One-to-One Marketing: IBM hands OgilvyOne below-the-line brief

The move means that below-the-line accounts for Australia, Japan and China shift to OgilvyOne from Wunderman, which controlled around half of all below-the-line IBM advertising for these areas. Wunderman is left with no remaining IBM business, having been forced to resign its IBM holding after its stellar global win of the Microsoft below-the-line advertising business, IBM's largest competitor.

Ogilvy, which has long held the mainstream advertising business for IBM, now controls all of IBM's global advertising accounts. OgilvyOne, the direct marketing arm, has been a mainstay on part of the below-the-line work, along with fellow WPP agency, Wunderman.

In general terms the switch means IBM advertising in all 'G9' countries - countries where IBM has its largest investments - will now be run solely by the Ogilvy network. The remaining, 'One Voice' countries - including Singapore, the Philippines, India and Korea - were already dominated by Ogilvy after a similar switch effected about 18 months ago.

In Asia-Pacific, Australia, Japan and China fall under the G9 banner, meaning significant changes for agencies in these territories. All below-the-line work out of these markets will now be overseen out of Sydney by Bill Merrick, OgilvyOne director, Asia-Pacific, IBM brand services.

No official comment was available from Australia. However, OgilvyOne's IBM brand services worldwide general manager, Matt Ross, issued a statement from New York noting the historical significance of the change.

"In 1994, IBM made a bold move in consolidating all of its advertising at Ogilvy," Mr Ross said. "It's very gratifying that 10 years later IBM is again shaking up the industry by consolidating all of its direct and related business with the agency. This move validates our 360 degree model and the positive impact this partnership has had on their business."

It is understood the new arrangement will be phased in over the next three months. It is likely this will involve the voluntary transfer of some IBM-related Wunderman staff to OgilvyOne. At Wunderman, Australian managing director Craig Newton said Microsoft would bill around twice as much as the IBM's account. Added Newton, "I'm working through the resource plan and applications with the Microsoft client at the moment."