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Grey London push the boundaries of the creative envelope,
technically at least, with this impressive spot for Toshiba, which
combines the output from 200 of the client's own HD recorders and about a
gazillion gigabytes of data. We like the ad a lot, but feel it might have
worked even better with a more interesting backdrop than this grungy old
rehearsal studio. If you're in the mood for being impressed by
technicalities, have a look at the making of film, also online
here.
Oh man, I must stop eating those funny mushrooms. Get your head round this
extraordinary Australian spot for Toyota by Publicis Mojo Sydney.
We love the way you can get past those ninja kitties by distracting them
with a bright light. And all for a tray of fresh pilchards.
Come down slowly now with this stunning ad from Denmark - welcome,
Denmark, to your first Ads of the Week appearance! - for chocolatier Anthon
Berg. How cool is that, by the way, to have your chocs given a seal of
approval by the Royal Danish court. We're not really surprised if they
taste as good as this ad makes them look. The local branch of DDB
is responsible.
And finally, Leo Burnett finds a use for rock buffoon Ozzy Osborne
in the new US ad for Samsung's Propel handset. Enjoy.
In the news this
past week: Advertisers
The future looks very bleak for US carmakers. General
Motors and Ford both issued dreadful 3Q figures. Privately owned Chrysler
didn't publish results but its performance can hardly be better. GM's
predicament looks especially serious. CEO Rick Wagoner warned that
conditions had "worsened considerably" just within the last
month or two. In October alone GM's car sales plunged by 45%, while across
the industry as a whole sales were down by almost a third on the same
month last year. As a result, GM has been burning its
dwindling cash hoard by a staggering $2bn a month. At this rate, it will use
up all its remaining resources before mid-2009. The real crunch could come
even sooner. The company said it needs between $11bn and $14bn at any
given time to pay its bills. At the end of October it had just over $16bn,
with little chance of borrowing more from the frozen credit markets. See
also General Motors, Ford,
Chrysler on Adbrands.
This nightmarish situation raises the grim spectre of bankruptcy unless the government
steps in with emergency funding. President-elect Barack Obama has voiced
his support for such a move, but so far any such deal has been stonewalled
by outgoing George W Bush and Senate Republicans. Though it's easy to
blame Bush for yet another stupid decision, he could be right in this
case. An article in this morning's New York Times argues that bankruptcy,
though agonising, might be just the fix that GM needs, allowing it to
rebuild and make a fresh start. A bailout could merely prolong the agony
for another year or two as GM struggles to turn itself around. That's not
the case for insurance giant AIG, of course. A failure there would have a
catastrophic knock-on effect for the rest of the global financial
industry. As a result, Treasury Secretary Hank Paulson gritted his teeth
and signed off on yet another $27bn of aid, bringing the total AIG has
received so far to a eye-watering $150bn. See also AIG
on Adbrands.
It's not just Detroit. Even Toyota, widely regarded as the
world's best-run auto maker, is feeling the
pain from the shrinking car market. The company shocked analysts with a
near-70% plunge in 2Q profits, and a warning that it expected little more
than break-even for the second half of the year. Despite the skill with
which it constantly improves every aspect of its business, Toyota is more
exposed even than other Japanese carmakers to the US and Europe,
and it has an extensive presence in light trucks and luxury vehicles, the
two hardest-hit segments of the market. See also Toyota
on Adbrands.
In what could be the first of many such large-scale bankruptcies, America's second-largest consumer electronics chain
Circuit City filed for Chapter 11 protection after a long struggle against competition from
Best
Buy, Wal-Mart and Target. The group plans to restructure, cutting
155 stores in order to get back into profit, but also admitted that it was having
difficulty persuading suppliers to keep its stores stocked over the holiday season.
Even Best Buy acknowledged the slow down in sales, warning that its 3Q
results will reflect a "seismic" drop in sales. In October
alone, comparable same-store sales fell by almost 8%. See also Circuit
City, Best Buy, Wal-Mart,
Target on Adbrands.
Another American manufacturer in pain is Motorola, which lost its position
as the leading US handset manufacturer for the first time in the company's
history. According to researcher Strategy Analytics, Motorola's US market
share in 3Q slipped to 21.1%. Samsung, however, rose to 22.4%, and even
rival Korean company LG is breathing down Motorola's neck with an
estimated 20.5% share. Nokia still languishes in 4th place. North America
is virtually the only world market in which it does not hold the #1
position. See also Motorola, Samsung,
LG, Nokia
on Adbrands.
Enough doom and gloom! Australia was selected as the world's top country brand
for the third consecutive year in the Country Brand Index, the annual
ranking by Futurebrand and Weber Shandwick. Canada and the US took 2nd and
3rd place respectively, followed by Italy, Switzerland, France, New
Zealand, the UK, Japan and Sweden. The CBI compiles its results from
interviews with around 2,700 international business and leisure travellers. These are broken out into more than 20 different categories
including Best Country for Business (the US), Best for Nightlife (Japan),
Best for Political Freedom (Netherlands) and Best for Beaches (Maldives). See
here for a full listing of results. See also Futurebrand,
Weber Shandwick on
Adbrands.
North
American brewery giant Molson Coors could be considering a bid for its
Australian counterpart Foster's Group. The latter is
struggling to regain balance after several high-priced acquisitions in
the wine sector, leading to widespread speculation that some or all of the
business could be sold. This week, Molson Coors rather hesitantly
acknowledged that it had "accumulated an approximate 5% economic
exposure" to Foster's (that's corporate waffle for a 5%
shareholding). However it attempted to calm any assumptions that a
full takeover was in the offing. "Our alternatives include
decreasing, maintaining, or increasing our exposure," warned Molson
Coors CEO Peter Swinburn. So far there have been no meaningful talks between
the two companies. Molson acquired its stake in the open market via
Deutsche Bank. Meanwhile, financial analysts have been speculating on
possible disposals by InBev following completion of its merger with
Anheuser-Busch, expected next month. One potential victim could be Beck's, seen as a weak third
behind what will be the merged group's power brands Budweiser and Stella
Artois.
