Starcom wins Samsung global

SEOUL - Samsung has handed Starcom its US$600 million global media business, following a competitive pitch against three-year incumbent MindShare.

The move is a blow to the WPP agency, which in recent months has lost two global pitches - Fox and Mattel to ZenithOptimedia and Carat, respectively. According to sources, GroupM is expected to instigate a reappraisal of MindShare’s strategy globally on the back of the three significant losses.

“MindShare isn’t used to losing, especially in Asia where it is still strong, and it seems the time has come for an internal review of where its strategy can be put right,” said the source.

Starcom, meanwhile, is expected to handle the account across 60 markets, with China, India and Australia as the region’s focus. Its win consolidates Publicis Groupe’s relationship with the Korean electrical goods and mobile phone manufacturer. Starcom’s sister shop Leo Burnett has worked on Samsung’s creative business for two years.

The media agency, which had previously been unable to pitch for the brief because of a conflict of interest, having worked on the Sony account in a number of regional markets, will work alongside Cheil Communications.

According to sources close to the review, Starcom won the brief based on competitive pricing and a strategic offer. “The combination of Samsung and Cheil is a political, fragmented and disjointed partnership,” said a source. “The agency’s biggest challenge will be recruitment.”