Company Cites Costs in Leaving DDB; Creative Review May Follow
NEW YORK„Carat USA has won the estimated $20 million media buying account of Amana Appliances, the client confirmed.
The account was awarded to the media company›s Chicago office last week after a review of undisclosed agencies.
Amana parted ways in early November with DDB Worldwide, New York, which had handled media and creative duties for the appliance maker.
˜Their services became cost-prohibitive,” said company representative Callista Gould.
˜But their media services were excellent.”
The Iowa-based client has pulled creative duties in-house, but a source said at least part of the creative account will be put into review in the coming months.
Gould said Amana had been happy with DDB›s creative work. She declined to comment on whether any of the creative account will be put in review.
After handing its account to DDB, Amana boosted media spending from just $686,000 in 1998 to $12 million through September 1999, according to Competitive Media Reporting.
The trend toward more robust spending was applauded by the client›s new media buyer.
˜Amana is really taking a big step forward in their efforts,” said Bob Johns, who transfers this week from Carat›s New York office to Chicago as director of new-business development. ˜We›ll be bringing a strategic, knowledge-based approach to the media buying and planning process.”
Johns said he was unaware of Amana›s cost issues with DDB. Executives at DDB could not be reached for comment.
A DDB source said rumblings about the future of both portions of the account began last July with the departure of key executives from Amana parent company Goodman Manufacturing Co., including chairman and chief executive officer Frank Murray.
DDB›s most recent work for Amana employed the tagline, ˜Built better than it has to be.”
The Amana win brings Carat Chicago›s 1999 new-business billings to $40 million, with total billings for the year at $160 million, Johns said. K
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