Aegis recovers from $60m ANZ loss with $53m Holden win
Media agency Starcom MediaVest has taken a massive hit after a global media review sees key client Holden – and $53m in billings – depart.
The $3bn global General Motors review was won by Aegis Media, which in Australia operates the Mitchell & Partners, Vizeum and Carat brands.
Carat handles the GM business in other markets, and the Holden account is also likely to be run out of Carat in Australia.
Aegis handles both the Nissan and BMW accounts in Australia, but Aegis Media Pacific executive chairman Harold Mitchell told Mumbrella that conflict was “not an issue”.
“Banks, accounting firms and lawyers handle the same sort of clients. It’s perfectly possible with media too,” said Mitchell. “In any case, our other car clients were informed well before we won the business and they are comfortable with the arrangement.”
The win comes at a good time for Aegis Media Australia, which took a big hit after ANZ moved its media account to PHD earlier this week. The account is reckoned to be worth $60m.
The Holden account will change hands on April 1.
Starcom Australia’s COO Chris Nolan said in a statement: “We are enormously proud of the fantastic relationship we have built with our local GM clients and the great things we have achieved together over the past four years.”
“The outcome of the global review is obviously disappointing given the momentum we have been building together locally. We have nothing but respect and admiration for the local GM team and we wish them well as they transition media partners in line with the wishes of their global management.”
Holden was one of Starcom’s largest clients. Its others include Suncorp, Metcash, Mars, Lion, Samsung, Sony, Subaru, South Australian Government and Sportsbet.
Why would Holden move their business to a place dedicated to Nissan & BMW? And how does Starcom lose one of its biggest clients under those circumstances?
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ouch
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@Who’s your favourite client … simple … Australia isn’t a big enough market from a GM perspective to consider what effect it would incur on a local level. So Starcom has to simply take this as the global realignment that it is.
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Wow. Starcom must be hurting.
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This is why Aegis should have differentiated it’s agencies earlier – It’s clear from the global press release that Carat pitched and won the business.
They have Nissan in this market and Mitchell’s have Renault and BMW. Aegis have just announced internally that BMW will be one of the launch clients for Vizeum (which they have in several other markets) but the big question is when will Aegis’s Executive Chairman realise that whilst Aegis will continue to be a major player in Australia he may not have the biggest agency title for much longer!
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@The Facts – F&%K OFF
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Massive conflict between Nissan and Holden competing head on in almost every segment. Regardless of what Harold says – I dont see many agencies having a conflict on this scale. As it’s a done deal it will be interesting watch it play out. I would imagine many agency CEO’s will be on the blower to Nissan as we speak.
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@Hammertime – I agree with who’s your favourite client and it’s too easy to hide behind the “global realignment excuse”. Many agencies have beaten global realignment challenges in the past by proving themselves at a local level. Bit of spin in your words Hammertime. Gotta question GM’s decision making and it looks like Starcom are handling it with great dignity
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Starcom did not deserve to lose Holden under those circumstances, but you’ve got to love the way Agencies that get fired immediately come out with the we are enormously proud of the fantastic relationship we have built with client and the great work we’ve done… You just got fired, so that means the client doesn’t value your work or relationship (simple). Anyway, I’m sure Holden we’ll get great work from Mitchell’s brand x, y or z as they have heaps of current car client experience. Don’t forget to change the logos on your documents Mitchells
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@LOL … your a twit. Any agency who feels the effect of a global realignment (esp in Aust which is pretty much a spec in the ocean in these situation) may have a great relationship with the local client. And they have every right to say so. How have you come to the conclusion that the local client doesn’t value their work? … not too sure what kind of relationships you have with your clients though mine are pretty open and honest.
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@Hammertime, it’s “you’re” as in YOU ARE. For some reason this common grammatical error really (and I mean really) gives me the shits.
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I feel your pain Hammertime, but a $60million spend is no spec in the ocean in any country and GM would or should have consulted the opinion of the local Holden team before making the call. I agree with LOL’s 2 points that losing a client to global realignment is unfair and the conflict with Nissan and BMW makes you wonder about the whole process
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@Grade 2 English Teacher … look for the toilet if its that bad. I’m sure there is one around close by.
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simple really – Nissan to Starcom. Nissan and Holden in the same sth melb building is ridiculous.
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@Hammertime. “It’s”
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