Newly created energy giant ChevronTexaco is planning a global consolidation of its ad duties and agency rosters.
Formed on October 9 after the $38 billion purchase of Texaco by Chevron, the client has launched an internal committee to discuss various cost-efficiency strategies, including an agency consolidation. Said spokesman Mike Libbey: “We promised Wall Street there would be some savings as a result of the combination. This team is one of the means by which we’re going to achieve that.”
The group has over twelve shops around the world on its books. In 2000, Chevron’s ad budget in the US alone totalled $35 million, plus $25m in the nine months to September 2001; the equivalent figures at Texaco were $60m and $15m.
A number of roster agencies completed request-for-information forms in early December, though were not told if pitches would be held after the internal negotiations. Libbey revealed that new assignments would be handed out in the first quarter next year, though he added that a target number of shops had not yet been decided.
Incumbents include Young & Rubicam in San Francisco (retail gas advertising for Chevron), the same city’s Brouillard Communications (Chevron’s corporate branding), BBDO in Houston (Texaco retail advertising) and Bates Southwest, also in Houston (Texaco lubricant brands).
News source: Adweek.com