Tesco has ended its 20-year relationship with Initiatve, bringing in WPP’s MediaCom to handle its £90m media buying account.
Robin Terrell who was recently appointed chief customer officer said the agency had “impressed with its depth and breadth of insight and perspective.”
It comes just months after the agency shifted its advertising account away from Wieden + Kennedy to Publicis’ BBH.
“[MediaCom] will work very well with the Tesco team and BBH as we begin to transform the brand and our conversation with customers. We are immensely grateful to Initiative for all the work they have put in to the Tesco brand over such a long time and wish them the very best for the future,” he added.
The final pitch is understood to have included Initiative and M/Six.
Tesco is in the early stages of trying to turn the brand around after a disastrous 18 months that has seen a £263m accounting error, falling sales, and a profit loss in 2014 of over $6bn. It is battling against discounters such as Aldi and Lidl as well as changing consumer shopping habits that have seen many of its large store formats become redundant.
Last week Terrell hired former Barclays brand boss Michelle McEttrick to the role of group brand director. She spent four years agency side as business director at BBH before moving to the bank where she launched ‘Barclays Values’ in the wake of the Libor-fixing crisis.