J&J selects Carat for £215m European job

Johnson & Johnson has handed its £215m European media planning and buying account to Carat as it prepares to ramp up its global digital marketing.

The appointment is part of the healthcare giant's $3bn global media review, triggered by its recent acquisition of Pfizer Consumer Healthcare and an internal drive to improve cost efficiencies.

Insiders say that as well as leveraging global media discounts, Johnson & Johnson is restructuring its approach to media planning to adopt a more interactive strategy, investing as much as 20% of its annual media spend in digital.

The account, which is worth in the region of £40m in the UK, includes media planning and buying on brands such as Johnson's baby lotion, Neutrogena, Plax, Roc and Splenda.

Johnson & Johnson has been particularly successful with product launches in the UK. Its holiday skin range has sparked a range of copycat products from competitors. Recent innovations have included Johnson & Johnson Shower & Shave, a combined shaving foam and shower gel, which has been promoted with substantial above-the-line activity.

The loss of the European account will be a blow to incumbent Interpublic Group's Initiative, which also lost the business in Latin America, Thailand and Singapore.

The Universal McCann network held on to the account in the US and Canada through its specially formed unit J3, which has a strong digital element.

In Asia, OMD picked up a substantial proportion of the business and will handle the account in China, India, Korea and Australia. Universal McCann has added South East Asia and Japan.

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