Paramount’s recent shift in media buying strategy marks a significant realignment in how one of entertainment’s largest players approaches its advertising presence. After months of speculation, the company has selected Publicis Media and IPG Mediabrands to handle its substantial media account, estimated at around $1 billion.
This decision comes during a transitional period for Paramount, as the entertainment giant navigates a challenging market landscape. According to industry sources familiar with the matter, the company has opted for a split approach, with Publicis taking lead responsibilities for Paramount’s domestic theatrical business and IPG handling the company’s expanding streaming operations.
The move represents a departure from Paramount’s previous agency partnership with Omnicom’s OMD, which had been managing significant portions of the account. Though neither Paramount nor the agencies have offered official statements on the arrangement, multiple industry insiders confirm the shift is already underway.
“This kind of split approach is becoming increasingly common for major entertainment companies,” notes Jessica Reif Ehrlich, media analyst at Bank of America Securities. “It allows them to leverage specialized expertise for different aspects of an increasingly complex media landscape.”
What makes this agency selection particularly notable is its timing. Paramount, like many traditional media companies, is experiencing significant disruption across its business lines. The company reported mixed financial results in its most recent quarter, with streaming subscriber growth but continued pressure on traditional TV revenue streams.
The financial stakes are substantial. According to data from MediaRadar, Paramount spent approximately $2.8 billion on advertising across all channels in 2023, with roughly a third of that dedicated to media buying services now being redistributed.
Industry observers suggest the split assignment reflects Paramount’s dual challenges. The theatrical business, while recovering from pandemic disruptions, faces structural changes in audience behavior. Meanwhile, the streaming side represents the company’s growth vector but operates in an intensely competitive environment where customer acquisition costs remain stubbornly high.
Financial market reactions to the agency shift have been muted, with Paramount’s stock showing little movement following reports of the decision. This suggests investors view the agency realignment as an operational adjustment rather than a strategic transformation.
For the agencies involved, however, the win represents a significant victory. Publicis continues its impressive new business streak, adding Paramount to recent wins that include McDonald’s and parts of the Pfizer account. IPG, meanwhile, strengthens its position in the entertainment sector, building on existing relationships with streaming platforms.
The assignment also highlights changing dynamics in how media is bought and planned. Traditional delineations between theatrical and television buying have evolved as streaming platforms blur these distinctions. Paramount+ represents the company’s bet on direct-to-consumer relationships, requiring different audience targeting capabilities than traditional broadcast or theatrical promotion.
“What’s interesting here is how these agency capabilities need to span both old and new media paradigms,” explains Brian Wieser, former global president of business intelligence at GroupM. “The theatrical business still relies heavily on traditional media channels, while streaming demands sophisticated digital performance marketing.”
Industry analysts will be watching closely to see how these agency relationships influence Paramount’s marketing approach. The entertainment company faces significant strategic questions about its future direction, with ongoing speculation about potential mergers or acquisitions as the media landscape continues to consolidate.
For media buyers across the industry, Paramount’s decision reflects broader trends toward specialized expertise rather than consolidated buying power. The days when a single agency would handle all aspects of a major account appear increasingly outdated as media channels proliferate and audience fragmentation accelerates.
The transition comes amid a particularly active period for media reviews. According to COMvergence, more than $25 billion in media spending has been under review in North America during the past year, representing one of the busiest periods for agency pitches in recent memory.
For Paramount’s competitors like Disney, Warner Bros. Discovery, and Netflix, this agency shift offers a window into how one of their major rivals is structuring its approach to audience engagement across multiple platforms. The industry will be watching closely to see if this split approach delivers measurable improvements in marketing efficiency and effectiveness.
As the entertainment landscape continues its transformation, these agency relationships will likely evolve further. The boundaries between theatrical, broadcast, and streaming content continue to blur, potentially pushing toward more integrated approaches in the future. For now, Paramount’s split decision reflects the hybrid reality of today’s entertainment business – straddling traditional channels while building new direct relationships with consumers.
