Schwab will break a OneSource print, cable and network TV campaign this fall targeted more to customers of other brokerages than first-time investors, an executive familiar with the plans said.
"We felt we needed to freshen the creative and upgrade our agency support," said Len Short, exec VP-marketing for Schwab.
The brokerage selected BBDO West after an informal review. Cohn Godley Norwood, Boston, had handled print advertising for OneSource, while TV was handled in-house. Suissa Miller, Los Angeles, will continue to handle the online brokerage campaign. Rubin Postaer & Associates, Santa Monica, Calif., will continue to handle media.
Schwab spent $26.6 million in measured media for OneSource last year, according to Competitive Media Reporting.
The move further strengthens Schwab's ties to BBDO. Schwab handed its $50 million branding and sponsorship work to BBDO Worldwide, New York, in June.
Advertising is becoming more important for Schwab as longtime rivals such as Merrill Lynch & Co. and upstarts such as E*Trade focus on brand-building efforts.
$120 MIL IN ADS THIS YEAR
Schwab claimed it will spend about $120 million on advertising this year, up from $69.6 million in 1997. That figure was a 62.6% increase over the previous year, according to Competitive Media Reporting.
The win is the first new client for BBDO West since the April departure of President-CEO David Lubars, who joined Fallon McElligott, Minneapolis, as creative director. He was succeeded at BBDO as president-CEO by Tom Hollerbach and as creative director by John Hage.
Despite BBDO's recent New York win, BBDO West had to prove itself to get the OneSource business, Mr. Short said, adding, "They weren't grandfathered in."
The win brings BBDO West's annual billings to $310 million. Other clients include Starbucks Coffee Co. and Best Western International.