IBM slashes DM roster to core

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 account.

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

account.



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 &

Mather Worldwide.



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

business.



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

those regions.



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

line.



Strategic Interactive Group will handle interactive DM on small and

medium businesses.



’Our objective is to concentrate DM work with a far smaller set of

world-class agencies at the best possible value,’ said a company

spokesman.



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.



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