It is believed that LG has sent out RFPs to major multinational agency groups, including GroupM, Aegis Media and Starcom.
The review follows similar exercises in other global regions. LG recently moved its Australian media account from Carat to Ikon, and also consolidated its European business with Starcom. It has further been reported that the company is reviewing creative in all of its global markets.
The review follows similar exercises in other global regions. LG recently moved its Australian media account from Carat to Ikon, and also consolidated its European business with Starcom. It has further been reported that the company is reviewing creative in all of its global markets.
The Asian review includes China, Taiwan, Singapore, Hong Kong, Indonesia, Malaysia, Thailand and Vietnam. Australia is also up for grabs, although this account will only transfer in 2007, due to Ikon's recent win. Incumbents vary by market. LG works with Activate in Indonesia, Media Palette in Taiwan, Asatsu in Thailand, and GroupM in Hong Kong, Vietnam and Malaysia. The review does not include Japan, India or Korea.
Sources in the review, meanwhile, agree that cost is a driving factor, but differ over the extent. "Cost savings are obviously something (LG) wants to achieve but I think they are a little smarter than that," said one source. Another source, however, said: "Basically, all they are interested in is better service and less money."
