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

For prior Sales Leads LatAm editions, click here. 

  • Samsung

Samsung has appointed Leo Burnett as global creative AOR for the brand’s visual-display division (TVs), following a competitive pitch. Led by the agency’s Chicago office, the 75 market remit will include global brand positioning, integrated communications strategy and creative. Starcom will provide media planning and buying expertise, given its role as Samsung’s global media AOR.Samsung spent US$27 million on measured media for its TV division last year in the U.S., according to Kantar Media.

 

 

 

 

  • CMPC Tissue

Media agency Initiative will be in charge of CMPC Tissue‘s media strategy and planning in Latin America. The agency will be responsible for media planning, buying and strategy for CMPC Tissue’s brands La Papelera de Plata, Productos Tissue del Perú, Industria Papelera Uruguaya, Melhoramentos CMPC, Absormex CMPC Tissue, Drypers Andina and Productos Tissue del Ecuador, in markets such as Argentina, Chile, Peru, Uruguay, Brazil, Mexico, Colombia and Ecuador. The account was handled by various agencies in the different countries where CMPC Tissue has presence. The regional hub will be based in Chile and will work jointly with each of the local teams.

 

 

 

  • Enterprise Rent-A-Car

As part of its ongoing expansion in Latin America and the Caribbean, one of the world’s largest car rental company has opened four new Enterprise Rent-A-Car locations at the Dominican Republic’s largest airports: Punta Cana International Airport (PUJ), Las Américas International Airport (SDQ) in Santo Domingo;Cibao International Airport (STI) in Santiago de los Cabelleros; and Gregorio Luperón International Airport (POP) in Puerto Plata. Enterprise Holdings Inc. owns the Enterprise Rent-A-Car brand, as well as National Car Rental and Alamo Rent A Car. The National brand has been operating in the Dominican Republic since 1974.The Enterprise Rent-A-Car brand expanded into Latin America in 2015, and announced the opening of 22 new locations throughout Belize, Honduras, Mexico, Tortola, Trinidad & Tobago, Turks & Caicos and Uruguay in 2016.Today, the Enterprise, National and Alamo brands operate in more than 90 countries, including 31 in Latin America and the Caribbean.

 

 

 

  • MoneyGram

MoneyGram and Grupo Elektra, have extended their agreement to provide money transfer services inside nearly 2,000 Elektra locations in Mexico through 2021. The partnership strengthens MoneyGram’s position in the dynamically growing market – with over US$30 billion inflows in 2017, the U.S. to Mexico is the largest remittance corridor in the world.Grupo Elektra is Latin America’s leading specialty retailer and financial services company and the largest non-bank provider of cash advance services in the United States. Since 2012, MoneyGram and Grupo Elektra have worked together to make sending and receiving money around the world easy and convenient for consumers in Mexico.

 

 

 

2018 NETWORKING SOLUTIONS. To find out about Portada’s new networking solutions targeting the decision makers of the below campaigns, please contact Sales Manager Isabel Ojeda at isabel@portada-online.com.

 

 

  • Avianca Airlines

Avianca Airlines inaugurated a trio of Latin American flights from Orlando International Airport.Since 2011, the airline has provided a daily flight from Orlando to Bogota, Colombia.The three new flights are: daily to Lima, Peru; four times a week to San Salvador, El Salvador; and three times a week to Guatemala City, Guatemala.Orlando International Airport’s international business has grown from 3.3 million passengers annually in 2011 to 6.2 million currently.Airline officials expect the bulk of tickets for the Guatemala and El Salvador flights to be sold in those countries, while the Peru flight will bring a more even mix of tickets sold in the U.S. and Colombia.The airline was founded in Colombia in the early 1900s but is now based at three hubs: Bogota, San Salvador and Lima.

 

 

 

  • Johnson’s Baby

Johnson & Johnson recently re-staged an entire line of products on a global basis for its´JOHNSON’S® Baby brand. For nearly 125 years, Johnson’s Baby—shampoos, washes, lotions—grew to become one of the most popular baby brand in the world, with sales in more than 140 countries. To reach this size and scope, the brand developed regionally, leading to 470 products, 293 formulas, and 102 different types of bottles and closures.The restructuring of the brand included streamlining operations, simplifying the supply chain, paring back ingredient lists, and creating updated and globalized formulations based on cutting-edge science as well as parental preferences.The new packaging began reaching store shelves in North America in July. India and China are next, followed by Europe and then Latin America.

