Nestle chooses WPP OpenMind as exclusive media agency in Europe

Nestle has selected WPP OpenMind as its sole media agency for European operations, aiming to enhance customer service efficiency amidst a cost-of-living crisis impacting consumer purchasing habits. This agreement marks a significant victory for WPP OpenMind, particularly in a climate of declining global advertising expenditures. WPP, a leading global advertising group, has adjusted its growth projections for the year due to reduced spending by technology firms.

A Nestle spokesperson stated that this agreement will improve decision-making and media planning, enabling brand-building campaigns to capture consumer attention at scale. Nestle declined to disclose the specific marketing and advertising expenditures for Europe or other agreement details, including its duration. Notably, Nestle had previously engaged multiple media agencies in Europe.

WPP OpenMind will oversee Nestle's marketing communications, encompassing campaign planning, organization, and advertising space purchases for its numerous European brands, such as Nescafe coffee and Kit Kat chocolate bars. The agency, however, will not handle creative tasks like jingle creation, animation, or content generation. It's important to note that this announcement applies exclusively to the European region and does not extend to other global regions.

Nestle's marketing spending had been curtailed in the past year due to supply chain challenges and shifting consumer behaviors. Nonetheless, it has resumed this year as the company grapples with customer retention amid reduced consumer spending and increased prices. Nestle CEO March Schneider reported considerably higher marketing expenditures in Q2 compared to the previous year and pledged continued significant investments in the second quarter of 2023. In the first quarter of 2023, Nestle's marketing and advertising spending increased by 7.5% compared to the previous year.