office in São Paulo, Brazil. OMG also has branches in Poland, India, Singapore and Australia.

The new branch will make use of OMG’s technology platform to offer advertisers performance-based affiliate marketing programmes in partnership with a network of publishers throughout Brazil. Brands such as Brastemp and Consul from Whirlpool group, SulAmérica and EasyQuarto, are already confirmed as advertisers.

OMG Brazil is managed by Flavia Moinhos. Flavia was formerly Sales and Ad Ops Manager for ClickMagic, and has also worked at Terra Networks, ClickOn and Predicta.

Brazil is one of the fastest growing territories for digital marketing in the world. It has more than 100m people with internet access, and the number is rising faster than anywhere else in the world. Online purchases in the first six months of 2013 came to more than BRL12bn (US $5.287 billions), with the total expected to reach BRL28bn (US $ 12.335 billions) by the end of this year.

According to Richard Syme, OMG’s CEO, this new branch will help OMG to take advantage of Brazilian fast-growing market.

What? Pharmaceutical giant GSK is splitting most of its global media planning and buying account between Group M and Omnicom Media Group (PHD).
Why it matters: GSK invests over US $1.5 billion annually in advertising.

After a review, GlaxoSmithKline announced that most of its global media business will go to units of GroupM and Omnicom Media Group.

According to Campaign, OMG agency PHD has retained the estimated £890 million (approximately US$ 1.3 billion) U.S. business and will also run the Canadian and West African markets. GroupM agencies will manage the rest of the world, with MediaCom expected to retain the £60 million (US $95 million) UK account. Dentsu, on the other hand, will manage media buying in Japan.

“This decision ends GlaxoSmithKline’s relationship with Publicis Groupe’s Starcom and Dentsu’s Carat, which previously worked on the business alongside PHD and Group M.”

Sam Singh, VP of Global Media at GlaxoSmithKline, said that with this move, the company intends to attain “simplicity and speedier deployment of best practices”.

 

What? Pharmaceutical giant GSK is splitting most of  its global media planning and buying account between Group M and Omnicom Media Group (PHD).
Why it matters: GSK invests over US $1.5 billion annually in advertising.

After a review, GlaxoSmithKline announced that most of its global media business will go to units of GroupM and Omnicom Media Group.

According to Campaign, OMG agency PHD has retained the estimated £890 million (approximately US$ 1.3 billion) U.S. business and will also run the Canadian and West African markets. GroupM agencies will manage the rest of the world, with MediaCom expected to retain the £60 million (US $95 million) UK account. Dentsu, on the other hand, will manage media buying in Japan.

“This decision ends GlaxoSmithKline’s relationship with Publicis Groupe’s Starcom and Dentsu’s Carat, which previously worked on the business alongside PHD and Group M.”

Sam Singh, VP of Global Media at GlaxoSmithKline, said that with this move, the company intends to attain “simplicity and speedier deployment of best practices”.

 

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