PHD will handle the account in Asia, according to a source close to the pitch. Sources have also suggested that the strategy for OMG’s winning pitch was developed in the region.
The appointment ends incumbent ZenithOptimedia’s five-year relationship with HP. Six agencies, including Carat and an Interpublic Group team, were initially invited to pitch for the account.
Asia accounts for a third of HP’s global spend. A source close to the account estimated its spend to be about US$150 million in the region, out of which about $73 million is spent in China.
Reports have also suggested that digital will play a key role in this brief, comprising up to 40 per cent of the entire account.
OMG will now handle the media business for HP's four divisions: Corporate, Personal Systems Group (PSG), Technology Solutions Group (TSG) and Image and Printing Group (IPG).
The TSG account, which was pitched separately, had initially included OMG, WPP, Havas, Publicis and IPG. Two agency groups including OMG and Havas were shortlisted in the final round. TSG is the largest business segment of HP, accounting for 36 per cent of HP's 2007 revenue.
It is likely that OMG will be beefing up its team in Asia with a particular focus on hiring digital talent.
Some in the industry have also suggested that ZenithOptimedia’s Singapore team, which handled the account regionally, could be impacted by this loss.
“The impact on Zenith will depend on individual countries," said a source within the agency. "Any country where HP account contributed to more than 50 per cent of the revenues could be impacted. Singapore was the regional HQ so it will definitely be impacted”
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