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Home Marketing B2B Marketing

Gap Inc. selects Omnicom as media AOR, reorganizes key media functions

May 15, 2024
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  • Gap Inc. has retained Omnicom Media Group (OMG) as its cross-brand media agency of record, in accordance with an internal memo shared with Marketing Dive. The owner of Gap and Old Navy launched a review of its U.S. media agency task in January 2024.
  • OMG is anticipated to assist modernize Gap Inc.’s media model, working as one team to deliver efficiencies and elevate the corporate’s individual brands. Onboarding is currently underway, with OMG expected to be “fully engaged” by the top of Q2.
  • In addition, Gap Inc. is making a Marketing Shared Services organization to standardize key media functions. The moves are a part of the corporate’s efforts to revitalize its brands and are available per week after flagship brand Gap named a latest global CMO.

Gap Inc.’s appointment of OMG as media AOR across its brands is the marketer’s latest effort to reinvigorate a portfolio that features its eponymous flagship, Old Navy and Banana Republic. Long-time incumbent PHD, an Omnicom shop, previously managed the account, price $190 million of measured U.S. media in 2023, per COMvergence data.

In OMG, Gap Inc. has found a media agency that works on the “speed of culture” — a standard refrain from marketers looking to have interaction with younger, ad-wary consumers — and understands “customer-centricity,” CEO Richard Dickson said in an internal memo.

Gap Inc. and OMG can be working as “as one team and one company to deliver greater efficiencies and elevate each of our individual brands with culturally relevant narratives that talk to brand identity, drive traffic, and construct strong brand equity,” Dickson said.

The agency review kicked off in January and was intended to assist Gap Inc. maintain operational and financial strength while driving revenue and relevance. The latest memo called out OMG’s client roster of culture-creating brands, including Apple, Disney, L’Oréal, Chanel, PepsiCo and Vans, and noted that the agency understands that fashion is entertainment.

In addition to its latest media AOR, Gap Inc. has created a Marketing Shared Services organization that may standardize key media functions including shared media services, marketing intelligence and marketing enablement. The team can be lead by a to-be-determined executive who will report on to Dickson.

The moves come just per week after flagship Gap named a latest global CMO, Fabiola Torres. The former PepsiCo marketer will oversee marketing, creative, merchandising, store experience and operations teams and is understood for a capability to attach with globally diverse audiences.

Gap Inc. in March reported that Q4 net sales rose 1.3% to $4.3 billion as its Gap and Old Navy brands made progress of their revitalization efforts.

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