Harman, the audio equipment brand, has hired French advertising giant Havas as its worldwide agency of record.

Owing to its likely considerable price tag, the deal is a major win for Havas. 

Harman recorded sales of $8.8 billion in 2020. Harman doesn’t publicly disclose its advertising budget, but if other consumer electronics brands are any indication, the company likely spends a significant portion of its revenue on marketing.

As the company’s new agency of record, Havas will be responsible for managing a significant portion of its marketing budget.

Stamford, Connecticut-based Harman is one of the world’s largest makers of audio equipment. The company makes headphones, speakers and numerous other products that it distributes under more than a dozen brands.  

Havas, in turn, is a French advertising and public relations company. Like Harman, Havas is a major player within its market: the firm’s turnover exceeded $1.29 billion during its second fiscal quarter. 

As Harman’s agency of record, Havas will be tasked with helping the audio equipment giant buy advertising space across TV stations and other customer engagement channels. Havas will also design Harman’s ads as well as provide other creative services such as social media consulting.

The companies’ collaboration will place a particular emphasis on raising the profile of JBL. JBL is a subsidiary of Harman that makes headphones and speakers for consumers, as well as professional audio equipment. 

The fact that Harman posted revenues of $8.8 billion in 2020 isn’t the only reason to believe the deal represents a major windfall for Havas. 

According to Havas, it won the deal after a more than four-month bidding contest that also included “all major holding companies” in the advertising industry. There is a strong correlation between the number of bids a contract draws and the contract’s deal value. 
“Harman’s marketing team is strengthening our operational model and building upon the foundational principles of insights, automation, integration, measurement, and accountability that will unlock exponential business growth,” remarked John Livanos, Harman’s Vice President of Brand Strategy and Consumer Insights. “Havas will be a central partner in this growth journey.”

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