YMG Carat has been rocked by the loss of its pounds 6 million slice of
Sterling Healthcare work following SmithKline Beecham’s decision this
week to centralise its pounds 34 million UK media account into
The loss wipes out a sizeable portion of YMG’s total billings and
sources believe that Carat will now be forced to make a decision about
exactly what it does with the UK brand.
One insider said: ‘It’s a significant part of YMG Carat’s billings and I
would be seriously worried.’
MediaCom already handles pounds 28 million worth of SmithKline Beecham
work, including the Beechams, Oxy 10, Aquafresh and Macleans brands. YMG
had handled the Sterling Healthcare business, which was bought by
SmithKline last April.
SmithKline Beecham’s UK advertising director, John Blakemore, would not
comment at length about why he had chosen to centralise the business
with MediaCom, saying only that he expected a ‘great service’ from the
agency. He added that it was too early to say whether there would be big
changes in the way the business is handled.
Andrew Goulborn, deputy managing director of MediaCom, who heads the
SmithKline Beecham account, said: ‘We’re delighted to still be working
with SmithKline and to have picked up some additional business.’
SmithKline Beecham first kicked off a media review in the UK in
February, three months after a country-by-country rethink was ordered
Decisions are still pending in the Netherlands, Scandinavia and Spain. A
pitch is scheduled to take place in France in three weeks between the
Network, Carat and MediaCom.
Ray Kelly, chief executive of Carat UK, and Mark Jamison, managing
director of YMG Carat, were unavailable for comment as Campaign went to