Dive Brief:
- Dunkin' Donuts named Omnicom Group's BBDO Worldwide as its new creative agency of record in a news release. ARC/Leo Burnett will handle the brand's retail and in-store marketing.
- BBDO won the account after a months-long review process and will oversee Dunkin's advertising strategy and creation, including for national print, broadcast and out-of-home campaigns, as well as digital and multicultural efforts. The agency's first work for the brand will debut in the fall. ARC/Leo Burnett will be responsible for in-store promotions and activity, including point-of-purchase, merchandising and signage.
- In other news, Omnicom reported a worldwide revenue growth of 1.2% to $3.6 billion in Q1 2018, per a news release. The ad holding company reported a 2.4% increase in revenue from organic growth compared to Q1 2017. Despite some strong results, it also experienced several client losses in 2017 and is trying to adapt to evolving client needs, including better digital media buying, according to The Wall Street Journal.
Dive Insight:
Dunkin' choosing BBDO as creative AOR comes at a tough time for traditional agencies, which face greater competition from consultancies and are grappling with brand clients both slashing marketing budgets and taking more marketing functions in-house. It's a major account win for Omnicom and might put some extra momentum behind quarterly results marked by business growth and also the headwinds that are broadly affecting legacy agency holding groups. Dunkin', beyond being a major national restaurant chain, has frequently been an innovator in mobile ordering and loyalty, and is also in the midst of transforming its retail locations to put a greater focus on digital and mobile offerings.
Searching out a new creative agency was one of the first big decisions made by Dunkin's new CMO Tony Weisman, who joined the company in September from Publicis' DigitasLBi agency, where he worked on the brand's account for six years. Weisman's been charged with ramping up product innovation, field marketing, consumer insights, advertising and digital and consumer packaged goods. More locations are also dropping "Donuts" from their branding entirely as the company puts an emphasis on better-selling items like coffee. It will not be surprising if BBDO's first creative efforts, debuting later this year, spotlight some of these innovations and the general brand revamp.
Hill Holliday, which did not participate in the creative review, served as Dunkin's agency of record since 1998 and came up with the brand's iconic "America Runs on Dunkin'" tagline first appearing in 2006. Dunkin' is still conducting a review of its media buying and planning strategy and plans to announce a decision in Q3, per the release. Incumbent media agency, IPG's Trilia shop, is participating in the review.
