Arnold Loses SAP Biz

Arnold Communications’ winning ways could not prevent SAP AG from awarding worldwide creative and media duties to Ogilvy & Mather.
Arnold, which last parted company with a client in 1998 when it was let go by Century 21, had handled SAP’s domestic ad chores. SAP America spent $10.5 million on ads last year in the U.S., according to Competitive Media Reporting.
Arnold’s recent wins–the national anti-smoking contract from the American Legacy Foundation and Royal Caribbean Cruise Line–should mitigate the loss.
Sources indicated that billings on the Ogilvy assignment are $100 million. The New York-based shop won the account without a review and will take charge on Jan. 1. Ogilvy executives could not be reached at press time.
A spokesperson at the publicly traded German software company indicated that the move to Ogilvy coincides with SAP’s plan to expand ad efforts in pursuit of an integrated global effort.
“We were looking to go with an agency that had a more worldwide network and capability,” the spokesperson said. “Arnold has been great for us for three and a half years. It’s been an incredible partnership; it’s just that our expectations and needs have grown beyond the United States.”
SAP’s international advertising had been handled by several shops overseas, while domestic chores were with Arnold’s McLean, Va., office. The agency’s most recent work includes a national TV spot for Mysap.com, a product that creates business links over the Internet.
Arnold landed the SAP account in 1996, taking it from Anderson & Lembke in New York without a review.