Target follows Coles by moving media buying to OMD
Wesfarmers brand Target is following sister brand Coles in shifting its media spend to OMD from UM.
The move comes two days after Mumbrella revealed Coles had chosen the Omnicom agency over its Mediabrands-owned incumbent, which it had been with for 13 years.
It also throws into question the future of other Wesfarmers brands including K-Mart and Bunnings Warehouse, which are also housed in the Mediabrands family and make up the bulk of UM Melbourne’s business.
In a statement IPG Mediabrands CEO Danny Bass stood by the Melbourne office saying: “Obviously this is a very tough week for us. Since I joined Mediabrands we have worked on our Melbourne businesses as the highest priority.
“Our plans will not change with these new developments. We are working through the immediate issues and look forward to keeping our future opportunities on track and on time.”
Kenton Elliot, Target general manager of marketing, said in a statement.“We are thrilled to join forces with the team at OMD to optimise our media planning as we take Target through its next dynamic phase.
“OMD clearly displayed they understood the Target business and have the resources and consumer insights to take us through its next exciting chapter. We want to sincerely say thank you to our previous agency UM for their hard work and dedication to the brand over the past 13 years.”
The win comes a day after OMD celebrated retaining the Village Roadshow media account after a competitive review, with the agency currently battling to defend Tourism Australia.
Margie Reid, OMD Melbourne managing director, said: “OMD are absolutely delighted at the opportunity to work with Target. From the moment we met there was a cultural and strategic fit with their team. We look forward to the journey ahead together.”
Peter Horgan, OMD Australia CEO, said: “We are proud to be working with such a strong retailer through their next phase and beyond. I am incredibly proud of the OMD team.”
More bad news for UM, does UM have any clients left in Melbourne now expect for Kmart.
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Kmart declined to pitch when they could have, so I don’t think it throws them into question right now.
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Wow, the hits just keep coming for UM. Seems crazy how quickly the fortunes of media agencies change. Mediacom being a classic case.
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Big week Margie Reid!
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What’s going to happen to Bunnings and Officeworks?
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For once it’s not clients leaving MediaCom Melbourne!
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