Adbrands Weekly Update 4th September 2008
A weekly round up of key news about 
leading advertisers, agencies and mediaowners
 
This email was sent to ${recipient}


Recommended Reading

 
A History of Advertising by Stephane Pincas 
& Marc Loiseau

Buy it for Less
 at Amazon

 DECLARED ADVERTISING EXPENDITURE
Under US regulations, many companies make a public declaration of their actual advertising expenditure, although this may be buried deep in SEC filings or other financial documents. Adbrands tracks these declared figures. 
Rankings link 
(subscribers only)


MULTIPLE SUBSCRIPTIONS
Would your colleagues benefit from their own subscription to Adbrands? All Adbrands subscriptions are for individual use only. If your colleagues also require access, we offer substantial discounts for additional users. One year subscriptions for your colleagues cost just UKP25 (or US$55) per logon provided they run alongside your own full-price annual subscription. We can also offer corporate intranet solutions giving password-free access to all employees companywide from a private doorway page. 
More information
 

Why am I getting 
this email?
 
You have in the past either purchased a subscription to Adbrands.net or Mind-advertising.com or specifically opted to join our mailing list.  

RECENTLY ADDED PROFILES


 

First, our favourite ads this week: 

Caterer.com "Little Gordon" 
by Rebel Virals 

Invesco PowerShares "Invest like never before"
by Euro RSCG Chicago

Norway National Lottery "Lucky You" 
by TRY

Old Spice "LL Cool J" 
by Wieden & Kennedy

Please note: if you are attempting to view these ads shortly after receiving this mailout on a Thursday, you may find that the video streams run slowly because of heavy simultaneous demand from other Adbrands subscribers who have also just received the same email. Please wait for the ads to load before pressing play, or try again later. Apologies for any inconvenience.

Foul-mouthed, foul-tempered chef Gordon Ramsay is conquering the globe (sadly, we say). If it's not bad enough seeing his ugly mug popping up in ads (for Gordon's Gin for example), a string of other advertisers are borrowing his persona for their own purposes. This week, a new Australian campaign for Gourmet Garden culinary products channels the hard man of the hob (here), but the best homage comes in this campaign for trade site Caterer.com, offering selected highlights from the life of "Little Gordon". Now, we're not sure we approve of getting little kids to swear for the amusement of adults, but you've got to admit the spot is funny. Web agency Rebel Virals is responsible. There are two ads so far - see the other here - and even a dedicated website.

Now for something just a little bit bizarre: a nicely realised but rather unsettling ad for Invesco PowerShares brokerage services by Euro RSCG Chicago. The little guy on the tricycle is a great touch. Perhaps the creepiest thing of all about the ad is the voiceover lady at the end. Can you even hear the individual words in what she's saying? If not, does it still count as a disclaimer?

A big hand for Norway, which makes its first ever appearance in Ads of the Week with a film by local shop TRY for the Norwegian National Lottery. Nicely done. 

And finally, rapper LL Cool J lends his authority (and a healthy measure of self-deprecation) to the always entertaining Old Spice campaign from Wieden & Kennedy. That little squeak just makes the ad. There's also another spot featuring Chicago Bears linebacker Brian Urlacher. Geeks of the world unite and get a little Swagger!


In the news this past week: Advertisers

The intense competition between Microsoft and Google became hotter still with the latter's launch of its first proprietary web browser. Entitled Google Chrome, the software appears to be designed as a direct competitor to Microsoft's Internet Explorer. However, several commentators suggested that Google's plans are more wide-reaching and that Chrome should be regarded not as a browser but as the first incarnation of a new web-based operating system which could ultimately constitute a direct attack on Windows itself. Many of the major software companies are moving towards a model whereby users no longer keep the programmes they use - such as Office - on their own computers, but access them over the internet from a central service provider, so having the dominant browser format will be essential. Meanwhile, Microsoft introduced the latest incarnation of its own Explorer software. The key new feature is a switch which allows users to hide their browsing history. Primarily designed to block (non-Microsoft?) advertising networks from collecting user information which could be used for targeting, the feature was quickly dubbed "Porno Mode" by pundits, since it will also hide personal browsing history from other users of the same computer. Meanwhile, the Seattle software giant added to its online portfolio with a deal to acquire shopping comparison site Ciao for $486m. The group is actually buying Ciao's parent company, the market research company Greenfield, but plans to sell off the survey side of the business. Ciao is Europe's most popular price comparison portal, with operations in the UK, Germany, France, Italy, Spain, the Netherlands and Sweden.  

Paul Polman was named as the new CEO of Unilever. He will succeed Patrick Cescau at the end of the year. The former CFO of Nestle, Polman had been widely tipped as the Swiss food giant's next chief executive. Instead the Nestle board selected Paul Bulcke for the position. Polman took over Bulcke's operational role as head of the company's Americas division for six months, but it was only a matter of time before he was snapped up by another major group. Prior to Nestle, he spent two decades at Procter & Gamble. Polman is succeeded as EVP, Nestle Americas by Luis Cantarell. Meanwhile, Ford appointed Stephen Odell to take control of its premium Volvo brand, replacing Frederick Arp. He will become the first non-Swede ever to run the business. Odell transfers from a post as COO of Ford of Europe.

