Gap Inc. Has consolidated its media assignment with Omnicom Media Group after a review that began in January.
OMG agency PHD was the long-time incumbent for off-line media buying. Under the new arrangement, sibling agency OMD will anchor the account, which will be serviced by a team of talent and technology resources from across the group.
The assignment covers all Gap Inc. brands including Gap, Banana Republic, Old Navy and Athleta.
The company spent an estimated $190 million on measured media last year according to agency research firm COMvergence.
The review followed the 2023 appointment of Richard Dickson as the company’s President and CEO. He was previously President and Chief Operating Officer at Mattel.
Dickson confirmed the decision in an internal memo that was shared by the company.
“OMG recognizes that fashion is entertainment, and they know how to work at the speed of culture,” Dickson wrote. “No agency understands customer-centricity better than they do.”
For the company, added Dickson, “that means helping us modernize Gap Inc.’s media operating model by leveraging the scale ofour platform while servicing individual brand needs.”
Dickson also disclosed that Gap Inc. Is forming a new Marketing Shared Services operation, whose leader, yet to be named, will report directly to him.
The new organization, he added, will “unite key media functions including shared media services, marketing intelligence and marketing enablement as one team.”
The head of the operation will oversee media and direct marketing planning and execution, marketing intelligence, and partner management.
“We’re fortunate to have strong media talent across our organization, and we are eager to leverage their collective strengths and skills in this new organization,” Dickson stated.
The assignment will fully transition to OMG by the end of the second quarter.