 

2018 NETWORKING SOLUTIONS. To find out about Portada’s new networking solutions targeting the decision makers of the below campaigns, please contact Sales Manager Isabel Ojeda at isabel@portada-online.com.

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

To subscribe to Portada’s Interactive Database of Marketers targeting U.S. consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com.

For prior Sales Leads editions, click here.

  • Lionsgate

Publicis’ Starcom USA unit has won studio Lionsgate‘s media account. The assignment, which is estimated to bill US$400 million annually, makes Starcom Lionsgate’s media planning and buying agency of record.Lionsgate studio also operates pay TV channels Starz, Pop and Epix.

 

 

 

 

  • Lexus

Lexus brand will sponsor the web series aimed at multicultural Millennials “I Turn My Camera On” on essence.com, Mediapost has reported. The series features actor and photographer Lance Gross. The 10-episode digital series, created with Macro Digital Studio, explores Gross’s world and his famous crew. The series features Omari Hardwick, Kelly Rowland and her husband Tim Weatherspoon, King Bach, Keke Palmer and Simone Missick. The first episode features Michael B. Jordan. A new episode will be available every Wednesday at 12 noon EST.  Additional episodes will be announced in November.Lexus’ digital content channel L/Studio is sponsoring the series and will feature exclusive behind-the-scenes content on www.LStudio.com.Focused on nuanced storytelling with universal themes, Macro aims to resonate with multicultural Millennials.

NEW PORTADA RESEARCH REPORT: “Content Marketing Initiatives targeting Hispanic and Multicultural Audiences”. The report is filled with intelligence for brand marketing executives targeting multicultural consumers – the majority of consumers in many major U.S. markets –  as well as for media and marketing tech vendors. This report provides a description of 20 content marketing initiatives. Each program’s main elements are described (Brands involved, Target Audience, Owned Properties, Paid Media Program, Key Influencers) are summarized and the agencies and brand decision-makers behind them are listed. Described companies include: Avocados from Mexico, Barilla, Best Western, Ford, General Mills, Hershey’s, Kellogg, Kimberly Clark, Kraft, Makita, Miller Coors, Nestle, Procter & Gamble, State Farm, Sprint, Unilever, Verizon, Vilore and Wonderful Pistachios. Buy the report here  Upgrade to “Research Plus Membership” for only US$ 999 and access this report and 9 more!

  • Coca-Cola

Topo Chico sparkling water from Mexico has become part of the Coca-Cola family. The Coca-Cola Co paid US$220 million to Arca Continental, S.A.B. de C.V., the second largest Coca-Cola bottler in Latin America, which owns the rights to the Topo Chico brand. The deal was made through the American beverage giant’s Venturing & Emerging Brands unit. The vast majority of Topo Chico’s U.S. sales are in Texas — about 70 percent.Topo Chico’s “legacy team” will join Coca-Cola’s VEB unit but remain based in Texas. The acquisition marks a full circle for Topo Chico; the brand’s parent company was the first to bottle Coke outside the United States through a deal struck in the 1920s.

 

  • Northgate/ Cardenas Market

Anaheim-based Northgate Gonzalez Market has sold its stake in seven Los Altos Ranch Markets in Arizona to rival Hispanic retailer Cardenas Market.The sale comes more than three years after the two leading Southern California Hispanic retailers joined forces to buy Pro’s Ranch Markets, which had seven stores in Arizona, two in New Mexico and two in Texas. The value of the deal was not disclosed.Northgate said selling the Los Altos stores will allow the company to focus on its expansion plans in Southern California. The deal is expected to close in 45 days. During the transition, Northgate said it will continue to provide operational support at the Los Altos stores in Arizona.Northgate operates 40 stores in Orange, Los Angeles and San Diego counties. Northgate did not reveal its growth plans for Southern California.Cardenas operates about 30 stores in Riverside and San Bernardino counties as well as Las Vegas.

