Home Depot to pick new ad agency

Home Depot may hire a new ad agency to sharpen its image, and AdWeek reported it is considering six finalists.

The Atlanta-based home improvement chain had a $1.2 billion advertising and marketing budget in 2007, according to a Home Depot financial report. Nearly $600 million of that is spent directly on major media buys, AdWeek reported.

The company’s lead ad agency has been The Richards Group, based in Dallas.

According to AdWeek, Home Depot sent a request for proposal to 20 agencies looking for a refreshed advertising campaign.

AdWeek reported that six agencies made the short list and soon will give Home Depot executives presentations. The agencies are: McCann Erickson in New York; Hill, Holliday, Connors, Cosmopulos in Boston; JWT in New York; Grey Global in New York; GSD&M Idea City in Austin, Texas; and Richards Group, the incumbent.

Jean Niemi, a Home Depot spokeswoman, would not confirm the finalists. But she said the company will pick an agency by mid-November.

She also said the agency review is part of “a regular cycle” that started before Home Depot hired its new chief marketing officer, Frank Bifulco, in April.

The review is “to make we’re always aligned with right partner based on what’s going on in the marketplace,” said Niemi.

Advertising supports Home Depot’s nearly 2,000 U.S. stores. While it is the largest home improvement chain, the company has faced stiff challenges from both independent stores as well as archrival Lowe’s, based in North Carolina.