$1.75 Billion GlaxoSmithKline review
Steve’s breakdown: And speaking fo massive media accounts. WOW! And like I’ve said before, reviews like this affect more folks than who’s participating. Look around the perimeter and pick off what’s being ignored.
BRENTFORD, UK: GlaxoSmithKline has opened talks with agencies ahead of a review of its estimated £1 billion global media planning and buying business.
Several sources with knowledge of the process said GSK had started the talks ahead of a formal review process and was hoping to appoint a single media agency network. It is unclear whether the review will be confined to or extended beyond roster networks.
WPP’s MediaCom handles GSK’s £60 million UK media account, while Omnicom’s PHD picked up the $1.4 billion (£890 million) US business in late 2010.
MediaCom lost the US account and some European markets, to Starcom Media-Vest Group, as part of two separate reviews in 2010.
WPP will hope to strengthen its relationship with GSK as its part-owned agency CHI & Partners has just won the Maxinutrition ad business. Grey picked up a global brief to create a corporate “masterbrand” campaign in December last year.
The global media review comes as GSK confirmed plans to restructure its European pharmaceuticals operation to cut costs and announced a “strategic review” of Lucozade and Ribena, after it reported a 1 per cent revenue decline in 2012.
GSK hired Sameer Singh, the former Procter & Gamble vice-president of media in Asia and China, to the new position of vice-president and head of global media in September 2012.
Singh was given a brief to spearhead a new approach to media planning, buying and strategy but, at the time, a spokesman said it would have no “immediate” implications for its media agency roster.
A GSK spokeswoman told Campaign this week: “GSK is creating the world’s best fast-moving consumer healthcare company. Our approach to media planning, buying and strategy will support this.”