Verizon Corp. and Verizon Wireless Will Consolidate Over $1 Billion In Marketing Budget
Verizon Corp. today announced they will be consolidating an estimated $1.9 billion advertising and media business for its corporate and business-to-business units.
The business decision will affect 10 creative and media-buying agencies, and forces companies like Interpublic’s DraftFCB, which was a longtime agency for Verizon Corp., and independent McGarrybowen, which worked for Verizon Corp. since 2002 to consider alternative sources of revenue.
According to an AdAge article, TNS Media Intelligence placed Verizon’s 2006 spending across all its entities at $1.9 billion. One insider, however, placed the true value of the account closer to $1.1 billion.
Interpublic Group’s, McCann WorldGroup will now be responsible for double duty. Universal McCann, which had handled planning and buying for wireless, will take on duties for all national media planning. McCann Erickson, part of McCann WorldGroup, has been the creative agency for wireless and will now be responsible for combined creative duties. A windfall in opportunity for McCann WorldGroup, to be sure.
“The Verizon brand resonates with customers as one strong tradition in providing quality communications products and services,” John Stratton, exec VP-chief marketing officer at Verizon said in a release. “Fewer agencies will allow us to leverage key creative teams and develop one immediately identifiable Verizon brand.”
Verizon Corp. makes the announcement in an obvious effort to increase efficiency of marketing and advertising dollars.
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