|DDB has won the Philips global account.
Chief Marketing Officer Andrea Ragnetti said the company spent around $600 million on advertising worldwide in 2002. Billings on the account DDB has won are estimated at $250 million to $300 million.
Ramp up U.S. presence
Mr. Ragnetti explained that Philips wants to ramp up its U.S. presence significantly and that consolidating its relationship with DDB Worldwide was part of that plan. Philips inherited a relationship with Publicis Groupe's Leo Burnett after the dissolution of D'Arcy, Masius, Benton & Bowles late last year.
Mr. Ragnetti explained that the company had not called a review, but had simply spoken to both agencies. Ultimately, Philips decided that it felt most comfortable with DDB's creative team.
"Philips in the U.S. is a $10 billion business," Mr. Ragnetti said. "Consumer electronics makes flat-screen TVs; we are also very active in medical systems, semi-conductors, lighting and domestic care. We want to establish a clear connection between our brands and Philips."
Burnett had worked for two Philips' divisions -- domestic appliances and personal care, and lighting and medical. The business will shift to DDB Worldwide when that contract runs out at the end of 2003. However, Burnett will be retained for unnamed special projects.
"We are disappointed with Royal Philips' decision to consolidate its brand advertising elsewhere," a spokeswoman for Burnett said. "We had successfully transitioned the business from D'Arcy and launched new creative work for various Philips brands."
The win is DDB's second over Leo Burnett. The two agencies went head-to-head over McDonald's Corp.'s business within recent weeks. The fast-food giant selected an idea put forward by DDB to spearhead future campaigns.