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Marketing Plans
by Malcolm McDonald
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Dear ${token1} ${token2}
Our favourite ads this week:
The Cannes Lions festival wrapped up last weekend. No one will have been
much surprised by the overall Grand Prix winner in the film category:
Ogilvy Canada's superb Evolution spot for Dove, which also took home the
top award in the Cyber category, becoming the first ad ever to win both (a
special exception was made to allow its inclusion in the two shortlists).
Regular Adbrands Weekly Update readers will already have seen Evolution, and most of the Gold
winners as well, in this space. But here are a few we haven't featured for
one reason or another:
Wieden & Kennedy's delicious I
Feel Pretty film for Nike, featuring Maria Sharapova; Crispin Porter
& Bogusky's excellent
Safe Happens for Volkswagen; a
very funny spot for BAFICI, the Buenos Aires Independent Film
Festival, by La Comunidad Argentina; and a
poignant animation from TBWA\Paris for Amnesty International.
BBDO was
named as the Lions festival's first ever Network of the Year. It set a new
record for itself, winning no less than 47 awards across its various
offices, four up on last year. All the winners in all categories are
featured on the Cannes Lions
site.
In the news this week: Advertisers &
Media
Fears that "upfront", the annual advertising
sales drive by US broadcast networks, was in steady decline appear to be
unfounded. Each summer, the networks present pitches for the
forthcoming Fall/Winter season to secure advance bookings for around 75%
of their prime-time advertising slots. In recent years, several major
advertisers have declined to attend or have reined in advance spend,
mainly because of the rapid rise of online, and as a result total bookings
have trended downwards. This year, however, has seen a rebound, helped to
some extent by the introduction of Nielsen's new commercial ratings
system, which promises to deliver greater accountability on audience and rates. The
ABC and Fox networks
closed their books last week, netting around $2.4bn and $1.85bn respectively.
CBS is expected to
complete at $2.45bn, NBC at $1.85bn and new
CBS/Time Warner network CW at around
$650m. As a result the final committed spend for the major free-to-air
networks could total as much as
$9.2bn, a healthy increase on last year's $9bn, and $9.1bn in 2005. All
the networks registered an increase except NBC, still stuck in 4th place,
and flat at best compared to last year.
Visa was confirmed as the main sponsor of the FIFA World Cup in 2010 and
2014 after a long legal battle with MasterCard. The latter had been the world football
association's global financial services sector
sponsor since 1990, but was abruptly dumped last summer in favour of Visa. This
partnership was to run
until 2014, spanning the next two World Cups. However, MasterCard filed a lawsuit
claiming first rights on the tournament, and its case was upheld by a US court in
December 2006. Earlier this month, however, as a result of an appeal by
FIFA,
another US judge ordered that the injunction be overturned. Visa was reconfirmed as the sponsor for 2010 and 2014, and FIFA has agreed to pay
MasterCard $90m in compensation.
Italian group Luxottica confirmed its position as the world's foremost
manufacturer of sunglasses by agreeing to buy Oakley of the US for around
$2bn. That business joins a portfolio of more than 30 leading names,
including own-brands Ray-Ban and Killer Loop and the licenses for Chanel, Dolce &
Gabbana, Donna Karan, Prada, Versace and Bulgari, as well as retailers
Sunglass Hut and LensCrafters. Luxottica's revenues for 2006 were almost
E4.7bn.
British roadside services giant the Automobile Association
is to merge with Saga, a travel and insurance provider specialising in the
over-50s market. The resulting £6.1m business hopes to combine the benefits of
the AA's substantial membership with Saga's skills in direct marketing.
Both companies are controlled by private equity funds, who will generate a
substantial profit from the deal, as will senior staff at the AA and Saga.
German broadcasting giant ProSiebenSat1 has agreed a merger with
pan-European media group SBS to create a stronger rival to Bertelsmann's
RTL. The ProSieben and Sat 1 channels are the main commercial competitors
in Germany to RTL, but the group has until now had a limited presence
outside its home market, unlike RTL which also has significant interests
in France, the UK and Spain. SBS, however, has a similarly broad
footprint. Headquartered in the Netherlands, it also has free-to-air, pay
TV and radio interests in nine other countries including Denmark. Norway,
Sweden, Belgium and Hungary.
Swiss drug company Hoffman-La Roche launched an
uncharacteristic $3bn hostile takeover bid for US company Ventana Medical
Systems, which specialises in diagnostics of cancer tissue. Roche said it
had chosen this route after trying unsuccessfully for six months to
negotiate a friendly merger. The Swiss company already control US
biotechnology developer Genentech.
In the news this week: Agencies
It has been a terrible week for Interpublic, whose relationship with two of its
biggest clients could be in serious jeopardy. McCann
Erickson, previously
one of the main roster agencies for the personal care brands of Johnson
& Johnson, this week lost all but one of the accounts it handled. It
will retain the AcueVue contact lens business, but the other five brands -
including Band-Aid, Reach and Stayfree - will be reassigned among Johnsons'
other agencies. Meanwhile Johnsons' Splenda sweetener will move to BBDO from Lowe's
Alchemy satellite. IPG still handles
marketing for Johnsons' pharmaceutical division, but is
also currently pitching to retain the group's global media business. Even more damaging was
General Motors' decision to shift the accounts for both
Buick
and GMC out of McCann and Lowe respectively, to
Leo Burnett. The two
brands spent a combined total of around $380m in the US last year. IPG
still holds GM's corporate marketing, Chevrolet,
Saturn and Saab.
In other news, Wrigley was said to have narrowed its global creative
review to three finalists, DDB, Saatchi & Saatchi and
DraftFCB.
Budweiser called a review of UK creative. Domino's
Pizza is to shift US creative
out of JWT, and Nitro joined the
Kraft roster for the Singles cheese
brand. 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
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