Guardian Newspapers is to appoint the first creative agency for its &£2m-plus new media division account.
The move is part of a new phase of Internet development which sees flagship site News Unlimited renamed Guardian Unlimited and the launch of a separate site for The Observer newspaper.
The new media division’s marketing budget is estimated to be between &£2m-&£3m.
An agency shortlist has been drawn up. Media will be bought by Guardian Newspapers incumbent agency New PHD.
The agency appointed will work with Guardian Newspapers’ soon-to-be appointed marketing director. Stephen Palmer is leaving the post to join EMAP’s Performance Network, also as marketing director.
Managing director designate Carolyn McCall says: “The announcements are just the beginning of an exciting period of Net development for the division, and we will be investing – both financially and in terms of commitment – to ensure we keep ahead in this fast-moving part of our media business.”
Guardian Unlimited will now form the hub of the network in a move designed to strengthen The Guardian’s reputation as an online news provider.
The home page has been redesigned to allow users to more easily navigate the rest of the network’s content.
Observer.co.uk will provide a dedicated home page for the newspaper, enabling users to access more information on the paper’s scoops, including video and audio recordings.