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How Disruption Brought Order
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Dear ${token1} ${token2}
Our favourite ads this week:
This week is Robot Week at the Adbrands Weekly Update. Artificial women
are obviously de rigueur these days when selling products to men. DDB
London is responsible for "Robot
Skin", the new campaign for Philips Philishave with integrated
Nivea skin conditioner. It's a beautiful film but the whole "sexy
robot shaver" concept seems oddly retro to us, and even a touch sad.
(This poor little robot girl could do with a bit more TLC, if you ask
us).
If it comes to a choice, we prefer Heineken
Draught Keg's much jollier cyber-maedchen, conceived by Berlin Cameron
United. (Just don't mention the spot to Advertising Age's easily provoked
ad critic Bob Garfield who has denounced it as "the most sexist beer
commercial ever produced"). Also, don't miss the
accompanying website which allows you to insert your own head and
those of three friends onto a group of dancing animatrons.
Fallon London is behind this
new film for Cadbury Dairy Milk, featuring a drumming gorilla. It has
received a rapturous reception despite the cardinal sin of reintroducing
Phil Collins into the public consciousness.
...and finally, not a real ad at all, but we just couldn't resist it,
especially in the light of this week's launch of a new iPhone-inspired
design for Apple's iPod. This spoof spot purports to be for a
new phone version of Microsoft's Zune music player. Cruel, yes, but
also very, very funny.
In the news this past fortnight: Advertisers &
Media
Taiwanese computer manufacturer
Acer agreed to
buy its US counterpart Gateway for $710m. As a result, Acer will also snatch control of European manufacturer
Packard Bell, which was previously in takeover negotiations with
China's Lenovo. Asian
entrepreneur John Hui is a major shareholder in Gateway, as well as the
controlling shareholder in Packard Bell, and the two companies have a pact
which gives Gateway a right to veto any purchase of the European
manufacturer. The deal, if concluded, will
place Acer above Lenovo of China as the global #3 in computers, behind HP
and Dell. A combined Acer-Gateway would have annual shipments of
around 20m PCs and almost 9% market share, compared to Lenovo's current
8%.
Meanwhile PC manufacturer
Dell,
struggling to recover from a dramatic slump in performance, concluded a
two year internal investigation with the announcement that it had discovered
evidence of accounting irregularities between 2002 and the the first
quarter of fiscal 2007 by which unidentified senior executives had sought
to manipulate company accounts in order to achieve quarterly performance
targets. The group will restate its financial results for the four years
from 2002 to 2006 as well as for 1Q 2007, and the total restatement is
expected to fall between $50m and $150m. Better news came with the
release a few days later of 2Q 2007 results, which showed a distinct
improvement in performance, including a 46% increase in quarterly net income.
In the most extraordinary
demonstration to-date of
internet-driven consumer power, Cadbury's UK confectionery division
said that next month it will reintroduce Wispa, a chocolate bar it
discontinued in 2003. The reason? A huge internet campaign coordinated
through social networking sites MySpace, Bebo and Facebook, which has
attracted the support of more than 14,000 consumers. Wispa was
originally launched in Britain in 1981 and enjoyed considerable success
during that decade. Sales steadily declined, however, during the 1990s and
the brand was finally discontinued in 2003. Since then there has been a growing campaign by consumer groups to call for
its return. The bar will be reintroduced as a limited edition for a test
period,
but will be shifted to permanent status within the portfolio if there is
sufficient demand. Also this week, HSBC reversed a decision to begin charging
interest on students' interest-free overdrafts as soon as they leave
university, as a result of a campaign on Facebook coordinated by the
vice-president
of the UK's National Union of Students.
DaimlerChrysler agreed a deal with
Ford Motor Company
which will allow the German group to rename itself Daimler AG in October,
subject to a shareholder vote. Despite the group's Daimler-Benz heritage,
the Daimler automobile trademark is actually controlled by Jaguar, currently a subsidiary of Ford. The Daimler brand was first introduced to
Britain in 1891 when engineer Frederick Simms acquired the local patent
for Daimler's engines. The business was acquired in 1895 by the British
Motor Syndicate, and became the country's first automobile manufacturer
the following year. However the German company's rights to the Daimler name
effectively lapsed when Daimler-Benz decided instead to use the name Mercedes for its cars. Daimler Motors
was eventually acquired by Jaguar in 1960, although the Daimler
marque has been more or less discontinued since then. According to Reuters, the new
agreement with Ford will allow the German group to use the Daimler name as a trade
or corporate name, but not as an automobile brand.
Wal-Mart was
reported to be considering acquisitions in the US for the first time in more than two decades in
order to bolster its presence in the convenience store and small
supermarket segment. In recent years, the group has tended to concentrate
on the rollout of its massive Supercenter format, but this has led to
repeated run-ins with local planning regulators, and has also left a
significant hole at the bottom end of the market, one which Tesco is about
to exploit when it opens its first US stores this autumn. Tesco Fresh n'
Easy stores will take the format of neighbourhood grocery markets, with
about 10,000 sq ft of selling space per outlet. Currently, Wal-Mart's stores are
all at least ten times that size, forcing them to adopt out-of-town locations.
Online share brokers
TD Ameritrade and E*Trade were
reported to be involved in merger talks to create a new sector leader.
Currently, Charles Schwab is the global #1 in online share trading with
around 6.9m customer accounts. TD Ameritrade and E*Trade are #2 and #3
with 6.3m and 4.7m accounts respectively. Both companies are publicly
quoted although TD Ameritrade is controlled by Toronto-Dominion Bank of
Canada, which retains a 39% shareholding.
