with The Jupiter Drawing Room (Cape Town), Sanlam has moved its R90m-a-year advertising account to MetropolitanRepublic. A new marketing director at Sanlam felt good corporate governance required a review, and Metropolitan and Ogilvy Cape Town were invited to pitch against Jupiter.
“Naturally it’s disappointing,” says Jupiter Cape MD Claire Cobbledick. “It’s an income loss, which was only partially compensated for by our winning the Budget Insurance account. We followed the Yardstick Relationship Measurement system and it gave no indication of poor performance.”
Cobbledick says there will be some retrenchments, but can’t say how many at this stage. “We will take the opportunity to restructure the agency and improve efficiencies,” she says.
Sanlam’s move is merely the latest in a series of movements indicating that the media, marketing and advertising sector is in a state of flux right now. Accounts are moving, people in media and advertising are moving, agencies are merging or closing down. In the last six months, well over R2bn worth of billings has been moved to new agencies.