  • Astral Tequila

San Francisco-based Erich & Kallman has been appointed agency of record for Astral Tequila, owned by Davos Brands, following a formal review. The agency is tasked with creating a market launch plan for Astral. It will also lead video, digital, print, social and OOH components for the brand.E&K was cofounded last year by Steven Erich, former president and partner of Crispin Porter + Bogusky, and Eric Kallman, former executive creative director at Goodby, Silverstein & Partners and Barton F. Graf, as well as creative director at Wieden & Kennedy. The agency has worked with various brands, including General Mills, Chick-fil-A, New Belgium Brewery, Gusto, Church’s Chicken and MTV.

 

 

 

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.

 

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

To subscribe to Portada’s Interactive Database of Marketers targeting LatAm consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com.

For prior Sales Leads LatAm editions, click here.

  • Midea

descargaMidea, a global leader in air conditioning and appliances, present in more than 150 countries, will invest US $30 million in expanding its business to Latin and Central America. The operation’s headquarters will be in Miami, where the the project is officially being launched today  ,January 23, at the Pullman Hotel. The company, with worlwide revenues of over US $ 22 billion and, more than 20 factories and 124 thousand employees, aims to reach a key area for its global expansion strategy, Latin America and the Caribbean, which in 2016 only, had a volume of 12 million units sold.Currently, Midea is present in the region in Brazil, Argentina and Chile, through the joint venture with American Carrier. Midea will market air conditioners; heaters, fans and humidifiers; water heaters; complete kitchen line; small appliances; vacuum cleaners and laundry line. The products will be produced in factories in China and Brazil.

  • Marriott Inc.

mmmmMarriott International has selected JeffreyGroup as its PR AOR in Latin America after a competitive pitch that began in mid-October in which five firms participated. Budget information was not disclosed.The agency will manage corporate and brand communications for Marriott International and its 20 hotel brands in the region. It will also support Marriott on press trips, events, influencer management, and property-focused initiatives.The agency’s pan-regional team in Miami will be leading the account work, and its offices in Mexico and Brazil are providing full-time support.Marriott operates more than 200 properties in 33 countries and territories in Latin America, with plans to grow that to close to 300 by 2020.In September, Marriott acquired Starwood Hotels & Resorts Worldwide and its 11 brands including St. Regis, W Hotels, Westin, and Sheraton for US$13.6 billion. Other JeffreyGroup clients include Airbus, American Airlines, Johnson & Johnson, and Sony. Mediaedge (MEC( is Marriott’s LatinAmerican media agency.

  • Merck

merck_consumer_healthcareMerck’s Consumer Healthcare division has appointed Publicis Media’s Starcom as its global media agency following a competitive pitch. The agency will take full responsibility for the division’s brands across all the markets in which it operates including Neurobion, Bion3, Nasivin, Seven Seas, DoloNeurobion and Femibion. Recently, Starcom won Mars global media planning business while Mediavest|Spark won KFC’s and MTV’s US media accounts.

 

 

 

 

 

 

  •  Telecom

descarga-1GroupM’s Mindshare Argentina has been appointed Grupo Telecom media agency of record following a competitive pitch that began last November. Mindshare wilMindshare will start working immediately for the telecommunications company, which until now was working with Quiroga Medios for its’ media business.

To get detailed contact information about the decision makers behind these campaigns and access an interactive database of more than 2,500 marketers targeting LatAm consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com to activate your subscription.

  • Meliá Hotels

descarga-3Meliá Hotels International will be launching its Gran Meliá luxury brand in Brazil this March with the official opening of Gran Meliá Nacional Rio.Located in Rio de Janeiro’s most exclusive neighbourhood, São Conrado, the hotel will be the brand’s flagship property and will open its doors following extensive renovations to its original structure.Meliá Hotels International already has 17 hotels in the country’s top tourist destinations, including Angra dos Reis and São Paulo, with three new hotels set to open in 2018.

 

 

  • Hard Rock

descarga-2Hard Rock International announced plans to bring the Hard Rock Hotels experience to Costa Rica with the all-inclusive Hard Rock Hotel Papagayo, Costa Rica. Hard Rock, in collaboration with Sunwing Travel Group, is set to open Costa Rica’s first Hard Rock Hotel by early 2019. With Hard Rock and Sunwing Travel Group’s shared vision of providing authentic experiences in word-class destinations, this new partnership paves the way for potential collaborations in both the Caribbean and Latin America.

 

 

NEW FEATURES TO PORTADA’S INTERACTIVE DATABASES
We have incorporated new features to the interactive database of corporate marketers and agency executives targeting LatAm 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.

