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We've featured Apple's Mac vs PC ads several times before in this
space, but we can't resist this wicked new spot which takes a deliciously
arch dig not just at Windows Vista, but also at Microsoft's own lavish but
oddly ineffective new ad campaign. Kudos yet again to TBWA\Chiat\Day.
We also like the new spot by Almap BBDO of Brazil for Pepsi,
which manages to throw everything plus the kitchen sink into 60 seconds of
insanity.
You must know by now what suckers we are here at Abrands.net for a bit of
animation. Here are three ads by Colle & McEvoy for - of all
things - the Minnesota State Lottery which charmed and delighted us
this week.
And finally, we were tickled by this new spot for the Canadian arm of
insurance giant Aviva by Taxi. We especially enjoyed the
nicely over-the-top performance from the hapless proposee. Enjoy!
In the news this
past week: Advertisers
Stock markets are sliding, unemployment levels are rising, but it's not all bad news,
honest. Several companies reported better than
expected quarterly results over the past week or so, proving that some sectors remain
resilient despite the general doom and gloom. Household staples and
technology products in particular continue to hold their own. Late last
week, Paul Moody, CEO of UK soft
drinks company Britvic, even went so far as to call his own company
"a glowing beacon of hope" because of a 29% lift in sales for the
year to September 2008. However, his was far from being the only beacon on
show. Global rival Coca-Cola also delivered strong
quarterly perf, as did Danone, Philip Morris International,
McDonalds and especially US chocolate giant Hershey, whose
3Q profit virtually doubled year-on-year. In the technology sector, Google posted 3Q
net income
up 26% on the same period last year, while sales jumped 31% to $5.5bn. Apple's figures were also exceptional, with profits jumping 26% on the
back of "spectacular" sales for its next-generation iPhone. The
company has already sold almost 7m 3G iPhones, and shifted 2.6m Mac computers
in the quarter, a best-ever performance. IBM
and Intel also delivered solid quarterly profits.
Meanwhile, a new round of bank recapitalisations kicked off around the globe.
ING of the Netherlands accepted E10bn of new capital from the Dutch government
last weekend after reporting its first ever quarterly loss. In Germany, state-owned regional lender
BayernLB was the
first German bank to call upon its government's E500bn rescue fund. WestLB
is expected to follow suit before the end of the week. In
France, the government injected a total of E10.6bn into the country's six
biggest banks to bolster confidence. Credit Agricole, BNP
Paribas, Société Générale, Crédit Mutuel, Caisse d’Epargne and
Banque Populaire shared between E1bn and 3bn each.
Procter & Gamble has moved heavily into
direct-to-consumer retail with an upgrade of TheEssentials.com, an
e-commerce website it inherited a few years ago as part of its acquisition of
Gillette. TheEssentials was originally launched
by Gillette, then an independent company, back in the late 1990s, and
offered direct sales of group-owned brands Gillette, Braun and Oral-B.
During the past summer, the site's inventory has been overhauled by
Gillette's new owners and it now sells a full range of leading P&G products including Crest, Old Spice, Mr
Clean, Pampers and Prilosec. P&G is keen to present the business as an independent entity "not operated by
P&G", and a spokesman told the FT, "We treat them like
any other retailer as they buy product directly from us." However,
TheEssentials sells only Procter & Gamble products, and is covered by
the packaged goods giant's legal disclaimers, privacy policy and terms &
conditions. Even the domain name is still jointly registered in the names of the
Gillette Company and P&G. P&G's reticence about
acknowledging its close connection with the site is no doubt to avoid upsetting
traditional retailers who might worry
in these hard times that their own sales may become compromised.
In France, thousands of bottles of soft drinks, including
products from Orangina Schweppes and Danone, were recalled this week after
the water supply at a bottling plant in South Eastern France was found to be contaminated with
small quantities of a
petrol additive. Brands withdrawn include some local supplies of Orangina
Schweppes' Oasis, Danone's Taillefine Fizz and private label drinks for
the Champion and Grand Jury supermarket chains.
The general insurance division of Royal Bank of Scotland
was back in play, following the bank's part-nationalisation last week. RBS
had attempted to sell the business, which includes the Direct Line and
Churchill brands, earlier in the year. Despite an initial flurry of
interest, many bidders were deterred by the sudden worsening of the credit
crisis over the summer. Berkshire Hathaway, Zurich and Generali of Italy all pulled out of
negotiations and in August RBS indicated that it might abandon the sale.
The
bank's current predicament, however, has encouraged it to reopen talks. US
company Allstate is said to be the only trade bidder,
but faces competition from a private equity offer led by CVC.
In marketing appointments, Anders-Sundt Jensen was named as the new head of global
brand communications for Mercedes-Benz passenger cars. He replaces Olaf
Goettgens, who had held the role since 2005.
In
the news this past week: Agencies
Omnicom's 3Q results provided some interesting reflections on the nature
of the current downturn. The world's largest marketing services group posted
generally resilient figures for its most recent quarter.
Net income rose almost 6% to $214m on revenues up 7% to $3.3bn,
while year-to-date figures showed a 10% improvement in both profits and
revenues. Only two divisions showed a decline in 3Q:
PR and "specialty marketing services", Omnicom's term for
diversified BTL disciplines such as Yellow Pages and recruitment
advertising and healthcare marketing. These posted single-digit declines for the quarter,
although YTD figures were still in positive territory. On the other
hand, Omnicom's advertising and CRM units posted quarterly
increases of 7% and 12% respectively. Revenues from the UK were also down
for the quarter, although that was largely the effect of exchange rate
fluctuation.
