Hewlett-Packard has selected Omnicom Media Group to handle global media duties across the company’s four divisions, after a review.
In addition, HP has hired a team of Omnicom agencies to handle global marketing services for the company’s Technology Solutions Group, also after a review. The winning team included Rapp Collins, OMG and Goodby, Silverstein & Partners, per sources.
HP confirmed hiring Omnicom for its media and TSG assignments — but did not specify which agencies would work on those businesses — in this statement late Friday:
“The company has chosen Omnicom Group for media strategy, planning and buying services during a recent agency review process. In addition, the Technology Solutions Group (TSG) has selected Omnicom Group as its single integrated agency . . . for advertising, direct marketing, search, digital, media and integrated campaigns.”
HP concluded: “We are continually seeking ways to be more effective across all aspects of our business, and marketing is no exception. However, it’s our policy not to comment specifically on business negotiations or plans with suppliers, partners or customers.”
Revenue on the TSG account, which includes traditional advertising, search engine and direct marketing, interactive efforts and media duties, is estimated at more than $100 million. One source estimated media account revenue in excess of $50 million. In its last fiscal year, which ended Oct. 31, HP spent $1 billion globally on “advertising costs,” according to a 10-K filing.
Publicis Groupe’s Zenith Optimedia was the primary incumbent on the media business.
TSG previously had been split among various agencies in different regions of the world, including Goodby; Publicis Groupe’s Publicis; WPP Group’s Wunderman; Interpublic Group’s Draftfcb; and ZO.
TSG’s selection of the Omnicom shops followed a review in which teams from Havas (led by Euro RSCG) and WPP (led by Wunderman) were the other finalists, said sources. Final presentations took place Dec. 18-19 at HP’s headquarters in Palo Alto, Calif.
The agencies and HP could not immediately be reached. But sources said the contenders had been notified of the decision.
Teams from IPG and Publicis had been eliminated in an earlier round.
All told, HP’s TSG unit had employed some 2,000 shops worldwide and a consolidation to fewer agencies under a single holding company was the primary objective of the review. Ark Advisors in Playa del Rey, Calif., managed the process.
Besides TSG, HP’s other divisions are the personal systems group, imaging and printing and electronic data systems. HP acquired the latter group this year.