- The world's largest luxury goods giant, the French firm Louis Vuitton Moet Hennessy, has ripped its UK media business out of CIA Medianetwork and handed the entire £10 million centralised account to Initiative Media.
The company had considered centralising its media planning and buying around Europe into a single £115 million account, and has been holding talks with Carat, Initiative, CIA and Mediapolis about the opportunities for consolidation. All four agencies were on the LVMH roster in different local European markets
LVMH's media business is currently centralised on a market-by-market basis, but this latest exercise was designed to determine whether any further efficiencies were achievable through a full centralisation.
Last week the company decided there were no additional advantages at this stage to be had from appointing a single media network, and called off the pan-European review.
However, LVMH has chosen to make some local changes in individual markets and in the UK, it is parting company with its incumbent media agency, CIA, which has handled the business for the past four years.
Initiative Media will take on the UK account from the autumn. The appointment means that Initiative now handles the business in a number of key territories, including the crucial French home market, where ad spend tops £40 million, and also in Germany.
The LVMH portfolio includes Loius Vuitton luggage and leather goods, Moet & Chandon, Dom Perignon and Veuve Cliquot champagne, and the Givenchy, Christian Dior, Guerlain and Kenzo fragrance, cosmetics and couture houses. The majority of the media spend behind the brands goes into glossy monthly magazines, particularly the quality women's press.
No one at Initiative Media was available to comment on the win.