GM to Starcom Mediavest

Business briefs/leads:

General Motors has selected Publicis Groupe's Starcom Mediavest for its $3.2 billion domestic media business following a review, according to sources.

The incumbents were Interpublic Group's GM Mediaworks in Warren, Mich., and LCI in New York, which handle national and regional buying, respectively. Those shops defended in a shootout against Chicago-based Starcom Mediavest.

$3.2 Bil. GM Media Business Jumps to Starcom MediaVest:
The automaker spent $3.2 billion on domestic measured media last year, per Nielsen Monitor-Plus. (That figure includes more than $600 million in dealer association advertising, which is included in the review.) Starcom already handled GM outdoor advertising, worth about $30 million. That portion of the business was not in play. Overall U.S. media planning duties, with Starcom sibling GM Planworks, were likewise not in review.

Sources said Planworks, headed by president Dennis Donlin, would be expanded to handle the new GM buying assignment, and essentially becoming a full-serivce media company dedicated to the automaker's account.

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and from AdAge

Betsy Lazar, general director of advertising and media operations at the automaker, in a statement said, “Effective Oct. 1, GM Planworks has been selected as the agency of record for GM's entire media buying portfolio in the U.S. This includes national and local broadcast buying, print and digital media.”

Ms. Lazar called the review two months ago. She was weary of the squabbling between GM Mediaworks and GM Planworks, Detroit, according to sources close to the matter.
Her boss, Mark LaNeve, vice president of sales, service and marketing in North America, told early during the review that she came to him seeking his blessing to call the review. He said he trusted her judgment and agreed.

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This page contains a single entry by Seth A. published on May 11, 2005 9:32 AM.

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