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.
