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LG Ad consolidates 50% of LGEIL's creative biz

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MUMBAI: In a major move that would allow it to consolidate nearly 50 per cent of its creative business under its in-house ad agency, LG Electronics India?s (LGEIL) has shifted its full home entertainment (HE) series to LG Ad.

The business, which includes flat panel, colour televisions, home theaters and audio-visual products, has migrated from Rediffusion-Y&R. The flat panel segment will alone consume Rs 3 billion towards marketing across various platforms.

Rediffusion-Y&R, however, retains the creative duties of LGEIL?s corporate, home appliances and mobile accounts.

LG Ad is already working on LGEIL?s air-conditioner, water purifier and the entire below the line (BTL) businesses.

LG Ad business head - vice president Nitin Makdani said, "Currently there are no promotion or campaigns going around the mobile and corporate accounts - once they get the limelight, we will be called to present our ideas and I am sure we will get those accounts as well."

Notably, the home appliances business, another major part of the LGEIL?s ad business, is under review and the result is expected soon.

Makdani, who heads the agency?s office in India, is confident that they will get the account. "LG Ad is looking to consolidate the entire LGEIL business in India, before tapping outside business. We need to successfully execute our current businesses and then start looking for new clients," he said.

LGEIL chief marketing officer Lakshmikant Gupta said, "We will continue reviewing and both agencies will be actively asked to present their ideas for our various businesses in future."

GIIR, which holds LG AD, was incorporated into LG Group in 2008 and since then LG Ad has been in an expansion mode. The agency has also opened offices in the United States, Moscow, United Kingdom, and Beijing and will be opening in Dubai soon.

India is one of the foremost markets for the agency, and since its inception in 2010, the agency has been adding LGEIL?s various accounts to its kitty.

In Korea, the agency handles the whole bunch of LG?s businesses. The other clients are Korean Air, Korea Tourism Organization, Shinhan Card, GM Daewoo and Mercedes Benz.

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