BlueScope Steel has kicked off a review of the $2.9 million media account for its coated and industrial products division with several agencies in the running.
The review is being undertaken without a formal pitch process. Instead, BlueScope Steel approached agencies, requesting credentials and setting up what a source described as “chemistry sessions” with its marketing team.
Mindshare, Bellamyhayden, Carat and Ikon are in the running for the business, together with incumbent Initiative, which has held the account for almost
10 years.
The move to review comes after BlueScope dropped its ad spend in the year to November 2009 by more than $8 million, down to $2.9 million from $10.2 million in the previous corresponding period, according to Nielsen.
The Colorbond building products brand accounts for the bulk of BlueScope’s spend. The account includes the Colorbond, Galvaspan, Zincalume, Truecore and Deckform brands. The division produces a range of steel products for Australian and international customers including slab, hot rolled coil and plate, cold rolled coil, zinc/aluminium alloy-coated Zincalume steel, galvanised and pre-painted Colorbond steel.
In mid-February the company reported a net loss after tax of $28 million for the first half of the 2010 financial year, following a $473 million loss in 2009.
The company said it expected a small full-year profit fuelled by increased demand, particularly in the domestic market where demand improved 51% in the past six months of 2009 compared to the previous six months.
A decision on the media review is expected by the end of March.
Prue Corlette
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