Reckitt Benckiser launches review of $1.8 billion media spend worldwide
British-based household giant Reckitt Benckiser has anounced a review of its $1.8 billion global media account.
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The review comes less than three months after Unilever veteran Richard Davies was named director of global media.
The review has created a huge buzz in the advertising world , coming within a week of announcement of the Omnicom Publicis merger.
The company's last global media review, four years ago, tapped Publicis Groupe's Zenith and Havas Media Group. The pitch then also included agencies from WPP and Omnicom.
Slough-based Reckitt - its world brands range from Finish to Dettol to Durex - expects the process to be completed by year end and take effect from Jan. 1 2014.The company has operations in 60 countries.
Zenith handles RB media in the U.S. The review doesn't affect creative assignments, led by Havas globally.
The US magazine AdAge said the review was likely to be "particularly closely watched" as it's the first to come after Publicis announced plans to merge with Omnicom . The Zenith unit holds a big chunk of the RB account.
"Conflict, however, is unlikely to be an issue, " said AdWeek, "since RB already worked with rival Procter & Gamble within Publicis Groupe's media agencies.
"But the RB review could test the theory that the combination will provide added clout and efficiencies for clients."
RB's North American Communications Director Tony Brand said in a statement , "As due diligence, RB periodically reviews its media services to ensure it gets the best service capabilities and value for money. This process will allow us to do that.
"Havas and Publicis have shared the majority of our business across global markets since 2009. This is not a comment on the quality of the relationship or service."
Incumbents are "able and encouraged to participate," he said, adding, "We will consider all options available."
Davies himself will be leading the review. He was most recently a media executive with Unilever.
Reckitt Benckiser spent 12.7% of its $14.5 billion in sales last year on "brand equity investment. " That is a measure of media spending that also incorporates such things as the costs of creating owned and earned media.