Learn more about crucial strategies from advertising and media luminaries targeting Latin American and Hispanic audiences. Book now for our Latam Advertising and Media Summit, a required event for any marketing professional.

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

Check out Portada’s Interactive Directory of Corporate Marketers and Agency Executives. 15 NEW LEADS HAVE JUST BEEN UPLOADED. To acquire the database, please call Jennifer Chan at 347-840-1311 or e-mail her at jennifer@portada-online.com SEE A DEMO OF THE DIRECTORY!
For prior Sales Leads editions, click here.

  • Walmart

Portada-Online.com - HomePage - Image - 1200 x 628 - 1.9-1 - NewsPublicis 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. 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.Read more.

  • Bojangles’

Portada-Online.com - HomePage - Image - 1200 x 628 - 1.9-1 - News (10)Bojangles’, a QSR chain, has selected Charlotte-based AC&M Group, as their agency of record for the U.S. Hispanic market. AC&M Group will handle Hispanic-marketing initiatives, including campaign strategy, creative, planning and execution for Bojangles’.Hispanic visit QSRs (Quick Service Restaurant Chains) more often than non-Hispanics. Spanish Language Dominant Hispanics visit QSRs even more often.Kicking-off in the first quarter of 2016, the multimedia campaign will combine traditional and online media to connect the iconic restaurant chainwith Hispanic consumers.

  • Pepsi

Portada-Online.com - HomePage - Image - 1200 x 628 - 1.9-1 - News (22)Pepsi is planning to market specially designed emoji cans and bottles in more than 100 global markets this year, including the U.S,according to Adage. As part of the effort, there will be almost 70 global and locally designed “PepsiMojis” printed on cans, bottles and cups all over the world. The marketer also has plans to extend the emojis beyond packaging as a means to bridge retail marketing with digital marketing(Emojis are mostly confined to the digital world.) In addition, the brand has designed emojis specifically targeted for each market.To celebrate “World Emoji Day” last year on July 17, Pepsi released a “#PepsiMoji Keyboard” that is still available on Apple’s App Store and on Google Play.

  • El Jimador Tequila

Portada-Online.com - HomePage - Image - 1200 x 628 - 1.9-1 - News (23)Margarita season officially kicks off on February 22nd with National Margarita Day!If you are like the 64 percent of millennials who drink margaritas outside of the summer season, according to a survey commissioned by Mexican tequila el Jimador Tequila, then this is the best news since the invention of the blender! To kick off Margarita Season and spread the cheer, el Jimador Tequila will be hosting Margarita Trails around the country. Learn more by visiting elJimador.com and join the conversation on Twitter.com/jimieljimador with #elJimador and #NationalMargaritaDay. Happy National Margarita Day!

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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?

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What: Visa has picked Publicis Groupe’s Starcom to be its  global media agency of record.
Why it matters: Starcom will provide Visa with a fully integrated offering based on data, which will cover five regions, 60 markets including North America, Latin America, Asia-Pacific and Middle East.

gELngik-_400x400Visa has picked Publicis Groupe’s Starcom to be its  global media agency of record. It will be supported by SocialCode for digital in North America. Essence has been tapped to support Visa’s programmatic efforts on a project and regional basis.

Starcom will provide Visa with a fully integrated offering based on data, which will cover five regions, 60 markets including North America, Latin America, Asia-Pacific and Middle East.

The review begun earlier this year and shorten the list of contenders to finalists OMD, Starcom and Essence. OMD was the incumbent, and held the account for many years.

Visa spent US$112 million on U.S. measured media in 2014. That’s 13% less than the company spent on measured media in 2013.

What: Visa has picked Publicis Groupe’s Starcom to be its  global media agency of record.
Why it matters: Starcom will provide Visa with a fully integrated offering based on data, which will cover five regions, 60 markets including North America, Latin America, Asia-Pacific and Middle East.

gELngik-_400x400Visa has picked Publicis Groupe’s Starcom to be its  global media agency of record. It will be supported by SocialCode for digital in North America. In addition, Essence has been tapped to support Visa’s programmatic efforts on a project and regional basis.

Starcom will provide Visa with a fully integrated offering based on data, which will cover five regions, 60 markets including North America, Latin America, Asia-Pacific and Middle East.

