Philips' decision to hire Ogilvy & Mather for its global creative business marks the end of DDB's long tenure on the brand.
The creative selection comes a month after Philips completed a parallel global media review, which resulted in the addition of MPG to the company's media roster, which also includes Carat. Philips' global media spending is estimated at $500 million annually.
In the creative review, DDB defended against a field of finalists that also included TBWA and Leo Burnett. DDB has worked for Philips for more than a decade, and the company consolidated its global business at the Omnicom Group agency in 2003.
Philips represents Ogilvy's second big global win this year, after S.C. Johnson, which in July split its creative business between Ogilvy and BBDO. Ogilvy picked up home fragrance and cleaning brands like Glade and Windex, and BBDO landed pest control and home storage products, including Raid and Ziploc.
In its decision, Philips cited Ogilvy's integrated approach to digital communications and the strength of its global network. "In particular, its strength in emerging markets will support Philips in becoming a faster, more market-centric organization," a Philips representative added.
Given the complexity and competitiveness of the review, Ogilvy global CEO Miles Young said he was "very happy with Philips' confidence in us."
Philips is seeking to transform itself from a company known primarily for consumer electronics to one that's a significant player in the development of high-tech medical devices. Part of Ogilvy's challenge will be to create ads that better reflect that shift.
