Software Maker Consolidated Account; Arnold Among Losers
NEW YORK--Ogilvy & Mather has won worldwide creative and media duties for SAP AG, a German software company, with consolidated billings of $100 million, sources said. Ogilvy won the business without a review.
SAP was previously handled by several agencies overseas and by Arnold Communications, McLean, Va., in the U.S. Arnold is running a national spot for MySAP.com, a service that creates business links over the Internet.
"There were people in our company who were impressed with the setup IBM had with O&M," said Lisa Baldwin, SAP's advertising director. "It started them thinking, that's what we want, a fully staffed-up global team who can seamlessly implement something that can give us one agency worldwide." To date, SAP has used several agencies, but now wants a more consistent advertising as it ramps up spending behind a global launch. "Arnold has been a great agency for us for three-and-a-half years. It's been an incredible partnership, it's just our expectations and needs have grown," Baldwin said.
Ogilvy's mainstay client, IBM, is apparently not a conflict, according to both companies. SAP software often runs on IBM platforms. "SAP is a solid IBM partner and a good one," said IBM representative Rick Bause.
Ogilvy declined to comment.
Ogilvy dropped out of a 1995 review for SAP, citing its workload from IBM. That contest was won by Anderson & Lembke in New York. A&L held onto the business for a year, however, before it went to Arnold without a review. A&L had developed a corporate TV spot which featured a song-and-dance routine in a stylized office.
"SAP is complicated," said a source. "In theory it's supposed to create supply chain management between companies. But you talk to any big organization, and they are always saying, 'Yes, we're still undergoing a deployment of SAP. It's been X years and X millions of dollars.' The reason why they've been so successful is because it costs a ton of money."
Last year, per Competitive Media Reporting, SAP America spent $10.5 million in the U.S. on ads.