NEW YORK (AdAge.com) -- Gap Inc. has consolidated its nearly $500 million global media-planning and -buying assignment with the account's incumbent, Omnciom Group's PHD, the retailer confirmed. The agency will be responsible for the company's entire portfolio, which includes Gap, Gap Kids, Baby Gap, Old Navy, Banana Republic, Piper Lime and Athleta.
PHD added all of strategic planning, radio and out-of-home buying for Gap, as well as all of the planning and buying in Canada. The agency was the incumbent in the U.S., as well as other parts of the world.
Gap ranks No. 80 on Ad Age's 100 Leading National Advertisers report, with more than $420 million in U.S. ad spending on its major brands including Gap ($96 million), Old Navy ($208 million) and Banana Republic ($34 million). The company spends another $50 million in the rest of the world.
In winning one of the more high-profile pitches of the year, PHD manages to retain one of its biggest U.S. clients while picking up some significant global business in the process. It's also the first major win under new U.S. CEO Andrew McLean, the former worldwide chief business development officer at WPP's Group M. In late October Mr. McLean replaced Scott Hagedorn, who is now heading the Annalect Group, a new digital and data analytics agency within Omnicom Media Group.
Gap recently launched a search for a creative shop to help market its Athleta sportswear brand -- the only one of the company's units that doesn't have an agency relationship. Piperlime tapped Sausalito, Calif.-based independent Butler, Shine, Stern & Partners to handle marketing earlier this year, while Old Navy has been working with Crispin Porter & Bogusky since 2008. Creative for the Banana Republic brand is handled by AR, New York. The flagship Gap brand, which recently had a major marketing stumble with its failed attempt at a logo redesign, does not have an agency-of-record relationship. But it does work with agencies on a project basis, most recently with Laird & Partners, New York, for its 2010 holiday campaign.