Grubhub Designates IPG's UM as Its Official Media Agency
In a move aimed at supporting its expansion, food delivery giant Grubhub has consolidated its media agencies, appointing Universal McCann (UM) as its media agency of record. UM will be responsible for strategy, planning, buying, and data and analytics for Grubhub, replacing previous incumbents Havas and Dentsu.
According to COMvergence, the estimated media spend for Grubhub is $128 million, with $88 million earmarked for offline advertising and $40 million for digital advertising. Havas Edge, which previously managed Grubhub's DRTV and CTV, and Dentsu, which handled project work with out-of-home advertising for Grubhub, will no longer be part of the roster.
The consolidation trend is common in the growing food delivery industry, where centralised control over marketing strategies can lead to cost savings and unified brand messaging. This move by Grubhub could be an effort to optimise ad spend efficiency amid increasing competition and declining order growth in mature markets like the U.S.
Grubhub's expanded strategic partnership with Amazon, aiming to leverage Prime members and deepen integration into large platforms, might also benefit from this media agency consolidation, supporting more streamlined customer acquisition efforts.
However, it's important to note that while Grubhub has undergone significant company restructuring and strategic partnerships, there is no confirmed public report of media agency consolidation by Grubhub specifically. The wider industry trend toward consolidation in delivery platforms could encourage media agency consolidation to achieve marketing efficiencies, but further evidence is needed to assess this fully for Grubhub or the food delivery sector.
As Grubhub continues to navigate the competitive landscape of the food delivery industry, the appointment of UM as its media agency of record marks a significant step in its efforts to optimise its marketing strategies and drive growth.
The consolidation of Grubhub's media agencies, led by the appointment of Universal McCann (UM), suggests an intent to streamline finance and technology-driven business strategies. Given the projected media spend of $128 million and the trend towards unified brand messages in the food delivery industry, this move may be a strategic approach to optimize advertising expenses amid competition and market growth.
