Holding company WPP has merged its two largest communications agencies, BCW and Hill & Knowlton, into one operation called Burson the question now is whether LG Electronics will stick with Hill & Knowlton or will there be changes due to possible conflict.
On one side of their operation WPP has the Samsung account via Ogilvy & Mather while Hill and Knowlton are handling LG Electronics via an operation called LG One. Then there is the issue of
During COVID lockdowns Huawei selected BCW to handle global PR, as the Chinese tech giant attempted to repair their image despite continued US opposition to the Company.
Now Huawei is stripping share from Apple and Samsung in the Chinese market and competing head on with both Samsung and LG Electronics in several markets.
BCW global CEO Corey duBrowa has been appointed as global chief executive of the newly formed agency which will be operational in Australia and worldwide from July 1.
Questions are now being asked about conflict between LG’s PR agency operation at H&K and Samsung’s O&M operation as well as the reemergence of Huawei in the global smartphone market with WPP benefitting from all three brands despite competition concerns with all three brands competing in the same markets.
WPP management claim that Burson’s leadership team will “comprise of a cohort of top-tier former chief communications officers and other experienced agency senior executives from both companies,”.
Hill & Knowlton rebranded as Hill+Knowlton Strategies in 2011 when the business was struggling.
According to PRWeek’s Agency Business Report 2023, adding H&K’s US$455 million in 2022 revenue to BCW’s US$812 million to create a US$1.27 billion-dollar entity.
Samsung’s previous Agency of choice Edelman will be relegated to the No. 2 position globally.
When asked about client conflicts, a spokesperson from BCW and Hill & Knowlton told PRWeek that as the agencies are merged to form Burson, Hill & Knowlton will continue as a distinct brand within Burson, serving a select group of clients globally through strategic communications, advisory and public affairs services, including clients where there may be conflicts.
While LG One is seen as a pump and circulate PR agency, with press releases primarily global, circulated to journalists with little change and a strategy which LG locally appear to be comfortable with, their competitors are seen as being far more proactive.
Samsung via Ogilvy & Mather are more strategic with more local events, better press briefings and selective press communication Vs LG’s shotgun approach of multiple releases in the hope that some actually get published.
While Samsung has an internal PR team in house LG Electronics Australia has no internal PR manager with LG One appearing to handle all their PR operations which at best is lack lustre with LG not prepared to invest in PR activities to the extent of Samsung.
As for the current situation Corey duBrowa said “We are in the midst of one of the most complex operating environments in recent history, where clients need agency partners that deliver insights, expert strategic counsel, technology solutions and an unrivalled talent base at scale,”.
Currently WPP is battling to carve outgrowth after many tech clients including LG and Samsung reined in spending on marketing last year and amid tough conditions in several Countries.
Back outlook in October, forecasting like-for-like growth of 0.5-1.0% in 2023, down from previous guidance of 1.5-3.0%.
WPP is a British multinational communications, advertising, public relations, and technology, company headquartered in the UK.
It is the world’s largest communication and advertising Company.
