NEW YORK (AdAge.com) -- Hewlett-Packard has awarded its $1 billion global media-planning and -buying business to Omnicom Media Group after a review that included the incumbent, Publicis Groupe's ZenithOptimedia, which had been HP's agency of record since 2004.
The pitch was originally for three HP divisions, Corporate, Personal Systems Group and Image and Printing Group, but was expanded to include its Technology Solutions Group as well. Ad Age has learned that the tech giant today also awarded all of its all advertising, direct marketing, media buying, search-engine marketing and interactive campaigns business for the technology group, which includes business products such as storage and servers, managed services and software, to Omnicom as part of the holding-company review it launched back in October.
According to people familiar with the matter, Omnicom's direct-marketing agency Rapp led the pitch for HP's marketing-services account for the technology group.
The two wins help establish a strong foothold for Omnicom within HP. Late last month Ad Age reported that Omnicom's BBDO Worldwide had taken the Image and Printing Group's U.S. creative account, which the agnecy had been running outside the U.S. since April.
According to HP's most recent annual report, the company spent nearly $1 billion on advertising annually since 2006. In 2007, according to TNS Media Intelligence, HP spent $417 million on U.S. measured media. On a global scale that number was likely closer to $1 billion.
In a statement, a spokesperson said that, regarding the media business assignment, "The company has chosen Omnicom Media Group for media strategy, planning and buying services during a recent agency review process. We are continually seeking ways to be more effective across all aspects of our business, and media planning is no exception. However, it's our policy not to comment specifically on business negotiations or plans with suppliers, partners or customers."
The win continues an impressive streak for Omnicom Media Group, which watched OMD clean up in 2008 with a long list of impressive global and U.S. wins including Renault-Nissan's global business ($1 billion, global); Visa's global consolidation ($650 million); Intel ($300 million, U.S. ); Lilly ($250 million, U.S.); Time Warner Cable ($135 million, U.S.); and Levi's ($50 million, U.S.).
HP this week posted a tough fiscal quarter, and slashed its outlook for 2009 as the recession batters sales of personal computers, software, servers and printers.
Revenue for notebooks in the quarter was down 13%, while desktop revenue declined 25%. Shipments of consumer printers were down 31% and commercial printers down 39%.
Daryl Simm, head of Omnicom Media Group, was traveling and could not be reached for comment. An Omnicom spokesperson referred all calls to the HP.
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Contributing: Rupal Parekh