Optus is said to have begun approaching advertising agencies to participate in a review of its creative account, with insiders saying the process is expected to take nine to 12 months.
The telco has extended the three-year creative and media contracts, held respectively by M&C Saatchi and Mitchell Communication Group's global media brand MPG, for another 12 months to April 2012. The two agencies first won the Optus account in 2003 and retained their respective portions of the business at the last review in 2008.
At the time, Optus consolidated the entire creative account with M&C Saatchi, handing the agency the Optus Business portfolio from incumbent Leo Burnett.
Optus has downplayed conjecture that it is already in the market talking to creative agencies. A spokesperson said: “We will eventually review and conduct a competitive closed contract as part of normal governance.”
One option being speculated in the market is that Optus may split the creative account, because it has since decided it is too large for one agency. However, sources told AdNews a split is unlikely because Optus is eager to maintain a consistent tone of voice across all its business units.
When the contracts were last reviewed in 2008, M&C faced off Clemenger BBDO Sydney in a close race to the finishing line. This time around, Clemenger can no longer go in the running for the Optus account following its win of the $43 million Foxtel business in the lead-up to Christmas.
In media, MPG competed against MediaCom, Starcom MediaVest and Total Advertising & Communications (now PHD). MediaCom has since won the media account for SIM card marketer Amaysim.
Optus spent $72.5 million on main media in the 12 months to November 2010, according to AdEx figures from Nielsen, a sizeable spike from the previous 12 months' spend of $56.9 million.
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