|
Recommended Reading

The Art of Woo
by Richard Shell & Mario Moussa
Buy
it at Amazon
for less
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
|
|
Dear ${token1} ${token2}
Our favourite ads this week:
Some ad campaigns now get the sort of build-up usually accorded to
blockbuster movies. Fallon's Sony Bravia spots have much to do with this -
consider the buzz which preceded Paint and Play-Doh. But the original buzz
brand was arguably Guinness. Its new ads have been hotly anticipated ever
since the Dancing Man of the 1990s. The latest spot,
Tipping Point, from AMV BBDO, borrows heavily from other ads - it
reminded us of both Honda's Cog and Sony's Paint - but it does so with
style and panache, along with 6,000 dominos and a reported £10m budget.
The director is current industry darling Nicolai Fugslig, who made Sony's
first Bravia ad, Balls. We are less impressed by the silly "treasure
hunt" game which supports the Guinness campaign online.
We also like You Make It
You, the new ad from McCann Erickson's TAG unit for the Microsoft Zune
music player. It too seems strongly reminiscent of other ads (like Michel
Gondry's Motorola spot for instance - this incestuous self-cannibalisation
is becoming a disturbing trend these days). But it represents a huge step
forward from the horrendous cobra-ice cream cone spot which we featured
here a few weeks ago. It also finally makes the Zune look like a product
worth owning, even if it doesn't yet have the cachet or class of the iPod.
Saatchi & Saatchi New York is responsible for a
series of spots currently airing in the US for Buckley's Cough
Mixture, a famously foul-tasting over-the-counter remedy which has long
been available in Canada. Novartis has now launched the product in the US
for the first time, and is maintaining Buckley's traditional marketing
angle of making the disgusting taste a part of the sell. Here, ordinary
consumers try a blindfold taste-test and can't tell the difference between
Buckley's and a variety of other substances including "Trash Bag
Leakage" and our favourite, "Public Restroom Puddle".
Yuck!
In a very different style altogether, FFL Paris is responsible for Naturellement
Pulpeuse, an animated spectacular on behalf of the soft drink Orangina.
Who knew that giraffe women and octopus girls could be so fantastically
sexy? (Also, trying spotting the pop culture references, including nods to
movies American Beauty and Flashdance).
Finally, top marks to adwatcher Rye Clifton who has launched
a personal campaign to highlight the shameless hypocrisy of mass-marketer
Unilever, which claims the moral high ground in its ads for Dove,
warning women against stereotypes of female beauty, while reinforcing
exactly the same stereotypes (or worse, even) in its marketing for the
Axe/Lynx deodorant range. Clifton has reedited O&M's recent Dove Onslaught
ad to include images extracted from various Axe campaigns, and
ends with an adaptation of the Dove tagline, presented here as "Talk to your daughters
before Unilever does". See
the film here. According to Clifton's YouTube profile, he is a senior
strategic planner at The Martin Agency.
In the news this past week: Advertisers &
Media
Guy Hands, the new executive chairman of music group EMI, promised in
an internal memo leaked to the Financial Times to unveil a new
"vision" for the company by early 2008, which will
incorporate "fundamental change". So far, he says, he is
focusing on three key tasks: to build a better relationship with consumers
through technology; to alter EMI's internal pay and reward structure to
encourage employees to work together more
efficiently; and to be more picky about
which artists the company is prepared to sign. "There has been a lot of talk about what labels offer
to artists and to the consumer," writes Hands. "However, there is not much talk about how
artists should work with their label. While many spend huge amounts
of time working with their label to promote, perfect and endorse their
music, some unfortunately simply focus on negotiating for the maximum
advance...advances which are often never repaid." See the full memo here.
One technology-driven idea that EMI probably won't
be trying is the "honesty box" payment method adopted
by rock band Radiohead for the download of their latest album In Rainbows.
