There have been technical problems at YouTube today, causing some embedded streams to be flagged as unavailable. If you experience these problems, click the links in the commentary below to view the films on the YouTube site.

This week, we would have loved to bring you the controversial ad for new Calvin Klein fragrance Secret Obsession, in which actress Eva Mendes rolls around naked on a bed. As you may already know, the spot proved too hot for the US national networks, who refused to air the original film because of a brief flash of nipple. It also proved too hot for YouTube, which has a similarly puritanical streak. Instead you can watch the film here at the official website.

So what can we bring you that's sexy...? Well "Secrets & Lies", the new ad by BBH London for Levi's is, frankly, much sexier even than Eva Mendes' nipple. But we think it's about time BBH came up with a new angle for this campaign. Although each ad has a different twist, this is pretty much a rerun of last year's "Strange Love" (don't remember it? See here) with a good-looking couple hurrying to get their Levi's off in order to, um, you know, get it on. Got no problem with that, of course, but the European Levi's campaign needs another new idea if it is to avoid accusations of being provocative simply for the sake of attracting attention (remember FCUK?). An alternative approach is the viral by Cutwater, currently circulating in the US, but this doesn't cut our mustard either. A bunch of guys inflate their Levi's with helium to do the moonwalk in mid-air. See it here.

Regular readers know that we here at Adbrands Ads of the Week are suckers for a bit of slo-mo. Here's a beautifully observed new ad for the Sony Handycam from Saatchi & Saatchi Australia, which proves that just about anything looks good when it's slooowwwed right down, even wobbly arm flaps.

Two funny ads to end on. This ad for Australia's favourite toilet paper Sorbent made us laugh. Thank you Clemenger BBDO. Does this mean other people's dogs don't use toilet paper? 

And, finally, a very silly ad for Comfort fabric conditioner by Ogilvy Advertising in London. Too long, perhaps, but a lovely idea.

In the news this past week: Advertisers

The dire state of the US auto industry was highlighted by another round of staggering quarterly losses. Ford's Q2 loss of $8.7bn, the biggest in its 105-year history, was bad enough, but General Motors went one further with an eye-watering $15.5bn deficit. Chrysler, the smallest of Detroit's Big Three, now privately owned, actually claimed a $1.1bn operating profit for the first half, but depreciation and interest dragged the net figure into losses. Wrestling with the continuing decline in sales, Ford restructured its marketing department in North America, merging two separate teams which had previously handled Ford and Lincoln/Mercury. All the major manufacturers are making sharp cuts in marketing expenditure, with total spend forecast to fall by as much as $3bn compared to last year, itself well down on previous periods. Consultancy Sanford Bernstein & Co predicts total US automotive spend in 2008 to level out at $15bn, compared to a 2004 peak of around $24bn. 

Meanwhile Ad Age reported on what it said was a sharp cut in advertising expenditure in the latest quarter by several other leading advertisers, notably #1 marketer P&G, whose measured spend fell by almost 20% compared to a year earlier. A few days later, however, P&G appeared to contradict that statement during announcement of its results for fiscal year 2008, which ended in June. Despite unprecedented rises in commodity and energy costs, it said advertising spend during the year as a whole had been in line with past expenditure, at around 10.4% of total sales. CFO Clayt Daley said: “Cutting advertising is not part of our plan to cut costs.”

Marketing for the US Presidential election will begin in earnest tomorrow. Senators John McCain and Barack Obama have both made substantial purchases of airtime during NBC's Olympics coverage, marking the first time since 1996 that presidential candidates have promoted themselves on national network TV. In the last two campaigns, the candidates' TV buys were mostly limited to battleground states and some cable. Obama was the first off the blocks two weeks ago when his campaign organisers confirmed an ad buy worth around $5m. This week, McCain's team claimed to have outspent him, buying up $6m worth of airtime.

Even before the opening ceremony for this year's Olympics, several major sponsors are questioning their future involvement. Business Week reported that only eight of the twelve summer 2008 sponsors have so far committed for the 2010 Winter Games and Summer 2012 event in London. Chinese computer manufacturer Lenovo will retire after the Beijing Games, as will Kodak. Johnson & Johnson and Manulife Financial have also not yet confirmed for winter 2010. A key factor is the steep increase in costs, up by around a third to an average of $72m per sponsor for the matching pair of Winter 2006 and Summer 2008. Yet most consumers hardly notice the branding. In a survey of 1,500 Chinese earlier this year by the UK's Fournaise Marketing Group, just 15% could name two of the 12 global sponsors, and only 40% could even name one.

After months of legal dispute, Bacardi reached agreement on the acquisition of a shareholding in premium tequila business Patron Spirits. That company was founded in 1989 by haircare products entrepreneur John Paul DeJoria and his partner Martin Crowley. Following Crowley's death in 2002, Bacardi made an offer to acquire his 50% shareholding for $175m. This was, says Bacardi, accepted unconditionally by trustees of Crowley's estate. However that offer was challenged by a much higher offer of $755m from DeJoria, who claimed that a separate agreement between the two founders gave each first refusal on the other's shares. Details of the new agreement have not been disclosed, but DeJoria will become chairman and majority owner of Patron Spirits, while Bacardi will have a "significant minority" stake and a seat on the Patron board. At the same time, Bacardi announced the retirement of group CEO Andreas Gembler. He will be replaced next month by Seamus McBride, former group VP, North America for Colgate-Palmolive.

