Publications
Partners
Johannesburg - Draftfcb has been named as the "preferred bidder" for the much-sought-after Old Mutual advertising account, but Old Mutual marketing executive Stephen Cahill says in a statement that the pitch process to appoint a new agency has not been concluded.
"On this basis, our discussions with Draftfcb continue regarding a potential contract," he says. "We have not confirmed the advertising budget either."
The new agency's tasks will be to reposition Mutual as more than a life assurer, and to increase its penetration of the black market. Old Mutual spent R110m on media advertising last year, according to The Nielsen Company.
The account was vacated by Ogilvy, the incumbent of 22 years, apparently because of a breakdown in relationships.
Old Mutual then shortlisted four agencies to pitch: Net#work BBDO, DDB South Africa (which withdrew after it was awarded part of the FNB account), Lowe Bull and Draftfcb. Ogilvy, which shared the business between its Johannesburg and Cape Town agencies, declined to re-pitch.
Draft is hoping for compensation for the loss of the R300m First National Bank account, which bills about three times as much as Old Mutual.
When Old Mutual announced it was looking for a new agency, it said it was re-positioning itself as the country's leading investment and savings champion, signalling a significant change from long-standing perceptions of it as a traditional life assurer.
"This is an opportune time to open up room for new ideas in its above-the-line advertising," it said. "We wish to continue strengthening our footprint in an effort to become more relevant to a larger customer segment."
Decoded, that means it will seek to attract more black clients.
After FNB, this is probably the biggest account move in a year when most clients stuck with what - and who - they knew.
Mutual's traditional life assurance rival, Sanlam, has become a more formidable advertising competitor since its appointment of The Jupiter Drawing Room Cape Town as its agency.
- Fin24.com
