According to Reuters, Nestlé has announced that it will be collaborating exclusively with WPP OpenMind as its media agency in Europe. This strategic partnership aims to enable Nestlé to connect with consumers more efficiently amid the evolving shopping habits driven by the current cost-of-living crisis.
WPP OpenMind Secures Significant Deal
In a challenging environment where global advertising spending is on the decline, WPP OpenMind has achieved a notable victory. This comes at a time when WPP, the world’s premier advertising group, adjusted its full-year growth forecast downwards in August due to reduced spending by technology firms.
Nestlé’s decision to select WPP OpenMind as its exclusive media agency in Europe reflects its commitment to enhance decision-making and media planning. The primary objective is to empower marketing campaigns to create brand recognition and capture consumer attention on a large scale.
Nestlé has not disclosed the exact amount it allocates to advertising and marketing in Europe or provided specific details about the contract, including its duration. Previously, the Swiss conglomerate engaged various media agencies across the continent.
WPP OpenMind’s Role
Under this new agreement, WPP OpenMind will play a pivotal role in coordinating Nestlé’s marketing communications activities, which encompass purchasing advertising space and devising campaign strategies. This responsibility extends to overseeing Nestlé’s diverse portfolio of brands in Europe, including iconic products like Kit Kat chocolate bars and Nescafe coffee.
It’s important to note that WPP OpenMind will not be responsible for creative aspects such as animation, jingle creation, or content generation. This element of Nestlé’s marketing operations will continue to be handled separately.
Europe-Centric Agreement
Nestlé has clarified that this partnership, which designates WPP OpenMind as its exclusive media agency, applies solely to its European operations. It does not impact Nestlé’s business relationships in other regions.
Nestlé’s Commitment to Marketing
In a competitive landscape where top brands are grappling with challenges such as consumer spending cuts and a shift towards more economical options due to rising prices, Nestlé remains committed to marketing investments.
Nestlé CEO Mark Schneider indicated in July that the company’s marketing expenditure for the second quarter of the year exceeded the previous year’s level by a significant margin. Furthermore, he affirmed Nestlé’s intention to sustain robust investments in marketing during the latter half of 2023.
During the first half of 2023, Nestlé reported a 7.5% increase in its advertising and marketing spending, measured in constant currency, compared to the same period in the previous year.
