P&G Shifts $142 Mil in Media Buys

Moves Hispanic, Taps Out-of-Home and Radio AORs

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Procter & Gamble Co. has shuffled a series of media assignments with total billings of $142 million. The moves underscored the packaged-goods giant's desire to focus on media options other than TV and print advertising.

P&G named agencies of record for the first time to handle media buying for out-of-home and radio. Starcom Worldwide, Chicago, a unit of Leo Group, picked up the $50 million out-of-home assignment. Starcom, the nation's largest buyer of out-of-home media, already handles P&G's $400 million print buying account.


MediaVest, New York, a unit of MacManus Group, landed the radio assignment, with estimated spending of $32 million. MacManus already handles P&G's massive $1 billion TV buying account.

Radio and out-of-home buying previously were handled by brand agencies.

In a related move, P&G split its $60 million Hispanic media account between MediaVest and sibling Bromley Aguilar & Associates, New York. The account moved over from Fova and MediaCom, both units of Grey Advertising, New York. P&G is the largest spender on Hispanic media in the U.S.

With the pending merger of Leo and MacManus, just about all of P&G's U.S. ad spending will be consolidated under one roof. The only part of the U.S. media assignment not at the merged company is online buying, still handled by Grey Interactive.


P&G has steadily grown its presence in radio and out-of-home as it seeks new ways to reach target consumers in a media world that has become increasingly fragmented. One executive familiar with the media reassignments said P&G plans to double radio spending next year. Consolidating spending at an agency of record gives P&G more clout in making buys, and access to greater resources within its media agencies.

P&G did not return phone calls seeking comment on the new assignments. But in a memo sent to agencies last week announcing the changes, the company asked that no media outlets be contacted.

While both Starcom and Media-Vest are significant media players with P&G in the U.K. and France, respectively, the package-goods leader also has non-U.S. media assignments with MediaCom and Zenith Media Services. Zenith is the incumbent in China, where P&G heard presentations last week in a $250 million media review.


Separately last week, MediaVest disclosed a number of other shifts.

P&G's primary point person at MediaVest, Donna Salvatore, was named to the new post of president-U.S. broadcast. She had been exec VP-director of strategic development.

Rino Scanzoni, exec VP-director of national broadcast--and another key executive on the P&G business--had said earlier he was leaving at yearend. But executives close to Mr. Scanzoni said he decided to stay, largely because the pending merger of MacManus and Leo Group would create a company that plans to go public.

Last week, he became exec VP-managing director of the recently formed MediaVest Entertainment Group. His former duties and title, as previously reported, have been taken by Mel Berning, who joined MediaVest from NBC.

Kevin Malloy was named to the new post of exec VP-global chief operating officer, from worldwide media director. And Jeff Grant was named to the new post of president-worldwide planning, from exec VP-director of broadcast programming.

Copyright December 1999, Crain Communications Inc.

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