$600 Mil. Philips Selects Carat

NEW YORK Philips Electronics has chosen Aegis Group’s Carat, the incumbent, for its $600 million global media account after a review, the client has confirmed.

Carat overcame WPP Group’s Mediaedge:cia in the
final round. Omnicom Media Group and Publicis Groupe’s Zenith Optimedia were dropped from contention in January.

The company spends about $100 million annually on ads in the U.S.

Carat won a consolidation review for the global account in 2001, with estimated spending at that time of $600 million. (Philips said in its 2005 annual report that worldwide advertising and sales promotion costs totaled nearly $1.2 billion, but did not provide a further breakout.)

The account went into review in October. The Netherlands-based Philips said the review was being undertaken “to accelerate its marketing and branding efforts within today’s fast-changing media landscape.”

Carat and Philips have made headlines in the past year for experimenting with different ad models, including the sponsorship of an entire edition of CBS’ 60 Minutes last season. Earlier this year, Philips was the sole sponsor of an issue of Gourmet magazine. It also sponsored an edition of the NBC Nightly News, with limited ad breaks, allowing room for more editorial content in the program than usual.