While the value of the business could not be confirmed, a source said it was of “great importance as the client is looking to appoint one agency for the whole market”.
The creative brief is understood to focus on LG’s 3G family, which one source noted would “present a lot of new opportunities” for the brand.
In addition, it is believed that an LG digital media review for mainland China is in the works. However, details, including media agencies involved, could not be confirmed at press time.
Last year, it was announced that LG was the only mobile phone manufacturer tasked with providing all of the big three mobile operators in China with 3G-compatible handsets based on the domestic 3G standard.
The Korean company was appointed as handset supplier by China Mobile, the largest carrier in the country. It also provides China Telecom with about one third of its 3G devices. The third major mobile carrier in the country, China Unicom, has also received handsets from the Korean manufacturer.
According to company executives, LG is expected to invest up to US$150 million in China on its handset business. LG has said it will launch 60 new phones in China, with more than 40 per cent of these 3G-enabled,
In 2007, LG Electronics aligned its $350 million annual global roster with WPP’s Mindshare and Y&R and Publicis-owned digital network Publicis Modem.
Mindshare handles LG’s global media planning and buying business, while Y&R is responsible for global distribution of ad campaigns created by BBH, as well as local market advertising where it is needed. Publicis Modem handles all website and digital marketing services.
Ren Weiguang, GM of the China mobile telecommunications division of LG Electronics China, reportedly said that LG Electronics aims to rank among the top three handsets in the Chinese market this year.
Globally, the electronics firm presently ranks third in the mobile phone market. Nokia and Samsung occupy the first and second places respectively.