Uber is switching its $600 million ad buying business from WPP to rival Omnicom, according to two people familiar with the matter.
WPP’s EssenceMediacom agency had handled the majority of Uber’s media planning and buying across TV, digital, and out-of-home since 2020.
Uber began a competitive pitch for its media business in March. IPG Mediabrands also participated, the person said.
EssenceMediacom, itself an agency within WPP’s GroupM’s media investment division, will retain Uber’s business in the Asia-Pacific region, the person said. The decision was announced to the agencies this week.
“Uber moves at a fast pace, and throughout the pitch we were impressed with Omnicom Media Group’s speed and agility, which along with the quality of their talent, technology — as embodied in their Omni marketing orchestration system — strategic thinking, and commitment to being a true partner to our business set them apart,” said Uber VP Marketing David Mogensen in a statement.
Florian Adamski, Omnicom Media Group CEO, said in a statement that its agencies would make its “strategic data capabilities” central to its work for Uber.
WPP’s GroupM declined to comment.
Adweek reported in May that Uber had sought a “best-in-class strategic partner who will act as an extension of our internal media & marketing teams” for its brand marketing business. The request for information, which Adweek obtained, said the review would not include its performance marketing and communications and public affairs requirements. IDComms was managing the review process, Adweek reported and Insider confirmed.
Uber’s advertising strategy has evolved in recent years after its 2019 IPO away from a frenzied focus on customer acquisition — replete with a heavy emphasis on discounts and promotions — to one that seeks to draw existing users to take up more of its services.
The company reported its first-ever global operating profit this year and has said it wants to become a go-to travel platform, allowing users to book the traditional taxis, but also trains, flights, and car rentals. It’s also focused major advertising efforts on Uber Eats and its membership service Uber One, which it featured in a Super Bowl ad starring Sean “Diddy” Combs this year.
Uber spent more than $4.7 billion on sales and marketing costs in 2022, according to its financial statements.
Omnicom media agencies have notched up a handful of sizeable wins since the beginning of July. New business has included the $585 million Beiersdorf account, the $150 million global HSBC business, and the $150 million brief from lottery operator Allwyn Entertainment, according to marketing industry tracker COMvergence.
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