T-Mobile will have a new agency partner to buy and schedule media in the US, ending relationships with three established holding companies.
The wireless operator named the IPG initiative the US media agency following a media review led by ID Comms that T-Mobile launched last year following a merger with Sprint.
“Now that Sprint is part of T-Mobile, we are working on a larger scale and pursuing bigger and bolder goals. As part of this, we’ve been reviewing agency relationships over the past few months. Our team has heard from the best of the best and seen incredible thoughts to advance our next phase of growth, ”said Matt Staneff, CMO of T-Mobile, in a statement.
“Right from the start, we have seen a company whose beliefs and values match everything that Initiative is proud of. T-Mobile requires a certain level of bravery and an appetite for groundbreaking work that makes the upcoming partnership a natural fit, “said Amy Armstrong, CEO of Initiative US, in a statement. “It is a real honor for us to be able to lead this brand into the future.”
The independent media agency Horizon was the acting media agency for Sprint. Publicis Groupe’s Spark Foundry was responsible for purchasing and scheduling offline media from T-Mobile. GroupM’s Essence helped T-Mobile take some of its digital media responsibilities in-house in 2018 and continued its collaboration with the digital media company.
While all three established holding companies were invited to participate in the process after knowing the account, the mobile monolith made the decision to pursue a new approach by 2021. He plans to pursue new growth opportunities after the merger and will seek to position himself as a direct competitor to AT&T and Verizon.
Publicis Groupe, which set up a bespoke entity led by Publicis Seattle to promote the account, was the other finalist in the review, according to these sources. While Essence had previously worked with T-Mobile, WPP’s GroupM selected MediaCom to participate in the pitch process, these sources explained.
Publicis Groupe declined to comment. Representatives from Horizon, Initiative and MediaCom were not immediately available for comment.
According to data consultancy COMvergence, T-Mobile spent around $ 734 million on traditional media and $ 200 million on digital media from July 2019 to June 2020. Sprint spent an estimated $ 976 million in the same area, including $ 537 million on traditional media and $ 439 million on digital media, according to COMvergence.