Chris Leong, Nokia’s Beijing-based global head of marketing services, said the appointment was in line with the handset company’s expansion into mobile services.
“We want to evolve our touchpoint strategy and elevate our digital capabilities,” she said, adding that Carat was “best able to do that”.
“We want to evolve our touchpoint strategy and elevate our digital capabilities,” she said, adding that Carat was “best able to do that”.
Carat scooped the planning and buying account, reputedly worth US$450 million, following a final pitch against ZenithOptimedia. Networks including Universal McCann and PHD dropped out at earlier stages. MediaCom, the incumbent on the business, did not repitch for the account.
Leong said the company wanted “an engagement platform where consumers can have a dialogue with us. Digital is a key part of that, and retail remains a key touchpoint.”
Carat will work across all markets for Nokia from the third quarter of 2009 with the exception of India, the Middle East and North Africa. It is believed that MediaCom sibling Maxus, which handles the brand in India, has been retained for a further year in the market as Carat seeks to build its presence there to a scale capable of handling Nokia. It has not been disclosed where Carat will hub the account in Asia, but Nokia’s hubs in the region are Beijing and Singapore.
Sources put the Singapore billings alone at $10 million.
MediaCom’s refusal to repitch came amid speculation that the review was purely driven by cost. An industry source said that MediaCom had been in discussions with Nokia regarding costs for several months before the pitch began. “There was a deal on the table that was a major loss position for MediaCom,” said the source. “But Nokia wanted it even lower.”
The source added: “The shift to Carat will be more of a blow to MediaCom in Asia-Pacific than in any other region, though the agency has not been hiring as fast as it’s been growing, so significant staff changes shouldn’t be required.”
Leong, however, denied that the pitch was purely about cost. “I wish it was that simple,” she said. “The review was not pricing-centred, but efficiency is part of the process.”
