Estée Lauder Divides Advertising Budget

2008-05-01 | 07:24

WPP Group and Omnicom Group divisions split $400 million account

Estée Lauder has split its $400 million global media account between WPP Group's MindShare and Omnicom Group's M2M. The former will handle the U.S. and the latter, international markets, according to Ad Week. Estée Lauder declined to comment.

Estée Lauder spent about $150 million in each of the last two years in U.S. media, per Nielsen Monitor-Plus. Some 80 percent of the company's U.S. ad budget is spent in print. Estimated global spending is $400 million.

Three shops had been vying for the business, including WPP's Maxus, the North American incumbent. But sister shop Mindshare took over the pitch and will manage the U.S. account, per sources. Calls to MindShare and Maxus were referred to the client.

Omnicom's M2M is the incumbent shop for the U.K., Japan and other markets. An earlier report indicated that OMD had won the non-U.S.portion of the account, which several sources, including the client, denied. OMD did not pitch the account, the client said. That's probably because it handles Coty and Elizabeth Arden in various markets.

Havas' MPG, a non-roster contender, did not win an assignment. Calls to MPG and Omnicom were referred to the client.

Estée Lauder's net sales surpassed $7 billion in fiscal 2007, up 9% from the previous year. About half of that was derived from North America, another $2.5 billion from Europe, the Middle East and Africa and roughly $1 billion from Asia.