After 15 years working with ZenithOptimedia, L’Oreal Canada is moving its media planning and buying business to GroupM.
Starting in 2014, the account will be handled by a new agency created by GroupM specifically to take on the L’Oréal business, one of the largest media accounts in Canada.
“This is following the L’Oréal norms,” said Stéphane Bérubé, general manager of media investments at L’Oréal Canada, of the decision to hold an agency review.
“We have to conduct a media pitch review, and each country has to do it every once and awhile.
“We hadn’t done a media review since 2005, and it was just something that we were due to do.” ZenithOptimedia had part of the business since 1998.
The review took about two months after the RFP went out. Bérubé declined to say how many agencies took part, but confirmed ZenithOptimedia did pitch to retain the account.
He said the review followed a fairly rigid process with a committee of L’Oréal Canada executives grading each agency on a number of criteria. “Overall, on all the areas, GroupM just rated highest,” he said.
Kelly Clark, CEO of GroupM North America, led the pitch. Details for the new GroupM entity are still being worked out, said Bérubé, though there is precedent for the arrangement.
“The way that GroupM will proceed is very similar to what they have done in Germany, which means they will create a sub-agency that will serve L’Oréal.”
L’Oréal was one of Marketing‘s finalists for Marketer of the Year in 2012, in part for a number of strategic media plays for the Montreal-based cosmetics giant. “Canada’s Best Beauty Talent” won a bronze at the 2012 Media Innovation Awards.
“It is clear from the numerous emails and phone calls that we have received that the industry concurs that we have produced ground-breaking and world class work for L’Oreal of which we are very proud,” said Sunni Boot, CEO of ZenithOptimedia. “They are a great client and we served them with distinction and will continue to do so for the balance of our mandate.”
*This story has been updated. The original post reported ZenithOptimedia had the account for eight years when in fact the relationship goes back to 1998.
