Nadia Shchipitsyna
By Nadia Shchipitsyna
Sep 16, 2016 2:00:00 PM

#MediaSnack Ep. 43: The 7 Billion Dollar Media Man

On this episode of #MediaSnack we review news that P&G have hired a new global media director, pinching the impressive Gerry D’Angelo from Mondelez to lead their global $7.2bn media operations. Media is a massive business driver for P&G, it accounts for over 10% of their total global sales, so they need it to work hard. As media gets more complicated and agency relationships get fragmented and more delicate, it requires strong visionary leadership and Gerry is the right guy for P&G.

Interesting timing as P&G recently moved their US business into Omnicom “startup” Hearts & Science. Maybe coincidental timing Hearts & Science have announced the launch of a UK agency at the same time that P&G are “reviewing their UK media agency requirements”. Lets see....

ID Comms announce the launch of a Global Survey looking into Media Training, something which the ANA highlighted this year as a big gap on the client side, they advised brands need to commit to a "media education". 

Download ID Comms 2016 Global Media Training Report

Finally, more focus on Hearts & Science as we discuss the ‘zero-margin’ deal apparently offered by Omnicom to land the US McDonald’s creative and media duties. We consider some of the implications of these kinds of deals, where they agency assumes a big commercial risk on the client's business performance. It has been reported that the agreement requires Omnicom to be accountable for their profit margin derived solely by McDonald’s business KPIs (read more about remuneration models here). A nice idea on paper, it is a sure-fire way to make sure your agency resources are laser-aligned with your business objectives, but it requires deep faith and trust on both the client and agency sides, who both have to be equally motivated by the same goals and have to be comfortable they can equally influence the business outcomes. It is somewhat of a gamble, but a good innovation if successful. Overseeing from the agency is Wendy Clark an ex Coca Cola executive who will be very familiar with value-based payment models