SEOUL--LG Electronics is to remain with WPP's LG-One unit after reviewing its global PR mandate for the third time in four years.
The decision follows a pitch in Seoul two weeks ago, as revealed by the Holmes Report. It comes 12 months after LG Electronics extended its contract with LG-One, the multi-agency Ogilvy PR and Hill + Knowlton team that was initally appointed in 2009.
LG Electronics global communications director Ken Hong dismissed the notion that the process was a futile one for the other holding groups involved in the pitch.
“We took this review very, very seriously and were eager to hear from the top players in the industry," said Hong. "The outcome could have gone in one of many different directions, it was a wide open field."
"In the end, the decision to retain LG-One was made after thorough deliberation by key stakeholders in the company. Collectively, the group felt that LG-One had the most to offer in terms of resources, the largest network and the strongest backing from the agency's top executives in WPP.”
It is understood that four holding groups took part in the pitch, with LG-One defending its brief against Interpublic Group, Omnicom and Next 15. Each group, said sources, fielded multi-agency teams because of the client conflicts generated by LG's broad range of products and services.
The review covered corporate PR along with consumer duties for specific LG Electronics business units, focusing on global HQ support and key markets such as the US, Russia, China and India.
The review was led by LG's procurement department. The company returned to profit last year after full-year losses in 2011.
Separately, LG Mobile recently chose to shift global PR duties to Burson-Marsteller after working with Porter Novelli for one year.