Federal Express has retained PHD to handle its pan-European media planning and buying account after a competitive pitch against an undisclosed agency.
The account is understood to be worth about £2m in the UK.
PHD’s interactive division PHDiq will handle the business as the delivery company continues its strategy of investing an increasingly prohigher portion of its budget online.
The review does not affect FedEx’s relationship with its creative agency Vallance Carruthers Coleman Priest, which won the account across Europe, the Middle East and Africa three years ago. No one at FedEx or PHD was available for comment as Marketing Week went to press.
Delivery services have been hit in recent years by the increased use of e-mail and a downturn in manufacturing and the market has become increasingly competitive with FedEx, United Parcel Service and DHL all battling for marketing share.
FedEx is now attempting to reach more customers and prospects online. In 2000, it co-produced the Tom Hanks film Cast Away as part of a product placement strategy.
Last year, it signaled a shift in its traditional direct marketing strategy when it rolled out an online viral campaign to promote awareness of its transatlantic delivery services. The execution was devised by CWA and was backed by a DVD pack sent to respondents.