BMW and GSD&M Idea City ad agency are ending their five-year relationship

Article by Christian A., on October 25, 2010

BMW North America’s five-year relationship with GSD&M Idea City will end on Dec. 31, when the ad agency's contract on the nearly $140 million account is up. This report about the split comes after the death this summer of BMW North America's vice president of marketing, Jack Pitney, who is a longtime advocate for the ad agency.

It has actually only been a little over a year ago that this agency won a contract to manage BMW’s global brand marketing. So far, there have been no announcements made on whether BMW intends to renew this contract.

An agency spokesman released a statement:"You reach a point in a relationship that it's best to part ways." However, no reasons were given for the split.

According to BMW spokeswoman Stacy Morris, BMW and the agency would part ways on all contracts at the end of the year. Morris added that BMW appreciates GSD&M for its contributions in the five years that they have worked together.

Agency insiders revealed that GSD&M Idea City, a unit of Omnicom Group, initiated the split. They said that the news was announced by GSD&M Idea City Chairman Roy Spence, CEO Duff Stewart, Senior Vice President and Chief Strategist David Matathia.

The sources also said that the reasons for the split include the perception that relationships with the marketing team have weakened because of Pitney’s death. The sources also clamed that the agency wasn't making enough money on the account and that there wasn’t any opportunity to accomplish the type of work that the agency had wanted to undertake. [via autonews - sub. required]

Topics: bmw, advertising

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