Philips Electronics ends alliance with Euro RSCG

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Philips Electronics said it is ending its 10-year relationship with Euro RSCG following a review and consolidating its estimated $600 million account at new agency DDB Worldwide and existing shop D'Arcy Masius Benton & Bowles, effective June 30.

The account shifts come as a shock to incumbent Euro RSCG according to an agency spokeswoman, who said the agency only learned Dec. 20 that there had been a review.

Under the new contracts, DDB will handle Philips' estimated $300 million consumer electronics, semiconductor, components and branding work. D'Arcy Masius Benton & Bowles, which already handled the Norelco shaver line, adds lighting and medical products, such as Philips' recently acquired Sonicare electric toothbrush line; DMB&B's Philips work also is estimated at $300 million.

The consolidation is the result of a very quiet nine-month review, according to Ed Volkwein, senior VP-advertising. Although Mr. Volkwein said the review included Euro RSCG, an agency spokeswoman denied that Euro RSCG had been invited to participate or was even told of the review. ,p>The move is a blow to Euro and its Messner Vetere Berger McNamee Schmetterer/Euro RSCG, the shop behind Philips' consumer electronics advertising in the U.S. as well as its Jordan McGrath Case & Partners/Euro RSCG, which had handled the lighting work.

- Wendy Davis

Copyright December 2000, Crain Communications Inc.

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