Eastman Kodak Co is planning to consolidate its $100 million-plus global media buying and planning business, now scattered at various agencies, including WPP Group’s MindShare and Aegis Group’s Carat.
Kodak is reaching out to roster agencies as well as outside shops. The consolidation is a bid for cost efficiencies and it does not affect Kodak’s creative agency of record relationship with WPP’s Ogilvy & Mather, according to a company spokesman.
The spokesman said that the idea of consolidating the media account had come up frequently over the past 18-24 months and that it was in early stages.
Kodak’s media spending has dropped sharply in recent years as the once iconic brand, which marketed its first camera in 1888, has struggled to compete in a digital age. Once a major TV advertiser, it has shifted a lot of spending online and into events, such as with the Kodak Theater.
Media spending decline
In the US, Kodak spent $101 million in measured media last year, but only $36 million on network TV, according to TNS Media Intelligence. Media spending has been decreasing year-over-year since 2002, when it spent $204 million.
Its recent earnings report showed a widened second-quarter net loss and a revenue decline. The company, which in 2004 stopped making film cameras, also announced it will begin to outsource the manufacturing of digital cameras under its brand.