The review begun earlier this year and the list of finalists was shortened to OMD, Starcom and Essence. OMD was the incumbent. OMD had the account for many years.

Following the appointment, Benjamin Gomez, CEO of Starcom Colombia, Mexico and the Andean Region, said: “we are extremelly proud of this new challenge of delivering Visa the best of our networks’ strategic thinking , which is focused on data, technology, content, media optimization and the best global talent. The integration of information to make better decisions will be critical for Visa.”

Last week our Digital Media Correspondent Susan Kuchinskas reported about the maturing Newfronts Marketplace, the digital upfronts that are finishing today in New York City after two very hectic weeks. Now let’s look at the most important Multicultural related news that came out of the 2015 NewFronts.

Starcom MediaVest partners with MiTu and Maker to reach Hispanics

iab-events-header-newfronts (1)Starcom MediaVest Group’s Global Creative Practice LiquidThread, signed a deal to invest more than US $10 million to reach Hispanic audiences around the world through a new partnership between Maker Studios and Hispanic-focused online video network MiTu that will have the companies developing original series for that audience, says Juan Davila, LiquidThread’s global head of business development and SVP. LiquidThread services clients globally including US Hispanic and Latin America.
Davila tells Portada that “When you sum the totality of this group, both native and of Hispanic origin, it becomes an imperative to keep a pulse of their cultural evolution. Maker Studios and MiTu are leading the way in the cultural media evolution.” Davila adds that the partnership will be about “seamless, organic integration of branded entertainment in order to respect the integrity and authenticity of the influencer and its programming.

The partnership will be about seamless, organic integration of branded entertainment.

The target audience for this new LiquidThread/MiTu/Maker Studios partnership is, according to Davila, a wide spectrum of product categories, but it may be skewed towards Millennial and generation Z but that is also changing with the addition of new influencers and the rapid proliferation of internet entertainment engagement. “Some of these influencers have more fans than traditional Hollywood celebrities, ” Davila concludes.

Condé Nast introduces Vida Belleza Latina

CNECondé Nast Entertainment (CNÉ), Condé Nast’s video production arm announced ‘Vida Belleza’–a new lifestyle channel targeting Hispanic millennials. Vida y Belleza is Conde Nast’s 19th channel, Vida Belleza and features programming for and by influential female Latino Millennial. Launching later this year, Vida Belleza will bring together the authenticity of a new generation of Latino storytellers with the access and reach of CNÉ’s network. Vida Belleza will offer a full spectrum of programming covering beauty, food, lifestyle, celebrity, culture and docuseries.
Dawn Ostroff, President, CNÉ commented: “Like cable in the early days, the economics of premium digital video are maturing and enabling the industry to up its game. CNÉ started out with a mandate to launch digital video channels for Condé Nast and, in just a few short years, has become a major player in the production, distribution and innovation of digital video. At last year’s NewFronts, we put our stake in the ground and announced the launch of The Scene, the first-ever platform for premium digital video. This year, we’re taking our business to the next level. Our rapid growth confirms what we have always believed: digital video is a strong and valuable business with an exciting future.”

CNÉ is said selling advertisers inventory on The Scene at higher rates than YouTube can charge, leveraging its brand equity, the quality of its programming, and branded video series,

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As we published last week Starcom Media Vest lost its Telefonica media planning and buying business to Havas Media after it won the pitch in July. Many observers of the agency and client world are shaking their heads. Five things you need to know about why Starcom lost the Telefonica business (approximately US$ 250 million a year) and its implications for the media buying and planning business of major agencies.

1. How did it happen?

TelefonicaThe decision to move Telefonica’s LatAm media business from Starcom (Publicis Groupe) to Havas Media Group (as well as Telefonica’s European Media business and O2 business from Publicis’ Zenith Optimedia to Havas) is part of an overarching business decision made by Telefonica chairman César Alierta following the purchase of Vivendi’s Brazilian broadband unit GVT for US$ 9 billion in September. Last, but definitely not least, Vivendi chairman and majority shareholder Vincent Bollore also owns a 36% stake in Havas and his son Yanique Bollore is CEO of Havas. The Telefonica Latam business was a bargaining chip in a much larger business deal involving the US$ 9 billion GVT broadband business.

The Telefonica Latam business was a bargaining chip in a much larger business deal involving the US$ 9 billion GVT broadband business.

