Wal-Mart, Publicis Unveil Strategic Relationship
July 12 2016 - 3:43PM
Dow Jones News
By Nathalie Tadena
Wal-Mart Stores Inc. has consolidated much of its U.S. creative
account with Publicis Groupe, signaling a potential change in the
massive retailer's advertising strategy.
Publicis on Tuesday said it's launching a new entity to handle
U.S. advertising and in-store marketing work for the retailer.
Publicis' relationship with Wal-Mart isn't exclusive and initially
applies to the retailer's U.S. advertising and in-store creative,
for which the French ad giant will serve as the primary agency of
record.
Publicis' Saatchi & Saatchi agency already worked on parts
of Wal-Mart's creative business and its Saatchi X shopper marketing
agency worked on the in-store business. The Martin Agency, owned by
Interpublic, had been Wal-Mart's lead agency for advertising since
2007. A Martin spokeswoman confirmed that the agency's relationship
with Wal-Mart will end in September.
Wal-Mart, a major ad spender, late last year named Tony Rogers
as its new U.S. chief marketing officer. When a new CMO comes in,
It is common for a marketer to re-evaluate its agency roster and
chart a new creative direction. A spokeswoman for Wal-Mart said
there are no plans to change the company's longtime slogan: "Save
Money. Live Better."
"Our ambition globally is to make every day easier for busy
families, and having best-in-class marketing is critical to
achieving that goal," said Doug McMillon, president and chief
executive officer of Wal-Mart, in a statement. "This relationship
with Publicis Groupe will help us think and act differently, which
will ultimately enable us to serve our customers even better."
Publicis said it would pull resources from the agencies across
its portfolio "to ensure the right talent is working on each
Wal-Mart project." The retailer will also have access to Publicis
resources outside of marketing, including corporate reputation
capabilities and technology that builds relationships with
customers, Publicis said.
"Wal-Mart is already implementing innovative approaches to reach
its customers," Publicis Groupe CEO Maurice Levy said in a
statement. "Our goal is to leverage all of Publicis' assets -- not
just the resources of one agency -- to help them in these
efforts."
The Wal-Mart relationship will be led by Arthur Sadoun, who
heads Publicis' creative agencies. Mr. Sadoun is a rising star
within Publicis Groupe and is seen as a contender for the CEO role
when Mr. Levy retires next year.
Publicis last year unveiled a companywide reorganization in a
bid help the French ad giant win more business and break down silos
after disappointing financial performance in recent years.
"The joint decision to launch this initiative is living proof of
the power of our new organisation and a good example of how to
redefine our relationship with our clients by bringing them the
alchemy of breakthrough creativity and technology," Mr. Sadoun said
of the Wal-Mart relationship in an internal memo.
Earlier this year, Publicis' Mediavest lost Wal-Mart's North
America media account, a major blow for the media buying agency
after losing business in North America from other big clients
including Procter & Gamble and Coca-Cola.
Wal-Mart spent an estimated $902.4 million on U.S. ads in 2014,
not including digital video, social or mobile advertising,
according to WPP-owned ad tracking firm Kantar Media. The company
has been boosting investment in online operations and has tried to
simplify its store operations amid sluggish U.S. sales growth.
Sarah Nassauer contributed to this article.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
(END) Dow Jones Newswires
July 12, 2016 15:28 ET (19:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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