First it was the air-conditioner business in July 2010, followed by the water purifier business in December. And now, it is the home entertainment (HE) range -- which includes all audio-visual products and televisions - that has moved to LG Ad, the in-house creative agency of LG Electronics. LG Ad, a part of GIIR Advertising Media Communications, was established in 1964 as an in-house advertising agency for the LG Group of Korea. LG Corporation holds 35 per cent shares of GIIR. Ogilvy and Young & Rubicam, two of the world's leading advertising agencies, (companies of WPP, one of the world's largest communication groups) acquired a 36 per cent stake in LG Ad in 2002.
While in India, LG Ad, is currently only working on LG brands, in Korea, the agency handles the creative mandate for other companies like Korean Air, and Daehan Investment & Trust, amongst others.
Rediffusion was called to present ideas only for the air-conditioner brand, and not the other two products. Even for the microwave and washing machine, LG Electronics has called the two roster agencies -- Rediffusion-Y&R and LG Ad, to present their creative strategy. A decision on the same can be expected soon. Rediffusion-Y&R is currently handling three businesses of the brand -- refrigerator, corporate and LG Mobile, besides microwave and washing machine.
The electronic major has an overall marketing spend of about Rs 770 crore, of which Rs 420 crore is being spent on ATL, and Rs 350 on below the line (BTL) advertising. The overall size of the account won by LG Ad that only includes above the line (ATL) spends is estimated to be worth between Rs 200-250 crore.
Dipansu Saha, creative head, LG Ad says, "LG wanted something new and innovative out of the agency. It is a gain for us."