August 5, 2024 | by Mehrdad Amirkhizi
Mercedes continues to rely on Omnicom’s Team X
At BMW, the model with the customized agency The Game Group did not work properly. The collaboration was terminated , at least in its previous form. Mercedes-Benz is different: the Stuttgart-based carmaker has extended its contract with Omnicom’s customized agency “Team X” ahead of schedule.
The company confirms the information from HORIZONT. “The contract with the agency Team X is being extended early, which represents a strong commitment to our existing business relationship. This contract extension speaks for the stability and continuity of our partnership, and we look forward to continuing our successful collaboration,” a spokesperson said when asked. He did not want to comment further on the details, for example on the new term. Team X or its parent company Omnicom also did not provide any details. However, according to reports, the contract signed in 2021 was extended for a further two years well before it expired. At the time, Mercedes-Benz had bundled the combined budget for the areas of media, marketing/advertising, and performance marketing at the US advertising holding company after a major pitch between Publicis and Omnicom. The company then built up the tailor-made unit Team X for the customer from various services of the group and in this context also took over the German Mercedes core agencies Antoni (advertising) and OSK (PR).
Together, we are keen to take things to the next level and discover and develop even morepotential in our unique partnership.
Florian Adamski, Omnicom
The importance of the early extension of the mandate for Omnicom can be seen in the fact that Florian Adamski, the holdingcompany’s global media CEO and head of Team X’s supervisory board, has spoken out personally. He says: “The early extension ofthe contract with our partners at Mercedes-Benz is anything but a given, especially in volatile times, and confirms the gooddevelopment of Team X, which is paying off strategically and operationally for the customer. We are not only united by our sharedsuccesses over the past few years. We are both keen to take the next step and discover and develop even more potential in our uniquepartnership.”
How this next stage will look and how the exclusive agency is preparing for this task is currently a subject of consultation, according to information from HORIZONT. It remains to be seen whether there will be content, structural, and personnel changes in this context. Operationally, Team X is managed by CEO Natanael Sijanta, who was previously a senior marketing and advertising manager at Mercedes-Benz. Another manager from Germany, Anke Peters (Global Client Lead), is part of the agency’s leadership team.
The Stuttgart-based automaker, like most German car brands, is currently going through difficult times. The company is struggling with declining sales in its core business. Revenue and profit in the important passenger car division fell in the second quarter. Nevertheless, CEO Ola Källenius remains optimistic about the future business outlook. “We expect sales and the model mix to improve in the second half of the year, supported by further market launches, especially in the top-end segment,” said the CEO during the presentation of the quarterly results.
MORE ON THE TOPIC
Omnicom Wins Mercedes Pitch – and Acquires Antoni and OSK
The decision in the pitch for the global advertising account of Mercedes-Benz has been made. The contract goes to Omnicom. As part of this deal, the US conglomerate is also acquiring the two German agencies Antoni and OSK.
Mercedes-Benz is not the only major German car manufacturer that Omnicom is working with. With Omnicom Media Group and its operational brand PHD, the group is also responsible for the Volkswagen Group. The relevant mandate was recently retained following a pitch.
Now, the focus is on setting up a new operating model for the client. Advertising for the main Volkswagen brand is developed by the agency DDB, which also belongs to the Omnicom holding. DDB has reactivated former DDB Creative Chief Amir Kassaei to provide new impulses for Volkswagen advertising.
In contrast, competitor BMW has parted ways with its bespoke agency solution, The Game Group. The idea was to consolidate brand and corporate communication both internally and externally. This apparently did not work out. In the area of product communication, BMW continues to work with the customized model “The Marcom Engine” and agency partners Serviceplan, Monks, and Berylls.
