Adbrands Weekly Update 15th October 2009
A weekly round up of key news about 
leading advertisers, agencies and mediaowners
 
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A quick head's up: Adbrands Weekly Update takes a short break next week. Back on 29th October.

Our favourite ads this week: 

Sony "make.believe"
by 180 Los Angeles

Orange "Words"
by Publicis Conseil Paris

Sabah Gazeti "New York" 
by Leo Burnett Istanbul

SportsBet "History"
by Leo Burnett Melbourne

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.

Four great ads to keep you going over the next two weeks. First up is the first cross-portfolio spot from Sony, promoting the group's complete product range including electronics, music, film and gaming. The ad broke this week in cinemas in France and is expected to roll out across the rest of Europe over the next few weeks. It also marks the debut of Sony's first-ever umbrella brand message, "make.believe". It's a great spot, and an impressive round-up of the company's activities. The agency is 180 Los Angeles.

Publicis Conseil in Paris maintains its exceptionally strong run on behalf of Orange with this lovely spot promoting the mobile company's internet service. A wonderful collection of vignettes, cleverly juxtaposed for maximum emotional impact. First rate.

Leo Burnett Istanbul - yes that's right, Istanbul - is responsible for this excellent spot promoting an unlikely collaboration between the New York Times and Turkey's foremost quality daily Sabah. Believe it or not, Sabah now publishes a Turkish edition of the New York Times each Sunday for distribution in Istanbul and other major cities. Top marks for animation, and a big High Five to the Turkish nation for its first ever Ads of the Week position.

And finally, a delightfully silly spot for Australian betting service SportsBet, which combines three out of the four passions of most members of the male species. Leo Burnett Melbourne is the agency. Now if you'll excuse me, I'm going off to caress an old mainframe computer...


In the news this past week: Brands & Advertisers

Disney has asked Apple CEO Steve Jobs to oversee a "root and branch" redesign its network of around 340 retail outlets in the US and Europe. The entertainment giant envisages stores more like Apple's, upbeat and exciting high-tech environments where customers can interact freely with the company's brands. "The world does not need another place to sell Disney merchandise," said Disney Stores president Jim Fielding, "this only works if it's an experience." Ideas being considered include video booths where customers can watch self-selected clips from favourite movies, play on interactive terminals and participate in karaoke contests and satellite link video chats with Disney Channel stars. The revamp could also involve a change of name from Disney Stores to Disney Imagination Parks. Input from Steve Jobs, also the Disney Company's biggest shareholder as a result of its purchase of Pixar Studios, is considered crucial to the reinvention. Apple's store network is the world's most lucrative retail business by far, generating average revenues of $4,700 per square foot of selling space in 2008. By comparison, America's biggest consumer electronics retailer by revenues, Best Buy, generates only $1,000 per square foot.

Kellogg's is planning to introduce new technology in the UK that will allow it to laser-etch its logo onto individual Corn Flakes in order to boost brand recognition and counter a surge in sales by cheaper private label products. The company's senior food technologist for Europe said "In recent years there has been an increase in the number of own brands trying to capitalise on the popularity of Kellogg's Corn Flakes. We want shoppers to be under absolutely no illusion that Kellogg's does not make cereal for anyone else. We're constantly looking at new ways to reaffirm this and giving our golden flakes of corn an official stamp of approval could be the answer." Along similar lines, the cereal giant recently introduced a new umbrella marketing tag in the UK across all packaging as well as advertising which declares "If it doesn't say Kellogg's on the box, then it isn't Kellogg's in the box!"

Liz Claiborne appointed JC Penney as the exclusive retailer for its eponymous fashion label from Fall 2010. That move follows a comparatively lacklustre response from the general buying public to the relaunch of the once-illustrious Liz Claiborne brand under celebrity designer Isaac Mizrahi. As a result, the label will be withdrawn altogether from other retailers such as Macy's and Dillard's. Penney is already sole stockist of two spin-off lines, Liz & Co and Concepts by Claiborne. The alignment with Penney is one of the most high-profile changes to-date in the US garment industry, where the consolidation of third party retail outlets has left many well-known brands struggling to maintain wholesale order levels. Several have already sought safety by effectively reinventing themselves as private label brands for a selected retailer. Mizrahi, whose own high-flying fashion business crashed in the 1990s, successfully recreated himself earlier this decade with an exclusive line for discount store Target.

