Move Quickly Follows Incumbent BBDO Termination

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NEW YORK ( -- Hours after it was revealed that it ended its relationship with BBDO Worldwide, Charles Schwab Corp. moved its account to Omnicom Group sibling agency GSD&M, Austin, a Schwab spokesman said.

GSD&M, which handles CyberTrader, a Schwab unit that services active traders, did not return calls by press time.

No review yet
"For the time being,

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Billings on Account Have Declined
we're not doing an agency pitch," said Schwab spokesman Glen Mathison. He would not say whether there will be a review in the future. He declined further comment.

San Fransisco-based Schwab, along with the rest of the online brokerage sector, has been suffering from diminished trading volume since the tech slump began in early 2000.

A BBDO executive said billings have dropped nearly 40% in the past two years, from $130 million in 2000 to $83 million last year. According to Taylor Nelson Sofres' CMR, Schwab spent $238 million in measured media in 2000 and $138 million in 2001 -- a 42% drop.

BBDO's New York office had the creative account since 1998, the longest tenure for a Schwab agency, and received consistently good reviews for its Schwab campaign. Its notable work included a Super Bowl spot with baseball's single-season home run champ, Barry Bonds, and the all-time home run king, Hank Aaron; a spot with Sarah Ferguson, Dutchess of York, explaining mid-caps and PE ratio to her daughter; and one that featured youthful sports retirees Charles Barkley, Tara Lipinsky and Barry Sanders.

Award-winning efforts
"This was surprising; we're very proud of the work we have done for Schwab and remain so," said Ted Sann, chairman and chief operating officer for BBDO, New York. Mr. Sann said that "the campaign has earned virtually every major industry award."

Bill Katz, president-CEO of BBDO, New York, said, "Schwab, itself, has won countless marketing honors in this same period, in large part due to our efforts. We created famous advertising which propelled the company to record levels of awareness and popularity. We wish them good luck with their future efforts."

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