"PR [is] experiencing some general softness,"
explained Omnicom CEO John Wren in a conference call with investors. "The
specialty media category has been impacted by the continuing decline in
directory or yellow pages business. Recruitment advertising is probably
our most economically sensitive business, and has been feeling the effects
of the economy for a couple of quarters now. And healthcare growth, while
positive, slowed in the quarter due to a lower number of new product
releases and cuts in medical education." However, he did acknowledge that
clients "generally remain very cautious" about future advertising spend, although
so far only the automotive and retail sectors have made actual cuts. Wren
and CFO
Randall Weisenburger also indicated that the current market conditions
could lead to some interesting acquisition opportunities. "Maybe there is some good that can result from
the financial mess that's out there," said Weisenburger. Wren
promised that the group would make the best out of whatever situation arises, quipping
“We’ll make lemonade out of the lemons that we’re served.”
Australian marketing group Photon, best-known in the international
community for its surprise purchase this year of strategic communications
agency Naked, also reported strong financials for its most recent
financial year. Revenues almost doubled to A$376m (approx US$250m) and
pretax profits jumped by a third. Photon predicted that performance would
remain strong for the new year as a result of
strong growth in field marketing, internet marketing and public relations
services.
However US agency chiefs should also have experienced a
distinct chill from some of the views expressed at the Association of
National Advertisers conference in Florida over the weekend. During a
roundtable discussion, several
senior marketing directors expressed dissatisfaction with their agency partners.
Hewlett-Packard's VP corporate marketing, Gary Elliott, was the
most outspoken: "The overall message, I would have to say, with HP, is that
I don't think any of these [agency] relationships are satisfactory enough
that we would continue them without having some degree of
experimentation... What's lacking in agency relationships now is speed to
market. We're going to
pilot a number of different relationships where we go direct with media
companies." HP currently works mainly with Omnicom for creative and
Publicis Groupe for media, but is expected to consolidate all its work
with a single group next year. A key problem is the role of agencies as
intermediates sitting between advertisers and media outlets. "If I were an agency, I would be
really worried about being disintermediated," said Becky Saeger, CMO
of Charles Schwab. "More and more the agencies are almost in the way
sometimes."
Digital agency Avenue A | Razorfish has simplified its corporate identity,
dropping the Avenue A tag to become simply Razorfish. Now owned by
Microsoft, the current agency was formed by the acquisition in the 2004 of
the once mighty Razorfish design brand by digital media shop Avenue A. It
has since expanded dramatically through a series of purchases of other
digital shops around the globe.
In personnel appointments, WPP appointed Kelly Clark, currently head of GroupM in
the EMEA region, as the first global CEO for its challenger media network Maxus. Clark will relocate from London to New York to take up the post.
The London advertising industry was in celebration mode on Wednesday night
for the first Big Awards event organised by trade bible Campaign. In the
TV & cinema category, Gold awards went to Cadbury's Gorilla and
Skoda's Cake films, both by Fallon London, and also to Mother's
Here Come The Girls spot for Boots. There were two Digital Golds, to BBH's
Get In There mobile tools for Lynx, and to BMB's controversial
iPint app for Carling (see last week for news on
the lawsuit surrounding this campaign). Press Gold went to DDB London
for Harvey Nichols; Outdoor was awarded to The Partners agency for
The National Gallery's Grand Tour posters; BBH took the Direct Gold
for Flora margarine's London Marathon sponsorship.
In account assignments, Levi's called a review of creative in the
US and Latin America. Longtime incumbent Bartle Bogle Hegarty is not
expected to defend. In the UK, mortgage lender Nationwide kicked
off a creative review after the account was resigned by Leagas Delaney; Boots
rewarded OMD with its £50m media business. Conde Nast appointed Hurrell
Mosely Dawson & Grimmer and M2M for the UK launch of Wired
magazine. For all
other appointments, subscribers can access the full Adbrands Account
Assignments database here.
In the news this
past week:
Media
HSBC reinforced its reputation as one of the strongest banks in
the currently troubled banking sector by making a splash in the US with its advertising.
Targeting wealthy individuals in the world's financial capital, it bought up all 24 ad pages in the current issue of
New York magazine, a weekly which claims to reach “the nation’s most
influential audience”.
Rate card cost of such a deal would be $1.6m.
The ads are part of HSBC's current Different Values campaign also running
in Vanity Fair, GQ, The Week and other titles, but 10 of the pages
featured in New York were specially created for the magazine. “Now more
than ever before people are reappraising not just how they manage their
money, but what’s important to them,” said Tracy Britton, head of
marketing for HSBC Bank North America. “This campaign is very timely and
appropriate.”
Reed Elsevier was said to be considering lower than anticipated
bids for its
trade magazine portfolio, which includes US entertainment biz bible Variety;
Farmers Weekly, Caterer & Hotelkeeper and New
Scientist in the UK; and advertising industry titles B&T in Australia
and Strategies in France. The group put the business up for sale in
February this year, with an indicative price tag of £1.25bn. However it
is now said to be looking at offers below the £1bn mark. Reed needs to raise
additional cash to pay down
short-term borrowings it made to finance the purchase of consumer data
company ChoicePoint earlier in the year.
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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