It can be argued that while the transaction was not in accordance with open procurement rules by which Telefonica had awarded the media buying and planning business to Havas in July, the deal may benefit Telefonica stakeholders because it likely helped Telefonica to get a lower purchase price for Vivendi’s Brazilian GVT unit..

2. Was Havas part of the July pitch for Telefonica business?

Reliable sources tell Portada that Havas participated in the pitch won by Starcom Media Vest, as announced in  July,  and came in fourth position.

3. Why are media planning and buying businesses prone to be bargaining chips when there are even larger deals at stake?

Abstract metal connection concept earth backgroundFor two reasons. First,  media buying and planning revenues for agencies can be very sizable chunks of business, particularly when they involve major advertisers who have hundreds of millions of media expenditures a year. A creative assignment will never amount to that type of revenue. Therefore media assignments are valuable chunks of business that can be traded and be part of even larger dealings as the Telefonica-Vivendi deal shows. Second, and also very importantly, media buying and planning assignments are relatively easy to move between agencies.Some observers argue that the media buying and planning business is a commodity as opposed to the creative business where a larger degree of know-how and insights are needed.

Some observers argue that the media buying and planning business is a commodity.

4. Why is Telefonica a particularly difficult case?

Companies that are heavily regulated like telcos or utilities or where the government has a stake, like Telefonica, are more prone to politica decision-making and interference. The same way Havas was favored now in Telefonica’s decision, its predecessor Media Planning Group (MPG) lost the Telefonica business in 2006 when Spain’s centre-right government of president  Jose Maria Aznar lost the general election against the Socialist Jose Luis Rodriguez Zapatero.

5. Is Starcom going to diminish headcount as a result of losing Telefonica?

In the last few weeks, Starcom not only got the bad news of the loss of the Telefonica business, but it also lost the P&G Digital Latin America business to Omnicom Media Group. However, Portada has heard that, at least for now,  no headcount reductions in Starcom Latin America are being planned.

Starcom Media Vest has lost the Telefonica Latin America media planning and buying business as Telefonica has entered into a wider global agreement with the Havas Group which has resulted in the US $260 million European media account – and the US$ 65 million O2 business – moving from Publicis Groupe’s ZenithOptimedia to Havas Media. Telefonica’s Latin American business will also be managed by Havas Media.

TelefonicaSpanish-Telco giant Telefonica is withdrawing its US$ 250 million/year Latin American media buying business from Starcom Media Vest, who has managed the account for more than 5 years. Although in July, Telefonica announced it was retaining Starcom as its media buying agency for Latin America as well as also Publicis owned Zenith Optimedia for its European and O2 business for an additional 5 years, a spokesman for Telefónica confirmed that the initial selection of ZenithOptimedia in July had been usurped by a “global strategic appointment of Havas Group” that will include media planning and buying. “I can confirm that we have lost the business but I have nothing to add beyond that,” Ashok Sinha, VP, Global Brand Marketing & Communication, at Starcom Media Vest Group in New York told Portada. Sources at Havas Media in Miami did not want to comment their new Telefonica account.

The initial selection of ZenithOptimedia and Starcom Media Vest in July has been usurped by a “global strategic appointment of Havas Group” that will include media planning and buying.

Moving forward, it is understood that Telefonica is now looking for alternative ways to work with Publicis, a Telefonica spokesman said, although he acknowledged that media will not be part of the future cooperation. he also added that Telefonica soon will open a global pitch for creative services.

No Pitch or Procurement

The process was not pitched or procurement led but was part of an overarching business decision made by Telefonica chairman César Alierta following its purchase of Vivendi’s GVT in Brazil in September this year. The decision coincides with suggestions that a deal had been struck between the Havas shareholder Vincent Bolloré and Telefónica’s chairman, César Alierta.

The spokesman would not comment on whether Bolloré had a role to play, but said that the decision to appoint Havas globally “had always been an ongoing consideration”.  Paul Bainsfair, the IPA’s director-general (the Institute of Practioners in Advertising in the United Kingdom), said: “The IPA New Business and Marketing Group would like to express concern over the reported outcome of this processThe impact of poor pitch practice on agencies can be far more crippling than many clients appreciate.” In the UK, Telefónica’s O2 is one of ZenithOptimedia’s longest-standing clients, with roots stretching back to 1991. Telefónica Europe operates under the O2 brand in the UK, Germany, the Czech Republic and Slovakia.

