Mercedes-Benz parent Daimler puts global media up for review

Mercedes-Benz’s Daimler is in the midst of a global review for its media business, according to people with knowledge of the matter.

The media pitch comes shortly after Publicis Group was named the international network and digital agency for Mercedes-Benz, following a six-month pitch against rival holding groups WPP and Omnicom. Publicis, which created a dedicated shop for the business, will begin working on Mercedes in 37 markets worldwide - excluding the U.S. and China - on July 1.

Now, the car company is seeking new support for its global media account. Omnicom’s umbrella media organization OMG handles media for Mercedes in the U.S., and Wavemaker works on the brand in international markets. Representatives from OMG referred comment to the client and Wavemaker was not immediately available for comment.

The Daimler media review is the latest in a string of global automotive pitches in recent months, including Ford and Volkswagen. 

This is "a nightmare for both the agencies and the clients - putting together the jigsaw puzzle of conflicts as these big reviews in the same category happen simultaneously," said R3 Principal Greg Paull.

Last week, Daimler reported an 11 percent drop in net income, year-on-year, to $2.85 million for the first quarter of 2018. Despite the slip, the automaker saw stronger earnings from its Mercedes-Benz luxury division and raised its profit forecast for the year.

Revenue in Q1 increased 3 percent to $48 million, and the company announced that it plans on increasing spend on new technology and innovation this year.