P&G moves bulk of £1.77bn US media account into Omnicom

Procter & Gamble, the world's biggest advertiser in terms of spend, will move the bulk of its media buying and planning in North America to Omnicom, following a competitive pitch.

Old Spice: P&G's male grooming brand
Old Spice: P&G's male grooming brand

Omnicom Media Group will handle the media for most of P&G’s products, while Carat, a roster agency, will work on other product categories.

The bulk of P&G’s media planning and buying in North America was handled by Starcom Mediavest Group, the Publicis Groupe network, which has been on the company’s roster for more than 15 years.

Starcom will continue to work on Duracell, cosmetics, fragrances, and some hair products in the US and Canada, but these business are due to be sold by P&G. It will continue to handle media for P&G outside of the US, which makes up about 40 per cent of the global business.

P&G spent about $2.66 billion (£1.77 billion) on measured media in the US last year, according to WPP’s Kantar Media.

The review began in May, when P&G said it planned to cull the number of agencies it works with to make savings of up to $500 million. In July the company said that it had cut the number of agencies it work with by 40 per cent globally.

The company also changed its chief executive last month, when David Taylor replaced AG Lafley, and also sold 43 brands to cosmetics giant Coty for $12.5 billion. ZenithOptimedia, another Publicis media network, picked up Coty's global media business from OMD in June.

In a statement, P&G said: "Omnicom Media Group will be the primary agency supporting the majority of P&G’s categories, with Carat supporting the others.

"We are integrating planning and buying, and operating across North America markets to streamline operations and increase efficiency. And we will tailor media capability category-by-category to meet their unique business needs to more effectively reach consumers for their brands.

"We will see cost savings by simplifying our agency structure and negotiating new rates for the services our brands need today, and continue to reinvest to drive brand growth.

"Starcom MediaVest Group will retain Duracell, as well as Cosmetics, Fragrances, Salon Professional and Hair Color in the US and planning in Canada. Both SMG and Mediacom, who also participated in the review, remain valued roster agencies supporting media in other regions."

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.


Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

1 Martin Freeman fronts Vodafone UK's first integrated ad campaign by Ogilvy

The Hobbit and Sherlock star Martin Freeman plays a rude wedding guest in Vodafone's first integrated ad campaign since the telecoms giant moved its UK ad business to Ogilvy & Mather earlier this year.

Case study: How 'This girl can' got 1.6 million women exercising

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.

Just published