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Intelligence Briefs

Nestlé corrals holding companies into hybrid buying unit, threatens walled gardens

Paul McIntyre
Executive Editor

25 November 2019 2min read

Nestlé has corralled roster agencies from the big four ad holding groups into a single hybrid media buying team. It threatens to punish those that do not meet higher transparency standards, even the big walled gardens (The Drum).

 

Key points

  • Global Digital Media Center of Competencies (DCoC) unit uses internal and agency staff from Dentsu, IPG, Publicis and WPP
  • Aim is to get better results and more transparent outcomes
  • Nestlé realises it cannot take everything in house
  • “There's no way we can keep investing to the level we are... it's not satisfactory for us. We are changing that now with the new model.” – Nestlé global head of sales and e-business, Sebastien Szczepaniak

 

 

My Takeout

There's a similar sound emitting from global and local marketing teams: in-housing is actually hard to do, keep quality talent and continue investing tech systems and tools to keep pace with broader market developments. Wholesale in-sourcing of agency services looks like an exception versus hybrid models with agency, consulting and holding groups all in the mix.

Three years in to its ad data overhaul, Nestlé might just have landed on the solution that delivers the requisite firepower while keeping agencies onside.

Let’s go. What do you think?

Paul McIntyre
Executive Editor

Paul McIntyre is a 25-year business journalist and Executive Editor of Mi3, a weekly intelligence briefing backed by the Media I group for the tech, media, marketing and agency sectors.

Mi3 was launched in April 2019 to distil and advance intelligent cross-sector conversations on global and local industry trends and developments that matter. 

Paul is also a contributing editor for The Australian Financial Review. He has covered media, tech, marketing and advertising for mastheads including Media in The Australian, The Sydney Morning Herald, The Age, The New Zealand Herald and Advertising Age (US). 

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