DDB, King Top Texas Lottery

The Texas Lottery Commission will negotiate contracts with DDB and The King Group, the winners of the review for the state’s estimated $35 million ad account.

Both Dallas shops are officially called “apparent successful proposers.” TLC representative Karen Kalergis said the timetable for negotiations or for new advertising to break is undetermined.

The state issued two separate requests for proposals in June to a total of 305 shops. TLC officials visited the three shops with the highest scores for each proposal request earlier this month and heard oral presentations, the client said.

For the general-market account, DDB contended with incumbent Fogarty Klein Monroe of Houston and Fellers in Austin, Texas.

Minority-market incumbent The King Group in Dallas defended against LatinWorks in Austin, Texas, and Mithoff Burton in El Paso, Texas.

DDB has begun somewhat of a state lottery franchise, handling the gaming accounts of Illinois and New York. (It participated in the California Lottery’s review and is protesting the decision to award the account to Foote, Cone & Belding in San Francisco.)

DDB said it could not comment beyond this statement: “We’re looking forward to the prospect of partnering with the Texas Lottery. It is clearly a prestigious piece of the business in the state.”

The King Group chose to promote its past work with the client in its presentation. At one point the agency presented a report card that referred to goals it set in 1999, when it won the lottery’s previous review. “We didn’t give ourselves a grade, but we reminded them of what we said we’d do and asked them to evaluate us against those things,” said CEO Johnnie King. “We felt we achieved what we set out to do.”

FKM was also awarded its account in 1999. Both contracts ended in August 2000 and were extended for two years. The latest review was prompted by the expiration of those agreements.

The new contract will run for two years. The commission has the option to extend the contract for two additional one-year periods.

Bill Fogarty, principal at FKM, said his agency is both disappointed and confused. “We’re extremely proud of the work we did,” he said. “The government procurement process is a strange thing to go through. Sometimes you win, sometimes you lose and frequently you don’t understand why.”