Pizza Hut appoints Interpublic Group's Martin Agency as new creative agency

Pizza Hut's search for a new agency ended with the appointment of Interpublic Group of Cos.' Martin Agency as its new lead creative agency. The incumbent agency was Omnicom Group's BBDO. (See: Pizza Hut to have new ad agency)

"Throughout this process we've been impressed with the creativity and insights-led approach that The Martin Agency embodies," said Pizza Hut chief marketing officer Brian Niccol, in a statement. "The Martin Agency team understands our business, knows our customers and realizes the unique opportunity before us. I'm energized by the exciting changes that are in store for our brand."

Pizza Hut's major media spending totaled $275 million last year and $165 million in the first nine months of 2009, according to Nielsen. Those figures don't include online spending.

The five finalists were Omnicom's Merkley & Partners; MDC Partners' Kirshenbaum Bond Senecal & Partners; Publicis Groupe's Saatchi & Saatchi; and Interpublic's Martin and Gotham, New York.

Incumbent BBDO, New York, exited the review at the outset, and three of the contenders -- Kirshenbaum, Saatchi and Merkley -- bowed out of the review in November.

Pizza Hut had hired Lee Anne Morgan & Partners for the search. To arrive at the decision, Pizza Hut built a panel, including chief marketer Brian Niccol, key franchisees and Yum Brands chairman-CEO David Novak.

Pizza Hut has admitted that it's time to make changes to its marketing strategy. During the last earnings call, Novak acknowledged Pizza Hut hadn't "been value competitive, and we're paying the price for it." He added that the chain needed to push for more innovation, and improve the value perception of its namesake pies.

In traditional marketing efforts, Pizza Hut has recently focused on hidden-camera executions to launch pasta and wings. The chain has been aggressive online and in social media, offering an ordering platform on Facebook, building a Twitter following and launching an iPhone app that boasts more than 1 million downloads and $1 million in sales since it launched in July.