L’Oreal hands media account to Carat
Cosmetics and beauty brand L’Oreal – one of the top spenders in the magazine category – has given its media account to Carat after a three-way pitch, Mumbrella can reveal.
The three agencies doing battle for the $40m account were incumbent UM, PHD and Carat.
L’Oreal brands in Australia include Maybelline New York, L’Oreal Paris, Garnier, Biotherm, Lancome Paris and YSL Beaute.
The pitch for the Melbourne-based L’Oreal Australia was called earlier this year.
The shift comes a year after a changing of the senior marketing management at L’Oreal Australia.
The result marks an early win for new Carat CEO Simon Ryan who was promoted a week ago after four years running the Aegis Media agency’s Melbourne operation.
2pm update. Statement from L’Oreal:
L’Oréal Australia Announcement: Media Partner for 2014
Following an in-depth review of the Australian market against its future media needs, L’Oréal Australia today is pleased to announce it has appointed Carat as their media agency for 2014 .
Media and communications are an integral part of the L’Oréal Australia’s strategy and total investment is approximately 40 Million AUD$ NET in the Australian market, annually.
As the media landscape’s changes are accelerating, L’Oréal Australia requires more focus, recourses and insights in order to maintain its position as the frontrunner in the Australian Health and Beauty market.
With L’Oréal Australia’s increased focus in digital communication, combined with the rapid development of e-commerce, it has become necessary to fully engage with its consumer using the latest, most engaging communications.
Demonstrating proven excellence in both offline and online media strategy, Carat were selected as the strongest media agency in Australia, to partner with the Group.
Carat is known for strong commercial strategies, effective measurements of return on investment, and performance of medium in relation to sales targets.
Their experience in both local and global media markets, in addition to their well-developed strategic tools, successfully convinced L’Oréal Australia that partnering with Carat is the best option to continue the success of the business and its development.
L’Oréal Australia wishes to acknowledge the important contribution their previous partnership with Universal McCann has delivered the business in the past, in achieving the market position they hold today.
The fragmentation of media through multi-screens, social media and digital, the implementation of ROI on media investment will become critical; thus, L’Oréal Australia looks forward to a strong and successful future with Carat.
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Not sure if we should congratulate Carat or UM…
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I agree Pete. Tough year for UM in Melbourne, especially given how well their Sydney office is doing.
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A 1 year deal – good to see a client showing such commitment.
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A one year contract on such a big client hardly seems worth the effort for both Carat and L’oreal.
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Correct Nick, it’s actually a 3 year contract…
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Congratulations UM.
Profitability and sanity shall return..
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Media Sauce – why does the press release only specify 2014 and nowhere in the copy is there any mention of a 3 year agreement. Is it 1 year with extension options at client discretion?
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Hmm… Saw that coming from a mile away. Good luck Carat, you might need it!
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