Philips hands $300m global advertising business to DDB

LONDON - Royal Philips Electronics has shifted its global advertising account out of Leo Burnett and handed the work, estimated to be worth up to $300m, to DDB Worldwide, part of the Omnicom Group.

The move seems to be another ripple emanating from Publicis Groupe's decision to axe the D'Arcy advertising network and fold it into other agencies.

While DDB already handled Philips' corporate and consumer advertising accounts, Leo Burnett had only handled domestic appliance and personal care, lighting and medical since the closure of D'Arcy at the beginning of the year.

D'Arcy was appointed to the account by the Dutch electronics giant in 2000, when Philips first decided to consolidate its advertising business.

The two agencies pitched head to head for the account after chief marketing officer Andrea Ragnetti decided that further consolidation was necessary.

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

However, Philips did say that Leo Burnett would work on a number of designated special projects.

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."

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