Kenny Lim
Dec 17, 2009

UPDATE: PHD wins Unilever's Greater China media, denies price claims

SHANGHAI - Unilever has awarded Omnicom Media Group's (OMG) PHD its US$440 million media business in China, dislodging incumbent Mindshare.

UPDATE: PHD wins Unilever's Greater China media, denies price claims
The Greater China result is the first in Unilever's global media review. OMG also picks up Hong Kong and Taiwan. Taiwan was previously handled by Initiative.

Sources close to the pitch suggested WPP offered Unilever a 20 per cent discount on fees compared with last year. However, other agency sources claimed OMG offered a much higher discount as "the client is much more interested in savings". Sources also suggested Omnicom offered Unilever a "guarantee with a penalty... which means they will have to pay it back to Unilever if they don't deliver".

Sources at PHD denied these claims and said all price fees and budgeting were still in negotiation. "There are literally no numbers to report because contracts haven’t been agreed," said one.   

The award is a blow to Mindshare China, of which Unilever is its biggest client. Among the agency’s key initiatives for the FMCG giant in the mainland in recent years was the much-lauded launch of the Chinese version of Ugly Betty.

Mindshare holds the bulk of Unilever’s business in the region, while Universal McCann holds some accounts in Australia and Taiwan, for which Initiative is its lead agency.

The news comes five months after Unilever called its global media planning and buying review. At the time, agencies from WPP, OMG and Interpublic contended for the account, and in October, the brand narrowed the field between Aegis, Mediabrands, Mindshare and OMG.

The Asian markets under review additionally include India, for which Asia-Pacific agencies say they are currently awaiting a verdict.

Markets elsewhere in the world include Argentina, Mexico, North America, the UK, France, Germany, Spain, Italy, the Netherlands and Russia.

The win follows news that OMG's OMD is set to retain its regional Fonterra account, following a run-off against Mindshare's parent GroupM.

In Asia the pitch is being led by Rahul Welde, the Singapore-based vice-president of media for Asia, Africa, Middle East and Turkey. Welde could not be reached for comment at the time of going to press.


Source:
Campaign Asia

Related Articles

Just Published

10 hours ago

APAC is a market of inspiration: OMD's George Manas

In a conversation with Campaign, OMD's worldwide CEO George Manas and APAC CEO Charlotte Lee discuss everything from managing agency operations to cookie deprecation to Gen AI, diversity and more.

11 hours ago

Google delays cookie deprecation again: APAC adtech ...

Google will now phase out cookies entirely in 2025 after being told the concerns around Privacy Sandbox still need to be addressed.

13 hours ago

Cheuk Chiang assumes CEO role at Bastion's ANZ ...

Chiang moves from his position as APAC CEO of Dentsu Creative.

20 hours ago

Having the balls to check: How a pregnancy test ...

An Ogilvy-backed campaign’s 40-second ad features a pair of gonads — Tano and Nato — who take a pregnancy test and find out they are negative for testicular cancer.