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Our favourite ad this week: 

TBWA Paris took Silver at the recent Cannes Lions Festival with this series of ads parodying old 1950s B-movies for Unilever's Amora sauces. This ad is the best of the three: overuse of Amora Hot Ketchup causes a secretary's glasses to steam up. The resulting unfortunate series of events leads to the destruction of the world by flying saucers... 

New Capsules

Capsules are a new feature now being introduced on Adbrands. These are shorter descriptive summaries of key advertisers, agencies and brands. As a result, Adbrands Profile coverage now falls into three formats: Adbrands Profiles are feature articles, generally ranging between 1,000 and 3,000 words, which provide detailed analysis of history and current operations, and include a critical summary which identifies key strengths and weaknesses. Adbrands Snapshots are between 500 and 1,000 words, and provide a brief analysis of history and current operations. Adbrands Capsules, under 500 words, provide a top-line description of the current operations, but carry little historical information or critical analysis. 

Recently Revised Profiles and Snapshots

In the news this week: Advertisers

How many television viewers actually watch commercials? In a move which could contribute to the steady decline in popularity of the 30-second commercial among advertisers, Nielsen Media Research in the US is to begin publishing audience ratings not just for TV programmes but also for each ad break they contain. The figures won't track individual commercials, but will show how audience figures vary on a minute-by-minute basis during the course of each commercial break. They will become available for the first time this Fall. Currently, prices for a TV spot are determined by the viewing figures for the programme in which they appear. However, it is widely accepted that many viewers skip ad breaks, flick channels or simply do something else until the programme restarts. As a result, ad viewing figures are expected to come in noticeably lower than their surrounding programmes, and most commentators expect this to have a downward effect on pricing. Reaction to Nielsen's announcement has been mixed. Steve Sternberg, research VP for Interpublic's US buying unit Magna Global, did not oppose the concept of ratings for ad breaks, but told US trade paper Television Week that some of Nielsen's planned methodology was flawed because it would include ratings for programmes taped for later viewing. He said that the figures should only include live viewers, or those who watch recorded broadcasts on the same day they air. 

French Connection was said to be on the verge of severing its 10-year partnership with Trevor Beattie, the advertising executive who conceived the fashion retailer's FCUK marketing campaign. French Connection has been struggling for the last two years with a steep decline in performance, and the company's latest controversial campaign, masterminded by Beattie's new agency Beattie McGuinness Bungay, has apparently failed to stem the decline. According to press reports, the account is in review, with retail agency Yellow Door among the contenders to pick up the business. The FT also reported that French Connection's marketing director Matthew Griffiths had resigned. Neither French Connection nor BMB have made official comment on the situation.

Microsoft will launch its long-awaited rival to Apple's iPod in time for Christmas 2006. The software company has started making presentations to record companies and broadcasters. One major advantage Microsoft's player is said to offer will be a facility to let users download music and videos wirelessly. Also this week, the US software giant was handed an additional E280m fine by EU regulators for not having complied with a 2004 order to unbundle its media player from the core Windows operating system and share coding information with rivals. An additional E3m daily fine will be imposed from the beginning of August until Microsoft does what it is told.

As expected, Kraft acquired the Spanish and Portuguese operations of United Biscuits, and reacquired control in the UK of its Nabisco crackers brands, which had been managed in this market by UB. That relationship stems back to a deal made by Nabisco in 2000 prior to its takeover by Kraft. Also this week, as expected, Premier Foods acquired the UK and Ireland operations of Campbell's Soup Company, including the Oxo, Batchelors, Homepride and Fray Bentos brands. In the US, Procter & Gamble sold its value-priced shampoo product Pert Plus to private equity investors. Once the group's top-selling brand, back in the 1980s, it has been overtaken in the portfolio by Pantene, Head & Shoulders and Herbal Essences. And MGA Entertainment, maker of Bratz dolls, is attempting to block the acquisition of German company Zapf Creation by Namco Bandai of Japan. MGA revealed that it has built up a 19% stake in Zapf and outlined a proposed strategic partnership between the two companies.

In the news this week: Agencies

The share price of direct and digital marketing agency Digitas plunged as a result of fears that it could lose key client American Express. The agency has long struggled to reduce its reliance on a handful of major clients. Nevertheless, American Express and General Motors remain the company's two biggest clients, accounting for 26% and 22% of revenues respectively in 2005. An analyst for investment group WR Hambrecht last week published a research note stating that the credit card company was planning to move a large chunk of its business elsewhere. The Digitas share price fell by almost a quarter on that news, although it has since recovered some ground.

Independent media agencies in North America, UK and Germany have joined forces to create Columbus Media International, a new media network which hopes to rival the majors. The agencies, who include Horizon Media in the US, Cossette Media in Canada, BLM in the UK and MediaPlus of Germany, will continue to operate as separate entities in their own markets but will also cooperate internationally for larger clients. Unlike previous such indie networks, Columbus is jointly owned by its partners, a factor expected to increase beneficial cooperation.

Regards


Simon Tesler
Publisher, Adbrands

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