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Hulu.com "Destroy
The World"
by Crispin Porter & Bogusky
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Monster "Doubletake"
by BBDO New York
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UK Dept of
Transport "Live With It"
by AMV BBDO
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Onitsuka Tiger "Zodiac
Race"
by Amsterdam Worldwide
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Congratulations to the Pittsburgh Steelers who narrowly clinched last Sunday's Super
Bowl with an extraordinary fourth-quarter comeback. Congratulations also to NBC, this
year's host for the televised game, which managed to amass a record $206m
in advertising revenue for the broadcast, always one of America's
most-watched events and a key date in the advertising calendar. According
to final Nielsen figures, this
year's game was actually the biggest ever, attracting an average of 98.7m viewers,
more than 1m up on last year. That places the 2009 Super Bowl in overall 2nd place as
the most watched telecast in history. The all-time #1 is still the final
episode of comedy show M*A*S*H back in 1983, which attracted an average of 106m
viewers.
As usual, this year's broadcast featured a mixed bag of ads. Many commentators bemoaned the relative paucity of new ideas.
Several ads rehashed familiar ideas: Coca-Cola, for example,
revisited its seminal "Mean Joe Greene" ad from the 1980s in an
uninspiring addition to the current Coke Zero campaign. Not even the 3-D offered by DreamWorks and PepsiCo's SoBe was new - Diet Coke first
ran a 3-D Super Bowl ad back in 1985. Other advertisers went for the
always-safe common
denominator of sentiment. Animals featured in numerous ads, and the Budweiser
spots delivered their usual blend of pride and patriotism in the form of
the ever-popular Clydesdales
drayhorses, a familiar site every Super Bowl. Anheuser was, as
usual, the most prolific advertiser, with five separate ads. No doubt
most Adbrands readers will have caught up with most of the Super Bowl ads
already online. So we're going to rerun just two. For the rest, we point
you in the direction of the Wall Street Journal's coverage here.
Actually there were three ads which lodged in our craniums, but two of
them were in the same vein. It would be overkill to bring you both, so
here's our favourite by a whisker: the BBDO New York spot for Monster.
I urge you to click
here for the other, Wieden & Kennedy's almost-as-funny ad for
CareerBuilder.
As big fans of 30 Rock, we couldn't resist Alec Baldwin's turn as the
spokesman for Hulu, the online video portal co-owned by NBC
Universal and News Corp. The agency is Crispin Porter & Bogusky.
OK, enough Super Bowl, let's move on. A very different change of pace and
mood now, in the form of the new UK public service announcement from AMV
BBDO for the Department of Transport's Road Safety campaign.
There are definitely no laughs here. It's a deeply affecting depiction of
the possible repercussions of driving too fast. Haunting indeed.
And finally, we'll cheer ourselves up a bit with this three-minute epic
for Onitsuka Tiger sports shoes from Japan. According to ancient
legend, the Japanese signs of the zodiac secured their places in the
calendar in an epic race. Here, Amsterdam Worldwide, the Dutch arm
of what used to be StrawberryFrog, give us their take on just how that
might have gone. Enjoy.
In the news this
past week: Advertisers
According to the Wall Street Journal, computer manufacturer Dell has been
working secretly on a wireless smartphone, and could be ready to launch
the product as soon as next month. That would be a high-risk strategy for
the company, which is still struggling to win back market share from arch-rival HP. According to new figures from researcher IDC, Dell was stuck in second place
for global PC sales in 2008 behind HP. Worse still, HP continued to widen
the gap, with unit sales up 12.7%, while Dell managed an increase of only 11%.
Dell retained the top spot in the US, with 29.5% market share, compared to HP's 24.9%. However, Dell's sales slumped dramatically in the final
quarter, in which its US market share slid to just 26.5%, compared to HP's
25.1%. In the EMEA region, Dell was still languishing in 3rd place behind
HP and the enlarged Acer. The most impressive growth in Europe came from
4th-placed Asus, another Taiwanese company, whose unit sales more than
doubled during the year. More
details from IDC here.
