Heineken explains motives behind second media agency hunt

Arvind Hickman
By Arvind Hickman | 25 May 2016
 

Heineken’s hunt for a second global media agency is an effort to centralise the 40 or so markets not covered by Publicis Groupe.

Over the weekend, the world’s third-largest beer brewer revealed it is looking for a second global agency and new details have emerged that explain the strategy.

In 30 markets, Publicis agencies Mediavest/Spark and Starcom handle media planning and buying duties. The group handles Heineken's top 15 markets, which accounts for 80% of the its top 30 media market budgets.

However, there are more than 40 other markets that are covered by a range of other agencies, a legacy of the Heineken’s decentralised media planning and buying model before it enlisted Publicis Groupe in 2012.

When the Starcom Mediavest Group (SMG) won the business, global spending was estimated at US$335 million.

The decision, which follows the recent restructure of Publicis, is also an attempt to introduce a different skill-set into the mix so that Heineken doesn’t rely solely on one media group.

Gregory Kukolj, Heineken's global head of media and digital, told US trade press the decision to seek a second global agency was not motivated by anything SMG had done, but was a “natural evolution” away from a decentralised model.

"Within the 30 markets we operate with SMG we have managed to ensure the right level of expertise through a one-agency network management,” he told Ad Age. “And what we want to do is to scale this faster and wider and ensure the right level of expertise across all the markets where we operate.”

It is understood the decision will not lead to two media agencies working within the same market.

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au

Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.

comments powered by Disqus