Apparently quashing the rumours which have circulated within the drinks industry in recent months, the owner of Stolichnaya vodka told drinks industry news service Just Drinks that the spirit is not for sale after all. They are simply seeking a new distributor. International rights for Stoli are held by export company SPI. Until recently it was distributed by Pernod-Ricard, but the French company was obliged to give up that role following its purchase of Absolut. It had been reported that, as a result, SPI was seeking to sell overall control of Stoli outside Russia. However, Andrey Skurikhin, one of the two shareholders in SPI, told Just Drinks, "From time to time there are different requests coming to us from different players. But we are not selling Stoli. We are happy owning this asset and we don't see any benefit for us in selling it at the moment. We are in negotiations with several players in the US market about distribution, and there are some negotiations in the rest of the world as well."

In the UK, furniture retailer Ikea is launching what it claims will be the country's cheapest pay-as-you-go mobile service in an MVNO through the local T-Mobile network. Under the name Family Mobile, new SIM cards are being offered to all members of the store's Ikea Family loyalty programme, with charges fixed at 9p per minute for calls, and 6p per text. Ikeas claims the service is at least 25% cheaper than any comparable operator. 

As had been expected, Bertelsmann agreed to sell its 50% shareholding in music joint venture Sony BMG to partner Sony. The price paid is being represented differently by each side. Bertelsmann claims it is getting $1.2bn for its shares. Sony, wary of being accused of overpaying, says that figure includes $300m of cash in Sony BMG's balance sheet which already belongs to Bertelsmann, and that it is actually paying $900m. Following completion of the deal, expected later this year, the company will adopt the name Sony Music Entertainment. However, Bertelsmann will retain ownership of rights to selected back-catalogue for around 200 artists, which will become the core of a new licensing division under the BMG name. 

US pharmaceutical giant Bristol-Myers Squibb launched a bid to acquire biotech developer ImClone Systems, for around $4.5bn. After consideration, ImClone's board said the offer was too low, and pressed for a better price. BMS already has a long-standing partnership with ImClone to market the latter's cancer drug Erbitux in the US. In 2002, ImClone was at the centre of an insider trading scandal which culminated in jail terms for CEO Sam Waksal and US household guru and ImClone shareholder Martha Stewart. 

Philip Morris International consolidated its position in Canada with a deal to acquire Rothmans of Canada for just under $2bn. PMI already owns a 40% holding in Rothman's Benson & Hedges subsidiary. The combined business will have around one-third share of the Canadian tobacco market.

Scottish soft drinks company AG Barr, whose brands include Irn-Bru, Tizer, Strathmore mineral water and UK rights for Orangina, announced the acquisition of exotic fruit juice manufacturer Rubicon for almost £60m. 

In the news this past week: Agencies

Adding substance to their much-vaunted strategic partnership, Publicis Groupe acquired from Google the search marketing agency Performics, which the internet giant had inherited as part of DoubleClick. Performics will be absorbed into Publicis's new VivaKi digital media unit. It already services around 130 search marketing clients, including two who are also major Publicis clients, Verizon and HP.

Bacardi has called a review of the global creative account for its flagship rum, held by Y&R. There were also two major account changes in Australia. George Patterson Y&R was left reeling by the loss of creative duties on the huge Telstra telecoms account, which were shifted to arch-rival Singleton O&M. GPY&R will retain some CRM business for the client. Vodafone dropped One Barrack Street, the dedicated agency set up last year by JWT to handle that account. For all other appointments, subscribers can access the full Adbrands Account Assignments database here.

In the news this past week: Media

The anticipated investor rebellion against Yahoo failed to materialise. Despite the disaffection of several significant shareholders, the majority of investors voted in favour of the current board at the company's annual meeting last Friday. This apparent outbreak of peace and harmony followed the decision a few days earlier by activist investor Carl Icahn to accept the offer of three seats on Yahoo's board, ending the threat of a proxy battle. Yahoo initially trumpeted the fact that 85% of shareholders had supported the reappointment of CEO Jerry Yang at the annual meeting. However, after a demand for a recount by what is now its largest shareholder, investment fund Capital Group, it was forced to admit an embarrassing error in its calculations, and restated that number to a rather less impressive 66%. Chairman Roy Bostock's re-election was supported by only 60% of shareholders, rather than the 80% previously claimed. Nevertheless, re-elected they were, even if by a narrower majority. Now Yahoo co-founder and CEO Jerry Yang has to deliver on his promise of a brighter day tomorrow. Putting a rose-tinted gloss on the company's current position, he told shareholders "We are at a unique point in our history, where we have the eyes of the world focused on our company and tracking our performance." He also offered a vision of a boost to the company's share price: "We are redoubling our commitment to driving sustained, profitable growth for our stockholders. The value inherent in Yahoo's unique collection of assets is truly extraordinary, and the progress we've made on our initiatives this year signals our ability to capitalize on the underlying potential of these assets." Few observers, however, expect Yang to survive as CEO until next year's meeting.

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Simon Tesler
Publisher, Adbrands

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