If it's serious about the handsets market, Dell might
consider rescuing (if such a thing is possible) the mobile operations of
struggling Motorola, which reported yet another set of dismal results.
Although the group's enterprise and home networks units are doing well,
the handsets business is in freefall. Once the world's biggest
manufacturer of mobile phones, with more than 50% market share, Motorola's
performance continued to plummet during 2008. By the end of the year its
market share had almost halved from 12.4% in 4Q 2007 to just 6.6% for 4Q
2008. It now languishes in 5th place in the global rankings, behind Nokia,
Samsung, LG and Sony Ericsson. More
details from IDC here.
Ford also reported grim figures for 2008,
including a net loss of $14.6bn, the worst result in the
company's 106-year history. Unit sales slumped by 18% to a total of 5.4m
vehicles worldwide. As a result, Ford slipped another place in the global
ranking, falling to the #4 position behind Volkswagen Group for the first
time. The German manufacturer reported sales of 6.2m vehicles. Even so, Ford
continued to assure investors that it has enough cash to sit out the
current crisis, and that it will not need to call on the US government for
financial assistance unless the industry is rocked by a further
"significant event", such as the bankruptcy of either
General Motors or Chrysler.
That sort of significant event may still be on the horizon. Sales figures
for January demonstrated that the US
car market remains in dire straits to say the least. Combined sales for
the month from all the main
manufacturers came in at under 670,000 vehicles, the worst monthly figure
since 1963, almost 50 years ago. Also, for the first time in history, the US
slumped to second place in the global rankings for new car sales, behind
China, which notched up unit sales of around 790,000 according to GM's
head of global insights Mike DiGiovanni. All the major US players suffered
exceptional falls for January 2008, compared to the same month in 2007,
ranging from 30% for Nissan to around 55% for Chrysler.
Was there any good news? Well, yes, some. Amazon cheered technology investors with strong
results for 2008. While most traditional bricks and mortar retailers were
struggling with their worst quarter for a decade, Amazon picked up a good
deal of the slack. Its 4Q sales jumped by 18%, while full year revenues rose by
an impressive 29% to $19.2bn.
Last week's announcement that Pfizer plans to buy smaller
rival Wyeth has spurred other pharmaceutical groups into action. Roche,
which has been engaged since last summer in drawn-out negotiations to
acquire the shares it doesn't already own in US biotech Genentech, finally lost patience with the smaller company's
intransigence. It
withdrew its previous offer of $44bn, made last summer before the current
economic downturn, and said it would go hostile with a lower bid of $42bn
which it will take directly to Genentech's minority shareholders.
Meanwhile, French giant Sanofi-Aventis also hinted at acquisitions. It is understood to be in talks with bankers regarding funding.
First on its shopping list is likely to be Bristol-Myers Squibb, with whom
it shares US rights to the blockbuster Plavix. Merck & Co's CEO
Richard Clark also said he was open to a large acquisition. Merck operates
two joint ventures in Europe with Sanofi-Aventis, making that a possible
takeover target. There is also a partnership with Schering Plough in the
US. One of the smaller businesses in play is the $2bn prescription
pharmaceuticals division of Procter & Gamble. According to press
reports, P&G is considering the sale of that unit to allow it to concentrate
on OTC healthcare and its other packaged goods.
In the UK, pharmacy group Alliance Boots announced plans to
merge its Boots Opticians subsidiary into a joint venture with
smaller competitor Dollond & Atchison, currently owned by Italian
eyewear manufacturer De Rigo. The latter is best known for its Police,
Lozza and Sting glasses and sunglasses. Alliance Boots will end up with around 60%
of the combined business, which would have 690 stores in the UK. The
D&A outlets are expected to adopt the Boots brandname in due course.
Despite its size, the merged entity will still lag behind local
market-leader Specsavers, which has an estimated 23% share, compared to
18% for a combined Boots/D&A's.
