One of the longest-running relationships in the advertising industry is coming to an end: Globes has learned that the advertising budget of the Super-Pharm brand is leaving the advertising office in Uman-Bar-Ribnai after 30 years of working together. This is a budget loss of about NIS 70 million, which will soon find a new home.
Super-Pharm is considered one of the five largest advertisers in Israel, and the connection with Bauman is considered one of the oldest in customer-supplier contracts. The company’s budget is about NIS 90-80 million a year, significant parts of which are invested in the Super-Pharm brand itself, and others in brands such as Miloka or the chain’s private label, Life.
At least at this stage it seems that Bauman will not lose the full budget, and a budget share of about NIS 20 million, which is allocated for the publication of all things that are not “Super-Pharm”, will remain in their care.
The beginning of the connection with Bauman-Bar-Ribnai was born from a deep professional-personal connection between one of the founders of the firm – Mickey Bar, but even after his retirement, the relationship between the parties remained stable. However, over the years there was another factor that played a significant role in the management of the network’s media language – director Ram Baruch, who was introduced to handle the brand by Bauman and over time became a crucial figure in the conduct.
In fact, Baruch has become such an influential figure that about two years ago it was decided to set up an independent unit for him that operates out of the advertising group. Not to attribute close numbers because the move was unsuccessful – especially around personal issues of the characters involved. Baruch is expected to continue to handle the budget in the future in each new office that the chain chooses to transfer its care to.
Chain response in the industry
Super-Pharm’s centrality as a large retail chain and as a significant advertiser may generate a chain reaction in the advertising industry. On the one hand, the network comes with the dowry of Ram Baruch – the director who also fulfills the function of a creative person for everything, which is not always easily accepted among advertising agencies. On the other hand, it is one of the largest budgets in the market and a client who has demonstrated loyalty for many years and in addition also produces creative advertisements in a clear and consistent manner.
It should be noted that there are few advertising agencies that can handle a budget of this magnitude, and most of them already handle conflicting budgets, although it is likely that Super-Pharm will not have a hard time convincing the agency where they will choose to give up other budgets.
In fact, the two most prominent firms that may be candidates are McCann Tel Aviv and Adler-Chomsky. McCann handles the advertising budgets of Rami Levy and the new consumer Hamashbir. Adler-Chomsky handles half of Shufersal’s budget and all of the Electra Group’s advertising budgets, which also include retail budgets. Adler-Chomsky’s subsidiary, LEAD, handles the advertising budget for Pavilion Wines, which is controlled by Electra. Other large firms that can handle the budget are Reuben-Frieden and Joshua TBWA.
It is likely that Bauman-Bar-Ribnai will also now strive to improve positions when it comes to retail advertising budgets, and take to them one of the budgets that could be left without an advertising agency as a result of the expected chair game. Recall that Super-Pharm is considered a strict advertiser, and in the past it did not allow Bauman to compete on budgets that were even indirectly perceived as competitors of the network, so alongside the painful blow, the breakup may open up new opportunities for the group.
Changes in the retail industry
It should be noted that the entire retail industry has undergone major changes in recent months. On the one hand, a male change in the managements of the big chains – Ofer Bloch is expected to sit in the chair of the CEO of the Shufersal chain, after the former CEO Itzik Aberkhan announced his retirement. A turnover of CEOs has proven itself in the past as a catalyst for changes in advertising systems, and even if not in the immediate term, moves of change may occur this time as well.
In addition, so far the big chains – Super-Pharm in its slot and Shufersal in the corresponding slot – have operated in almost empty space with no competitors. In recent months, however, the Electra Group has become stronger as a dominant player with expanding aspirations, and other chains, which until recently focused mainly on sales advertising, are realizing that they need to enter classic marketing and produce product and differentiation.
A good example of this is the conduct of the Victory network, which until recently operated in a tactical way of advertising sales and promotions, and recently appeared on television for the first time with an invested campaign starring the Asaig family, which speaks price but in the language of image.
Super-Pharm confirmed the news. Super-Pharm’s VP of Marketing, Ofer Levy, responded: “After three decades of a successful partnership with the advertising agency in Uman-Bar-Ribnai, both sides are embarking on a new path. We appreciate and cherish the contribution and the fruitful and extraordinary cooperation over the years. ”