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News Plus 24 May 2022 - 2 min read

Publicis wins Blackmores production business as brands grapple runaway content volume requirements

By Brendan Coyne - Editor
Blackmores

Publicis has landed digital production for Blackmores, Mi3 understands, as the vitamins and supplements business ramps up content output amid a scramble by brands locally and globally to match supply with demand across digital channels. The holdco went head-to-head with WPP's Hogarth for the business.

What you need to know:

  • Publicis wins Blackmores production business, will deliver via centralised production unit Prodigious. 
  • E-commerce now makes up more than 30 per cent of Blackmores sales, with double digit growth rates. Firm targeting $55m annual operational and cost of sales savings.
  • Move comes as big brands grapple with how to deliver huge increases in volume against flat budgets.

Publicis has landed digital production for Blackmores, Mi3 understands, as the vitamins and supplements business ramps up content output.

The holdco had been in a two-way battle with WPP’s Hogarth for the business as Blackmores hakes up its roster in a bid for growth across Australia and 12 further Apac markets, following a master brand overhaul under CMO Joanne Smith, and ongoing investment in digital commerce and CX. Last week it emerged Mindshare had replaced previous incumbent Hearts & Science to handle media.

The production contract comes as brands grapple with soaring content requirements across channels following two years of massive digital and e-commerce growth as a consequence of Covid’s impact.

Some are in-housing as a result. ANZ CMO Sweta Mehra last year told Mi3 that the approach is saving 70-80 per cent in costs while delivering much faster results. “It is about speed, cost, and frankly quality over a period of time,” said Mehra. Meanwhile a recent survey of 220 marketers by consultancy Arktic Fox found 56 per cent have in-housed services over the last 12 months, and the remainder planning to in-house over the year ahead – with content topping both lists of priorities.

Hogarth’s hybrid in-house, offshore model is also gaining traction with brands such as Woolworths, plus Myer, Vodafone and Suncorp as brands try to navigate an output deluge while budgets remain under pressure.

But Blackmores has opted for dedicated digital production via Prodigious, Publicis Groupe’s 3,500 headcount centralised production unit, which will likely play a significant role in the holdco’s bid for Coles’ consolidated business.

Marketers are now eyeing other content opportunities, with marketplace platforms such as Flippa enabling brands to buy ready-built communities in a bid to fast-track owned audience growth and tailored content – as opposed to renting them from publishes and via associated recommendation engines.

“Instead of renting audiences, which is what advertising is, you can own the asset, manage the asset, and use it for your own customer acquisition process,” former ‘growth hacker’ and x1AB founder Jonathan James last week told Mi3.

For now, Blackmores, which is targeting $50m in annualised operational and cost of sales savings by FY23, and for whom e-commerce now makes up more than 30 per cent of sales – growing at 14 per cent, according to latest financials – has opted for greater firepower via Publicis’ Prodigious unit. The brand did not respond to request for comment, the holdco declined to comment.

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