Y&R tipped to win £34m Hitachi Digital business

Hitachi Digital Media Group is poised to appoint the Y&R Network to its estimated â¬50m (&£34m) advertising business for Europe, Africa and the Middle East.

The move follows a pitch between Y&R, incumbent Mustoes and an undisclosed agency.

It is understood the pitch was run out of Hitachi’s Japan headquarters and led by Japanese agency Dentsu Y&R alongside the European network, including its technology agency Banner.

It is believed the group, which includes Hitachi’s plasma and LCD television screens, DVD and video players, DVD camcorders and home theatre products, is planning to boost its advertising spend from â¬20m (&£13.6m) to about â¬50m (&£34m).

The advertising will focus on Europe’s top markets including the UK, Germany, France, Italy and Spain, but the campaign will run in a number of other markets as well. It is understood the campaign aims to update Hitachi’s image in the TV and home entertainment categories in a bid to win market share from rivals Sony and Panasonic.

Last month, Hitachi appointed Loewy to handle its pan-European brand communications. The agency will develop its first overall brand TV campaign for more than ten years.

The campaign will focus on both the consumer and business benefits of using the brand. The Y&R appointment does not affect this relationship.

Y&R and Hitachi both declined to comment on the appointment.