AA kicks off £30m media review with creative to follow

LONDON - The AA is reviewing its estimated £30m media planning and buying account, with the creative account also set to be reviewed in the near future.

Manning Gottlieb OMD, the incumbent for two years, has been asked to repitch against three other top 10 media agencies and according to an AA spokeswoman, the creative account is likely to be reviewed in the near future.

The review follows the acquisition of the AA by venture capital firms CVC Partners and Permira from Centrica for £1.75bn in July. The new owners have since announced plans to cut 1,300 jobs across the UK, some 10% of its workforce.

During MG OMD's tenure of the business, the AA has significantly reduced above-the-line spend to divert money below the line. Rapier handles the bulk of the creative account.

However, the spokeswoman denied that the marketing budget was to be seriously cut, as well as reports that the company had made 130 redundancies in marketing and communications personnel.

"We have 130 marketing and communications people and this is being reduced to 80 because we have done away with centralised marketing and PR."

MG OMD won the consolidated AA business, across its road services and financial services divisions, after a pitch against Carat and ZenithOptimedia.

Neil Hurman, managing partner at MG OMD, refused to comment.

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