Vodafone Group - the world’s largest mobile network operator worth an estimated US$100 billion - announced last month that it would hold its first global media pitch in an effort to save on costs. GroupM, Omnicom Media Group and Carat are all thought to be involved. The company currently works with media agencies on a country-by-country basis but is considering consolidating its estimated US$327.5 million account under one agency.
In Asia-Pacific, the pitch could affect three markets: India, which has been covered by Maxus since Vodafone bought branding rights in the market from Hutchinson in 2006; New Zealand, where the brand appointed PhD as its agency-of-record in June but is already repitching; and Australia. However, Australia is rumoured to be out of the pitch following speculation that Mitchell Communication Group has taken over the market’s business from Ikon Communications.
Vodafone representatives from the affected markets say they have no clarity on a timeline and are unable to verify that their country’s business is indeed on the table. Media agencies, meanwhile, are still not sure what they are pitching for.
“I have no doubt some organisations can do very well at this but Vodafone may not be up to holding a single pitch for all its global markets,” said one source. “It’s never done a global review before so it’s going to be very interesting to see how it unfolds.”
“It is a little bit crazy,” another source said. “There’s a lot of rumour going on out there and nothing’s been confirmed.”
Western reports suggest Vodafone is looking to appoint an agency by the end of the month, but as regional agencies are unclear of when they will make their own presentations, sources say the deadline is looking far-fetched.
Agencies in Australia are particularly baffled. In the market, Vodafone Hutchison’s media pitch has been rumoured to be separate from the global review, with Mitchell Communications Group, PHD, Universal McCann and incumbent Ikon Communications competing for the account, according to local reports.
However, Mitchell Communications is reportedly close to winning the business, despite currently working with Australia’s second-largest telco company, Optus, leading one frustrated source to say, “If I were Optus, I’d be enraged.”
Vodafone Hutchison, the joint venture between Vodafone and Hutchison Australia, was formed in February and is the third-largest telecommunications player in the market. Telstra, which was formerly owned by the Government, is the largest.
