The GroupM agency will handle all traditional and digital media for Universal Music Group in US, Europe, Canada and Australia. The contract expands UMG’s existing relationship with MediaCom, which already handles media services for UMG in Europe, Canada and Australia. The announcement comes after a review over the summer.
“We are thrilled that Universal Music Group has chosen us as their media services agency and we look forward to contributing to the success of their brands,” said Harvey Goldhersz, MediaCom North America CEO. “The music industry is dynamic and exciting, and we welcome the opportunity to work with our new business partners to change the rules of how record labels promote artists through media.”
With a budget range of $30 million to $40 million, the company is nearly doubling its spend in the U.S. compared to 2010. According to Kantar Media, Universal spent $18.1 million in measured media last year.
“The music business is changing. We have the ability to apply social and search to conventional means of marketing,” Goldhersz told Ad Age.
During the pitch, UMG gave the agencies assignments to promote releases for several labels and artists of different genres, he added.
Music sales are up: 2011 is on track to become the first full year of positive music sales since 2004.
UMG labels include Interscope Records, Def Jam Recordings, A&M/Octone, Decca, Deutsche Grammophon, Disa, Emarcy, Fonovisa, Geffen Records, Island Records, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Motown Records, Polydor Records, Show Dog-Universal Music, Universal Music Latino, Universal Republic and Verve Music Group.