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Philips wraps global review, picks Omnicom for creative, media and comms

The global health technology company is consolidating its $300 million integrated account with the holding company.

By Alison Weissbrot

Philips will consolidate its $300 million (£212 million) integrated creative, media and communications account with Omnicom, the company said Tuesday.

The review, which kicked off in January, invited at least four holding companies — Omnicom, Dentsu, WPP and MDC Partners — to duke it out for the integrated business as Philips pivots away from consumer appliances and doubles down on its health technology operations.

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Philips will work with a bespoke team from across Omnicom agencies, led by TBWA for creative, OMD for media and FleishmanHillard and Ketchum for PR and communications. FleishmanHillard and Ketchum retained the account after working with Philips for 10 years.

“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,” said Lorraine Barber-Miller, chief marketing and e-commerce officer at Philips, 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,” she added.

The consolidation with Omnicom is a loss for Dentsu, which held the majority of Philips’ global media business under Carat for two decades. Carat still retains Philips’ domestic appliances business, which is about one-third of the account and includes kitchen, coffee, garment care and home care appliances. Philips sold this part of its business to private equity firm Hillhouse Capital for €3.7 billion ($4.4 billion) in March.

It’s also a loss for WPP’s Ogilvy, which held Philips’ global creative account since 2011.

“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 Group, in a statement.

“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,” he added.

Philips is the latest global brand to consolidate its business across media, creative and PR with a single holding company. Just last week, global health insurance giant Cigna chose IPG as its global enterprise marketing agency of record, to be managed by a bespoke, cross-agency team.