• by Joe Mandese  @mp_joemandese, October 15, 2004

Nestle Friday split its $1.6 billion global media planning and buying account between Publicis' ZenithOptimedia and WPP's Group M units, dropping long-time roster agency Universal McCann. The move, which follows an extensive review, covers all markets with the exception of Japan, where media will continue to be handled by Dentsu.

The review, which involves media services for all Nestlé brands, categories and Nestlé companies, including joint venture partner Cereal Partners Worldwide, is the latest in a series of setbacks for Interpublic's Universal McCann unit, which has seen the defection of major accounts, including one of its longest - Coca-Cola Co.'s $350 million buying account - and some top managers over the last year. Recent wins have included new business from Johnson and Johnson and SC Johnson.

That's a major turnabout for Universal, which only two years ago was the pride of Madison Avenue, generating one of the best new business records, and being named media agency of the year by several leading trade publications. Universal has also been a genuine innovator in research and strategic planning, and has been in the forefront of communications planning in the U.S. marketplace, a practice the agency calls "communications architecture."

However, there have been some mixed market signals ever since Universal and its Interpublic sister unit Initiative Media merged their media negotiating duties into Interpublic's Magna Global division, and there have been trade reports speculating that Interpublic might soon restructure that organization.

Ironically, Omnicom's OMD and PHD units are expected to follow a similar suit, introducing a consolidated buying structure dubbed OPera in the U.S. marketplace soon.