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British bank Barclays is keen to exploit fears among wealthier
American consumers regarding the stability of their own institutions
with a rather effective new campaign from Venables Bell. We especially
like the polystyrene steps and fake buildings. I've had dreams
like this, although admittedly they don't usually end with a funny
little man in an ill-fitting suit asking "Can I help you?"
In a slightly unusual move, Microsoft has commissioned a set
of ads to promote the latest incarnation of its Internet Explorer
browser. The agency is Indianapolis-based boutique Bradley
& Montgomery, and Dean Cain, former star of the Lois & Clark TV
series, delivers a nice comic turn. These spots have developed a life
of their own in cyberspace because of the controversial nature of one
of the other films, which has since been withdrawn by the
client. All four ads play with the idea of bizarre computer-related
ailments which can be cured by an upgrade to IE8. The ad in question
was for a syndrome known as OMGIGP, or Oh My God I'm Gonna Puke,
caused when you accidentally stumble upon a gross site frequented by a
previous user of your computer. Actually the verb tense in that
acronym is a misnomer, because the sufferer in this ad actually does
puke, not once but three times and voluminously, when she sees what
her hubby was just browsing. Pretty gross in its own right actually.
See also SHYNESS,
and especially GRIPES, an ailment
with which many of you with less computer-literate relatives will be
familiar. (If you're quick you might still find the OMGIGP
ad here.. but hurry before it gets removed).
Grey London has stuck its foot firmly in Samsung's door with an
excellent just-breaking UK campaign for Samsung's new Jet all-touch
mobile phone. It's a one-off project, and marks the first time that
Samsung's UK subsidiary has pitched a campaign of its own rather than
rely on network content. Officially, the account is held worldwide by
Leo Burnett. If this is anything to go by, Grey deserves
more. Think you recognise the voiceover? It's supplied by Atonement actor James McAvoy.
And finally, another weeeeird ad for Skittles from TBWA\New
York,
the people who already brought you dextrous beards, the human pinata, and
a man whose touch turns everything to candy. Now this. Enjoy.
In the news this
past week: Advertisers
China's state-owned Beijing Automotive (BAIC) joined the bidding for
General Motors' Opel and Vauxhall subsidiaries, offering to acquire a 51%
holding in GM Europe for around E660m. GM has already accepted a
non-exclusive offer from Canadian car parts manufacturer Magna
International, backed by Russian financing, and those negotiations are
continuing. However, there have been some concerns that Magna's bid
might fall through on terms, so GM is holding the door open for other
bidders. The BAIC offer has several major advantages over Magna's in
that it gives GM a bigger minority stake in the business and also requires a lower
loan guarantee from the
German
government. In addition, the Chinese have vowed to maintain Opel's
existing facilities in Europe, and open a new one in China. GM is also in
separate talks with the Belgium-based arm of US investment fund Ripplewood Holdings,
and could also renew discussions with Fiat. However time is of the
essence. "We need a deal fast," said Opel chief Hans Demant
in an internal letter to staff this week.
Meanwhile,
the main General Motors business is expected to exit bankruptcy
proceedings later today. A select
group of assets is being acquired by a company 60% controlled by the US
government, with the Canadian government and the UAW labour union's healthcare
trust as subordinate shareholders. The Treasury hopes to be able to sell or at
least substantially reduce its holding in GM through an IPO as
early as Spring next year. The slimmed-down business will start life with
debts of around $48bn, considerably lower than the $176bn under which
old GM laboured at the end of 2008. "Bad assets", including up to 20
unwanted or asbestos-contaminated factories and around 2,400 surplus dealerships, will remain
under the control of the bankruptcy court until they are sold or wound
down. That process could another three years.
German brand Audi, part of the Volkswagen Group, is the
first major lux car marque to report a year-on-year increase in worldwide unit sales. In
June, the company sold around 91,200 vehicles, a 1.2% increase on June
2008. "Since
April we see that sales are stabilizing," said management board
member Peter Schwarzenbauer. "The trough of the crisis is
reached." Audi is one step ahead of rivals, in part at least
because it is less exposed to the still-ailing US market. BMW and
Mercedes are both experiencing continuing skids, with their sales down
13% and 5% respectively last month.
Following on from the news last week that Deutsche Telekom is seeking to
divest its under-performing T-Mobile subsidiary in the UK, the German
company has let it be known that its preference is not to sell but
to swap that
business for a rival mobile service in another country, preferably in Central
& Eastern Europe, which is emerging as the T-Mobile network's core
region. According to media reports, Vodafone, Telefonica and Orange have all expressed an interest in
taking over T-Mobile
UK. The Financial Times newspaper suggested that Deutsche Telekom has its
eye on Vodafone's Turkish subsidiary as one possible candidate
for a
swap.
In the US, the Department of Justice has commenced an
informal review of the US wireless market, primarily the
exclusivity deals commonly agreed between operators and handset
manufacturers. The most significant such arrangement is the tie-up between
AT&T and Apple to be the exclusive supplier of the
iPhone. Smaller rivals have long argued that these kinds of deals hamper
competition by restricting the market to the networks with the
deepest pockets. In the mean time,
3rd-ranked Sprint Nextel has secured a six month exclusivity deal
for Palm's
new Pre handset, considered one of the most promising challengers to the
iPhone. Telefonica/O2 agreed a similar arrangement with Palm to
cover Spain, the UK and Germany,
despite the fact that it already has exclusive rights to the iPhone in two
of those countries.
