Subway Taps MediaCom for U.S. Digital Ad Spending

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MediaCom has won Subway's domestic digital advertising business in an assignment that includes search, mobile, and display ads.

The win represents a consolidation of the sandwich chain's overall U.S. business, as MediaCom already handled its offline spending and the two have worked since 2000. MediaCom resides within WPP's GroupM media agency group.

Subway's decision is a hard blow for Publicis Modem, which previously held the digital business. The loss comes after Modem's parent, Publicis, dissolved the subsidiary's national leadership structure in the U.S.

Kantar Media estimates Subway's 2011 digital media spend at approximately $12.7 million in 2011, a figure that includes search and display - but not mobile. Last year, Subway signaled its intent to aggressively increase its investment in the mobile channel.

Subway's overall ad spend is about $358 million, Kantar says.

"We have decided to consolidate our digital media planning and buying at MediaCom for both integration and efficiency reasons," said Subway CMO Tony Pace in a press release. "We have confidence in MediaCom's management and believe they will help build upon our success in the digital space."

Harvey Goldhersz, CEO of MediaCom North America, said in a statement, "We're thrilled to be partnering with Subway to deliver the full range of media solutions."