Incumbent GSD&M Will Not Defend

By Published on .

NEW YORK ( -- Discount brokerage firm Charles Schwab Corp. has begun a review of its $95 million advertising account, and the incumbent agency, GSD&M in Austin, Texas, will not defend, according to an agency spokesman.

A Schwab spokesman said the company

Related Story:
Susanne Lyons Was CMO of Charles Schwab & Co.
has hired Select Resources International, Santa Monica, Calif., to conduct a review. He said company executives hope to have an agency in place by Thanksgiving.

Catherine Bension, president of Select Resources International, said the search will cover "large agencies on the [East and West] coasts and perhaps a few from the middle of the country."

Incumbent since 2002
GSD&M has had the account since 2002, when the Omnicom Group agency, then a roster agency, took over the creative portion from Omnicom sibling BBDO.

Schwab went through a management shakeup this summer when founder Charles R. Schwab took over for CEO David Pottruck, who was dismissed by the board following a 10% drop in net income during the first half of the year despite a 9% increase in revenue over the same period.

Mr. Pottruck was a 20-year veteran of the company who began his tenure as executive vice president of marketing and advertising. The company has been engaged in a bitter price war with rivals that offer cut-rate fees on trades.

Charles Schwab spent $95 million in advertising in 2003, according to TNS Media Intelligence/CMR.

Media not in play
In addition to GSD&M, which handles creative, Schwab's agency roster includes independent Rubin Postaer & Associates, Santa Monica, Calif., for TV buying; and Omnicom's PHD for media planning and print buying. The media services portion of the account is not in review.

Most Popular