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Unilever's Strategic Media Partnerships Revealed

General Report November 7, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Overview of Unilever's Global Media Review
  3. Media Assignments and Agency Selections
  4. Financial Implications of the Media Review
  5. Strategic Insights from the Media Review
  6. Conclusion

1. Summary

  • Unilever's recent global media review, driven by the new marketing leadership under Esi Eggleston Bracey, has led to a significant redistribution of media assignments, impacting key advertising groups. Beginning in January 2024, this process saw major roles retained by WPP in strategic markets like the United States, United Kingdom, and China, while Publicis Groupe and Dentsu were strategically integrated into emerging markets such as Southeast Asia and Japan, respectively. This move defines Unilever's adaptability and commitment to aligning its media buying strategies with evolving market dynamics. Emphasis is placed on optimizing consumer engagement and strengthening media partnerships to advance Unilever's branding efforts, reflecting an insightful shift in their Growth Action Plan against a backdrop of increased financial investment, amounting to approximately $9.5 billion in 2023.

2. Overview of Unilever's Global Media Review

  • 2-1. Introduction to Unilever's media review process

  • Unilever has completed a global media review process that involved a reevaluation of its media assignment strategies among major advertising groups. This review was triggered by the appointment of Esi Eggleston Bracey as the new marketing chief in October 2023. The review began in January 2024 and included submissions from numerous agencies to reassess and optimize the company's media buying and planning functions in response to the dynamic media environment. The review signifies Unilever's intent to adapt its marketing approaches in alignment with its Growth Action Plan.

  • 2-2. Timeline of the review and key stakeholders involved

  • The timeline of Unilever's global media review started in January 2024, and it incorporated participation from various stakeholders, including several major advertising agencies. Notably, the review concluded with WPP retaining media accounts for the US, UK, and China, while Publicis and Dentsu emerged as new partners in other markets, such as Southeast Asia. Agencies like Interpublic, Havas, and Omnicom also won portions of the business. MediaSense acted as a consultant throughout the review process to help facilitate and guide these evaluations, ensuring that Unilever partnered with the most suitable agencies to innovate and implement effective media strategies.

3. Media Assignments and Agency Selections

  • 3-1. Reappointment of WPP: US, UK, and China

  • WPP has retained its media assignments in the United States, the United Kingdom, and China, which are among Unilever's largest markets. This decision was significant for WPP, especially considering their recent losses in other accounts. In the U.S., WPP also won an integrated shopper marketing brief that was previously assigned to Publicis.

  • 3-2. Publicis Media's acquisitions in Southeast Asia

  • Publicis Media successfully acquired media assignments across five markets in Southeast Asia, specifically in Singapore, Thailand, Philippines, and Vietnam, which were previously under the management of WPP. This strategic win enhances Publicis Media's presence and capability in the rapidly growing Southeast Asian market.

  • 3-3. Interpublic's new role in Canada

  • Interpublic has taken over the media assignment in Canada, a market that was previously managed by Omnicom. This change is part of the broader reshuffling of media partnerships within Unilever's global media review.

  • 3-4. Dentsu's assignments in Japan and other regions

  • Dentsu was assigned media responsibilities in Japan, marking a significant expansion of their role within Unilever’s media strategy. Furthermore, Dentsu has also been selected for assignment in other regions, enhancing their operational scope.

  • 3-5. Overall distribution of assignments among holding companies

  • Unilever's global media review resulted in a diversified allocation of assignments among the six major holding companies. The review, which was initiated in January, has not only seen WPP, Omnicom, and Interpublic as key players but also brought in Publicis and Dentsu, thus broadening Unilever's media agency roster across various geographies.

4. Financial Implications of the Media Review

  • 4-1. Unilever's total brand and marketing investment in 2023

  • Unilever's total brand and marketing investment for the year 2023 was approximately $9.5 billion, according to its 2023 annual report. This marks an increase from the previous year's investment, which was about $8.7 billion.

  • 4-2. Comparison of marketing budget allocations across agencies

  • The review process revealed a reallocation of Unilever's marketing budget among six major advertising agencies. This includes WPP retaining its assignments in key markets such as the US, UK, and China. Publicis Media secured five markets in Southeast Asia, previously managed by WPP. Other agencies like Interpublic, Havas, Omnicom, and Dentsu also gained portions of the media business as part of the review.

