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

Dive Brief:

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

Dive Insight:

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

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

Gap Inc. and OMG will 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 speak to brand identity, drive traffic, and build strong brand equity,” Dickson said.

The agency review kicked off in January and was intended to help Gap Inc. maintain operational and financial strength while driving revenue and relevance. The new 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 new media AOR, Gap Inc. has created a Marketing Shared Services organization that will standardize key media functions including shared media services, marketing intelligence and marketing enablement. The team will be lead by a to-be-determined executive who will report directly to Dickson.

The moves come just a week after flagship Gap named a new global CMO, Fabiola Torres. The former PepsiCo marketer will oversee marketing, creative, merchandising, store experience and operations teams and is known for an ability to connect 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 in their revitalization efforts.