NEW YORK (AdAge.com) -- Rental car company Hertz has retained incumbents DDB Worldwide and OMD to handle creative and media buying, respectively, for its $75 million account after a review, according to executives familiar with the situation.
News of review
News that Hertz put its creative and media accounts into review surfaced in January. The New York offices of Omincom Group siblings DDB and OMD were the incumbents; DDB inherited the account through its purchase several years ago of New York–based independent Moss Dragoti. Other competitors in the review, according to executives familiar with the matter, were Omnicom's BBDO, New York, and WPP Group's JWT, Atlanta.
A DDB spokeswoman referred calls to the client. Spokespeople at other agencies involved either could not be reached or referred calls to the client. A spokeswoman for Hertz did not return calls for comment.
In 2006, large portions of Hertz's $75 million media spending went to network TV ($24 million); magazines ($24 million) and newspapers ($24 million), according to TNS Media Intelligence.
The Park Ridge, N.J.-based marketer, purchased in late 2005 from Ford Motor Co. by a trio of investors -- Clayton, Dubilier & Rice, the Carlyle Group and Merrill Lynch Global Private Equity -- has in recent months undertaken several initiatives, including job cuts and operational reorganizations, to improve its financial situation.
In early January, the company said it would let go of 200 employees; last week, it announced plans to eliminate another 1,350 jobs, primarily in its U.S. car rental operations, and gain $125 million in savings.
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CORRECTION: An earlier version of this story incorrectly reported that Hertz spent $150 million on the account. In fact, the marketer's media spending is $75 million.