The Woolworths brandname is to be resurrected as
an online service. Britain's long-lived general retailer went bust over the
Christmas holidays with debts of £385m, the biggest victim so far in
Britain of the current downturn. Although there were no buyers for the
bricks and mortar business, the brand name and some other assets have been
acquired by the Barclay brothers, owners of the Littlewoods mail order
empire. It is to be relaunched in summer 2009 as an arm of the brothers'
Shop Direct group. The Barclays also acquired
Woolworths' Ladybird childrens' clothing business.
Several other British retailers could soon change hands following news that Icelandic retail conglomerate
Baugur has filed for court protection from its creditors under local laws
similar to America's Chapter 11. The group owns part or
all of numerous UK retail brands including supermarket chain Iceland, toy
store Hamleys, department store House of Fraser, fashion retailers
Warehouse, Oasis, Karen Millen, Whistles and Principles, Wyevale Garden
Centres and jewellers Mappin & Webb and Goldsmiths. Most if not all of
Baugur's assets are likely to survive in the event of a collapse, but liquidation
could spark off a feeding frenzy among other buyers. Baugur founder Jon
Asgeir Johannesson gave an interview to local television in which he
denounced Iceland's banks for not being more supportive. "These good
assets abroad now will wind up in the hands of British vultures, who will
probably get all of this for a very low price or nothing at all."
There are few doubts about who he regards as vulture-in-chief. In another
interview he said: "I’m sure that Philip Green is dancing a war
dance in his living room, because now he will become a large owner of our
companies for virtually nothing." Green, the owner of the Arcadia
fashion group and Bhs, has already expressed his interest in parts of Baugur's
portfolio.
Two of the biggest players in live music were reported to be in the
final stages of negotiating a merger which would dominate the global
entertainment industry. Live Nation is
already by far the world's biggest concert promoter, and has also secured
exclusive recording contracts with performers including Madonna, Shakira
and Nickleback. Ticketmaster is
the dominant force in ticket sales, and also controls band management
company Front Line, whose artists include The Eagles, Christina Aguilera,
Jimmy Buffett and Neil Diamond. The terms
of the planned merger have not been disclosed.
Honeyshed, the experimental online shopping venture, has closed, citing
economic factors for its disappointing performance. The service was
originally launched in 2007 by adman Dave Droga in a partnership between
his creative boutique Droga5 and production company Smuggler. Much of the
funding was provided by Droga5's backers, Publicis Groupe. Honeyshed aimed
to sell general consumer products to a young, streetwise audience by
featuring them in odd viral-style film clips or counter-culture spoofs of
a traditional QVC and HSN sales pitch. However, the company had
considerable difficulty in attracting big name clients, who were for the
most part put off by the deliberately bizarre, often amateurish style of
the featured clips. Nike and Volvo were among the marketers who dipped a
toe in the water in Honeyshed's early days, but failed to follow through
with further support.
One of the biggest victims of the current recession could
be the sports sponsorship market. Formula 1 racing was the first
big loser, with the news last year that Honda would pull out of the
sport altogether. Last week, Dutch bank ING was also reviewing its
commitment to racing. Several other advertisers have followed in other areas.
This week, in the UK, rugby suffered two blows, as Magners cider cut its
ties with the London Wasps team and Barclays pulled out out of the
Barclays Churchill Cup tournament for rising stars. (However, soft drink
Irn-Bru renewed its deal as the official soft drink of rugby
league). In the US, struggling bank Citigroup was said to be seeking
ways of backing out of a new 20-year deal to sponsor the New York Mets
baseball team, whose new stadium is set to open in
April under the name Citi Field. However the alliance carries a price-tag of almost $400m, and has been publicly criticised as a misuse of
funds.
Oddly enough, one development not apparently troubling sports sponsors was the news story which broke
last Sunday in British scandal-mongering newspaper The News Of The World.
