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Every one knows that, in Japan, normal rules don't apply.
Nowhere is this more true, perhaps, than in advertising. For some reason,
the world's biggest movie stars think nothing of making an
appearance in Japanese ads, but would not dream of considering such a
lowly assignment in any other country. In fact, most stars have a clause
inserted into the contract which expressly prohibits the airing of the
resulting spots elsewhere. Somehow, starring in a Japanese ad
burnishes rather than tarnishes their megastar status. (The high salary
usually attached helps as well). The latest Hollywood icon to succumb to
the lure of the yen is Brad Pitt, who stars in a new campaign for Softbank
mobile - not even the #1 or #2 wireless service in Japan - alongside an even bigger
megastar, locally at least, the sumo wrestler Musashimaru. Dentsu is the
agency; Spike Jonze the director. There's another spot
here.
We probably don't choose enough Japanese campaigns
for Ads of the Week. Here's a another, by the Tokyo office of Wieden &
Kennedy for the revamped Sony Playstation 3. The ads revolve around the
concept of "Playface", the term for the expressions you pull when caught
up in a particularly engrossing PS3 game.
French car marque Citroen celebrates its 90th anniversary with this
extended spot by H Paris, which collates newsreel footage with clips from
past ads in the brand's native market.
And finally, a nice bit of animation to celebrate the spirit of the
Olympic Games, in the run-up to next year's Winter Games in Vancouver.
The ad made its debut in the US last week and will be rolled out around
the world. Cole & Weber United was responsible for the
spot.
In the news this
past week: Advertisers
The drawn-out negotiations regarding the
sale of General Motors'
European operations appear to have collapsed this week, after the GM board
refused to sign off on an improved offer from Canadian car parts Magna and Russia's Sberbank. GM is
understood
to be nervous about handing over control of its vehicle designs and
technology in Europe, effectively creating a rival manufacturer from
scratch for next to no financial reward. Non-executive board members are thought to favour
the rival offer from RHJ International, a
Brussels-based private equity group, but GM's senior executives are reported to be arguing the case for
a third option: abandoning the sale altogether, and keeping control of the
business with financial support from governments in the UK, Germany and
Spain. The main concern, though, is how quickly such an arrangement
could be resolved before Opel and Vauxhall use up their remaining cash
lifeline.
The GM Europe saga drags on, but the Volkswagen-Porsche
negotiations finally reached a conclusion after
agonising months of talks and tiffs between members of the Porsche
and Piech families. Under the deal now drafted, VW will pay E3.3bn for a 42% stake in
Porsche's automobile manufacturing division, and will assume effective
management control of that business. It will also acquire the Porsche
Holding company's auto distribution business, the largest in Europe.
Separately, the national investment fund of the Emirate of Qatar will
acquire an additional 10% of Porsche, as well as options over a large chunk of Volkswagen's
equity. The latter shares are currently held by Porsche,
acquired as part of its ill-fated takeover of the larger company.
Shortly after the announcement of this deal,
the German
financial regulator said it had begun an investigation into the
actions of former Porsche CEO Wendelin Wiedeking and CFO Holger Haerter
whose ambitious takeover plan, widely celebrated at the time, led to the sportscar manufacturer's
current predicament as it struggled under the weight of accumulated debts of more
than E10bn. Allegations of market manipulation and trafficking in insider information
have been levelled at the two ousted executives.
US
home improvement retailer Lowe's agreed to establish a joint venture in
Australia with local giant Woolworths. The partners envisage the rollout
of 150 large-format stores over the next five years. The plan will open a
new front in Woolworths' war with long-established rival
Coles, now part of the Wesfarmers' conglomerate which also owns
Australia's leading DIY store Bunnings.
As had been
anticipated, Procter & Gamble agreed a
deal to sell its pharmaceuticals division, which manufactures a small
portfolio of prescription-only drugs led by bone-health blockbuster Actonel. The buyer is Irish-based
competitor Warner Chilcott, which
agreed to acquire the business for around $3.1bn in debt. Once completed,
the deal will triple Warner's sales from around $935m last year to more than
$3bn.
The lines between mobile phones and
computers are becoming
increasingly blurred. Nokia is to move into the computer market with the
launch of a mini-laptop, or netbook. The Booklet 3G will use a
Windows operating system and comes with various Nokia-controlled
applications pre-installed, including the Nokia Music Store and Ovi maps
and GPS system. Meanwhile Dell confirmed plans to launch its own
smartphone, initially for launch in China through local operator China
Mobile. Separately, as part of a broadbased push into services, Nokia also
said it was entering the mobile payments market with a service that will
allow handset owners to make purchases and transfer money using their
phones.
Levi's appointed Jaime Cohen Szulc as its first ever global chief
marketing officer. Szulc comes from outside the fashion industry, having
spent almost a decade at Eastman Kodak, latterly as COO of that company's
consumer digital group.
Bernard Balderston,
P&G's long-serving media director for the UK, has
retired after more than 40 years with the company. Most of his duties have
been inherited by his deputy Mary McGovern, previously media manager.
In
the news this past week: Agencies
Publicis Groupe succeeded in clinching the deal to acquire highly regarded
digital agency Razorfish from Microsoft, with an offer of $530m in cash
and shares. Microsoft will end up with around 3% of Publicis Groupe
equity, and as part of the deal, Publicis also made a commitment to buy a
significant quantity of ad space on Microsoft's digital networks at
discounted prices. The acquisition is expected to close by the end of 2009, at
which point Publicis Groupe will generate around a quarter of its total
revenues from digital. It already owns Digitas, currently Razorfish's most
significant global rival. Both companies will retain separate branding
within Publicis. The deal will also secure the French marketing services
giant a place as the world's third largest agency group by revenues, overtaking
Interpublic.