Low-cost airline Ryanair launched a new marketing campaign this week in which it claimed to have become "The World's Favourite
Airline", borrowing a slogan originally coined by British Airways. "Ryanair: now twice the
size of British Airways" crowed the ads. The Irish carrier's claims
are based on the latest figures from the
International Air Travel Association, which showed that Ryanair has
overtaken even Air France-KLM and Lufthansa as the biggest airline by
number of international passengers carried in 2008. Ryanair transported almost
57.7m international passengers, compared to 56.3m for Air France-KLM and
54.9m for Lufthansa. Including domestic flights, however, Ryanair slipped
to 8th place, and is smaller than even British Airways when ranked by
revenues. Even
so, because of the damage inflicted by the other airlines' plunging share
prices, Ryanair also surpasses all its main European rivals by market
capitalisation. Its current valuation of around $6.7bn is more than $1bn higher than
Lufthansa and twice as high as British Airways. In global terms, only
Singapore Airlines outranks Ryanair, with a current capitalisation of
$10.5bn. The Irish carrier's market cap reflects its ruthless approach to
cost-cutting. The group has already announced plans to make passengers carry
their own bags onto the plane, and hopes to introduce an extra charge to use
its aircraft's toilets by 2011. In a still more controversial
development, the carrier is currently in discussions with Boeing to
convert some flights to standing-only, a move that would allow it to
squeeze in almost a third more passengers.
Procter & Gamble's chief of global media, Bernhard Glock, is
leaving the company. His role overseeing P&G's mammoth $8bn media
budget
has been split between Dina Howell, now general manager, global brand
building
strategy & planning, and Stewart Atkinson, general manager, global brand
building purchases. Both report primarily to chief brand building officer
Marc Pritchard. In other management news, Doug Conant, CEO of Campbell Soup
Company, was injured in
a car accident last week. He underwent surgery and remains in hospital,
but is expected to make a full recovery.
In
the news this past week: Agencies
One of the world's oldest surviving advertising agencies, recruitment specialist
Barkers, collapsed last week following a plunge in
classified advertising expenditure compounded by pension liabilities and
punishing conditions attached to its property leases. The Barkers name and
its remaining business was acquired by Penna Consulting, now rebranded as Penna
Barkers. The company was originally founded by Charles Barker in
1812 to place notices in The Times newspaper to advertise public share sales. It
continued to prosper over the next two centuries, and as
recently as 1981 counted as one of Europe's ten biggest advertising
groups. However, the expansion of the Saatchi empire during that decade,
as well as the push into Europe by American advertising agencies, left
Barker on the periphery of the industry. A partnership with NW Ayer of the
US failed to lift the fortunes of its consumer advertising arm, Ayer
Barker, which was sold at the end of the 1980s, along with its PR
division. Instead, the agency narrowed its focus to the recruitment
advertising sector.
In account assignments, Unilever has kicked off a review of global
media, starting with North America, China, India and the major
European territories, including the UK, France and Germany. Mindshare
is defending. Also, Brand Republic today reports that Korean car
brands Hyundai and Kia are preparing for a review of
their own combined budget. Currently that business is split between
several different networks, including Initiative in the US, and OMD
and ZenithOptimedia in Europe. In the US, Gap handed
responsibility for its Thanksgiving and Christmas marketing to Crispin
Porter & Bogusky, threatening the hold of incumbent Laird
& Partners. British dairy producer Dairy Crest appointed Universal
McCann to take over its UK media budget. For all
other appointments, subscribers can access the full Adbrands Account
Assignments database here.
In the news this
past week:
Media
Google announced its biggest assault to-date on Microsoft's core business,
with plans to launch its own PC operating system in direct competition with Windows. The system, set for launch in early 2010,
is an extension of Google's Chrome internet browser, designed
initially for portable "netbook" computers and optimised for
running web-based applications. Like its Android operating system for
mobile phones, the new Chrome OS system will be open source, giving
ordinary developers the opportunity to use it as the platform for their
own sophisticated applications. However, some observers have expressed
doubt that the new software will be powerful enough to inflict real
damage on Windows, used by as many as 95% of the world's computers.
Despite its parentage, Google's Chrome browser, for example, has had
only minimal impact on Internet Explorer, and continues to trail some
way behind the most popular Microsoft-alternative, Mozilla's Firefox.
Bertelsmann is plotting a move back into music publishing, an area it more or less
exited in 2006 with the sale of its existing operations to Universal
Music. However, at that time, the group retained a small catalogue of
mainly European song rights, which formed the core a newly created unit,
BMG Music Rights. This week, the group announced the sale of a 51% holding
in that business to private equity fund KKR. It plans to use the resulting
E250m of finance to buy up other song catalogues as and when they become
available. Several such prizes are expected to come to market in the near
future, including Allen Klein's ABKCO, which owns songs by the Rolling
Stones and the Kinks, and possibly Michael Jackson's half of Sony
Music/ATV, which owns songs by Jackson himself and The Beatles.
Penny Baldwin, a former managing director of Y&R North America, was
named as the new SVP, global integrated marketing & brand management
for Yahoo, reporting to chief marketing officer Elisa Steele. Separately
AOL named Kate Burns as head of European advertising sales. Burns is a
veteran of the European online industry. She was Google's first employee outside
the US in 2001 as head of the UK sales operation, and later worked at
video streaming site Daily Motion, and most recently AOL subsidiary Bebo.
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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