Set to Hire BBH for $350 Million Global Creative Biz - November
Giant Also Seeking First Ever Global Media Agency
YORK - LG Electronics looks likely to appoint Bartle Bogle Hegarty for
its $350 million global brand and product ad account, but there are
still issues to be resolved that are delaying a formal decision
originally expected in October.
Other agencies could also benefit. It's unclear whether LG would
entrust execution of the global account to London-based BBH, or will
look at pairing the agency, which has only six offices worldwide, with
another network that would serve as the delivery system. The other
contenders in the review are Publicis Worldwide, owned by Publicis
Groupe which also has a 49% stake in BBH; and Omnicom Group's TBWA and
DDB Worldwide. Saatchi & Saatchi was involved at an earlier stage
but had a conflict with its Sony Ericsson business. Combining two
networks to marry creative with global coverage is an increasingly
common practice among global marketers; Nokia, for example recently
appointed Wieden & Kennedy to a core creative assignment and hired
JWT for global execution.
Other Ongoing Reviews
There appear to be two other LG global reviews going on as well, to
pick LG's first worldwide media agency network and first global
digital marketing partner. In early 2007, Sung-Hun Han, a former
Procter & Gamble exec who is LG Electronics' Seoul-based global
head of brand marketing, took on a more international role that
includes a move toward looking at agency relationships on a more
global basis, rather than the local and regional assignments that have
been more common at LG. He had previously focused on marketing for
The global brand and products business for which BBH is now the
frontrunner includes LG Electronics' four core divisions. They are
mobile communications, digital display (flat-panel TVs and monitors),
digital media (computers and peripherals, audio equipment and video
players) and digital appliances (air conditioners, washing machines
Approached for comment, LG would only say that no final decision has
been made. Executives from BBH, DDB and Publicis could not be reached.
Fresh Ad Approach
The agencies in the review have little or no previous LG business,
indicating a desire by the company to take a fresh look at
advertising. In a separate assignment, LG earlier this year awarded a
global project for the company's digital-display business, called the
Digital Display Co., to a team composed of Agency.com and TBWA.
For Bartle Bogle, an LG win would cap a year that has already seen the
agency network grow worldwide income by 16% to $174 million from $150
million in 2006.
Wentz and Rupal
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