Nissan overhauls European media

Nissan has terminated its contracts with all its European media planning and buying agencies and is poised to centralise the business into a new entity, TBWA.OMD, led by Manning Gottlieb Media in the UK.

Nissan has terminated its contracts with all its European media

planning and buying agencies and is poised to centralise the business

into a new entity, TBWA.OMD, led by Manning Gottlieb Media in the

UK.



The move means that Carat UK will lose the pounds 23 million business.

Nissan’s UK media planning and buying will instead be channelled into

MGM, whose founding partner, Colin Gottlieb, is thought to have been the

chief architect of TBWA.OMD. Carat has handled the UK account fully

since January 1998, following the closure of the incumbent, Eurospace,

which was a joint venture between Carat and TBWA.



TBWA.OMD’s business is expected to cover all the key European markets,

including France, Italy, Germany and Spain. It will be worth up to

dollars 200 million.



The rationalisation is part of the so-called ’Revival Plan’ instigated

by Carlos Ghosn, the new chief operating officer of Nissan, who came in

from Renault when the latter took a controlling stake in the former last

April. As part of cost cutting, he announced the closure of four

factories and the loss of 21,000 jobs. He also demanded a simplification

of all of the car manufacturer’s global suppliers, which included

marketing.



The loss is a further blow to the Carat group, whose subsidiary, BBJ,

lost the pounds 89 million Volkswagen-Audi Group German and UK media

planning and buying last year to MediaCom.



MGM refused to comment on the shift, but the agency is known to have

staffed up in anticipation of the extra business.



Senior appointments include Julian Smallwood, an account director from

Carat, who will work with Colin Gottlieb on the European business, and

Starcom’s John Dore, thought to be lined up for UK responsibilities.



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