WPP and Publicis take lead in Samsung's $400m pitch

by Arun Sudhaman,, Media Asia 02-Jul-04, 12:00

HONG KONG - The conclusion of Samsung's global review has raised speculation of a two-horse race between WPP and Publicis Groupe for the $400m account.

The final stage of pitching took place in Seoul in late June, with Interpublic -- led by incumbents FCB and Initiative Media -- going up against the other two holding companies.

Sources have claimed that Samsung management was particularly impressed by creative presentations by WPP -- led by J Walter Thompson and Red Cell -- and Publicis, led by Leo Burnett.

While a decision is expected in late July, few in the industry appear certain of this timeframe. In addition, questions are also being asked about the potential size of the account, given the convoluted relationship between Samsung-owned Cheil Communications and the external agency.

"The company runs all its advertising and marketing spend through Cheil," said a source who previously worked on the account. "It's almost like pitching to two companies at the same time."

This situation has also been exacerbated by an alleged power struggle over the value of brand-building between Samsung EVP of global marketing Eric Kim and the company's product groups.

"Eric Kim is trying to drive them into the 21st century," said the source. "He wants a long-term window, while the product groups want short-term ads." The brief covers Samsung's global branding, which some observers have pegged at less than 20 per cent of the total marketing budget, and is only expected to cover markets where Cheil has no presence.

WPP, meanwhile, has restructured its holding in LG Ad, in what is widely seen as a gesture to allay Samsung's fears of conflicts. Ogilvy & Mather and Young & Rubicam each now own 14 per cent of the Korean shop. Samsung commenced the review in April.

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