Coty to launch global review of its £180m media business

LONDON - Coty, the world's largest fragrance company, is preparing to launch a global review of its estimated £180m media planning and buying business.

Coty: shock decision to consolidate comes amid local market reviews
Coty: shock decision to consolidate comes amid local market reviews

It is the first time the multinational conglomerate has attempted to consolidate its media business and is expected to include the £25m UK account, only retained by Omnicom's OMD seven months ago.

The shock decision to instigate a global pitch process comes amid a series of local market reviews, including one taking place in its domestic market, France, and another in the US, which was responsible for £70m worth of media spend last year.

The 105-year-old cosmetics giant is home to many of the most popular brands, including Calvin Klein, Cerruti and Marc Jacobs in its Coty Prestige portfolio, and Adidas, David and Victoria Beckham, and Kate Moss in its Coty Beauty range.

The review will include the media business across both portfolios operating in 90 countries and is being led by Coty's senior vice-president, corporate media, Sigrun Graeff.
According to local market figures tracked by The Nielsen Company, ad spend has dropped about 20% across the group since the global economic downturn began in 2008.

Despite the tough climate, Coty's chief executive Bernd Beetz is hoping to achieve annual sales of $5bn in 2010, up from $4bn in 2008.

One agency leader called the move "symbolic of the current climate", but warned the constant drilling down of media value is not a sustainable model for the industry.

The decision to run a global media review in spite of a series of local market reviews either recently completed or still underway draws parallels with Vodafone. The UK telecoms incumbent OMD, which snatched the account from Carat after less than a year in August, will be hoping for a similar result with Coty.

Coty declined to comment.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Watch the first YouTube clip, nine years on

Watch the first YouTube clip, nine years on

This week marks the ninth anniversary of the first clip uploaded on YouTube, a 19-second video of YouTube co-founder Jawed Karim at the San Diego Zoo.

Share
Yahoo hosts exclusive X-Men: Days of Future Past films

Yahoo hosts exclusive X-Men: Days of Future Past films

Yahoo has partnered with film distributor Twentieth Century Fox to create a global content hub on its Yahoo Movies platform for new release 'X-Men: Days of Future Past'.

Share
My Media Week: Stuart Taylor

My Media Week: Stuart Taylor

This week, Stuart Taylor, chief executive, Kinetic UK, is inspired by the new tech coming to market and how wearables and smart cities will impact on OOH.

Share

Get news by email