After pitching its corporate and mobile assignments separately, sources involved in the review expect the Korean electronics giant to select BBH, although the scope of the assignment remains unclear.
BBH pitched for the mobile component of the business - accounting for approximately 40 per cent of LG’s global US$350 million adspend - against DDB, which has handled several mobile projects for LG in recent years.
BBH pitched for the mobile component of the business - accounting for approximately 40 per cent of LG’s global US$350 million adspend - against DDB, which has handled several mobile projects for LG in recent years.
While the corporate component saw Publicis pitch against TBWA, BBH allied with Publicis’ Korean agency Welcomm Publicis to contest the mobile brief, raising questions as to how the agency would service the account.
BBH currently has no presence in Korea, and only counts six offices globally.
If the corporate business is also consolidated into BBH, there is an expectation among sources that the agency would tap minority partner Publicis to handle global delivery.
“Has BBH figured out that it’s too hard create an agency in Korea, and will rely on Welcomm?” asked one source involved in the review.
“Perhaps LG would have been better off going with one agency for corporate and the other divisions, and letting mobile have its own network.”
The news comes as media agencies prepare for a review of LG’s global media buying and planning business, also out of Seoul. In China, meanwhile, new marketing chief KK Ko has commenced a local review of the $20 million media account, currently held by Dentsu, with Zenith, GroupM and Aegis all believed to be involved.
The China media review does not appear to be linked to the global one.
The flurry of reviews follow a significant revamp of LG’s marketing department. Over the past year, global head of brand marketing Sung-hun Han has arrived from P&G, along with ex-Johnson & Johnson executive Chang Ma. More recently, LG appointed Pfizer Northeast Asia head Dermot Boden as CMO.
In Korea, meanwhile, at least five agencies are vying for the lucrative LG Telecom account, after the company called a review of both creative and media. Currently handled by Diamond Ogilvy, the pitch is expected to also include BBDO, local shop Veil, and LG in-house agencies Silver Bullet and Wise Bell.
