Philips picks Omnicom Group as its integrated global agency partner
Global health technology leader Philips has selected Omnicom Group as its global integrated creative, media and communications agency partner. The win follows a competitive five-month review, led by consultant R3, that included Interpublic Group of Cos.; incumbents Dentsu and WPP; as well as Havas, which was the runner-up, according to a person close to the situation. The partnership is subject to the signing of a final contractual agreement, according to a statement by Philips.
R3, Dentsu, Havas and WPP weren’t immediately available for comment.
WPP’s Ogilvy held the creative account since 2011. The media account was shared between Dentsu, which managed overall strategy and offline advertising duties, and WPP, which worked on the online media side. All business will be moving to Omnicom immediately except for WPP’s media business, which will transition in six months, according to another person close to the situation.
“Dentsu is proud of our two-decade long relationship with Royal Philips and the growth we have fueled together," says Peter Huijboom, global CEO of media, and global clients for Dentsu international. "We're excited to embark on a new chapter, as we will focus on being the global media partner of Philips’ domestic appliances business. We look forward to joining forces in bringing meaningful innovations to consumers’ homes.”
Financial details of the multi-year partnership were not disclosed, but the account is estimated to be worth $300 million in media spend.
“As we look to extend our leadership as a health technology solutions provider, Omnicom will be an important part of our world-class marketing capabilities, helping us to deliver personalized, differentiating customer experiences,” Lorraine Barber-Miller, chief marketing and e-commerce officer at Philips, said in a statement. “We continue to advance digital-first, always-on engagement and e-commerce strategies that enable us to meet our customers where and how they want to be engaged, bringing Philips’ brand purpose—improving people’s health and well-being through meaningful innovation—to life.”
Subsequent to the final agreement, Philips will work with a team assembled from a number of Omnicom shops led by TBWA for creative, OMD for media, and FleishmanHillard and Ketchum for communications, alongside talent and capabilities from Interbrand, Critical Mass, and Omnicom Precision Marketing Group.
This marks an expansion of the company’s relationship with Omnicom as it had already been working with the holding company's FleishmanHillard and Ketchum for 10 years.
“We are delighted to be named the integrated agency partner for Philips and to help the company navigate the challenges and opportunities ahead,” said John Wren, chairman and CEO of Omnicom. “During an intense pitch process, we were able to leverage the strength of our agencies in a model that connects creativity, culture and technology to help Philips build a category of one in the changing health technology industry. We are proud to be Philips’ partner in this important, new chapter of their history.”