Omnicom's OMG wins media mandate of Tata Motors' passenger vehicles business
Industry sources have confirmed to Storyboard18 that OMG has won the entire media mandate for Tata Motors PVs.
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Tata Motors has finalized the pitch for its Passenger Vehicles media planning and buying account, valued at approximately Rs 450 crore, according to sources. The automobile giant initiated the pitch earlier this year, as reported by Storyboard18 exclusively. Industry sources indicate that Tata Motors has decided to consolidate all its media planning and buying business with Omnicom Media Group.
Tata Motors’ media mandate spanned across various categories, including above-the-line, digital (covering both electric and internal combustion engine vehicles), and outdoor advertising. The company’s media needs are currently managed by agencies such as Lodestar UM, OMD, Dentsu, and Madison.
Sources confirmed to Storyboard18, "OMG handled the Digital media mandate but now has won the entire Tata Motors media business." None of the media agencies involved in the pitch have commented on the process.
In broader industry trends, the automotive sector’s TV advertising spend has seen a notable decline, with a 14% drop in advertising volumes during the first half of 2024 (January to June) compared to the same period last year, according to the latest TAM AdEx report. Conversely, the sector has experienced a surge in other media platforms, with a 25% increase in print advertising, a 14% rise in radio, and a remarkable 55% growth in digital media during the first half of 2024.
Meanwhile, media accounts worth over Rs 2,000 crore, including those for companies such as Dabur India, Tata Consumer Products, Hero MotoCorp, and Kotak Mahindra, are currently in play, with most of these deals expected to be finalized by year’s end.
In its latest sales report, Tata Motors revealed a slight decline in total sales for October 2024, totaling 82,682 units, compared to 82,954 units during the same month last year. The company noted a small uptick in domestic sales, which rose to 80,839 units from 80,825 units in October 2023.
Passenger vehicle sales, which include both electric and conventional models, saw a modest dip, with 48,423 units sold in October 2024, compared to 48,637 units in the previous year. Within the passenger vehicle category, domestic sales reached 48,131 units, down slightly from 48,337 units year-on-year.
