Philips has cut Dentsu from its agency roster after kicking off a $300 million global integrated review in January, Campaign US has learned.
The Dutch multinational health electronics company invited four global holding companies to participate in the review, which aims to consolidate its media, creative and communications business with one group.
As of Friday, IPG, Omnicom and Havas are still in the running for the account, according to sources. The review is expected to conclude in May.
Dentsu’s Carat held the majority of Philips’ media business globally and was defending the account.
In March, Business Insider reported that WPP, which held Philips’ advertising account under Ogilvy since 2011, was also cut from the review, losing $30 million worth of business. WPP still holds onto a portion of Philips’ digital and performance media duties, awarded in a separate review.
Philips is seeking a new agency structure as it pivots away from consumer goods to become "a leading health technology company,” a spokesperson told Campaign US in January. Many large, multinationals are looking to consolidate with one holding company for integrated approaches between disciplines.
Philips, which employs approximately 81,000 people across 100 countries, spends roughly $300 million on advertising annually, per Comvergence. The company reported €3.8 million ($4.57 million) in revenue in Q1 2021, up 9% year-over-year.
R3 is running the review and was unavailable for comment. Dentsu and Philips did not reply to requests for comment in time for publication.