THE POWER OF WHAT 40 CENTS CAN BUY... (RED) PSA FOR THE LAZARUS EFFECT CAMPAIGN

UM AGENCY POISED TO SNAG $700M L'OREAL ACCOUNT

Interpublic Shop to Take on U.S. Buying Business Formerly Split With Zenith...

L'Oreal has consolidated its $700 million U.S. media buying account with Interpublic Group of Cos.' Universal McCann, executives with knowledge of the matter said. The cosmetics behemoth launched an "evaluation" of the account, which was previously handled by UM and Publicis Groupe's Zenith, back in late March.

UM was also awarded Burberry's international media planning and buying business yesterday. The shop seems to be having little trouble maintaining the new-business success it began last year when it snagged Chrysler, BMW, Applebee's, Charles Schwab and Dyson, among other accounts.

L'Oreal's brand lineup includes L'Oreal Paris (its largest division), Maybelline, Lancome and Garnier. Last week L'Oreal reported sales of $6.2 billion for the first quarter of 2010, an increase of 8% over the first quarter of 2009.

Planning, which was not affected by this review, is handled by Publicis' Optimedia for L'Oreal's luxury products and Maybelline New York line, and by UM for the L'Oreal Paris line.

L'OREAL 'EVALUATES' U.S. MEDIA BUYING

Cosmetics giant L'Oreal is "evaluating" its U.S. media buying -- a process that could result in a consolidation or shifts in the company's agency roster, according to sources.

L'Oreal spent $710 million in U.S. measured media last year, up from $660 million in 2008, according to Nielsen. Those figures do not include digital spending.

Interpublic Group's Universal McCann and Publicis Groupe's Zenith Optimedia share the buying assignment.

Multiple sources at IPG and Publicis indicated that both incumbents are participating in the current evaluation, which does not appear to include non-roster shops -- for now. Neither UM nor Zenith officials responded to calls seeking comment. L'Oreal executives and reps didn't immediately return calls.

L'Oreal markets dozens of brands including L'Oreal, Maybelline, Garnier, Kiehl's and The Body Shop.

The company reported worldwide sales of $23.3 billion for 2008, the latest figure available.

The cosmetics category has seen a lot of recent review activity. Last week, Coty opted to retain OMD after a pitch that lasted more than a year. In February, Revlon shifted its $100 million-plus assignment from Aegis Group's Carat to WPP's MediaCom.