Nestle, the world’s largest packaged food maker, has appointed WPP OpenMind as its exclusive media agency in Europe, signaling a strategic move to enhance consumer targeting during a cost-of-living crisis that is reshaping shopping behaviors. In a significant victory for WPP OpenMind, especially in a period of declining global ad spending, the deal reflects Nestle’s commitment to optimizing its marketing approach.
This partnership aims to improve decision-making and media planning, enabling the development of impactful campaigns that can effectively build brands and capture consumer attention on a large scale, according to a Nestle spokesperson. The Swiss multinational did not disclose the financial details of the deal or the duration, but it marks a shift from its previous strategy of engaging multiple media agencies across Europe.
WPP OpenMind’s responsibilities will include coordinating Nestle’s marketing communications, encompassing the purchase of advertising space and strategic campaign planning for hundreds of brands in Europe, such as Kit Kat and Nescafe. Notably, the agency will not handle creative tasks like animation, jingle creation, or other content generation.
While the focus of this agreement is on Europe, Nestle clarified that it does not impact its arrangements in other regions. Nestle’s decision to consolidate its media agency services aligns with industry trends, where major brands are striving to retain customers amid shifting spending patterns and increased prices.
Nestle’s CEO, Mark Schneider, emphasized the company’s commitment to robust marketing investment during the second half of 2023, following a significantly increased marketing spend in the second quarter. In the first half of 2023, Nestle reported a 7.5% growth in advertising and marketing spending in constant currency compared to the same period the previous year.
As Nestle adapts to changing market dynamics, the collaboration with WPP OpenMind is positioned to drive more effective and efficient consumer engagement across Europe, where the food giant has a diverse portfolio of iconic brands.
Related
GroupM Appoints Alexandra Chabanne as CEO to Propel Ongoing Transformation