Hasbro consolidates global media account with MediaCom
Hasbro has consolidated its global media buying and planning business, including in North America, with WPP-owned GroupM's MediaCom, according to people close to the decision.
Those people said that the company, the largest toymaker in the world, ended its relationship with Omnicom Media Group's OMD as a result. Hasbro had consolidated its global media business with OMD in 2013, and handed buying and planning duties in Latin America to MediaCom at the time.
OMD declined to comment. A MediaCom spokesperson deferred comment to the client.
"We’ve made the decision to consolidate media buying for Hasbro under a single agency in order to both drive efficiencies and to provide the best tools and resources for our current collective needs across our global business," a Hasbro spokesperson confirmed to Ad Age. "After a thorough review of the agency landscape and our current partnerships, moving forward, all of our global markets will be resourced exclusively through GroupM."
The 2013 consolidation followed what Hasbro called an "extensive review process" at the time. Participants in the 2013 review included then-incumbent Interpublic Group of Cos.' Initiative, which had only won the business from MediaCom three years earlier.
OMD had already supported the business in more than 10 global markets before it won the entirety of the account, excluding Latin America. In 2013, it added the North American business, as well as responsibilities in certain markets in Asia and Europe.
It is unclear if OMD will retain any of the business.
According to COMvergence estimates, Hasbro spent $52 million on measured media in the U.S. from July 2018 to June 2019. Its global spend was $210 million, per COMvergence.
In October, Hasbro's stock dropped 15 percent after it reported that its net income fell to $212.9 million in the recent 2019 third quarter, from $263.9 million the previous year. CNBC reported that the company blamed the slowdown on the threat of tariffs on toys imported from China, which increased shipping and warehousing costs and caused cancellations of direct import orders.
Hasbro expects to report fourth-quarter earnings on Feb. 11.
Update: The story has been updated with a statement from Hasbro.