AT&T to review $3.4B advertising strategy

AT&T Inc. is reviewing its advertising strategy, and has put its estimated $3.345 billion media-buying and -planning account up for grabs. The nation’s No. 1 wireless carrier said the review is expected to be completed by the end of the year.
In a statement, AT&T said it will be issuing a request for proposals to incumbent advertising firms.
“This move will consolidate all of AT&T’s media planning and buying at one agency and is part of the company’s ongoing efforts to maximize efficiencies created, in part, by AT&T’s acquisition of BellSouth at the end of last year,” AT&T said in a statement.
“AT&T is pleased with the work of all of its agencies to date,” it added.
Five ad agencies currently are handling various parts of the AT&T business. GSD&M is the lead agency for media planning and buying for the telecom’s landline business, including digital. Mediaedge:cia handles the carrier’s wireless media planning and buying, and OMD handles print for the wireless unit. Initiative is the agency for the nine-state area of BellSouth, and Digitas handled wireless digital planning and buying.
Earlier this year, AT&T, the nation’s second largest advertiser, named BBDO as its primary ad firm, moving duties away from GSD&M. BBDO was formerly the ad agency for Cingular Wireless.
AT&T told Wall Street that 20% of its saving from the BellSouth acquisition, and its complete ownership of Cingular Wireless, would come from advertising and marketing expenses.
Advertising Age estimates, which include both measured and unmeasured spending, put the overall budget for AT&T, BellSouth and Cingular Wireless at $3.345 billion in 2006. AT&T and Cingular spending alone was $2.3 billion, according to Advertising Age data.
Alice Z. Cuneo is a reporter for Advertising Age, a sister publication to RCR Wireless News. Both publications are owned by Crain Communications Inc.