Dahlin handles Intel in the U.S., while Euro RSCG has had the chip giant's business in Asia. Intel now is assigning Euro RSCG agencies all other regions except Japan.
Euro RSCG also gained a greater presence with Procter & Gamble Co. last week, as it was named the marketer's teen skincare agency (see story on Page 44).
Intel had been weighing the idea of a global agency, following the lead of IBM Corp. and other tech marketers. Such a move might have left Euro RSCG and Dahlin unemployed, but it was avoided by the agencies' deal.
`FELL INTO OUR LAP'
"It's something we thought about, but we were pretty pleased with our agencies," said Ann Lewnes, Intel director of worldwide advertising. "This kind of just fell into our lap, and I think it's really a great solution for us."
Euro RSCG, the world's seventh-largest agency concern, confirmed last fall it was talking to Dahlin (AA, Oct. 9).
Intel will now rank among the top five clients for Euro RSCG. The chip marketer has emerged as the world's biggest computer advertiser, spending an estimated $150 million on its ads and passing out another $500 million a year in "Intel inside" co-op money.
Details of the merger have yet to be ironed out, said Pierre Lecosse, CEO of Euro RSCG Asia-Pacific and budget director for the Intel worldwide account. Euro RSCG will wind up taking a controlling 70% stake in Dahlin, Mr. Lecosse said.
DAHLIN WORTH $10 MILLION
Industry executives estimated Dahlin as a whole would command $10 million to $15 million.
Intel tested Dahlin and Euro RSCG by asking the two to work on new TV ads. The result was a set of commercials that broke in the U.S. March 14 and will air in Europe and Asia in a few weeks.
"The creative has to be good, and it was, and the chemistry has to be good, and it is," Ms. Lewnes said. She added that Intel's top goal for the global agency is to produce "truly international creative," ads that need little local modification except for language.
Euro RSCG will oversee the account. Its agencies will handle regions: Dahlin in the U.S.; Gregoire Blachere Huard & Roussel, Paris, in Europe; Euro RSCG Ball Partnership, Hong Kong, in the Asia-Pacific; and Euro RSCG, Sao Paulo, in Latin America.
With the consolidation, Intel is dropping Publicis, London; DPTO Propaganda & Marketing, Sao Paulo; and Adler Publicidad de Occidente, Mexico City.
Dentsu, Tokyo, will keep Intel's estimated $30 million Japanese account. Intel, in fact, is expected to consolidate at Dentsu some small advertising assignments now parceled to other agencies in Japan.
80% OF DAHLIN BUSINESS
Intel accounts for an estimated 80% of business at Dahlin, a 10-year-old tech agency with growing interactive expertise.
"We are not buying DSW for the Intel account," Mr. Lecosse insisted. "We see this purchase as a great way to bring an agency with an extremely high-tech profile into the Euro RSCG group, and to reinforce our development in the high-tech and interactive domain."
Mr. Lecosse said Euro RSCG first approached Intel about the idea of a global agency and then began talks with Dahlin in spring of 1995.
Contributing: Alice Z. Cuneo and Mark Gleason.