GroupM Wins Nestle's U.S. Media Account
Nestle’s has awarded U.S. media planning and buying duties -- both traditional and digital -- to WPP’s GroupM after a review, the client
The incumbent was Publicis Groupe's ZenithOptimedia. Sources said that Zenith and GroupM were the only shops involved in the pitch. Neither Zenith or GroupM would comment on the outcome, referring questions to the client.
Nestle said the transition would happen in time for GroupM to work on the company’s 2013 upfront buys. According to Kantar, Nestle spent $750 million on ads in 2012.
It’s believed that GroupM will cherry-pick staffers from throughout its organization to create a “Team Nestle”-type approach to handling the new assignment. GroupM shops include Mindshare, MEC, MediaCom, Maxus and a handful of specialist firms.
The account will be managed out of the GroupM offices in New York and Los Angeles. The client’s U.S. operation is based in Glendale, CA outside of Los Angeles.
It was not immediately clear why GroupM took a group-wide approach in the review, as opposed to having a single agency compete for the business. There was some speculation over potential conflict with certain brands housed within Unilever, a Mindshare client. But the sheer size of the Nestle account could have been the driving factor as well.
“Our decision to award the business to GroupM was based on a strong combination of factors including strategic planning, digital acumen, team strength and buying efficiencies,” stated Alicia Enciso, CMO Nestle USA.
“We will immediately initiate a phased transition of all U.S. businesses, and look forward to working with GroupM to prepare for upfront media negotiations and 2014 planning,” she added.
Nestle companies participating in the review included Nestle Nutrition, Nestle Health Sciences, Nespresso USA, Nestle Waters North America, Nestle Purina PetCare and Nestle USA.