Carat lands $3 billion global General Motors media

Starcom was the incumbent on the US business where the bulk of General Motors' spend is focused and where it owns the Buick, Cadillac and Chevrolet marques. Carat adds this business to the GM account in Europe, which it has held since 2007, and where General Motors manufacturers Vauxhall and Opel.   

The appointment covers US, Europe, Middle East and Africa, and Asia-Pacific but does not include Brazil, India and China which were not included in the review. General Motors is understood to have launched the process to improve the effectiveness and efficiency of its global media.

Aegis Media, Carat's parent, claims the win is the largest in its history and it is understood that Carat is looking to set up a new office near the Detroit-based headquarters of General Motors in order to service the business.

Nick Waters, CEO of Aegis Media Asia-Pacific, said the win is significant not just globally but for his organisation as well. "Here in Asia, it’s really good news because there are a number of markets in which General Motors has a substantial business," he said. Specifically, Waters said the win will make a difference in Korea, where international agencies traditionally struggle to make inroads against the in-house capabilities of the chaebols. 

"And in Australia, the Holden brand is a national icon there, so that’s very exciting for us," Waters added. 

Joel Ewanick, General Motors' vice president and global chief marketing officer, led the review. He said, "We wanted a media agency partner with the sophistication to leverage global marketing opportunities. They are uniquely positioned to help us form strong media partnerships and drive significant global efficiencies."

Jerry Buhlmann, the chief executive officer of Aegis Group, said, "We are extremely proud to have been selected by General Motors as their global media partner, for what is the most significant new business win in Aegis Group’s history.   

Publicis Groupe, the parent of Starcom, issued a statement to say that the General Motors/Starcom relationship represented less than 0.5 per cent of total annual Publicis revenue.

The statement added: "We’re proud of the insight and high level of professionalism that Starcom has brought to its work on General Motors' image over the years, and of the support that we’ve given to General Motors through many ups and downs. Starcom will serve General Motors to the end of June."

Nigel Morris, chief executive officer of Aegis Media Americas, said: "This is a defining moment for our business and the market. We have designed our organisation for convergence and globalisation. We have a clearly differentiated operating model that is focused on reinventing the way we work with our clients and their brands.   

"From the outset it was evident that the General Motors team was looking for a transformative approach with innovation at the core. They have a powerful vision and powerful brands and we are looking forward to it being a powerful partnership."

This article was first published on campaignlive.co.uk.