DDB has lost a part of its Telstra account, AdNews understands.
While DDB retains the lion's share of the Telstra creative account it has emerged that the agency's duties as part of the always-on performance hub have been handed to R/GA.
OMD's arrangement with the telco remains unaffected by the switch.
The whole hub concept, where creatives from DDB sit with the OMD programmatic trading team to create and optimise digital ads, has been heralded as an industry first. Telstra is understood to be happy with its progress. Partially as a result of that success, the telco is now digital-first in terms of ad spend, with top marketer Mark Buckman stating that more than 50% of its budget is now spent on digital.
Three years ago up to 90% of its marketing budget was spent on traditional above-the-line communications such as TV and outdoor.
DDB handles more than two thirds of Telstra's creative work but it is understood that R/GA's technical capabilities attracted the telco.
While the transition could take some months to complete it is thought that the changeover will be complete by the end of Q3.
R/GA is a pureplay digital agency with strong experience and commerce credentials. It launched in Sydney last year with Qantas and Rip Curl on board.
None of the agencies involved would talk about their work with Telstra. The telco also declined to comment.
Updated: Telstra wishes to add the statement below.
We have been pleased with the work carried out by both DDB Group Australia and OMD within our highly successful programmatic marketing sector.
As a matter of policy, we do not provide specific commentary around our agency roster however we continue to work with both agencies in this and other areas of the business at this time.
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