Diageo reviews global media account

Diageo is reviewing its global media buying and planning account. The last global review was held in 2016, with Dentsu Aegis Network (DAN) being appointed to handle Southeast Asia, North America, Europe and Latin America.

Meanwhile in 2015, the company selected Carat as its media agency across major Southeast Asia markets, cutting across a variety of brands including Guinness, Smirnoff, Johnnie Walker, Baileys, Singleton, Haig, Ciroc and Benmore.

In a statement to Marketing, Diageo's spokesperson said: “It is industry best practice to review a major media account like this every few years. We have decided that the time is right to review our media agencies globally to ensure that we continue to be at the forefront of media planning and data driven marketing plans.” Meanwhile, DAN declined to comment on Marketing's queries.

According to Adweek, Diageo's spokesperson said "the time is right" for a global media review to ensure the company remains "at the forefront" of media planning and data-driven marketing plans. Diageo reportedly has a budget of approximately US$320 million on measured marketing globally each year, Adweek reported quoting data consultancy COMvergence.

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For the 2019 financial year ended 30 June, Diageo reported a 5.8% increase in net sales to approximately US$15.84 billion with organic growth partially offset by acquisitions and disposals. Its operating profit increased 9.5% to about US$4.91 billion driven by organic growth. According to Diageo, all regions contributed to broad based organic net sales growth, which increased by 6.1% with organic volume up 2.3%.

Meanwhile, organic operating profit grew 9.0%, ahead of top line organic growth, driven by improved price or mix and productivity benefits from everyday cost efficiencies, partially offset by cost inflation and higher marketing investment

Chief executive Ivan Menezes said the company has delivered another year of strong performance. He added that Diageo's focus on quality sustainable growth is backed by a culture of everyday efficiency that enables it to invest smartly in marketing and growth initiatives while expanding margins.

"These results reflect the steady progress we are making and as we look ahead we see attractive opportunities to deliver consistent growth and create shareholder value. In the medium term I expect Diageo to maintain organic net sales growth in the mid-single digit range and to grow organic operating profit ahead of net sales in the range of 5% to 7%," Menezes added.

(Photo courtesy: Johnnie Walker Facebook page)