Prudential Group is thought to be planning a combined review of its &£20m UK advertising, planning and buying accounts, including the main UK brand, the online bank Egg and its M&G fund arm. Cost-cutting is likely to lead to consolidation of its marketing services roster.
Creative, below-the-line, digital and media agencies are expected to be involved in the review. Currently, each part reviews separately.
Egg’s advertising, which was worth &£11.5m in the year to September, is handled by Mother, with planning and buying through MediaCom and direct marketing through Claydon Heeley Jones Mason. WCRS handles Prudential’s &£6m advertising business, while PHD and Tequila have media and below-the line.
Incoming UK chief executive Nick Prettejohn, who will have each business unit reporting to him, will trigger the reviews. He replaces Mark Wood, who was responsible solely for the Prudential brand. The decision has also led to speculation over how the separate marketing departments will be run.
The Pru announced to the City last week its intention to buy back the remaining 22 per cent of Egg shares by January. It also said it would make up to &£40m worth of savings by the end of 2007, for example through integrating most marketing functions.
Egg will also be used to cross-sell more group products from the Prudential and M&G over the internet once it has been delisted in January 2006.