  • 4-3. Impact of restructuring costs on future investments

  • Unilever anticipates incurring higher restructuring costs in the latter half of 2024. While the company has increased its investment in brand media initiatives, it is also experiencing tighter cost controls. This dynamic creates potential uncertainties regarding the full impact on future marketing investments, highlighting the need for strategic adjustments moving forward.

5. Strategic Insights from the Media Review

  • 5-1. Esi Eggleston Bracey's comments on the review process

  • Esi Eggleston Bracey, Unilever's Chief Growth and Marketing Officer, remarked on the completion of the global media review, expressing gratitude to all participants for their contributions. She emphasized the excitement in accelerating Unilever's marketing journey with both new and long-time partners, indicating that they have a unique opportunity to optimize media and content to better reflect people and culture while continuing to build their brands and drive commerce. This statement reflects Unilever's commitment to evolving its media strategy.

  • 5-2. The significance of media partnerships in Unilever's growth strategy

  • Unilever's media partnerships play a critical role in its growth strategy. The recent review resulted in the reappointment of WPP in major markets such as the US, UK, and China, while also integrating new partnerships with Publicis and Dentsu. These partnerships are positioned to enhance Unilever's media capabilities, especially in emerging regions, ensuring that the company remains competitive in the dynamic media landscape. This strategy highlights the importance of aligning with agency partners to maximize brand engagement and marketing effectiveness.

  • 5-3. Adapting to market dynamics through agency collaborations

  • The global media review initiated by Unilever demonstrates the company's adaptability to market dynamics through restructuring agency collaborations. The review process involved a competitive bidding scenario where various agencies, including Publicis, Dentsu, and Omnicom, secured assignments in different markets, marking a strategic shift in Unilever's approach. This restructuring is aimed at ensuring the best-in-class support for Unilever's media buying, reflecting the company's ongoing efforts to remain agile and responsive to the interconnected marketing environment.

Conclusion

  • The outcomes of Unilever's global media review mark a crucial step in their marketing evolution, with key affiliations reshuffled amongst WPP, Publicis Groupe, and Dentsu, highlighting their strategic intent to leverage agency strengths across different geographies. Strategically, WPP maintains a significant role in critical markets while Publicis and Dentsu expand influence in Asia, feeding into Unilever's ambition to capitalize on growth in emerging regions. This repositioning anticipates increased brand engagement through optimized media strategies amidst rising restructuring costs and tighter financial controls, suggesting a well-calibrated approach to navigating future marketing landscape complexities. The review underscores the necessity of aligning partnerships with market demands, reflecting Unilever's focus on media agency collaborations to boost consumer connections and brand visibility globally. However, ongoing monitoring of financial impacts and potential restructuring costs is advised to sustain investment trajectories. Looking forward, this strategic overhaul signifies Unilever’s preparedness to adapt and lead within the global advertising and marketing arenas, with practical implications for future consumer engagement and market positioning strategies.

Glossary

  • Unilever [Company]: Unilever is a multinational consumer goods company known for its diverse portfolio of brands, including Dove, Knorr, and Hellmann's. As one of the largest advertisers globally, Unilever's marketing strategies significantly influence the advertising landscape. The company is focused on leveraging its media partnerships to enhance brand visibility and drive consumer engagement.
  • WPP [Advertising Group]: WPP is a leading global advertising and marketing services group. It has been a key partner to Unilever, retaining major media assignments in significant markets such as the US, UK, and China. WPP's role in Unilever's media strategy is crucial for optimizing brand messaging and consumer outreach.
  • Publicis Groupe [Advertising Group]: Publicis Groupe is a multinational advertising and public relations company. In the recent media review, it secured important media accounts in Southeast Asia, indicating a growing influence in Unilever's marketing strategies within these emerging markets.
  • Dentsu [Advertising Group]: Dentsu is a Japanese advertising and public relations company that has expanded its role in Unilever's media planning and buying. Its selection for assignments in Japan and other regions highlights Dentsu's competitive position in the advertising sector.

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