Telstra reviews $20m search business

Steve’s breakdown: This pitch is not formalized yet so there’s time to get in – for sure. But that also is indicative to how this account behaves.

MELBOURNE, Australia: Telstra is reviewing its $20 million search marketing account, one of the biggest search businesses in Australia, putting incumbent OMD on alert.

The review is in its preliminary stages, with Telstra believed to be talking with a range of digital agencies, including First Click, Downstream Marketing and Atomic Search, in addition to OMD. The account is currently split between OMD and Telstra, which handles much of the search function in-house. If OMD wins the pitch, it could see the agency expanding its search remit.

We understand that Telstra has signalled its intentions to go to pitch, but has not yet entered into formal talks with agencies.

OMD has a broad remit with Telstra, with the Omnicom-owned agency also handling all media buying including digital.

Telstra’s digital arrangements has become unwieldy over the past three years in tandem with an explosion in its online activity. OMD outsourced search to DGM two years through a strategic partnership, and since then, some of the account has moved in-house, coordinated by Telstra search managers.

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