• by Joe Mandese  @mp_joemandese, July 14, 2004

Procter & Gamble Co. today named Starcom MediaVest Group and Carat North America communication planning agencies. The assignment, the culmination of a review that included two media planning incumbents - SMG and Grey Worldwide's MediaCom unit - as well as three outside contenders - Carat, Havas' MPG unit, and Omnicom direct response agency Targetbase, was closely watched because many believe it could lead to fundamental changes in the way the packaged goods marketer handles media.

"Communication planning agencies will better integrate the communication efforts working for us today," said Ted Woehrle, vice president, P&G North America marketing. "This shift in the planning process allows us to better understand and engage consumers with relevant information when and were they are most receptive."

In fact, the assignment is the culmination of a series of steps P&G has taken in this direction, and which were underscored by Chief Marketing Officer James Stengel's speech at the American Association of Advertising Agencies' media conference earlier this year. In its public statements, and in the details surrounding the review, P&G made it very clear that it is looking to wean itself off of traditional approaches to media planning and buying, and especially its dependency on television.

SMG, a long-time P&G incumbent that had been one of its chief media planning shops, picks up communication planning for the marketer's Fabric Care, Home Care, Health Care and Beauty Care divisions. Carat, a dark horse in the pitch that has been in the running for a number of recent high profile media reviews, picks up P&G's Baby Care, Pet Care, Family Care and Snacks & Beverages divisions. While P&G never explicitly said it would divide the assignment between two agencies, the marketer has a long history of utilizing multiple agency and marketing services vendors.

"Starcom MediaVest Group and Carat presented innovative, best-in-class solutions, which will position the consumer at the center of the communications planning process," said P&G's Woehrle. In fact, Carat is recognizes as having created the first truly dedicated communications planning account structure for a major global marketer, consumer electronics company Philips.

The major loser in the assignment was MediaCom, which was on the verge of unveiling its own media services repositioning and whose parent Grey Worldwide has put itself on the block.