INTERNATIONAL: IBM selects Text 100 for Australasia

SYDNEY: IBM has chosen Text 100 as its sole PR agency in Australia

and New Zealand as part of the consolidation of its £42m global PR

operations.



Decisions in other Asian markets, including Japan, are still

pending.



The appointment is an extension of its agreement with Text 100 to

provide consumer PR in the US (PRWeek, 17 August) and act as one of

three preferred global agencies.



In that process, Text 100 won a two-year contract expected to exceed

£13m.



Omnicom's specially-formed consortium One Blue, which includes

Fleishman-Hillard and Brodeur Worldwide, won customer contact PR in that

review and US-only agency Magnet Communications scooped the technology

innovation and reputation management brief.



One Blue's Australian affiliate Recognition, which was also the

incumbent, was the only other finalist in the pitch.



The appointment marks IBM's first consolidation with a single agency in

Asia, reflecting a need to build 'economies of scale', according to a

source.



'We were looking for only one supplier in these markets,' said IBM

communications executive Australia/NZ Anna Bailey.



The account will be led by Text 100 Sydney MD Andrew McGregor, who will

also manage activities in New Zealand.



The IBM win potentially puts Text 100's relationship with Apple in

jeopardy in both markets. Apple began using Text in early 1999 and -

like IBM - is a major account covering all PR activities.



A Text 100 source said the agency had no plans to resign the Apple

account to avoid a conflict of interest.



When Text was originally appointed in August, IBM said the three chosen

firms would serve 90 per cent of the computer giant's global PR

business, with the remaining ten per cent going to agencies in smaller

countries where the main consultancies lack a presence.



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