• by Steve McClellan  @mp_mcclellan, September 20, 2021

Mercedes-Benz has consolidated its global marketing and communications assignment with Omnicom after a formal review.

The car maker spends an estimated $890 million on measured media according to COMvergence. Publicis Groupe also participated in the review.

As part of its effort to win the account Omnicom is creating a dedicated global entity to service it. The unit will create ads, orchestrate media placements and data analytics. Development of one-to-one people targeted marketing and PR are also part of the remit.

Omnicom will establish international hubs in the U.S., Europe, China and other regions that mirror the company’s recent consolidation of its own in-house performance marketing activities.

According to the car company, the six-month review focused on digital transformation and the development of digital and data-based media, as well as brand and performance marketing activities. Additionally, the client said it strived to simplify its global marketing operation.

Under a multiyear agreement, the new agency unit will commence operations under the name ‘Team X’ in January 2022, and will have responsibility for a large number of Mercedes-Benz business units in more than 40 markets worldwide.

To help optimize the new agency’s operations, Omnicom is acquiring two agencies that have been on the Mercendes-Benz roster including Berlin-based digital agency Antoni, which started in 2015 with Mercedes-Benz as its founding client. Omnicom said the agency would have a “leading role” in Team X. The acquisition is expected to be completed in the first quarter of 2022.

Omnicom has also agreed to acquire German PR firm OSK which will operate as a standalone agency within Omnicom’s PR division and also have a leading role in Team X. The agency offers PR, social media and other marketing services.

"By bringing together a new, fully integrated unit, Mercedes-Benz is re-orchestrating all of its communication content across all channels to deliver a data-driven, personalized and seamless brand experience for customers at all touchpoints worldwide,” said Britta Seeger, head of sales for Daimler AG and Mercedes-Benz AG.  "Our goal is to build the most desirable cars in the world - we also want to convey the desirability of our products as well as our esteem for our customers in every contact with our brand," added Seeger.

John Wren, Chairman and CEO of Omnicom Group added, “Mercedes-Benz was looking for a holistic agency partner that could help deploy a sustainable and globally consistent luxury experience for the company’s brand promise around the world for the first time. Our newly formed ‘Team X’ delivers on that goal, creating a streamlined global structure with clear single points of contact as well as innovative data and analytics connected in every layer.