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Afterpay takes media account to pitch

Buy now, pay later business Afterpay has taken its media account to pitch in the local market, Mumbrella can reveal.

IPG Mediabrands agency Initiative is the incumbent on the account, having been appointed in July 2021, prior to the Australian-founded fintech’s acquisition by US company Block.

The value of Afterpay’s annual media spend is unconfirmed, however, it has previously been reported as $3 million as of the last pitch in 2021.

Initiative declined to confirm whether it would be re-pitching for the account when contacted by Mumbrella.

Prior to Initiative, Afterpay’s local media account was held by AKQA, after the agency moved to without pitch to the WPP agency from dentsu’s Vizeum (now iProspect). AKQA resigned the account the following due after the Ikon merger posed a conflict with Commbank.

Mumbrella understands the fintech does not currently have a creative agency of record, but has been working on several projects recent with BMF, with the agency having last month launched new work for the brand ahead of the Australian Open.

Founded by Australians Nick Molnar and Anthony Eisen in 2014, Afterpay was acquired for $39 billion in December 2021 by US company Block, which is headed by Twitter co-founder Jack Dorsey.

Despite its success in the Australian market since launch, Afterpay has struggled on the global stage due to rising costs, which has reversed steady gains in revenue.

A spokesperson for Block recently confirmed to Mumbrella that the business would be axing 1000 roles across the business globally, with impacts to be felt across the entire group, which includes Afterpay, Cash App and Square.

The cuts were foreshadowed in Block’s Q3 2023 earnings call, when chief financial officer and chief operating officer Amrita Ahuja indicated the company’s plans to cap headcount at 12,000 (reduced from 13,000).

“We believe constraining team size will enable us to be more effective in how we drive performance in service of our customers and accountability on our business strategies,” she said.

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