Adbrands Weekly Update 11th January 2007

Weekly Update 11th January 2007

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Our favourite ads this week:

Two ads this week demonstrate the increasingly tangential tactics now being used successfully to promote products and companies. Direct advertising messages are now passé. Instead, the popularity of viral content has encouraged marketers to adopt a new strategy whereby it's enough for ads simply to be entertaining films "brought to you by" the advertiser in question. Wieden & Kennedy has launched its first campaign for P&G's Old Spice with a series of enjoyably silly ads spoofing numerous targets associated with the men's grooming market. A TV spot featuring Evil Dead actor Bruce Campbell sends up old-fashioned "men of experience" ads with little more than a passing reference to Old Spice itself. Watch carefully to get the full benefits of the cleverly constructed set. An accompanying series of print and viral ads are designed more as an attack on arch-rival Axe than a sell for Old Spice. Try the "Experience Old Spice" website to see if you are a true Man of Experience or merely a sissy, fit only for the "European manfume in the sleek black canister".

General Electric has commissioned BBDO New York to produce a series of short films under the banner of GE Imagination Theater. There is no direct plug for General Electric or its products or services. Instead the films are designed simply to celebrate the "human imagination at work". (Doesn't that just about sound like the ad brief from heaven?). There are three films so far: The Crossing is cute; and Samurai looks impressive but isn't available online until next week. We loved The Cubicle, a comic drama about office life at ground level. Jeremy gets a new job in the city, but can't find anywhere to live. Meanwhile, at the office he faces intense competition from sexy but scary fellow worker Jane... Wow, it's just like working here at Adbrands... (Go to GE's Imagination Theater and then follow the link for The Cubicle from the Everyday Imagination page).

In the news this week: Advertisers

French TV chiefs are forecasting a strong year for advertising revenues as a result of the suspension of a law which had prohibited retailers from advertising on the box for almost 40 years. France's government only allowed advertising of any sort on television for the first time in 1968. But to protect the revenue base of the country's regional newspapers, supermarkets and other large retailers were banned from using the new medium. As a result, ever since, the likes of Carrefour, Leclerc, Systeme U and others have been obliged to limit their ad buys to outdoor, press and radio. The European Commission ruled in 1994 that this restriction was unlawful and called for its removal, but it has taken another 12 years for that suspension to take place. On January 1st this year, the first day of the new freedom, retailers accounted for as much as a quarter of all TV advertising. Other media, however, are expected to suffer. The retail groups have indicated that they will not increase budgets, merely transfer spend from other areas. As a result, outdoor, radio, newspapers and magazines are all forecasting a substantial reduction in income.

In a telling example of the rising supremacy of Korean over Japanese manufacturers in consumer electronics, it took a Korean company - LG Electronics - to break a long-standing stalemate between Sony and Toshiba over next-generation DVD technology. Sony and Toshiba have each developed their own advanced DVD systems but, despite years of talks, were unable to agree terms to combine the two otherwise incompatible systems. A damaging format war reminiscent of the old VHS vs Betamax battle seemed inevitable. But LG has resolved the dilemma, becoming the first company to commit itself to developing a player capable of managing both Sony's Blu-Ray and Toshiba's HD-DVD formats.

Shrugging off competition from Microsoft's Zune music player, Apple CEO Steve Jobs this week unveiled the latest incarnation of the iPod, an iPhone which combines the iPod music and video player with a touch-screen mobile phone handset and web browser. The new device is expected to go in sale in June 2007, with a list price of $499. Apple has negotiated an exclusive partnership with wireless carrier Cingular. However, a day after Apple's announcement, wireless networking specialist Cisco Systems issued a lawsuit against the company for trademark infringement, pointing out that it has owned the iPhone trademark since 2000 and uses the brand in connection with its LinkSys routers.

Clothing retailer Gap released another disappointing set of sales figures. Despite a big marketing push, comparable sales for the key Christmas period fell by 9% over the previous year, on top of a 10% decline in 2004. CEO Paul Pressler admitted that the most recent attempts to revitalise the business had been a failure. It was subsequently reported that the group had asked Goldman Sachs to initiate a full strategic review which could lead to a sale of part or all of the business.

A historic and surprising truce has been agreed between US brewer Anheuser-Busch and its Czech rival Budejovicky Budvar, who have spent the best part of a century arguing over the legal ownership of the Budweiser beer trademark. Despite Budweiser's position as the world's biggest-selling beer, Budvar has successfully secured rights to the brandname in several important European markets including Germany, effectively blocking distribution of the American brand. Now, although the two companies are still embroiled in numerous lawsuits around the world, they have at least made peace in one country. Anheuser-Busch has agreed to take over exclusive distribution of Budvar's beer in the US, where it will be marked under the name Czechvar.

In the news this week: Agencies

Advertising Age handed out its annual plaudits for the past year. In perhaps the most unusual break with tradition, the trade bible named "the consumer" as agency of the year, because of the huge increase in consumer-generated content and the explosive rise and rise of YouTube. Global network of the year was Euro RSCG, cited for its capture of the consolidated Reckitt Benckiser account among other accomplishments. HP took US campaign of the year; Dove was global campaign; and Omnicom chief John Wren was named agency executive of the year for his steady control of what is still the world's #1 marketing services group.

Following last week's speculation, Asda confirmed its decision to transfer its account out of Publicis London and into group stablemate Fallon London. In other assignment news, United Airlines put its global media up for review. The incumbents are Fallon in the US (which remains the company's creative shop) and Mediaedge:CIA worldwide. Meanwhile Singapore Airlines announced plans to consider a fresh pair of hands for its creative account, held for almost a quarter of a century by Batey of Singapore. PHD is the winner of Gap's Ł30m pan-European media buying contract. Anti-smoking lobby American Legacy put both creative and media out for pitch. Bernstein-Rein picked up regional wireless carrier SunCom. Curiously strong mint brand Altoids, now owned by Wrigley, shifted from Leo Burnett to Publicis & Hal Riney in the US. Subscribers can access the full Adbrands Account Assignments database here.

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Happy holidays!

Simon Tesler
Publisher, Adbrands