That paper published a photo of superstar swimmer Michael Phelps smoking
marijuana from a bong. Phelps issued a grovelling apology for his "youthful and
inappropriate" behaviour, but his sponsors, who include Subway,
Kellogg's and Mazda, don't seem too bothered. Watch
manufacturer Omega, whose product Phelps is actually wearing in the
offending picture,
dismissed the issue as a private matter and reiterated its support of the
athlete. In fact, according to the influential Huffington Post blog, some
sponsors actually welcomed the coverage. "Phelps's sponsors are
proactive, seizing on [the] snapshot as a way to re-market a guy the
country already loves, only now with 10% more bad boy included. 'Girls
love a bad boy!' the Power Bar communications director stated. 'And
everyone likes getting 10% more of something for free.'"
In
the news this past week: Agencies
WPP scored a coup by negotiating the purchase a 49%
shareholding in South Africa's most widely acclaimed ad agency The Jupiter
Drawing Room. Jupiter is the country's #4 marketing services group and was
until this deal the largest independent by far. It will continue to
maintain standalone status within WPP, and is expected to begin
establishing a presence outside its domestic market.
In the US, Dentsu shuttered its West Coast agency Dentsu
Next, previously Colby & Partners. The shop lost the Suzuki car
account last year, and has failed to capture any significant new business.
Its largest remaining client, Sharp Electronics, was transferred into
newly acquired McGarryBowen.
In account assignments, Sony's Playstation division called a review of
media in Europe and Australia, currently split between OMD and Mindshare;
insurance giant Zurich is also reviewing European media, out of
ZenithOptimedia; UK department store chain John Lewis appointed Adam &
Eve to its £20m creative account after a drawn-out review. McCann
Erickson's Detroit office has captured US creative for Aldi's
fast-expanding supermarket chain. For all
other appointments, subscribers can access the full Adbrands Account
Assignments database here.
In the news this
past week:
Media
Time Warner reported grim figures for 2008 as a result of a huge $24bn charge for asset
impairments in the final quarter. That caused earnings to plummet from $4.4bn in 2007 to a $13.4bn loss. Revenues edged up by 1% to just
under $47.0bn. There wasn't much good news to report. The bleakest news
came from the Time Inc magazine publishing division, which reported an
operating loss of $6.6bn, some $2bn more than it even made in revenues
during the year. That reflected a savage $7.1bn charge against goodwill.
Even without that non-cash charge, the division's position is under
intense pressure, with advertising sales falling by around 20% in the last
quarter. Time's UK subsidiary IPC lost its long-held ranking as the
country's biggest magazine publisher during 2008 following the acquisition
of the former EMAP consumer magazine company by German publisher Bauer,
already a major player in Britain. By comparison with Time Inc, the
group's traditional problem child AOL didn't do too
badly, despite a $1bn fall in revenues to $4.2bn. It reported an
operating loss of "only" $1.1bn, including asset impairment charges of $2.2bn. Not even the
filmed entertainment division gave much to smile about (unless you happen
to be The Joker).
Despite the phenomenal success of its Dark Knight movie, Warner actually reported a
slight decline in revenues for the year because of fewer releases and a
sharp fall in DVD sales.
Separately, AOL ousted the head of its Platform A online advertising network after less than
a year in the job. Lynda Clarizio was appointed in March 2008. She in turn
had replaced Curt Viebranz, who lasted just five months. Previously head of
Advertising.com, one of the three major networks merged to create Platform
A, Clarizio oversaw the final stages of that integration. Now, however,
that process is complete according to AOL chief Randy Falco, and he named Greg Coleman, a
former Yahoo exec, as the best person to take the business forward.
The UK's Competition Commission has blocked the plans of
BBC Worldwide, ITV and Channel 4 to establish a jointly owned
video-on-demand service, codenamed Project Kangaroo. The regulator found
that, since those three companies also control the vast majority of UK TV
content, the proposed service would restrict competition from other
supplies of video on demand services. ITV's executive chairman Michael
Grade expressed his surprise and disappointment. He was supported in this
by a number of figures from the ad industry, which had regarded Kangaroo
as a potentially valuable marketing tool, and the catalyst for further
investment in digital advertising.
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
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