After securing a franchiser in Israel, the American Gap clothing chain plans to announce a tender for its advertising budget within the coming days.
Elbit Trade & Retail, a subsidiary of Elbit Imaging Ltd., announced on Wednesday the signing of an agreement with Gap for the marketing and sales rights of the Gap and Banana Republic labels in Israel.
The first Gap stores are expected to open in Israel in the second half of 2009, with the Banana Republic label to follow at a later stage.
The sum of the advertising budget is yet to be determined, but according to estimates the company will not have to spend millions of dollars on the Gap budget, due to the strength of the brand and its familiarity even in countries where it isn't sold.
Advertising experts also believe a large portion of the brand's campaign will be based on campaigns from abroad that will be adjusted for use in the Israeli market.
However, since fashion brand accounts are considered particularly attractive among advertising firms, experts believe many companies will want a part in the Gap account.
The advertising account for fashion label Mango, that is also marketed by Elbit Trade & Retail, has been handled by the McCann Erickson for the past year-and-a-half.
McCann Erickson is also likely to take part in the tender for Gap.
Elbit Trade & Retail said in response to the report, "The company plans to hold a tender for the advertising budget in the near future."