Altria confirmed that it will proceed with a
full separation of its US and international tobacco businesses, most
probably in the first half of 2008. Philip Morris International will be
spun off to shareholders, giving it
greater room for growth without being held back by its declining domestic
business. The latter could then be sold or even merged with its
main US competitor, Reynolds American.
The
US is to get a fifth national wireless network with the planned merger of MetroPCS,
based in Texas, and LeapWireless, which offers the Cricket and Jump
TM Mobile services out of headquarters in San Diego, California. Metro has
offered to buy Leap for $5.3bn. Both companies serve mainly low income
urban customers, offering unlimited calls for a fixed monthly fee.
Together they will be able to offer coverage across almost all of the top
200 wireless markets in the US, with combined subscriber numbers of around
6.1m.
NBC Universal greatly strengthened its cable portfolio
with the purchase of Sparrowhawk Media, a UK-based company which controls
an extensive collection of international cable assets including 18
regional versions of The Hallmark Channel, broadcast to more than 150
countries outside the US. NBC is also rumoured to be finalising an
agreement to acquire US women's channel Oxygen. NBC has also declined to renew
its contract to supply digital downloads of video content via Apple's iTunes store, after
the two companies failed to agree terms for pricing or the bundling of related
content. Instead NBC will start selling new material
through Amazon's Unbox service from next
month, although some shows, including The Office and Battlestar: Galactica
will still be available on iTunes until the end of the year. NBC Universal is the #1
supplier of broadcast content on iTunes,
accounting for around 40% of video sales. Separately, NBC and News
Corporation's Fox division announced the name for their
own soon-to-launch
online video broadcast joint venture: Hulu.com.
Viacom's
MTV subsidiary has effectively pulled the plug on
its music download service MTV Urge, formerly a partnership with Microsoft's MSN Music portal. Microsoft has been preoccupied with its own
Zune music player, and subscriber take-up for the Urge service was
disappointing. Instead Urge, and its existing users, are being merged into
rival subscription download service Rhapsody, which becomes a joint venture with
Rhapsody's owner, Real Networks. The latter has 51% of the enlarged
company to MTV's 49%. At the same time, Verizon Wireless has signed up as
the exclusive mobile distribution partner for the expanded service. A few
days later, Sony announced plans to close down its own music download
service, Sony Connect, because of insufficient demand. The
service will be terminated at some point after March 2008 to avoid any
impact on the current financial year. Instead Sony is thought to be
planning a separate video download service, for launch next year, using
the technology within its Playstation 3 consoles.
Despite the problems faced by MTV and Sony,
Nokia is
determined to travel in the opposite direction. It has ramped up its digital
download offering substantially with the launch of a new internet services
portal, Ovi (Finnish for door). This
will serve as a portal for various download offerings including an
extensive new
Nokia Music Store (based on LoudEye, the digital music distributor
acquired last year); a navigation and maps service; and games for its N-Gage and multimedia phones. Social networking and media sharing portal
Twango,
also acquired in 2007, will be integrated into Ovi by the end of the year.
In the news this past fortnight: Agencies
Vincent Bolloré has continued to acquire shares in Havas,
of which he is chairman, to a holding now just under 32%. More significantly, he
has also built his holding in Carat parent Aegis, where he has so far been
denied a board presence, to a fraction under 30%, the magic level over
which, under Stock Exchange rules, he must make a formal offer for the
whole company. Separately from Havas, Bolloré has made a private
investment in independent start-up agency @Just, founded by creative duo
Dominique Julien and Thomas Stern. Julien was a founding partner in Le Nouvel
Eldorado, now owned by Havas; Stern is the former creative
director of Draftfcb Paris. This is Bolloré's second advertising investment
outside the Havas umbrella. He is also a silent partner in creative shop Fred
Farid Lambert (FFL), launched last year by former Publicis trio Frédéric
Raillard, Farid Mokart and Christophe Lambert.
Interpublic is the target of two new
but separate lawsuits issued in
London by the former owners of companies it acquired. Barnett Fletcher sold his sales
promotion company to McCann's Momentum division in 1997. Fletcher was paid
in Interpublic shares, but the marketing giant's subsequent financial
problems subsequently caused a sharp decline
in the value of that stock, from which it has yet to recover. Fletcher
claims that IPG's senior European management team caused that slump by
knowingly overstating revenues and profits. The three founders of customer publishing
agency TPD, absorbed into McCann Worldgroup in 2001, are also suing
Interpublic for the drop in the value of the shares they received in
part-payment. Meanwhile, at the New York office of IPG's Lowe
network, CEO Nancy Hill announced her resignation, just over a year after she
joined. Mark Wnek remains chairman & chief creative officer.
AT&T called a review of its massive media planning and
buying account worth around $2bn in billings. Currently, the
business is split between several different shops, a legacy of the
company's creation from the merger of the old AT&T, SBC and BellSouth
entities.
GSD&M handles media for the fixed line service in all regions except
nine former BellSouth states where Initiative is the incumbent.
Mediaedge:cia handles broadcast and outdoor media for AT&T Mobility,
while OMD is responsible for print and Digitas manages online. AT&T
wants to consolidate the account at a single agency. In other assignments,
Visa widened its
ongoing international media review to include the US business, currently
handled by OMD. Samsung also has called
a review of its global media account, currently with MindShare.
In creative, Draftfcb picked up the
$200m campaign to launch the 2010 US Census survey. Porsche
appointed Cramer-Krasselt to its
US account. (C-K also picked up carpet cleaner Bissell). Restaurant
chain Chili's moved its $100m account to Hill
Holliday. In the UK, Heinz split its
creative account between AMV BBDO and M&C
Saatchi. For all other appointments,
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
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Simon Tesler Publisher, Adbrands
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