L’Oreal and Channel 4 finally reach trading dispute resolution

After months of disagreements over the terms of a trading contract, L’Oreal and Channel 4 have now confirmed that the beauty brand’s TV adverts will be shown on the UK channel again after a several month hiatus.

Maxus, L’Oreal’s media agency in the UK, was unable to reach an agreement with Channel 4 back in January, which led to the beauty brand’s adverts staying off-air until now.

Now, following the resolution, L’Oréal ads will be back on C4 and UK TV channels from as early as next month, Campaign Live has reported.

Delayed negotiations

Experts have suggested that the failure of the two companies to hammer out the trading agreement earlier this year was due to the late start to negotiations: Maxus only officially took over L’Oreal as a client in January.

When the dispute first arose, both companies voiced their eagerness to resolve the issue as swiftly as possible, with L’Oreal the 11th biggest-spending brand in the UK in 2012, spending £15.9 million with Channel 4 2013 according to Nielsen.

The finalised details of the deal are not yet available, but L’Oreal’s return to the channel in the near future has now been confirmed.

Pick your platforms

While this latest deal will boost the brand’s presence in the UK on the television platform, L’Oreal recently outlined its global advertising strategy is set to turn increasingly to digital.

Head of digital marketing of the Paris-headquartered cosmetics giant’s division in Australia, Christophe Eymery, explained this focus.

We are focused on key growing markets to get the volume but the fourth pillar of our strategy is to leverage digital and to increase and deliver better beauty education to customers,” he states.

We have to reinvent our communication model all the time and leverage new touch points,” says the digital marketing executive, noting that TV’s appeal in branding is increasingly limited.

The media mix should no longer be heavily dominated by TV, marketers are missing the opportunities to further leverage new channels,” he asserts.