German supermarket chain Aldi has ditched advertising agency Lansdown Conquest from its creative account in a cost-cutting move, and put the work into production studio Carney Richardson.
The account is worth about 3m, and it is believed this will increase to 5m in the next year. To fund the increase in media spending, Aldi is understood to be looking at slashing costs.
Carney Richardson uses computer generated advertising, which will be cheaper than other methods. Sources say that Lansdown Conquest will hang on to some parts of the Aldi business, though it is unclear how this will work out.
The food discounter has about 150 shops in the UK, and has taken market share from rival discounter Kwik Save, even threatening supermarket giants Tesco and Sainsbury’s.
The move follows Aldi’s decision last week to put its media buying work into Media Campaign Services, which took the entire media buying task from Lansdown Conquest.