NEW YORK IBM's consolidation of global direct marketing duties at WPP Group's OgilvyOne on Thursday was triggered by Microsoft's decision to consolidate an estimated $400-500 million in global CRM duties at WPP's Young & Rubicam Group and Interpublic Group's McCann-Erickson WorldGroup, sources said.
The lead agencies on the Microsoft business will be Y&R Group's Wunderman and WorldGroup's MRM Partners, according to sources. Wunderman previously shared duties on IBM with sister shop OgilvyOne and could not have taken on Microsoft without giving up IBM. Microsoft, which previously used several direct shops around the world, consolidated after a review, sources said.
The IBM business previously was split along business lines: OgilvyOne handled solutions and server groups and Wunderman worked on the personal computer, software and global service units.
Since the early 1990s, Ogilvy & Mather in New York has handled IBM's global advertising, and, according to sources, IBM is comfortable with the relationship, prompting the direct marketing move.
The value of the IBM account could not immediately be determined.
Client and agency representatives could not immediately be reached for comment.
—with Scott Van Camp