Subway's 2011 investment in Internet ads was $12.7 million, per Kantar.
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."
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
Hong Kong, May 5-6, 2015
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT