MediaCom Sings For Universal Music Group

Universal Music Group has selected WPP's MediaCom for media planning and buying duties after a consolidation review, the client has confirmed.

The award signals a new strategic approach for the music company, which is comprised of dozens of labels that had previously used separate and smaller agencies to handle their media assignments. Now, MediaCom will handle duties for all of the labels under the UMG banner.

The client spent about $17 million on ads last year, according to Kantar Media. Per sources, that budget will double to $34 million over the next year.

The new agreement expands UMG's existing relationship with MediaCom, which already handles media services for the music company in Europe, Canada and Australia. According to Andrew Kronfeld, president of global marketing for UMG, MediaCom's previous track record with the client was a factor in awarding it the U.S. business as well.

"Through our relationship in other parts of the world, Mediacom has already demonstrated to us their ability to think and execute boldly in the very complex modern music business," Kronfeld stated.

advertisement

advertisement

The win is a boost for MediaCom, which has struggled lately in the U.S. market. Last month, it lost the $800 million planning and buying assignment for Warner Bros. to Omnicom Media Group without a formal review.

Partially offsetting that loss was a win, awarded last month by The Corporation for Travel Promotion, which has an annual ad budget of $200 million.

The shop has fared better of late in other regions, like Southeast Asia, where last week Procter & Gamble awarded MediaCom a $450 million planning and buying assignment for Southeast Asia.

Commenting on the UMG win, Harvey Goldhersz, MediaCom's North American CEO, stated: "The music industry is dynamic and exciting, and we welcome the opportunity to work with our new business partners to change the rules of how record labels promote artists through media."

Next story loading loading..