HP has consolidated its nearly $600 million global media assignment with Omnicom’s PHD, the tech giant confirmed Friday.
PHD has been the company’s traditional media agency and now has added the firm's global digital media assignment.
WPP’s Essence was the digital media incumbent. HP did not hold a formal review before shifting the digital business to PHD, according to sources.
HP reported total advertising spending worldwide of $586 million in its fiscal year 2016. It is estimated that 65% of its spending is earmarked for digital, or approximately $380 million for 2016.
HP issued this statement: “HP is continuing its marketing reinvention by consolidating its media and search spend with Omnicom’s PHD. This change helps to create competitive advantage in the way we develop creative work while leveraging data and insights to improve marketing effectiveness.
"It also helps us to improve our cost structure so that we are able to continue to invest in marketing innovation.”
For Essence, the HP loss is a sizeable hit; HP was one of its biggest clients. WPP acquired a majority stake in the firm in late 2015.
For PHD, the win continues the momentum that it gathered throughout 2016, punctuated by its global Volkswagen win last June. Earlier this week the shop was ranked as the top agency for 2016 new business in a report issued by agency tracker COMvergence.