Velocity OMC | Agency Profile, Contacts, AOR, Client Relationships
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Velocity OMC Contacts
|Jessica T.||Executive Vice President & Group Business Director||NY|
Sample of Related Brands
|Lynn M.||Executive Vice President & Creative Group Head||NY|
|Tim R.||Senior Vice President||NY|
|Christina A.||Vice President & Head, Operations, Senior Producer - Johnson & Johnson, Wound Care, Roc, Rogaine, J&J Bbay, Kraft||NY|
|Kate Z.||Vice President, Senior Business Director||NY|
Score 58 - Close Watch: Johnson & Johnson revamps business model, axes global CMO position
Johnson & Johnson (J&J) announced that it revamped its business model to streamline priorities, allow for more efficient operations and allow for increased investment in "categories that offer high potential for growth." The new model has not been elaborated on, but we believe it was instituted to help J&J further its cost cutting initiatives.
To cut costs (and to help combat struggles: poor sales and a lawsuit related to talc), J&J has been decreasing marketing spend. Kantar reports that the company's 2019 marketing spend has already dropped 13% from 2018's $943m, and Velocity) and dedicated WPP unit (The Neighborhood) have seen extensive layoffs.
Edge believes additional layoffs at the dedicated creative units are likely since J&J will continue to cut costs under the new business model. However, Edge believes there is also a small chance that J&J will decide to consolidate its creative roster again (Velocity and The Neighborhood won their creative duties J3. This possibility seems especially likely since J&J has also been shaking up its leadership team as part of the new business model.
The company announced that Alison Lewis, who has served as global CMO over the consumer division for almost six years, will depart in mid-July. She will not be replaced as her work will be split between "leaders within the consumer organization." We have not yet found who these leaders are, but we'll keep you posted as we hear more.
Know that here.
With these personnel shifts increasing the chance of more agency changes at J&J, agency and martech readers should reach out. You should pitch very high ROI strategies (strategies cheaper than those Omnicom and WPP are currently using) that engage current customers and snag customers away from J&J competitors like Unilever, P&G and Reckitt Benckiser. You may also have luck with strategies led by TV because TV is actually increasing despite the decreases to the overall marketing budget.
The shift to TV suggests J&J is trying to widen its consumer reach, but note that it still predominantly targets women and moms. Sellers who can engage those demographics with high ROI should try to join conversations during planning period Q1 and buying period Q4. There's still about a billion dollars of marketing spend for you to try and secure revenue from.
Please view digital display spend (courtesy of here. Know that the company also typically uses outdoor, print, radio, shopper marketing, cause marketing, earned media, social media and sponsorships.