Unilever’s recent media review has resulted in a significant spread of its global media business across the six major holding companies: WPP, Omnicom, Publicis, IPG, Dentsu, and Havas. This distribution marks a stark contrast to previous industry trends, where many large multinational corporations have sought to simplify their agency rosters by consolidating media duties with fewer partners.
Instead, Unilever’s decision to assign media responsibilities to multiple agencies indicates a shift toward decentralization, allowing local offices and regions to play a more prominent role in media decisions.
A key factor in Unilever’s decision-making process is its decentralized approach to marketing, where local markets are given substantial input in selecting media agencies. According to an anonymous executive from one of the winning agencies, Unilever’s central marketing structure is not particularly strong, which has made regional offices more influential in media decisions.
In markets like India and Denmark, cost-effective media buying, particularly for TV inventory, is a crucial factor in choosing agencies. As a result, agencies offering the deepest discounts often win media assignments, reflecting a cost-driven approach to media planning.
Unilever Distributes Global Media Business Across Six Major Holding Companies in Bold Move
The wide distribution of media duties across different agencies also highlights a broader trend in the advertising industry, where agencies are now expected to handle a range of services beyond traditional media buying. These services include commerce media and influencer marketing, which are becoming essential components of modern marketing strategies.
With the growing shift toward digital and auction-based media buying, the need for large-scale bargaining power is diminishing. This trend may lead Unilever to centralize media decisions in the future, as smaller-scale negotiations become more common and easier to manage.
Unilever’s restructuring efforts, including job cuts and the appointment of a new Chief Marketing Officer, Esi Eggleston Bracey, have also influenced the company’s media review process. While some industry observers believe the review came too soon to implement a more centralized approach, the company’s restructuring efforts may pave the way for greater centralization in future media reviews.
The shift to digital platforms and the decline of traditional media buying could further support this move toward centralizing media decisions within the company.
In terms of the outcome, WPP was the biggest winner, retaining key media duties across major markets, including the U.S., the U.K., and mainland China, while also gaining commerce media responsibilities from Publicis in the U.S. Omnicom, despite losing a few markets like Canada and South Africa, managed to hold on to a large portion of its Unilever business.
IPG gained Canada and North Africa, while Publicis, though losing U.S. commerce media duties, added media assignments in Southeast Asia. Dentsu secured Unilever’s media duties in Japan, and Havas kept its assignments in France and Spain. This distribution suggests that while some agencies lost ground, many have maintained significant portions of the global business.
