French-owned cosmetics company L'Oreal has appointed Carat to its $30 million media business following a three-way pitch, dropping incumbent UM.
Carat saw off PHD and UM in the pitch, which kicked off in July. UM had won a contract extension in January.
While L'Oreal has traditionally been one of the country's biggest-spending advertisers – once as high as $60 million – in the last year it has halved its outlay to around $30 million.
However, in a statement, L'Oreal said the business was only for 2014, leaving room for another round of pitching next year.
See the statement below:
L’Oréal Australia Announcement: Media Partner for 2014
Following
an in-depth review of the Australian market against its future media
needs, L’Oréal Australia today is pleased to announce it has appointed
Carat as their media agency for 2014 .
Media
and communications are an integral part of the L’Oréal Australia’s
strategy and total investment is approximately 40 Million AUD$ NET in
the Australian market, annually.
As
the media landscape’s changes are accelerating, L’Oréal Australia
requires more focus, recourses and insights in order to maintain its
position as the frontrunner in the Australian Health and Beauty market.
With
L’Oréal Australia’s increased focus in digital communication, combined
with the rapid development of e-commerce, it has become necessary to
fully engage with its consumer using the latest, most engaging
communications.
Demonstrating
proven excellence in both offline and online media strategy, Carat were
selected as the strongest media agency in Australia, to partner with
the Group.
Carat
is known for strong commercial strategies, effective measurements of
return on investment, and performance of medium in relation to sales
targets.
Their
experience in both local and global media markets, in addition to their
well-developed strategic tools, successfully convinced L’Oréal
Australia that partnering with Carat is the best option to continue the
success of the business and its development.
L’Oréal
Australia wishes to acknowledge the important contribution their
previous partnership with Universal McCann has delivered the business in
the past, in achieving the market position they hold today.
The
fragmentation of media through multi-screens, social media and digital,
the implementation of ROI on media investment will become critical;
thus, L’Oréal Australia looks forward to a strong and successful future
with Carat.
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