British regulators blocked the proposed merger of live entertainment giant Live Nation and ticketing service Ticketmaster. Such an arrangement would reduce competition, it was ruled, leading to higher ticket prices and poorer service. The Competition Commission said it would only pass the merger on condition of the sale of some or all of either company's operations in the UK, or the appointment of a third party to act as ticket retailer for Live Nation's music events. US regulators have yet to reach a verdict on the proposed merger.

Mark LaNeve, who resigned last week as VP, US sales for General Motors, is to join Allstate Insurance as chief marketing officer. At Anheuser-Busch InBev, Mark Wright was named as the new VP, media, sponsorship & activation, with responsibility for Budweiser's mammoth sports marketing budget. His predecessor Dan McHugh was in the job for just 11 months, having in turn replaced industry legend Tony Ponturo, who oversaw Bud's sports budget for 16 years before his departure in 2007 following the InBev takeover.

Royal Bank of Scotland is expected to put around 310 UK retail branches currently trading under the RBS brand up for sale to appease European competition regulators. The EU wants RBS and Lloyds, the two British banking groups bailed out with government funds last year, to reduce their share of the overall market in fairness to those banks which did not need to be propped up by the state. Lloyds is expected to follow suit with a sell-off of its Cheltenham & Gloucester mortgage network. There is likely to be no shortage of potential buyers. Santander of Span, which owns Abbey, Bradford & Bingley and Alliance & Leicester, is keen to expand its retail network, as is Richard Branson's Virgin Money and National Australia Bank, which owns the Clydesdale and Yorkshire banks.


In the news this past week: Agencies

After several days of rumour and speculation, Interpublic confirmed the merger of its Deutsch agency in New York and Los Angeles with the Lowe Worldwide network. Deutsch is to absorb the staff and clients of Lowe New York, and will serve as the North American hub for the worldwide network. It retains its own name, although officially at least it is to be known as "Deutsch Inc, a Lowe & Partners company". Deutsch CEO Linda Sawyer also assumes management responsibility for Lowe Healthcare and Lowe Roche in Canada, although both keep their Lowe branding. Lowe NY CEO & chief creative officer Mark Wnek will take on a new, as yet unconfirmed role within the Lowe Worldwide network. There are no changes to Lowe's other offices. Good luck, we say. That tie-up will certainly give Deutsch a wider global footprint - currently it has no offices outside North America - and strengthens Lowe's dwindling market position in the US. But, and it's a very big but, the arrangement is only the latest in a string of such deals involving Lowe, each one designed to bolster the agency's US profile. Marschalk, Scali McCabe Sloves, Ammirati Puris Lintas, Bozell and more have all over the years been sucked into Lowe, with comparatively little long-term benefit. This time, the difference could be the decision to abandon the Lowe brand, which has come to be seen as just a little tainted, at least in advertising terms. 

High-profile Australian advertising executive Sean Cummins announced his resignation from what is now the Australian arm of the SapientNitro advertising network. He plans to take a break from the industry. His Cummins & Partners agency was acquired by Nitro in 2007, and according to press reports Cummins was himself set to succeed Nitro founder Chris Clarke as CEO of Nitro US in 2010. However that arrangement was disrupted by the purchase of Nitro by US digital giant Sapient. Cummins told Australian trade paper B&T, "I spoke to Sapient about a few roles, but none of them were exactly what I wanted to do and it’s best to have a clean break and have a think about the future." Cummins is thought to be barred by a non-compete clause from taking another role in advertising for two years. In a thinly disguised job pitch, Cummins told B&T "The client-side appeals as there is a dearth of exciting, instinctive action at the moment. If a brand was stupid enough to hire me, they’d get their money's worth." The timing couldn't arguably be better for Cummins. His agency's Best Job In The World campaign for Tourism Queensland was the single most awarded at this summer's Cannes Lions festival.

