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Updated: TBWA\C\D Wins Vonage

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NEW YORK Vonage has selected TBWA\Chiat\Day here to handle its ad duties after a review.

The client confirmed the agency's selection but did not disclose other contenders. Saatchi & Saatchi and Enfatico were the other finalists, according to sources.

Major media spending on the brand exceeded $130 million last year, according to Nielsen.

The assignment encompasses both creative and media duties. As such, Omnicom Group's TBWA\C\D will partner with sister shop PHD here to handle the business. A Greenwich, Conn.-based consultancy, MagiKbox, helped manage the search.

"We ran a thorough review and were very pleased with the level of engagement and quality of thinking from everyone that participated," said Jamie Haenggi, Vonage's CMO, in a statement. "TBWA\C\D and PHD demonstrated exceptional thought leadership, compelling creative concepts and innovative media approaches. We're delighted to be working with them going forward."

Added TBWA\C\D N.Y. president Jamie Gallo: "Vonage has a compelling vision for its brand and clearly articulated business plans. We are excited to partner with PHD to deliver strategic and creative ideas that will drive greater growth and results for Vonage."

Previously, Vonage used creative shops on a project basis, including BurnsGroup in New York and R2C Group, a direct-response agency based in Portland, Ore.

Vonage is a leading broadband telephone service player with about 2.6 million subscriber lines, according to Vonage.com. The company sells its service on the Web and at retail, via Walmart and Best Buy.

Financially, however, Vonage has struggled. Its stock trades below $1 and last year the company recorded a net loss of $64.5 million. The loss, however, was significantly smaller than in 2007, when it totaled $267.4 million.

This story updates an earlier item with client confirmation and comments.