IBM has completed the review of its dollars 150m (pounds 93m)
global direct marketing account, reducing its roster from more than 30
agencies worldwide to just four. Ogilvy One remains IBM’s strongest
European partner, retaining the software, servers and services
The move to consolidate below the line is reminiscent of IBM’s shock
review in 1994, when it jettisoned more than 40 ad agencies around the
world to award its dollars 500m (pounds 310m) ad account to Ogilvy &
Those pitching for DM work on the company’s three main product lines -
servers, software and personal computers - included Ogilvy One,
McCann-Erickson Worldwide, Publicis and Rapp Collins Worldwide.
Agencies which have lost out include US-based direct marketer Devon
Direct and Bronner Slosberg Humphrey.
Although Ogilvy One has been responsible for much of the European direct
marketing business in the past, many more agencies have worked on the
business in the US and Asia.
Ogilvy One’s most recent work was a pounds 4m electronic commerce
campaign, which encouraged greater use of the Internet for conducting
Its remit covers hardware and software products.
Wunderman Cato Johnson is now the sole agency of record in Asia Pacific
and Latin America and will execute all global and local campaigns in
US agency Barry Blau and Partners will continue to handle IBM’s
relationship marketing programme, Gold Service, which targets the
company’s 200 most important enterprise customers.
It will also handle DM for flagship products ThinkPad and the PC desktop
Strategic Interactive Group will handle interactive DM on small and
’Our objective is to concentrate DM work with a far smaller set of
world-class agencies at the best possible value,’ said a company
The move is part of IBM’s on-going attempts to cut costs and bring
consistency to the brand.
Consolidation of the entire IBM UK business began in December and the
search to fill the post of UK marketing director - vacant for two years
- began last month.