Subway has chosen a customized Dentsu Aegis Network team of agencies to handle its media and creative work across North America, the sandwich chain said Monday.
The Franchise @ Dentsu Aegis Network North America will include people from across the Dentsu Aegis Network including Carat New York, Mcgarrybowen New York, Carat Canada and DentsuBos, Subway said. The integrated team will have people based in New York, Toronto and Montreal Canada, Subway said.
The move marks the first time in more than 25 years that Subway is consolidating its U.S. and Canadian media and creative accounts, the company said. In 2016, Subway gave most of its creative business back to former incumbent MMB after working with BBDO for about a year. The new team begins in early 2018.
The shakeup comes after challenges for Subway including the 2015 death of co-founder Fred DeLuca, the sentencing of longtime spokesman Jared Fogle on charges of receiving child pornography and having sex with minors that same year, and continued sales struggles. Subway's U.S. sales fell 1.7 percent to $11.3 billion last year, making it the only restaurant among the top 10 chains to post a decline, according to Technomic.
Accenture's Karlin Linhardt joined Subway in the new role of senior VP for marketing, North America, in April. Its U.S. and Canada national agency review was announced in July. MediaLink assisted in the review process. Specialty agencies, local agencies, and agencies outside the U.S. and Canada were not affected.
Subway's U.S. ad spending declined 1.7 percent to $509 million in 2016, according to the Ad Age Datacenter.