IBM Launches New Agency Model for Direct Marketing and Interactive Support

OgilvyOne and Wunderman Named as Strategic Partners

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ARMONK, N.Y. - 28 Aug 2001: IBM today announced that it has developed a new agency model for the direct marketing and interactive components of its global integrated marketing communications program.

Under the new model, which goes into effect at the start of 2002, IBM will work with two strategic agency partners on all aspects of direct and interactive marketing communications, from online banner advertisements to direct mail campaigns.

IBM has named OgilvyOne Worldwide and Wunderman -- both divisions of WPP Group PLC -- as the two global partners. Beginning next year, they will help IBM to execute its entire solutions and product-based global ``demand generation'' campaign with a common, streamlined message.

IBM currently works with seven agencies on direct and interactive marketing projects. IBM initially consolidated its direct marketing program with three agencies in 1998, later adding four interactive agencies to meet the rapidly growing demand for Web marketing.

``The move to this new agency model reflects IBM's response to shifts in the business environment,'' said Maureen McGuire, IBM's vice president of worldwide integrated marketing communications. ``Interactive marketing is no longer a stand-alone discipline. It is an integral component of direct marketing, providing the two-way information exchange our customers demand as well as building and maintaining long-term customer relationships.''

The agency model was developed by a cross-company marketing team which assessed IBM's current requirements for integrated marketing and demand generation. IBM does not disclose its annual spending for direct marketing. Online advertisements account for approximately 7 percent of IBM's annual media buy.

Both OgilvyOne and Wunderman have a presence in all of IBM's major markets as well as demonstrated competence in every aspect of direct marketing and interactive, including traditional account management, direct mail and emerging interactive media.

IBM's current interactive agency partners R/GA, Modem Media, AnswerThink and OgilvyInteractive will continue to work with the team on Web strategy as well as site design and build. includes all of IBM's Web-based sales, service and support offerings for customers large and small.

IBM is the world's largest information technology provider and the company that coined the term ``e-business.'' IBM reported revenue of $88.4 billion in 2000.

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