In the UK, Ogilvy Advertising appointed Hugh Baillie as chief executive, reporting to chairman Paul O'Donnell. Rachel Hatton was named as planning director. Both execs were poached from Bartle Bogle Hegarty, and will join Ogilvy in January 2010. Ogilvy's outgoing chairman-CEO Gary Leih left the agency during the summer.

Unilever has shortlisted four networks to compete for its global media account, worth around $5bn in annual billings. Incumbent Mindshare is still on the list, and will fight it out with Interpublic's Initiative, a former incumbent, as well as Aegis Media's Carat and Omnicom's PHD. Publicis Groupe agencies failed to make the list because of their existing relationship with Unilever's traditional rival Procter & Gamble.

According to Brand Republic, Tesco has begun to sound out agencies regarding a review of its UK media account, currently held by Initiative. The loss of the Tesco business could be a mortal blow to the Initiative outpost in the UK, accounting for by far the largest chunk of the agency's current billings. The retail giant issued an official denial of any such review.

It was a busy week for account changes. In other assignments, General Motors called a review of US creative for Cadillac. Incumbent Modernista declined the opportunity to defend the account. Elsewhere in Detroit, Chrysler is said to be likely to look elsewhere for creative services when its current contract with BBDO expires in January 2010. GlaxoSmithKline extended its review of pan-European pharmaceutical advertising to cover global media for both pharma and consumer healthcare products. Fragrances giant Coty is also reviewing global media, mainly out of OMD. Delivery company DHL called a creative review in Europe, out of Ogilvy. Mediaedge:cia was reappointed to Danone's media in the UK and is expected to win several other markets across Europe. An official announcement is expected later today. Rapp picked up direct/digital CRM for Pfizer's Viagra. MasterCard handed digital in the US and UK to R/GA. McCann's MRM keeps the business in most of Europe. Pepsi handed a sizeable digital brief to interactive shop Huge, part-owned by Interpublic. In the UK, Red Brick Road captured the Magner's cider account; Vizeum gets media for Innocent. For all other appointments, subscribers can access the full Adbrands Account Assignments database here


In the news this past week: Media

It's hard to see how ITV's search for a chairman and chief executive could get much worse. Sir Michael Bishop, last week's "favourite" to become chairman, this week declined the job and cited the dysfunctional board and conflicting demands of the company's largest shareholders as the main reasons for his refusal. Bishop was the second city grandee in two weeks to turn down the job, following the withdrawal of previous "favourite" Sir Crispin Davis. Soon afterwards ITV's chief operating officer John Cresswell, already overlooked by the board as chief executive, deigned to accepted that role on an interim basis, but said he too would leave as soon as a fulltime successor is found. He has spent 22 years at ITV and its predecessor companies. Why did ITV's board add insult to injury by naming him merely as interim chief exec? Why not offer him the fulltime job and get this farce over with? As a result, after no less than five months of search, Britain's biggest commercial broadcaster is no nearer to filling either of its two most important roles. What kind of poisoned chalice must this job be to have been publicly spurned by at least five senior executives? One thing at least is certain: it's imperative that every effort be made to stop all further leaks to the media regarding who has or hasn't been offered the role. Every refusal only makes it harder still to find some poor schlub who's willing to take the job...

ITV's satellite rival Sky continued its process of diversification with the launch of Sky Songs, a music download service which offers unlimited streaming and a set number of free downloads for a fixed monthly subscription.

Financial data services provider Bloomberg expanded its growing portfolio of media properties by winning the auction for McGraw-Hill's 80-year-old business and finance magazine Business Week. Price paid was not disclosed but was said to be between just $2m and $5m. The title is likely to adopt a new name of Bloomberg Business Week. Bloomberg's rival Thomson Reuters is also on the acquisition trail, currently finalising a deal to acquire web-based financial commentator BreakingViews.com.

Rupert Murdoch's recently acquired Wall Street Journal is now the top-selling newspaper in the US. Latest circulation figures for the six months to Sept, published next week but already being widely leaked to advertisers and the media, will show average paid sales of 2.02m copies daily. Former #1 USA Today, still America's only mainstream national daily, has experienced a decline from around 2.3m to 1.88m. The fall was fed by a rise in cover price, as well as a slump in hotel occupancy, which is where the largest part of sales is generated.

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Simon Tesler
Publisher, Adbrands


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