 

What? Acxiom has sealed a multi-year deal with media agency Starcom MediaVest Group
Why it matters? Among other things, the deal allows Starcom to use Acxiom’s Audience Operating System, which enables audience segmentation and targeting across online and offline media .

acxiomAcxiom has sealed a multi-year deal with media agency Starcom MediaVest Group. This is Acxiom’s first relationship with an agency in its 40-year history. Acxiom has historically worked with brands, retailers and other companies that use its data management, analytics and technology services.

The deal allows Starcom to use Acxiom’s Audience Operating System, which enables audience segmentation and targeting across online and offline media using first-party and third-party data. Some clients have already used the platform in beta, but the two firm’s ultimate goal is to develop new applications for the system, such as targeting TV advertising.

The deal also gives Publicis Groupe the option of expanding offerings to Vivaki and other Publicis Groupe companies.

The partnership is planned to last for multiple years, yet neither company would reveal the precise length. Whatsmore, the relationship is not exclusive although it should give Starcom MediaVest a head start when it comes to testing the Acxiom system with clients and developing apps that work with it.

Following the deal, Startcom will have first right of refusal for using the Acxiom system in foreign markets when it becomes available outside the U.S. Acxiom expects to unroll the audience targeting platform in the U.K. and China next.

The progress of this relationship will be discussed by Mr. Howe and Ms. Desmond every two weeks.

According to Ms. Desmond “Innovation isn’t something that happens in a day.”. “We will have a clear competitive advantage in terms of time and exclusivity,” She stated.

As regards the Acxiom deal, Ms. Desmond mentioned the increasing efficiency and targeting consumer segments on a big scale, concepts that were mentioned too after announcement of the Publicis-Omnicom merger. Nothing seems to indicate how the Acxiom deal might extend over to Omnicom agencies once the merger is completed.

The new partnership follows other deals with big digital players such as Twitter and Yahoo, which gave Starcom access to Twitter ad inventory and Yahoo’s first-party data on its visitors respectively.

Source: Ad Age 

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

  • Hass Avocado

saboreaThe Hass Avocado Board (HAB) has launched Saborea Uno Hoy, its new Spanish-language mark and website to offer information to Hispanic consumers in the United States and encourage them to include fresh Hass avocados in their everyday meals.The new mark invites consumers to enjoy the avocado’s flavor by including the words “aguacates frescos,” and highlights some of the Hass avocado’s nutritional benefits — “naturalmente grasas buenas + sin colesterol.” The board’s first Spanish website, www.SaboreaUnoHoy.com, features nutritional and research information, tips and recipes.HAB also enlisted renowned nutritionist Malena Perdomo as spokesperson of Saborea Uno Hoy in order to provide Hispanic consumers with expert advice and more ideas on how to use and enjoy fresh Hass Avocados. HAB was established in 2002 to promote the consumption of Hass avocados in the United States. A 12-member board representing domestic producers and importers of Hass avocados directs HAB’s promotion, research and information programs under supervision of the United States Department of Agriculture.

  • Joe Lhota 

Republican mayoral New York City mayoral candidate Joe Lhota launched a Spanish language website on Oct. 23. The new addition to his campaign strategy comes just under two weeks before the Nov. 5 general election.“We have a significant Spanish-speaking population here in New York City and Joe wants to ensure they receive his message of more school choice for parents and a safe, affordable city where people can raise their families,” said Lhota spokeswoman Jessica Proud in a statement.In the Oct. 21 Quinnipiac University poll, only 10 percent of Hispanic voters surveyed said they would support Lhota, compared with 79 percent in favor of front-running Democrat Bill de Blasio.The Lhota campaign also translated a popular television ad called “Rally” which showed support for the charter school movement.

  • Sony Mobile

Sony Mobile has changed its media agency in North America from WPP´s MediaCom to Carat (Dentsu), Adage reports. Mediacom will retain Sony Mobile’s international business. Sony Mobile Communications, the official U.S. subsidiary, spent $11 million on measured media in 2012, according to Kantar Media.

