Carat is no longer solely responsible for P&G’s estimated $200 million media buying assignment in Canada, with the packaged goods giant tapping both the Dentsu Aegis network and Omnicom Media Group (OMG) for media following a review that launched in May.
P&G consolidated its Canadian media buying assignment with Carat just last year, but a company spokesperson told Marketing on Monday it is now changing the agency structure to support various categories such as fabric care and home care “end to end” – meaning whichever agency is supporting the category will be responsible for both planning and buying across the U.S., Canada and Puerto Rico.
It did not disclose which agencies would work with what categories, saying only OMG will serve as its primary agency supporting the “majority” of its categories, with Carat supporting the remainder.
Publicis Groupe’s Starcom MediaVest Group (SMG), one of the company’s longtime North American agency partners, will retain the Duracell business, as well as its cosmetics, fragrances, salon professional and hair colour in the U.S., along with the planning assignment for those business units in Canada. They are businesses P&G is shedding as it shifts its focus to core brands.
P&G sold the Duracell brand to Berkshire Hathaway in 2014, and announced plans to sell its beauty portfolio, which includes CoverGirl and Clairol, to Coty earlier this year.
It is a sizeable win for OMG, which did not hold any P&G business prior to the review. SMG and GroupM’s MediaCom, which also participated in the review, remain “valued” roster agencies in other regions, said P&G.
According to media reports, OMG – which currently operates the OMD and PHD networks – will launch a third network to handle the P&G assignment, though details have not been disclosed.
The world’s largest advertiser launched the review in May, shortly after announcing its intention to shrink its agency roster. In a conference call with analysts prior to the review, chief financial officer Jon Moeller said streamlining its agency partners could produce annual savings of as much as US$500 million.
P&G said the streamlining effort would enable it to reach more consumers with better precision and greater efficiency. “Both [OMG] and Carat demonstrated superior and proven performance in data, analytics, planning, buying, talent and overall financial value,” said the company in a statement.
The company, which controls several US$1 billion brands including Tide and Pampers, spent US$9.23 billion on global advertising in 2014, according to its annual report, down from US$9.6 billion in 2013.
