Chanel moves $500 million global media account to Omnicom from WPP
Shift comes as beauty and fashion marketer rebounds from pandemic.
Chanel has moved its global media account to Omnicom Media Group from WPP following a review, as the global prestige fragrance and luxury fashion marketer rebounds from pandemic-induced struggles.
The OMG-wide unit serving Chanel will reside inside PHD, according to a person familiar with the matter, who pegged global media spending at $500 million. A Chanel-specific unit of WPP’s GroupM agency executives, originally formed in 2013, had previously handled the account, which had been in WPP’s hands more than 20 years.
“After a competitive pitch over several months, we confirm that we have appointed Omnicom as our new global media agency” to begin in January, according to a Chanel statement. “We were particularly impressed by their strategic approach, understanding of the brand and ability to organize around our requirements. We wish to thank WPP for their valued counsel over the past two decades supporting our growth."
A GroupM spokesman didn’t immediately respond to a request for comment. OMG referred comments to Chanel.
The prestige fragrance and luxury fashion marketer spent $106 million on U.S. media last year and $49 million through the first six months of 2021, according to Kantar. TV spending for the Chanel brand was up 12% for the 12 months ended Oct. 12 to $36 million, according to iSpot, as the beauty market rebounded from the pandemic. Chanel revenue declined 18% last year to $10.1 billion globally, but the company reported in June that first-half revenue was up by double digits.