Publicis takes on pounds 30m Chello task

Publicis has won the multi-million pound assignment to transform Chello, the high-speed internet access service, into a global player - 19 months after parting com-pany with one of its rivals.

Publicis has won the multi-million pound assignment to transform

Chello, the high-speed internet access service, into a global player -

19 months after parting com-pany with one of its rivals.



Internet industry sources say pounds 30 million has been set aside to

support the expansion of the brand, which fills the gap in the Publicis

portfolio left by the loss of Yahoo!’s pan-European account in October

1998.



Owned by the Holland-based UPC, Europe’s second- largest cable operator

in which Microsoft has a 7.8 per cent stake, Chello claims to offer a

fast and easy-to-use broadband internet service.



Now it is looking to Publicis to help spearhead its expansion out of its

Dutch heartland into Belgium, France, Norway, Sweden and Austria, where

it has more than 120,000 subscribers. The company recently launched in

Australia and has plans to move into Latin America.



The Publicis office in London, which will produce and co-ordinate all

creative work, is assembling a core team of advertising, direct

marketing and internet specialists to work in co-operation with Media

Insight, which retains the media buying account it won last year.



Publicis was responsible for the ’Do you Yahoo?’ campaign and Grant

Duncan, the agency’s managing director, said: ’Yahoo! was our stepping

stone into the area.’



The appointment of Publicis builds on the relationship with Chello first

established in Holland by BMB, the Publicis-owned DM and sales promotion

specialist.



Iain Osborne, Chello’s managing director of marketing and

communications, cited Publicis’ understanding of the balance between

brand advertising and subscriber acquisitions and its expertise in

online media and database marketing as the reason for the

appointment.



Duncan said: ’A lot of internet companies are just smoke and mirrors but

Chello is a tangible operation with real customers and a real market. In

an uncertain dotcoms world, that’s very satisfying.’



The assignment does not affect UPC’s hiring of Delaney Lund Knox Warren

& Partners and the media agency BJK&E last year to handle its

pan-European relaunch.



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