The Estee Lauder Companies Inc. Expands M2M As Its Media Agency to 12 International Countries
The Estee Lauder Companies Inc. (NYSE:EL) announced today that it has selected M2M, a media company of Omnicom Media Group, to be its media agency in eight European and four Asian/Pacific countries. M2M was chosen following a lengthy competitive review of several agencies. The agreement with M2M begins rolling out July 1, 2008. Terms of the agreement were not disclosed.
M2M, which services prestige and luxury advertisers, has handled the Company’s media planning and buying needs in the U.K. for the last five years. Another Omnicom media company, OMD Worldwide, has directed the Company’s communications needs in Spain and Australia. MindShare Worldwide, part of WPP, will continue to manage the Company’s media planning efforts in the Americas.
By consolidating the work of several media agencies into one, the Company hopes to deploy sophisticated analytics to measure and improve the return on its media investment. Additionally, it will look to integrate traditional media and expand the use of Internet and digital advertising. The Company’s new relationship with M2M will also facilitate its brands sharing best practices across countries.
“The selection of M2M is another step in the Company’s efforts to think globally and act locally. M2M will provide local media support in each international market, as well as consolidated information at regional and global levels to support brand strategy,” said Thomas A. Hardesty, Vice President of Strategic Procurement, The Estee Lauder Companies. “Our brands and affiliates will gain advanced business intelligence to support media planning and will be able to leverage their buying power across the regions,” Hardesty said.
In addition to its existing account in the United Kingdom, M2M will take on media planning and buying for the Company’s brands in Russia, Germany, France, Italy, Belgium, Netherlands, Japan, Korea and China. It will also take over the Company’s business in Spain and Australia. The Company’s advertising expense in these 12 countries represents about 40 percent of its worldwide annual spend for print, digital, television, radio and outdoor media.
The Estee Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 135 countries and territories under well-recognized brand names, including Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M-A-C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, Good Skin(TM), Grassroots, Sean John, Missoni, Daisy Fuentes, Tom Ford Beauty, Mustang, Coach and Ojon.
About Omnicom Media Group
Omnicom Media Group (www.omnicommediagroup.com) is the media division of Omnicom Group Inc. In addition to M2M its businesses include leading media service companies OMD Worldwide and PHD Network, as well as a number of specialized companies in areas including search engine marketing, branded content production, corporate asset barter, out-of-home media, insert media and discount newspaper.
About Omnicom
Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, media, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.