According to media reports, General Motors Company’s (GM) Cadillac brand has chosen Publicis Groupe SA (PUBGY) as its new global advertising agency of record, replacing agencies under The Interpublic Group of Companies, Inc. (IPG).
The contract, which is effective immediately, marks the auto brand’s sixth major agency shift since 2007 and entails Publicis Worldwide to manage its global creative and strategic responsibilities. Interpublic Group’s Lowe and Partners agency had been Cadillac’s creative agency of record since Jul 2013.
According to Kantar Media, Cadillac spent about $280 million in measured media in 2013 and has already spent about $172 million in the first half of this year.
General Motors’ new president for the luxury brand, Johan de Nysschen, plans to launch a new vehicle naming system and is trying to recreate Cadillac’s brand perception and image. It is hoping to capitalize on Publicis’ established expertise in luxury brand building.
The contract marks a significant victory for Publicis Worldwide, which is the biggest creative agency network under French conglomerate Publicis Groupe. The advertising services giant has had a troubled year, marked by the failure of its proposed $35 billion mega-merger with rival Omnicom Group Inc. (OMC).
The news comes three months after Interpublic Group consolidated its business at Lowe Campbell Ewald, and eliminated sister shop Hill Holliday in the process. The company’s re-engineering of its agencies to better manage Cadillac's creative business was seemingly not enough.
A Cadillac spokesman said Lowe and Partners may retain some below-the-line marketing responsibilities, but Publicis Worldwide will handle most of the marketing and advertising work.
Publicis has been on an acquisition spree lately, showing remarkable interest in buying start-ups as a rapid way to gain technological know-how amid a fast transforming advertising environment. Last month, Publicis agreed to acquire Sapient Corp. for $3.7 billion, in an attempt to strengthen its foothold in digital advertising and contend with rivals such as WPP Group and Interpublic Group. Its other recent buyouts include top Italian social media agency Ambito5, Canadian design consultancy Nurun, design firm Turner Duckworth and Berlin-based marketing agency Zweimaleins.
Publicis presently sports a Zacks Rank #4 (Sell), while Interpublic Group carries a Zacks Rank #3 (Hold).
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