Grubhub Designates UM, a division of IPG, as its Primary Media Agency
Grubhub Consolidates Media Agencies with Universal McCann as its Agency of Record
In a move aimed at streamlining operations and potentially reducing costs, food delivery platform Grubhub has consolidated its media duties with Universal McCann (UM). Havas Edge and Dentsu, who previously managed Grubhub's DRTV, CTV, and out-of-home advertising, are no longer involved in these tasks.
According to industry sources, UM will take over strategy, planning, buying, and data and analytics for Grubhub, supporting the company's expansion and ensuring a cohesive approach across all advertising channels. The consolidation of agencies is a common practice in the advertising industry, with companies like Grubhub seeking to achieve greater efficiency, improved integration, better negotiation leverage, and simplified vendor management.
Grubhub's estimated media spend, as reported by COMvergence, stands at $128 million, with $40 million allocated for digital advertising and $88 million for offline advertising. The consolidation may lead to significant cost savings for Grubhub, although the exact reasons for this decision remain unclear as Grubhub has not released any official statements regarding the matter.
This consolidation is part of a growing trend in the industry, with companies looking to simplify their media operations and potentially reap the benefits of a more strategic advertising approach. For Grubhub, the appointment of UM may indicate a shift in its advertising strategy, which could be further clarified through recent press releases, industry news platforms, or official communications from Grubhub or Interpublic Group.
In the wake of its decision to consolidate media agencies, Grubhub's finance department may observe potential cost savings from the consolidation, given the company's substantial media spend. This move towards business efficiency with Universal McCann aligns with broader industry trends, as companies strive for cohesive advertising strategies across all channels.
