Universal Music Group Gives U.S. Spending to GroupM's MediaCom

Universal Music Group has consolidated its U.S. media business, across labels, at GroupM's MediaCom, which already works for the music company in Europe, Canada, and Australia.

UMG is expected to increase ad spending to $25 million-$30 million, up from $18 million in 2010, sources said. The music giant had previously used smaller, undisclosed incumbent agencies to handle its separate units. Among the company's labels are Def Jam Recordings, Interscope Records, Geffen Records, and Island Records. Artists include Lady Gaga, Justin Bieber, Jay Z, Rihanna, U2, Rolling Stones, and the Black Eyed Peas.

In a review for the business, MediaCom competed against smaller specialty shops. Given the current realities of music marketing, UMG will place heavy emphasis on new explorations of digital marketing in its media mix.

In a statement, Andrew Kronfeld, UMG's president of global marketing, said about MediaCom: "Through our relationship in other parts of the world, MediaCom has already demonstrated to us their ability to think and execute boldly in the very complex modern music business. Their creative ideas for how to approach media strategy and buying in the U.S. have shown us they are the right partner for UMG."

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