Weekly Update readers will remember that Radiohead is allowing fans complete freedom to decide how much they pay
when they download the
album. This led to all sorts of rose-tinted guff from some quarters,
including claims that this method would become the future of the music industry. We cynics were
less convinced, and appear to have been proved correct by new research
which shows that the majority of Radiohead downloaders volunteered to pay, yes, nothing at
all for the album. Researcher comScore estimated that 1.2m
people worldwide visited the site in
October, but only 38% paid for the download (that figure was
slightly higher for US visitors). Of those who did pay, the average price
offered worldwide was just $4.64. Oddly enough, US users were far more generous, forking over
an average $8.05. Response to these figures has been just as foolish as
the early rapture,
with some pundits claiming the figures "show that the majority of
music consumers feel that digital recorded music should be free and is not
worth paying for". Rubbish. This wasn't some moral judgement on the
state of recorded music. All those freeloaders knew perfectly well that
they should have been paying for the album. It's just that, given a choice,
most consumers would rather have something for free than have to fork out
hard-earned cash for it. Welcome to the real world, Radiohead.
Citigroup CEO Chuck Prince is the latest head to roll as a result
of
this summer's sub-prime meltdown. Citi had already announced $1.6bn of 3Q
losses from mortgage-backed securities (out of total writedowns and credit
trading losses of $3.3bn), and last week said that it faced further losses
in the fourth quarter which could go as high as another $11bn. Prince's departure has
strengthened the argument voiced by some investors that Citigroup should
be broken up, possibly into four separate units: a US consumer business;
an international consumer business; and separate investment banking and
wealth management companies. Meanwhile, Morgan Stanley also warned
of big write-downs to come in the fourth quarter. It will take a hit of at
least $3.7bn, and possibly as much as $6bn if all its current subprime
exposure goes bad. These figures paled into insignificance beside the
$39bn - yes, that's $39 billion - quarterly loss reported by General
Motors. The car giant took a decision to write off deferred tax assets
accumulated in its balance sheet. It's an accounting adjustment, not a
cash figure, but the huge scale of the write-down says a good deal about
the continuing bloodbath in the US car market. Chrysler this week
announced new plans to cut close to half of its workforce by 2010.
Corporate break-up is already on the schedule for media
mogul Barry Diller. After years spent assembling interactive
services
roll-up IAC, he announced plans to split that business into five separate
companies, pursuing a strategy already initiated by the split-off of
Expedia in 2005. Diller wants to spin out slower-growing subsidiaries
to allow IAC to concentrate on high-growth internet properties such as
search engine Ask.com and dating service Match.com. The units being spun
off will be cable channel Home Shopping Network and its various mail order
subsidiaries; ticketing giant Ticketmaster; financial services portal
LendingTree.com; and vacation club Interval International.
Kraft was said to be close to agreeing the sale of
its Post breakfast cereals business to Ralcorp, a maker of private label
cereals, for around $2.8bn. An
announcement is expected before the end of the month. Unilever agreed to sell
its French soft cheese Boursin to Groupe Bel, maker of Babybel and La
Vache Qui Rit (The Laughing Cow) for E400m. Luxury goods group LVMH
confirmed that it would acquire French business newspaper Les Echos from
Pearson for E240m. Journalists went on strike in protest, refusing to
produce the paper on Tuesday and Wednesday. LVMH will sell its existing
business paper La Tribune to NextradioTV, the company behind digital news
broadcaster BFM. Dell unveiled plans to buy
EqualLogic, a company which develops data storage systems, for $1.4bn. If approved by
shareholders, it will be the biggest acquisition in Dell's history.
Facebook finally unveiled its plan to generate higher advertising
revenues. Advertisers can now establish their own profiles on the social
networking site. By allowing users to become "fans" (the
advertiser equivalent to normal Facebook "friends"), they can
potentially promote their products by word of mouth to other users.
Advertisers who pay can have a promotional message attached to each such
buzz endorsement. It's a hard system to describe and therefore one that,
albeit innovative, may have trouble establishing significant support after
an initial rush. Control of a brand's reputation once it ends up in the
hands of ordinary consumers is likely to be one major hurdle, as will be
measurability. But for now, several large advertisers are prepared to have
a go. Noticeably, however, Coca-Cola, which made its debut on Facebook
early Wednesday morning, had signed up fewer than 300 of Facebook's
estimated 50m users in its first 24 hours. Not an auspicious start.
