Asda moves ad account from Fallon to Saatchi

09 November 2009

LONDON: Asda, the UK's second largest grocery retailer, has switched its £75 million (€83m; £124m) advertising account from Fallon to its larger SSF sister company, Saatchi & Saatchi.

While Fallon will continue to handle the rather more modest £3.5m George business - Asda's clothing brand - the decision to decamp to Saatchi's is understood to be based on the sheer volume of advertising work generated by the client.

Asda currently runs some 1,000 ads each year; the majority of which are tactical and require a quick turnaround.

Now the country's seventh-largest advertiser, much of the store group's communications work is aimed at undercutting Tesco; the UK's number one food chain.

It has been decided that Fallon, which wrested the Asda business from 17-year incumbent Publicis two years ago, should concentrate on the creative potential of George, which recently overtook Marks & Spencer as the UK's largest fashion retailer.

Back in the summer, Fallon's former chief strategy officer, Mark Sinnock, took the marketing director's chair at Asda.

He said of the account switch: "We're really pleased to be extending our relationship across SSF to ensure we continue to maximise all the opportunities for growth and development of the Asda brand."

It is understood that a number of Fallon staff will now become Saatchi employees in order to service the client.

Data sourced from Campaign; additional content by WARC staff