DDB gains centralised Philips global account

The Dutch electronics giant Philips has centralised its global advertising account, worth an estimated £400 million, into Omnicom's DDB Worldwide.

The shift sees Publicis Groupe's Leo Burnett lose Philips' global £200 million domestic appliance, personal care, lighting and medical business, which it inherited when it merged with D'Arcy at the end of last year.

DDB already handled Philips' corporate and consumer advertising account.

According to Nielsen Media Research, BMP DDB is in line to pick up around £3 million in UK billings from the account move.

Commenting on the head-to-head pitch, Philips' chief marketing officer, Andrea Ragnetti, said: "Our vision of 'one Philips' as a truly market-driven company requires complete consistency in our brand and, therefore, can only be served by a single global agency."

D'Arcy was appointed to the account, which is run out of London, in 2000, when Philips first decided to consolidate its advertising business.

Ragnetti called the head-to-head pitch after she decided that further consolidation was necessary.

DDB first began to make in-roads into the consolidated business last November after Philips chose the network to create a £50 million global corporate branding campaign. DDB won the business after a three-way pitch against D'Arcy, following a six-month pitch process, which originally included the non-roster agency Bartle Bogle Hegarty.

Philips kicked off the pitch for the brand campaign in a bid to raise its corporate profile around the world.

DDB Worldwide will now be the sole advertising agency for all five of Philips divisions, with a brief to ensure consistency on brand positioning and exploit opportunities between the divisions.