DDB Worldwide will handle international business, and a new as yet unnamed agency will focus on winning and managing local business. The new agency will launch in January.
DDB Philippines group president and CEO Gil Chua said the move was driven by a need to customize client service and boost profitability.
"The expectations and needs of clients are changing," he said. "We want to tailor our offer around the individual client."
Chua added that he would be looking to acquire or launch digital, activation and retail business in the new year.
He said: "It's coming up to our 15th year in the Philippines. We were 27 people. We are now 230. The launch of a second agency will take us up another level."