In the news this past week: Agencies
The American subsidiary of Japanese giant Dentsu has been
in the news over the past week as a result of an embarrassing lawsuit.
Steve Biegel, formerly a creative director at Dentsu America, was fired
last November, apparently over performance issues. He now claims the
real reason for his dismissal was that he refused to participate in
various sexual shenanigans organised by his boss, Toyo Shigeta. These
included a trip to a brothel in the Czech Republic and naked dips in a
Tokyo bathhouse. According to the lawsuit, Shigeta got angry with Biegel
for declining to take part in these activities, and criticised him for
being "no fun". Biegel also alleges that Shigeta on several
occasions took inappropriate photographs of women's crotches including, on a photo shoot for client Canon,
an upskirt snap of tennis player Maria
Sharapova. That picture, taken with a zoom lens, has been submitted as
evidence in the suit, and can
be seen online here on the AdAge website, along with Biegel's
full 21-page legal submission which also implies, with the flimsiest
of evidence, that Dentsu discriminates against Jewish employees.
Dentsu responded with a threat to countersue Biegel
for libel and fraud, not least because earlier this year he sent a draft of the submission to
Dentsu's two biggest US clients. Although
the agency stops short of denying the stories about Shigeta, Dentsu says
that Biegel didn't complain about these incidents at the time - most of
them took
place two years ago - and has only now worked up the story in order to
make an excessive claim for severance pay. It appears that Biegel at one
point demanded as much as $1m to go
quietly and, according to Adweek, warned Dentsu's managers "You had
better be generous... because I'm from Queens, I know how to play
dirty". Dentsu USA president Doug Fidoten told Adweek: "If Steve Biegel had exhibited
as much creativity and effort when he worked here as he has on
manufacturing this frivolous complaint, the company would not have fired
him." Ouch. Whatever the legal outcome, Biegel does seem to have
captured the support of
his peers at least. In a survey on AdAge.com, 73% of respondents agree
that he has valid cause for a complaint against Dentsu.
Steve Biegel may do well to bear in mind the latest development
in another recent marketing-related legal skirmish. The long-running
battle between marketing executive Julie Roehm and her former employer
Wal-Mart came to an end this week. Regular readers of the
Weekly Update will recall this scandal-packed saga, which led to the
abrupt dismissal of DraftFCB as the retailer's agency, and included salacious allegations regarding inter-office trysts between
Roehm and a subordinate (more recent subscribers, see background
here). Roehm
initially filed her suit for wrongful termination in Michigan, but was
ordered by a judge to refile in Wal-Mart's home state of Arkansas. Wisely
perhaps, she has decided that perpetuation of a battle against the
world's biggest retailer on its own turf would not be in her best
interests, financially or personally, and she has dropped her case. In a
statement she says the case proved "more difficult and financially
draining than I ever imagined". We bet. Wal-Mart has in return called off its
own countersuit. Roehm must now attempt to rebuild what once promised to
be glittering career. That may not be an easy task. Potential employers
are likely to be more than a little concerned by Wal-Mart's account of the fickleness
she apparently displayed while she worked for them.
WPP announced that its design and branding subsidiary
Enterprise IG is to adopt a new identity of its own as The Brand
Union.
The revamp has been masterminded by new CEO Simon Bolton.
Meanwhile Euro RSCG announced that the New York office of its
below-the-line network Euro RSCG 4D would be merged into the existing
above-the-line agency to create a single integrated Euro RSCG agency.
In account assignments, Samsung consolidated its global media
account, worth an estimated $500m-$600m, at Starcom. Foster's
of Australia pulled its beer brands from George Patterson Y&R
(who were responsible for the much applauded Big Ad for Carlton Draught a
few years ago). Coca-Cola consolidated UK media with Vizeum.
E*Trade shifted its $180m US creative account to Grey. For all other appointments,
subscribers can access the full Adbrands Account
Assignments database here.
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
| |