The Week: Digital Reviews - 118 118 ditches Naked for in-house planning division

The Number 118 118 has ended its five-year relationship with Naked Communications after deciding to set up its own in-house strategic planning department.

The directory enquiries company, which was one of Naked's founding clients, is understood to have already hired a number of staff, who will report to its marketing manager, Catherine Boyd, and plans to complete a handover of the business over the next three months.

The company is also looking for an integrated agency to handle direct marketing as part of a review of its overall marketing activities. Its relationships with WCRS, OMD and Meme, which handle creative, media and digital respectively, are unaffected.

Niku Banaie, a managing partner at Naked, said: "We are obviously sorry to see 118 118 go after five years' spent building the business from start-up to category leader, but we respect their decision, although it's a brave one."