This story has been updated with comment from Philips.
Dutch multinational health electronics company Philips is kicking off a $300 million global agency review, Campaign US has learned.
Philips has invited at least four global holding companies to participate with integrated teams, including Interpublic Group, Dentsu, WPP and MDC Partners, according to agency sources.
Carat has held a significant portion of Philips’ media business, and is defending the account. WPP’s Wavemaker also has a small piece of the digital media business.
WPP’s Ogilvy has worked on Philips’ creative account since 2011.
Requests for information are due by January 25; the pitch will run through May, according to agency sources.
R3 is running the review, which includes creative, media and communications globally. R3 was unavailable for comment.
Philips is launching the review as it transitions into a "focused health technology company," A spokesperson said.
While the company previously made household and personal care electronic products such as toothbrushes, headphones and kitchen appliances, as well as auto parts, it is now "a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care," the spokesperson said.
As part of this transformation, Philips is "taking the opportunity to review and refresh our creative, media, and communications agency relationships," the spokesperson added.
In 2019, Philips brought in roughly $23 billion in revenue, and employs approximately 81,000 people across 100 countries. The company spends roughly $300 million on media globally.
"We are grateful for the longstanding and successful collaboration with our creative, media and communications partners, WPP, Dentsu and Omnicom, respectively," the spokesperson said.