Lidl has handed two of the world’s major advertising groups a bigger role in its European marketing operations, dividing an estimated €1 billion media account between Omnicom and Havas after a review of its agency arrangements.
The decision puts Omnicom in charge of media planning and buying across several markets, including the UK, while Havas will handle Germany and other territories. The respective portions of the account are valued at approximately $780 million and $250 million.
The Brandspur Brand News reports that the move marks a shift in how the retailer coordinates advertising across its European business, with media budgets in 30 countries now being managed through a more consolidated arrangement.
For the agencies, the decision carries different implications. Omnicom has secured the larger share of the business, while Havas has gained a substantial international account that could strengthen its standing in the competition for major advertisers.
Lidl’s previous arrangement involved several agency holding companies, all of which took part in the review. The retailer’s decision to narrow the structure reflects its stated objective of combining international efficiencies with knowledge of individual markets.
The company said its national media budgets would be consolidated to improve coordination without losing the local expertise needed to reach consumers in different countries.
That balance is central to the new arrangement. While the agencies will work within a more coordinated structure, their responsibilities will cover markets with different consumer audiences and advertising needs.
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Havas’ share of the account is particularly significant because it includes Germany, Lidl’s home market. The award also gives the agency a stronger position in the contest for large, multi-country media assignments.
The review comes as the advertising sector continues to be dominated by major holding companies, including Omnicom, Publicis and WPP. Winning business from a retailer with Lidl’s European reach offers agencies an opportunity to reinforce their positions in the market.
Lidl’s media decision is not the only agency change underway at the retailer. It is also searching for a new creative agency, indicating that its advertising arrangements are being reviewed beyond media planning and buying.
The new structure is expected to change how Lidl coordinates campaigns and allocates advertising spending across its European operations, with Omnicom and Havas taking on responsibilities under the retailer’s revised strategy.
