Home Depot has been with Admarketing for the last three years. The two are splitting over a disagreement on compensation. 'With a company our size and as we continue to grow, we have a responsibility to constantly peruse where the ad industry is going and how that might affect us,' said Dick Hammill, Home Depot director of marketing. 'We concluded it was best for both parties to move on.'
Jack Roth, Admarketing president, said Home Depot asked for 'a large cut . . . and we think we're more than worth (the compensation).'
Hammill said that the search for an agency is 'too preliminary' to identify who might be involved in the pitch, adding that he's not ruling out the option of placing the media with one agency and creative elsewhere. The pitch will be open to agencies throughout the country, he said.
Home Depot relies heavily on print advertising and newsprint inserts/direct mail catalogs that do not require world-class creative expertise. Admarketing created some television ads showing Home Depot employees in their trademark orange aprons helping customers find what they need, using the themeline: 'Low prices are just the beginning.'
Hammill hopes to have an initial list of agencies within the next 30 days and a decision by July.
Copyright Adweek L.P. (1993)