Several reliable sources tell us this week that wearable tech company Fitbit has awarded its media buying account to IPG’s UM after a review.
An IPG Mediabrands spokesperson deferred to Fitbit, whose representative declined to comment.
The company is currently seeking to expand its consumer base inside the U.S. and beyond in the midst of a continuing battle for market share with chief competitors Jawbone, Apple Watch and other, smaller entrants into the athletic tech field.
One source estimates the value of the account at $200 million. According to the latest numbers from Kantar Media, Fitbit spent approximately $95 million on paid media in 2015 and $53 million during the first half of this year.
UM will be Fitbit’s first media agency of record, but the company hired San Francisco’s Argonaut to create its debut global ad campaign back in 2014. That Project shop remains agency of record for the client, which joined other “disruptors” like Uber and Jet in focusing on traditional video ads and TV placements to aid in their expansions. Fitbit has also recently branched out into sponsored content in an effort to reach younger consumers.
This week, Argonaut launched a campaign to promote Fitbit’s newest product, the Flex 2. The first spot positions the product as a lifestyle accessory while the second focuses more specifically on the fashion angle.
Fitbit’s stock price encountered a significant drop earlier this month after the company told investors that its revenue would only grow 2-5% during the holiday quarter. Last week the company also confirmed that a rumored “takeover offer” from a suspicious Chinese company was, in fact, fake.
Sources speculate that the company plans to increase its marketing spend moving forward and that new campaigns may launch early next year.