  • H-E-B

H-E-B is investing US$ $100-million in the expansion of its San Antonio headquarters. The move will double its downtown San Antonio workforce by 2030. The master plan includes a grocery store, to be called Flores Market. H-E-B Chief Operating Officer Craig Boyan unveiled H-E-B’s master plan http://www.mysanantonio.com/business/local/article/H-E-B-plans-100-million-investment-around-4922842.php in an exclusive interview with the San Antonio Express-News.Years in the making, it includes several mixed-use buildings, new public spaces and a pedestrian and bike trail along South Flores between Chávez and Arsenal Street. The redevelopment would encompass nearly 27 acres. “Our proposal is much more than just a downtown store,” Boyan said. “We think that we can help make South Flores and the San Pedro Creek a great street and a great redevelopment area in the city, perhaps like another Southtown.” The first phase of H-E-B’s plan includes a culinary school and test kitchen, renovation of its 1601 Nogalitos St. location, the downtown store and a connected gas station. n.
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  • Fisher Price

Fisher-PriceThe kids’ toymaker is increasing its digital ad spending by 50% during its holiday promotion in an effort to reach more millennial mothers. The online campaign will offer a $5 coupon for visiting the site, and another $5 coupon if they share videos from the site with their friends. The online campaign will be supported by TV ads.The Mattel-owned toy brand believes millennial moms are more digitally savvy so this is a better way to reach them. Lisa McKnight of Fisher-Price says, “This is the time of year millennial moms are doing a ton of research. They want to make informed decisions when they make their purchases.”
“We know we need to reach her in this digital space. And we also know this is the time of year millennial moms are doing a ton of research,” said Lisa McKnight, Mattel’s senior VP-marketing for North America. “They want to make informed decisions when they make their purchases.” told Adage.

  • Starcom Media Vest – Google

Starcom Media Vest has completed a major ad buy of the search engine’s video, display and mobile ad inventory. The deal gives MediaVest clients, including Coca-Cola, Walmart and Honda, access to online content, including YouTube partner channels, and access to Google insights, tools and strategists. They’ll also have access to sites in the Google Display Network like NBC, People.com and Glamour. Online media companies like Google have been looking to get marketers to buy advertising in an upfront like they do with TV, hoping to draw dollars away from broadcast and cable TV. Doing a major deal like this could set the ball in motion for other large media agencies to follow.

  • Wendy’s (Blitz Media)

Wendy'sWaltham, MA-based Blitz Media has resigned its Wendy’s account, which includes a number of regional assignments in the eastern part of the country, MediaPost reports. The decision came earlier this month after the agency did a profitability assessment of the account and held discussions with the client. But apparently issues couldn’t be resolved. Wendy’s spends around $275 million annually in measured media according to Kantar. Blitz has won a number of accounts in 2013, including Minuteman Health, WellBiz Brands, Sears Hometown & Outlet Stores, Harvard University Kennedy School Executive Education, Brain Shark, Big Brothers Big Sisters of Massachusetts Bay, and Project Treasure.

  • Iberia Foods

Iberia Foods Corp., manufacturer, importer and distributor of Hispanic, Caribbean and other specialty foods and beverages, acquired the assets of Marcas Food Distributors, an independent distributor of Hispanic and European foods located in Chicago.The acquisition in the Midwest is a key step toward Iberia Foods’ long-term national expansion. The new company, Iberia Food Co. of the Midwest, will be a base for growth in Illinois, Wisconsin and Indiana. Iberia Foods Corp. is presently under parent corporation, Brooklyn Bottling Corp., a branded, private label manufacturer and franchise bottler with a distribution network across more than 25 states.The new location will be the seventh distribution hub for Iberia Foods Corp. with existing distribution centers along the east coast in New York, Miami, Orlando, Atlanta, Baltimore and Springfield, Mass.”This initiative is part of a larger vision to gradually expand Iberia Foods Corp. nationwide within the next three to five years,” said Pedro Casais, Iberia Foods vice president of corporate sales. “We pinpointed the void and realized that the Midwest region was thirsty for a more diverse portfolio of Hispanic and Caribbean products. Iberia Foods Corp. is the perfect fit to effectively address those needs.”

  • Emblem Health

New York based health insurer EmblemHealth is conducting an agency review for both creative and media duties. The winning agency will be selected by Mid-December. The company’s estimated ad spend is about $15 million annually. Boston-based Mullen (Interpublic Group) is the incumbent.

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