In the non-alcoholic drinks market, Coca-Cola is to acquire UK mineral
water Abbey Well. See also Molson
Coors, Foster's, Anheuser-Busch,
InBev, Coca-Cola
on Adbrands.
Also in the UK, Topshop and Bhs owner Sir Philip Green agreed the purchase of a 28.5%
controlling stake in menswear chain Moss Bros. Best known for its sale and
rental of formal wear, Moss Bros also owns the Cecil Gee menswear brand
and has the UK license for Hugo Boss. The shares had been owned
by distressed Icelandic investment group Baugur. Green is considering
whether or not to make a bid for the remaining shares in Moss Bros. See
also Arcadia (Topshop) on
Adbrands.
As had been expected, Vodafone succeeded in acquiring a
further tranche of shares in South African mobile operator Vodacom,
lifting its stake in that business from 50% to 65%. The price tag for the
deal was around £1.4bn. Joint venture partner Telkom continues to hold
the remaining shares. See also Vodafone
on Adbrands.
Dell's VP marketing Casey Jones has left the company.
According to industry blog AgencySpy, he is being replaced by Andy Lark,
VP, global communications. See also Dell
on Adbrands.
In
the news this past week: Agencies
Japanese advertising giant Dentsu boosted its US profile considerably this
week with the acquisition of independent New York agency McGarryBowen for
an undisclosed sum. The purchase virtually doubles Dentsu's revenues from
the US, and also gives it a clutch of major non-Japanese clients including
JP Morgan Chase, Disney, The Wall Street Journal and HP. See also McGarryBowen,
Dentsu on Adbrands.
A couple of major personnel changes at agencies. Bob Isherwood, worldwide
creative director at Saatchi & Saatchi, announced his resignation
after 22 years with the agency. He
cited a need to have "more than one life in my lifetime". He first joined the Sydney office of
Saatchi's in 1986, becoming worldwide creative director a decade later. CEO
Kevin Roberts said that Isherwood would not immediately be replaced.
Meanwhile, JWT has successfully wooed the admired Argentinean creative
director Fernando Vega Olmos, who will join the WPP-owned network in a new
role as creative chairman, continental Europe & Latin America. The
move is a blow to Interpublic's Lowe, where Vega Olmos was Latin American chairman,
responsible for creative output on several accounts, not least Unilever, a
client Lowe currently shares with JWT. It was Lowe's second bit of bad
news this week. The agency also lost its hold on the global Nokia Nseries
account, which is joining the rest of Nokia's business, held by Wieden
& Kennedy and JWT. See also Saatchi
& Saatchi, JWT, Lowe,
Wieden & Kennedy on Adbrands.
The Gunn Report announced its ranking for the year's most
awarded agencies and ads. BBDO took the prize as the world's most awarded
network for the third consecutive year. It has taken the top spot a record
six times in ten years, three times more than any other network. Flagship BBDO New
York was the #1 most rewarded agency, with Fallon London and DDB London in
2nd and 3rd place respectively. Fallon London's Gorilla for Cadbury was
the single most-awarded ad. Two companies shared the prize for Most
Awarded Advertiser - Sony and Volkswagen who took an equal number of award
points. The Gunn
Report compiles the results from all the year's most prestigious awards
events. This year's figures collect the prize-winners from the top 39
shows for TV and Cinema, the top 20 for Print, the top 20 for Interactive
and the top 16 for Mixed/Integrated media. See also BBDO,
Fallon, DDB,
Sony, Volkswagen
on Adbrands.
In other account assignments, sportswear company Puma awarded its $100m
global creative account to creative boutique Droga5. Heineken handed
global creative to Bartle Bogle Hegarty, although Frank Lowe's Red Brick
Road will remain on the roster in the UK. It was another good week for OMD,
which collected North American media for Levi's. AT&T
placed its US B2B marketing in the hands of DDB Chicago. For all
other appointments, subscribers can access the full Adbrands Account
Assignments database here.
See also Heineken, Bartle
Bogle Hegarty, Red Brick
Road, OMD, Levi's,
AT&T on Adbrands.
In the news this
past week:
Media
Yahoo's share price took a tumble after Microsoft CEO Steve Ballmer
dismissed speculation that he might come back with a new offer for the web
portal. Last week, Google walked away from a proposed search advertising
alliance with Yahoo because of opposition from competition regulators and
advertisers. That plan had been the key pillar in Yahoo CEO Jerry Yang's
plan for future growth. The collapse of the alliance prompted Yang to tell
reporters on Wednesday last week, "To this day, I would say that the
best thing for Microsoft to do is to buy Yahoo. I don't think that is a
bad idea at all." No thanks, was the response from Microsoft's
Ballmer. "We tried at one point to do a partnership around
search," said Ballmer a day later, "and that didn't work either,
and we moved on and they moved on. We are not interested in going back and
re-looking at an acquisition." In the wake of Ballmer's comments, Yahoo's
share price had fallen by last night's close to a record low of just over
$10, close to a third of the figure
Microsoft offered in the summer. Yet there are still some glass-half-full
sceptics (no doubt all Yahoo shareholders) who like to tell themselves
that this is just a negotiating tactic on Ballmer's part, designed to
drive down the share price. You know what? It worked. See also Yahoo,
Microsoft on Adbrands.
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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