NEW YORK: LG Electronics USA has selected Ogilvy PR as its AOR, after using the company on a contract basis for its consumer-electronics division since last September.
Ogilvy PR will now be responsible for three other divisions: digital appliances, mobile phones, and information technology, as well as handling corporate reputation and issues management.
The amount for the account was not disclosed, but Ogilvy PR managing director Barby Siegel, who leads the firm's global consumer-marketing practice, called the deal a "significant relationship." The company put out a limited RFP to the three agencies it was working with at the time, said John Taylor, VP of public affairs and communication for LG Electronics USA (the parent company is based in Seoul, South Korea).
"We looked at the incumbent agencies and were impressed by the talent that Ogilvy brought to LG consumer electronics," Taylor said. Taylor declined to name the other two agencies.
He added: "The team has a lot of expertise far beyond consumer electronics."
LG Electronics is in the middle of investing more than $100 million in its first US national branding campaign, entitled "LG: Life's Good," which it launched in the first quarter of 2004. Ogilvy also helped LG launch a $10 million billboard in Times Square, featuring an interactive light-emitting diode (LED) screen measuring 50 feet high and 84 feet wide, in December. The billboard, featuring consumers interacting with LG products, supported the new branding theme.
Ogilvy will have at least 15 people working the account out of Los Angeles, New York, and Chicago. Siegel will serve as client relationship manager for the business.
"What we are now doing is working with each individual division to position LG as a leading digital brand in the US," Siegel said.
A broad-based public relations program is in place and clearly media relations is a centerpiece of that program," Taylor said.
He added: "The corporate headquarters in Korea directly views the US media as more than just talking to US consumers; it's the media capital of the world."