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Philips, the Dutch electronics giant, has kicked off a dollars 70

million global review of its business-to-business media planning and

buying and is talking to incumbents around the world about the

account.

The company currently uses a range of media agencies to handle its

business-to-business work, including Carat in the UK and Mediapolis on

the Continent.

However, Philips is now looking for a more coherent approach to its

advertising which targets corporate buyers, and is considering a global

consolidation of media planning and buying for its business

communications.

The media rethink is likely to result in a single media operation which

will work with Philips to devise a media strategy designed to work

across markets, targeting both domestic and multinational

business-to-business customers.

Pitches are already underway and Philips has seen presentations from the

main incumbent networks. The list is likely to be reduced further before

a final decision.

Frank Engleman, who is co-ordinating the review at Philips, said: ’We

are in the process of selecting an agency and hope to have a decision

before the end of the month.’

The business-to-business account will embrace a wide portfolio of

professional products, including digital video communications systems,

fax technology, broadband networks, medical systems, lighting and

semi-conductors. Spend levels across these brands is expected to be

around dollars 80 million next year, though some budgets are still being

finalised.

Despite the disparate nature of the business portfolio, Philips is

understood to believe there are cost efficiencies and synergies to be

gained from pooling the media for the different accounts.

Business-to-business products represent more than 50 per cent of

Philips’ business base but the company has concentrated in recent years

on streamlining its consumer communications. Carat was awarded all of

the consumer media business for Europe in 1996, when the account was

worth dollars 200 million.