LG Electronics Reviews Global Communications Account
Steve’s breakdown: WPP’s LG-One multi-agency team is incumbent. I have a little experience working in one of those and I think LG probably wants something completely different.
Multi-agencies might be good to win new business but if they are not running the account well, they REALLY don’t work.
ENGLEWOOD CLIFFS, NJ: LG Electronics is undergoing a review for its global corporate communications work. WPP’s LG-One multi-agency unit is the incumbent on the account.
The communications review, which typically takes place every three years, is being run by procurement with no support from an outside search firm, according to Ken Hong, senior director-global communications at LG Electronics.
He said the company hopes that LG-One, composed of Ogilvy PR and Hill & Knowlton Strategies, pitches for the business. The team has worked on the account since 2009.
Representatives from LG-One were not immediately available for comment.
While Mr. Hong declined to disclose budget information, he said the amount is “significant” and that the work includes the top 80% of the company’s revenue-generating markets. Mr. Hong added that LG is investing more in marketing this year, which is “trickling down into communications.”
LG recently released a new spot with actor Jason Statham promoting the G5 modular phone, created out of Energy BBDO. The ad is part of LG’s larger brand campaign to promote its mobile unit, playing off the existing slogan “Life’s Good” in a fun way with the idea that “Life’s Good When You Play More.”
In January, LG Electronics reported a 27% increase in operating profit for the fourth quarter of 2015, year-over-year. The jump was attributed to TV and home appliances sales. However, due to competition from the likes of Apple and Samsung, the South Korean company posted an operating loss for its mobile phone division in the quarter.