Gap Inc. Establishes Marketing Shared Services with Omnicom Partnership

Gap Inc. Establishes Marketing Shared Services with Omnicom Partnership

Discover how Gap Inc. is restructuring its media functions through a strategic alliance with Omnicom, aiming to revitalize its renowned brands with a unified approach in marketing operations.

Gap Inc. Selects Omnicom Media Group as Cross-Brand Media Agency

Gap Inc. has chosen Omnicom Media Group (OMG) as its official cross-brand media agency, as revealed in an internal memo obtained by Our Website. This decision comes after Gap Inc., the parent company of Gap and Old Navy, initiated a review of its U.S. media agency in January 2024.

OMG is set to assist in updating Gap Inc.'s media strategy by collaborating as a unified team to improve effectiveness and enhance the company's various brands. The onboarding process is currently in progress, and OMG is anticipated to be fully immersed in the project by the end of Q2.

Furthermore, Gap Inc. is establishing a Marketing Shared Services division to streamline essential media operations. These actions are a part of the company's initiatives to rejuvenate its brands and follow shortly after the appointment of a new global CMO for the flagship brand Gap.

Gap Inc. News

Gap Inc. has chosen OMG as its new media AOR for its brands, including Gap, Old Navy, and Banana Republic. This decision is part of the company's strategy to refresh its portfolio. The account was previously managed by PHD, an Omnicom agency, and was valued at $190 million in measured U.S. media in 2023 according to COMvergence data.

Gap Inc. has partnered with a media agency that operates at the "speed of culture" and prioritizes "customer-centricity," according to CEO Richard Dickson's internal memo.

Dickson mentioned that Gap Inc. and the media agency will collaborate closely to enhance efficiencies and elevate individual brands. Their goal is to create culturally relevant narratives that resonate with brand identity, attract customers, and strengthen brand equity.

The agency review began in January with the goal of helping Gap Inc. maintain its operational and financial strength while boosting revenue and relevance. The new memo highlighted OMG's client roster, which includes iconic brands like Apple, Disney, L’Oréal, Chanel, PepsiCo, and Vans, emphasizing the agency's understanding that fashion is a form of entertainment.

In addition to appointing a new media AOR, Gap Inc. has established a Marketing Shared Services organization to streamline key media functions such as shared media services, marketing intelligence, and marketing enablement. This team will be overseen by an executive who will be chosen soon and will report directly to Dickson.

Just a week after appointing Fabiola Torres as the new global CMO, Gap made some strategic moves. Torres, a former PepsiCo marketer, will now lead the marketing, creative, merchandising, store experience, and operations teams. She is recognized for her talent in connecting with diverse audiences worldwide.

In March, Gap Inc. announced a 1.3% increase in Q4 net sales, reaching $4.3 billion. Both the Gap and Old Navy brands showed improvement in their efforts to revitalize.

Editor's P/S:

Gap Inc.'s selection of Omnicom Media Group as its cross-brand media agency signals a significant shift in its marketing strategy. OMG's expertise in customer-centricity and understanding of fashion as entertainment will be crucial in elevating Gap Inc.'s brands and creating culturally relevant narratives that resonate with consumers. The establishment of a Marketing Shared Services division further demonstrates Gap Inc.'s commitment to streamlining operations and driving efficiencies.

The appointment of Fabiola Torres as the new global CMO and the recent increase in Q4 net sales indicate a positive trajectory for Gap Inc. Torres' experience in connecting with diverse audiences and her leadership in marketing, creative, and operations will be invaluable in revitalizing the company's brands. With OMG's support and the internal restructuring, Gap Inc. is well-positioned to enhance its brand equity, attract customers, and strengthen its revenue and relevance in the competitive retail landscape.