Y&R to Handle Campaign for LG's Newest HD TVs

Agency Beats Out Euro to Grab Assignment

By Published on .

NEW YORK (AdAge.com) -- Preparing the next-generation push into the competitive high-definition flat-screen TV market, Korean consumer-electronics manufacturer LG Electronics has selected Y&R Advertising, New York, as agency of record for its upcoming product-launch campaign, according to the agency.
The premium 1080p sets, some of which are already on the market, are expected to help lift revenues with luxury price tags and larger margins.
The premium 1080p sets, some of which are already on the market, are expected to help lift revenues with luxury price tags and larger margins.

A spokesman for LG didn't return calls at press time.

'True high definition'
The products are LG's next-generation HD TVs, which have a resolution of 1080p (progressive scan). The sets are also called "full" or "true high definition" TVs, referring to the fact that many movies are shot and shown using 1080p digital equipment. Most HD TVs currently on the market have resolutions of 720p or 1080i (integrated); those sets are available from a number of manufacturers.

While consumers are flocking to buy flat-panel HD sets, price cutting and tight margins are cutting into manufacturers' profits. The premium 1080p sets, some of which are already on the market, are expected to help lift revenues with luxury price tags and larger margins. There is one stumbling block: Not much content is yet available in 1080p, but that problem should dissolve as HD DVD and Blu-Ray DVD discs and players, which are compatible with 1080p TVs, become more prevalent among consumers.

Y&R's win follows a review that pitted the WPP Group agency against Havas' Euro RSCG Worldwide. Each of the agencies creates advertising for LG around the world: LG is a Euro client in Latin America, Europe and Russia. Y&R is LG's agency in Mexico, United Arab Emirates, Turkey and South Africa.

BrandBuzz also handles LG
Y&R sibling BrandBuzz advertises LG products in North America; last June, the agency bested finalist Merkley & Partners to win a competitive review for LG's $50 million print and broadcast business.

According to a spokeswoman at Y&R, the agency will produce several global campaigns in TV, print and interactive for the 1080p HD TVs. The first ads are expected to appear this spring.

Media buying and planning were not included in the pitch and media spending on the campaign was not disclosed.

A Euro RSCG spokesman declined to comment.
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