Clorox Co. has consolidated its estimated $500 million U.S. media assignment with Omnicom’s OMD following a review, the companies confirmed Monday.
With the consolidation, the bulk of the digital media account will shift from WPP’s AKQA to OMD, which has handled the household products company’s traditional media assignment since OMD was formed 18 years ago. (Clorox split with OMD’s creative sibling DDB in 2016). Prior to the review OMD had added a small portion of digital business.
Clorox has shifted a sizeable portion of its media spending to digital in recent years. In its 2019 annual report it indicated that digital grew from 24% of its budget in fiscal year 2014 to “about 55% of our overall media spending in FY 2019. This shift has helped us increase return on investments by building direct, more sustainable connections between our brands and consumers that aren’t possible through traditional advertising.”
The company has expanded other digital channels as well. In addition to using data for personalization of ads and products, it has expanded ecommerce sales from less than 2% to 8% of overall net customer sales over the past six years.
Total advertising costs in its 2019 fiscal year totaled $612 million.
Clorox brands include its namesake bleach and cleaning products, as well as Brita, Burt's Bees, Formula 409, Glad, Hidden Valley, Kitchen Bouquet, KC Masterpiece, Soy Vay, Kingsford, Liquid-Plumr, and numerous other products.
“Transformation is about combining what works today with what you will need for tomorrow,” stated OMD USA CEO John Osborn. “So our approach combined the experience and insights earned over the two-decade OMD/Clorox partnership with next level talent, technology and operational solutions to fuel the path forward. It’s a milestone moment in a great relationship.”
Clorox Chief Marketing Officer Stacey Grier issued a statement:
“The needs of our businesses and consumers have shifted, as a result we have identified a single media partner to lead us into our future. That partner will be OMD as our Agency of Record.”
Grier added that OMD presented “a proven integrated team solution, a clear transformation vision, and roadmap to deliver” the right talent to serve the company’s diverse consumer base. The plan is consumer-centric with an innovation strategy “to stay ahead of critical changes coming.”
The digital assignment will transition from AKQA to OMD over the next three months.
This story has been updated with a statement from Clorox CMO Stacey Grier.