Four contenders are preparing for final pitches on the creative side of Philips' global advertising review.
Client executives have briefed the shops—Ogilvy & Mather; TBWA; Leo Burnett; and the incumbent, DDB—and presentations are slated for next month. The media business is being pitched separately, with Carat defending against several agencies that could not be determined.
Philips, which spends an estimated $500 million globally on media, declined to comment. The company plans to complete its process by the end of the year.
The review comes as Philips eases out of the business of making televisions and invests in less sexy but higher margin products like media devices. In recent years, the company also has weathered turnover in its executive ranks, which DDB CEO Chuck Brymer previously noted in an internal email about the review.
Philips consolidated its creative business at DDB in 2003, after years of employing a dual-agency structure. The 2003 consolidation came at the expense of Leo Burnett.
Carat has handled the media assignment since 2001 and successfully defended the account in 2007. Back then, the contenders included MEC, Omnicom Media Group, and ZenithOptimedia.
