Tiffany & Co Begins Global Media Agency Review
Luxury jewelry retailer Tiffany & Co. has begun a global media agency review.
The company has sent agencies a document requesting information and an introduction describing the goals of the pitch, according to people familiar with the effort. Those include increasing media innovation and collaboration, as well as identifying financial and operational efficiencies. Global media spending is over $100 million, it added.
Tiffany currently works with a handful of media shops around the world, so the pitch is likely an effort to consolidate those relationships.
"In addition to our internal marketing department, Tiffany & Co. has decided to pursue an external media agency to further enhance our global business," said a Tiffany spokeswoman. "This is in addition to Ogilvy & Mather as the company's creative agency." She declined to comment on the details of the request for information.
Ark Advisors has been retained to conduct the search.
In the document sent to shops, the company said that of its six main regions around the world, North America, Europe and Asia Pacific account for 80% of its global spend.
The move follows a global creative agency review and the selection of Ogilvy & Mather earlier this year. At the time, Ad Age reported that Ogilvy's scope would be "brand positioning and advertising support" including print, digital, video and out of home advertising.
In the first quarter of this year, Tiffany reported a 13% increase in worldwide revenue, to $1 billion, and a 50% growth in net income. Marketing spending is likely expanding as well, according to the 2014 outlook section of its earnings release. In the release, the company wrote: "Uncertainty about the timing of sales improvement in Japan, as well as higher marketing spending, are expected to result in the second quarter's net earnings approximately equal to the prior year."