McCann loses Nestle account

New Delhi, Nov 15 | Updated: Nov 16 2005, 05:45am hrs
Nestle India has moved its Rs 80-85 crore media buying and planning account from Universal McCann to Zenith Optimedia, the media arm of Publicis group, sources told FE.

As reported by FE in September, Nestle India had invited Zenith Optimedia and Group Ms Maxus to make presentations on its media planning and buying account. The review was called in the light of a spate of international re-alignments of Nestle accounts across countries. Nestle has shifted its media account between Publicis and WPP group. Globally, Nestle spends upwards of $2 billion on advertising and promotions.

According to sources, Group Ms Maxus is still in last-minute talks with Nestle for a possible shift of account in its favour. A formal decision of Nestle business changing hands will be made in a couple of days time, sources said.

With the Nestle loss, Universal McCann will lose business worth Rs 120 crore just this year. The agency had earlier lost the media business worth over Rs 50 crore of auto major General Motors India which awarded the account to Mumbai-based Madison Communications.

Industry estimates put the media spending by Nestle India in 2003-04 in the range of Rs 65-70 crore. This year the company is expected to increase its advertising spends by 12-15%, sources said.