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CIMB ends retainer deal with Mangham Gaxiola

CIMB adCIMB Bank is to restructure its relationship with regional ad agency Mangham Gaxiola, moving away from a retainer to assign work by project.

That move is designed to give the client more flexibility with the agencies it works with, Mumbrella understands, although CIMB has yet to confirm its motives for the shift.

The news emerges as a planned merger between CIMB Group Holdings and two other banks has reportedly been shelved because of the difficult economic climate. The deal would have created Malaysia’s largest banking group.

CIMB was the founding client for Mangham Gaxiola when the independent Singapore agency launched in September 2012. Then, the Malaysian Bank had billings of around $25 million.

Soon after CIMB appointed Mangham Gaxiola, which was founded by former Ogilvy Singapore boss Stephen Mangham and ex-Ogilvy ECD Robert Gaxiola, their former agency took legal action against the duo for poaching the client during a non-compete period. The matter was settled out of court, and Mangham Gaxiola issued a public apology.

Mangham Gaxiola’s other clients have included Jiinzu, Beiersdorf, Greenfields, Samsung and Subaru. The agency has always tried to work with regional clients, with Mangham telling Mumbrella last year: “It was always part of our strategy to go for regional business, but I hadn’t expected that nearly all our clientele would be regional, and that three of them (Beiersdorf, CIMB and now Bobson) would not be based in Singapore. The world is indeed flat.”

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