Douglas Quenqua
Jul 13, 2016

Walmart and Publicis Groupe forge strategic relationship in surprise deal

Months after losing the retailer's media business, the holding company has nabbed Walmart's US creative and in-store duties.

Walmart and Publicis Groupe forge strategic relationship in surprise deal

Walmart and Publicis Groupe have formed a non-exclusive "strategic relationship" that gives the retailer access to all of the holding group’s agencies.

The partnership, which went into effect July 1, will initially apply to Walmart’s US advertising and in-store creative, for which the holding company will serve as agency of record.

"Our ambition globally is to make every day easier for busy families, and having best-in-class marketing is critical to achieving that goal," said Doug McMillon, president and chief executive officer of Walmart Stores, in a statement. "This relationship with Publicis Groupe will help us think and act differently, which will ultimately enable us to serve our customers even better."

The deal marks the end of Walmart's nearly decade-long creative relationship with The Martin Agency. "As of September, we will no longer be working with them on their advertising," said a spokesperson for the agency. "We're proud of the work we’ve done with them since 2007 and wish them all the best." Martin shared creative duties on the client with Publicis' Saatchi & Saatchi, which will continue to work on the account. 

The move represents a bit of redemption for Publicis, which lost Walmart’s media account earlier this year. Just weeks after US CMO Stephen Quinn left the company on Jan. 31, the Benton, AK-based retailer announced it was moving its media business away from Publicis’ MediaVest, ending a decade-long relationship. The loss of Walmart, which spends nearly $1 billion in measured media annually, came shortly after Mediavest lost two other major media accounts, Coca-Cola and Procter & Gamble in the US.  

Quinn was succeeded by Tony Rogers, a longtime Walmart marketer.

The move also serves as a validation of Publicis’ new structure, which emphasises four "solution hubs" over individual agency networks. The new "client-first" model customises teams for each client depending on its needs rather than agency capabilities. In a statement announcing the deal, Maurice Lévy, chairman and CEO of Publicis Groupe, said the new deal was a direct result of that new structure.

"This relationship is the direct result of Publicis’ new approach, ‘the Power of One,’ which is designed to deliver end-to-end solutions for our clients," said Lévy. "Walmart is already implementing innovative approaches to reach its customers. Our goal is to leverage all of Publicis’ assets — not just the resources of one agency — to help them in these efforts."

In April, Walmart's UK brand, Asda, handed both its creative and media account to Publicis, with Saatchi taking creative duties and Blue 449 handling media.

Source:
Campaign US

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