WPP
disappointed the financial markets with a weak set of half-year results. Pretax profits almost halved, while
like-for-like revenues, excluding the effects of acquisitions and currency
fluctuation, fell more than 8%. Reported revenues, including the
contribution from recently acquired research giant TNS, rose 28% to
£4.3bn. The group said that the impact of the global economic contraction
intensified during the second quarter, especially in the US and UK.
Separately, WPP announced plans to merge the print
buying units of Mindshare, MediaCom, Mediaedge:cia and Maxus as a single
entity in the US, operating under the existing GroupM umbrella. The resulting
business will be known as GroupM Print. To avoid client conflicts it will
operate as two entirely separate planning and buying teams. Scott Kruse and George Janson will lead the twin
divisions, reporting to Jeanne Tassaro, COO of GroupM Implementation.
GroupM already operates a centralised search marketing unit in the US. Although there are no immediate plans
to roll out the consolidated entity in other markets, such a move will be
inevitable if the system works in the US.
Also announcing
results this week, PR group Chime Communications,
which is part-owned by WPP, delivered a 4% increase in half-year profits
on turnover which rose 19% to £138m. Commenting on Chime's generally
strong performance compared to global giants WPP, IPG and Omnicom,
chairman Lord Bell said, "Big is not as beautiful or as safe as it
once was. It appears that this year being a one stop shop, integrated and
diversified, channel neutral and low cost is the new black."
In Australia, independently owned
Mitchell Communication Group maintained its position as the country's
biggest media buyer, with annual revenues to June up 20% to A$225m on billings of almost
A$1.2bn. Traditional media services account for around 90% of total
billings, placing Mitchells some A$200m ahead of closest rival OMD.
There were changes among senior leaders at
McCann Erickson. McCann NY president Lori Senecal and Asia Pacific regional
director Kevin Ramsey both left the agency. They were replaced by Thom
Gruhler and Michael McLaren respectively.
In account assignments,
Vodafone announced the surprise appointment of
little-known Argentinean agency Santo as its global creative agency. The mobile company
will continue to use local agencies in larger markets, including BBH in
the UK, but global creative for smaller territories will be developed by
Santo, in which WPP has a minority stake.
Volkswagen has parted from US creative agency Crispin
Porter & Bogusky. According to press reports, the German automaker
initially called a review of the account, but Crispin declined the
opportunity to repitch for the business. Separately Interpublic's Deutsch agency resigned its place on
the roster of Anheuser-Busch InBev, apparently at the request of rival
brewer MillerCoors, most of whose advertising is handled by IPG
stablemate Draftfcb. Publicis New York was appointed to handle AB
InBev's Beck's brand worldwide. Creative boutique Droga5 joined the
Unilever roster, picking up the account for US shampoo Suave. In the UK,
Innocent smoothies appointed Fallon London, which also captured the global
account for the Oxfam charity. BBH will develop global marketing strategy
for fashion label Burberry, working with the designer's inhouse team. In
Germany, indie agency Kolle Rebbe joined the rosters for Nike and
Muller
yogurts. For all
other appointments, subscribers can access the full Adbrands Account
Assignments database here.
In the news this
past week:
Media
Iconic publisher
Reader's Digest Association, owner of the world's biggest selling magazine, became the
most high-profile victim to-date of the recession in print media. The group
filed this week for Chapter 11 protection in order to restructure its
debts. Following the model already successfully exploited by GM and
Chrysler, this is a pre-packaged bankruptcy,
with a plan already in place for the publisher's banks, led by JP Morgan
Chase, to swap around three-quarters of the company's $2.2bn of debt for
equity. Private equity fund Ripplewood, which loaded up that debt when it acquired the business in
2007, will have its investment wiped out. Reader's Digest
has been keen to stress that its basic business model remains solid. It
publishes 94 magazines and sells about 40m books, music and video
products each year.
News Corp is
canvassing for buyers for its Dow Jones stock indexing business, acquired with the Wall Street Journal last year. The Dow Jones Industrial
Average is arguably the world's most widely watched share index.
Bloomberg is one of several companies said to have expressed interest.
Separately, News Corp's UK-based newspaper division pulled the plug on its
free daily afternoon title, thelondonpaper. Launched in 2006 as a rival to
the paid-for Evening Standard, its performance has declined steadily as a result of plunging advertising revenues. It had been
accumulating losses of as much as £1m per month.
The major US broadcast networks finally wrapped up their upfront
advertising sales. According to AdAge, the final tally is between $7.8bn
and $8.1bn, well below last year's $9.2bn. One major factor was the
reluctance of advertisers to accept the higher rates demanded by the
networks. As a result, most of the big players are understood to have
withdrawn some of the space on offer, preferring instead to gamble that
they will achieve better spot prices once the season kicks
off.
Social
networking rivals MySpace and Facebook each attempted to gain an advantage
over one another through acquisitions. Facebook acquired Friendfeed, an
application which allows people to share content and see what their
friends are doing online. MySpace sealed a deal to buy iLike, a music
recommendation service which scores highly with users of Facebook and Bebo.
The prices paid were extraordinary considering that neither of the
acquired businesses has significant revenues. Facebook paid an estimated
$50m in its own shares for Friendfeed; MySpace forked out $20m for iLike.
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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