LG looks beyond WPP for global review list

SEOUL - LG Electronics' decision to only select agencies from Omnicom Group and Publicis Groupe to contest its US$350 million global creative pitch has raised eyebrows in Korea, where in-house agency LG Ad carries a 28 per cent stake from WPP, via Young & Rubicam.

LG has selected DDB, TBWA, Saatchi & Saatchi, Publicis and BBH to contest the account. DDB, which already handles aspects of LG’s international mobile task, and BBH will contest the handset business, while the remaining three are vying for the brand component of the review.

The decision comes at a sensitive time for LG Ad, which ended its contract with LG in December 2005. Over the past five years, since WPP bought its stake, the agency has lost parts of LG’s business to other domestic agencies — including TBWA\Korea and Creative Air, although sources note that the trend has reversed, to some extent, over the last year. “The days of LG Ad getting all the business have gone,” said a source.

Another source pointed out that the agency’s licence to use the LG name will expire soon, raising questions over whether the agency will remain linked - if only in name - to its massive chaebol parent. LG Ad did not respond to request for comment.

The LG Electronics pitch, will take place on 8 October. Global head of brand marketing Sung-hun Han, who hails from Procter & Gamble, is leading the overall pitch. Ex-Johnson & Johnson executive Chang Ma, meanwhile, is overseeing the handset component as director of mobile communications business.