Germany's #2 and #3 banks announced plans to merge, creating a stronger domestic rival to Deutsche Bank. Commerzbank is to acquire Dresdner from its current owner, the insurance giant Allianz, for around E9.8bn. The Dresdner brand is likely to be phased out, but even after completion, the enlarged Commerzbank will still lag well behind DB, about half the market leader's size by assets. Allianz originally purchased Dresdner in 2001 with the aim of creating a "bancassurance" giant with interests in both insurance and banking. However, as other banks discovered after adopting a similar course, there was insufficient interest from customers in cross-selling of different products.

As had been expected, Pernod-Ricard announced its withdrawal from Future Brands and Maxxium, the joint ventures which had previously handled global distribution of Absolut vodka and other former Vin & Sprit products. Absolut will instead be managed by Pernod-Ricard's existing distribution network. As part of the deal to extract itself from Future brands, Pernod will also transfer ownership of premium rum Cruzan to former Future partner, Beam Global Sprits & Wine.

Coca-Cola is celebrating the release of the new James Bond film Quantum of Solace with a special promotion in several markets. For a limited period next month, bottles of Coke Zero will be renamed as Coke Zero Zero Seven. Coke also launched an offer to acquire China's biggest juice maker Hui Yuan for around $2.4bn. It has already secured the support of Hui Yuan's major shareholders, including Danone, which agreed to sell its own 23% holding to Coke for around three times its market value.

Recession, what recession? Luxury group LVMH agreed to buy Royal van Lent, a Dutch company which builds Feadship customised motoryachts for an undisclosed sum though to be between E200m-E400m. Starting price to buy a Feadship yacht is around E20m. LVMH's chairman Bernard Arnault already has part-ownership of British company Princess Yachts International.


In the news this past week: Agencies

There were red faces at Carat New York this week - some embarrassed, others just very very angry - after an email from the company's human resources director was mistakenly sent out to all staff rather than just the heads of department for whom it was intended. The note described detailed plans for a large restructuring next month, including numerous layoffs, and outlined tactics for handling the redundancies, as well as a suggested draft of the letter of commiseration to be sent to dismissed employees. Oops. (The full memo is available online here, complete with original typos). Staff being laid off should, said the memo, "feel free" to go home today and "come back tomorrow to clean out your desk or office". The suggested strategy for telling clients about a change of account manager was outlined thus: "Mary Smith will be moving off your business. Now that we understand your business better, we are replacing her with someone whom we feel will be a better partner for you." The note also advised managers to talk up the agency's prospects to remaining staff: "Let them know we are building for the future. The actions we had to take, although unfortunate, were necessary to right-size the company and ... bring in the skill sets we need to effectively service our business and future client needs." 

WPP's bid for research giant TNS is not going as well as Sir Martin Sorrell had hoped. Perhaps heeding the advice of the TNS board, fewer than 9% of TNS shareholders had agreed to accept WPP's offer by the original deadline last week. As a result, the marketing services giant has extended its offer for a further two weeks, although it is still not offering any improved terms to win over the other 91% of TNS stockholders.

Alison Burns, CEO of JWT London, is to leave the agency early next year to take up a role as global client services director at JWT New York. Her successor will be appointed in due course.

Advertising Age reported that Gap Inc's Old Navy division has made approaches to several large agencies regarding its $200m account. TBWA, Crispin Porter & Bogusky and Goodby Silverstein were said to be among the shops contacted. Currently the agency of record on the account is independent boutique Chandelier Creative. Meanwhile Amazon hired Doner to develop a new campaign designed to promote its Kindle reader device. In other news, Carat was reappointed to global media for the Tourism Australia account; CommonWealth Bank of Australia reappointed Ikon Communications to media and added BMF Advertising to its creative roster. In the US, Sauza tequila called a review of creative, out of Publicis; Ogilvy New York picked up creative for Stolichnaya vodka; Levi's reviewed media, currently split between Bartle Bogle Hegarty and Initiative; and Nitro New York took Kraft's Philadelphia Cream Cheese from JWT. For all other appointments, subscribers can access the full Adbrands Account Assignments database here.


In the news this past week: Media

European media giant Bertelsmann said it might consider reducing its shareholding in broadcast unit RTL from the current 90% to around 75%. Coming in the wake of its sale of its half-share in Sony BMG, the move stoked speculation that the group is raising cash to launch a large acquisition. One possible target could be UK commercial broadcaster ITV, currently struggling to turn around a long run of poor performance. Another could be the magazine publishing division of Reed Elsevier.

Following its acquisition by Times of India, the UK's Virgin Radio confirmed that it will change its name at the end of September to Absolute Radio. 

As always, if you haven't already done so, please confirm your subscription to the free Adbrands Weekly Update by clicking here or on the link at the foot of this email. Thank you for your assistance! 



Simon Tesler
Publisher, Adbrands


Forwarding this email to colleagues? No problem at all. The more the merrier as far as we're concerned. But we're also very happy to take that responsibility off your hands if you'd prefer it. Just drop us a line by return email with the addresses of your colleagues and we'll add them to our list. There's no charge, and don't worry, we won't send them anything else.