Wal-Mart chooses new ad agencies

Wal-Mart chooses new ad agencies

	Published : Fri, 12 Jan 2007 23:18 By : Agencies Print this Story

NEW YORK (AFX) - Wal-Mart Stores Inc. said Friday that it has picked Interpublic Group of Co.'s Martin Agency and Publicis Groupe SA's MediaVest to take over its half a billion dollar advertising account.

The decision comes after the world's largest retailer in early December dumped its newly hired Draft FCB, another division of Interpublic Group, two days after the highly publicized firing of a top marketing executive, Julie Roehm along with her subordinate, Sean Womack.

Wal-Mart said Friday that Martin Agency will handle its creative responsibilities, while MediaVest will oversee media buying and planning duties. Martin' client list includes such big names as UPS, Hanes and Discover Card. MediaVest's long-standing clients include Coca-Cola Co. and Procter & Gamble Co.

'We have assembled a top-tier group of marketing partners that have deep retail experience, recognized creativity and an understanding of our customers,' said John Fleming, chief marketing officer at Wal-Mart, in a statement.

Last year, Wal-Mart decided to shake up its advertising strategy. It hired Roehm, senior vice president of marketing communications, in January 2006. She reported to Wal-Mart's Fleming, a former Target Corp. executive. Under Roehm, Wal-Mart invited bids from a number of ad agencies for ideas on how to better market its new image.

In the end, Wal-Mart severed ties with its two longtime agencies, Omnicom Group Inc.'s GSD&M in Austin, Texas, and Bernstein-Rein Advertising Inc., based in Kansas City, Mo. In October, it named Draft FCB to handle creative duties and Aegis Group's Carat to handle media buying. Soon after, Wal-Mart fired the two executives and tossed out the original selections.

The New York Times and other newspapers reported that Roehm violated company policy by accepting gifts from potential vendors and maintained a personal relationship with her subordinate.

Wal-Mart has declined to give a reason for Roehm's departure.

At the time, Wal-Mart informed Draft FCB that it was not going to be eligible for the new review. Carat, however, was able to participate.