P&G drops Mediacom for Starcom in biggest media move of the year

Procter & Gamble has dropped GroupM’s Mediacom for Publicis-owned Starcom in one of the biggest Australian media agency moves of the year, Mumbrella can reveal.

The move comes after the FMCG giant said earlier this year it was looking for agency cost savings and appointed Vivek Gupta to lead the Australian operation in March.

The company said in a statement: “P&G Australia & New Zealand has appointed Starcom, part of Publicis Media, to be our media agency effective October 2018.

“We would like to recognise and thank Mediacom for their contribution to our brands.

“At P&G, our aim is to bring the world’s best product innovation and value to Australian consumers. Our media executions are vital for increasing consumer awareness, consideration and trial.”

Mumbrella understands one of the sticking points in the pitch process was P&G seeking payment terms of 120 days.

Among the brands owned by P&G are Gillette, Old Spice, Olay, Tampax and Oral-B.

A Group M spokesperson declined to comment on the loss while a Publicis representative referred Mumbrella to P&G.

P&G have been contacted for comment.


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