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$300 Million Account Does Not Include North America, China, Korea
Posted
by Michael Bush and Jean Halliday
on
11.06.09
@ 02:04 PM
NEW YORK (AdAge.com) -- Hyundai-Kia has awarded a big chunk of international media buying business to Havas' MPG, according to executives with knowledge of the review.
The review included nearly 160-plus markets across the globe such as Europe, parts of Asia as well as parts of South America. Billings on the account are believed to be in the neighborhood of $300 million. The review didn't include the U.S., where Interpublic Group of Cos.' Initiative manages the business, Canada, Australia, China and Korea.
MPG beat out Initiative, Publicis Groupe's ZenithOptimedia and Omnicom Group shop K360. The agency referred calls to the client and the Seoul, Korea-based automaker did not respond to e-mails by press time.
Hyundai has been growing in Latin America and the Middle East, as well as India and China.
Before the pitches got under way a Kia spokeswoman told Ad Age via e-mail the reason for the review was "to ensure the corporation has a competitive advantage in the marketplace." An executive close to the matter said Hyundai and Kia want more cohesive media planning and executions and that a consolidation will also boost the advertisers' clout in the various markets.
This marks the second big global win for MPG, which retained Danone's nearly $150 million North American media account in late October as part of the company's global media review.
Rumored Front-Runner Not Among Contenders for GM's Luxury Auto Business
Posted
by Jean Halliday
on
11.05.09
@ 10:32 AM
DETROIT (AdAge.com) -- Cadillac has narrowed the list of agencies in the hunt for its national creative account, and McCann Erickson has not made the cut.
General Motors Co.'s luxury brand said the contenders are: Publicis Groupe-backed Bartle Bogle Hegarty, New York, and Publicis, New York; two Interpublic Group of Cos. agencies, Gotham, New York, and Martin Agency, Richmond, Va.; Omnicom Group's DDB, Chicago; and independent McKinney.
Retailer Says It Is Searching for Improved Communications Efficiency in U.S.
Posted
by Natalie Zmuda and Rupal Parekh
on
11.04.09
@ 06:20 PM
NEW YORK (AdAge.com) -- Swedish furniture retailer Ikea, nearing completion of a media agency review, is now examining its creative roster of U.S. agencies in what it calls a move towards "integration of general market and Hispanic creative."
Client's Sales Down by Double Digits Last Quarter; Kirshenbaum Says It Will Not Defend Electronics Business
Posted
by Rupal Parekh
on
11.04.09
@ 03:33 PM
NEW YORK (AdAge.com) -- Embattled electronics marketer Panasonic is reviewing U.S. ad duties on its estimated $40 million account, currently handled by Kirshenbaum Bond Senecal & Partners in New York, executives familiar with the matter said.
Kirshenbaum has been the lead U.S. agency for Panasonic since 2006, when it replaced WPP's Grey, New York, which had handled the business for more than two decades. A spokeswoman for Kirshenbaum said the agency doesn't plan to defend the account. Last week, Kirshenbaum
snared the $50 million Vanguard account.
DDB, JWT, Saatchi-Fallon and McCann to Make Final Presentations Next Month
Posted
by Rupal Parekh
on
11.03.09
@ 07:36 PM
NEW YORK (AdAge.com) -- Holiday Inn is conducting a review of its global creative advertising account, and four networks will make final presentations in a bid for the hotel chain's business next month, executives familiar with the matter said. They are: Omnicom Group's DDB; WPP's JWT; Publicis Groupe's Saatchi-Fallon Group; and Interpublic Group of Cos.' McCann Erickson.
Executives said Joanne Davis Consulting in New York is assisting with the review. Calls to the consultant were not returned by press time, and agency representatives either declined to comment or didn't immediately respond to requests.
Agency Roster Reduced to Five, JWT Loses Business Across Globe
Posted
by Jeremy Mullman
on
11.03.09
@ 04:48 PM
A correction has been made in this story. See below for details.
CHICAGO (AdAge.com) -- Kellogg Co. has trimmed the global agency roster on its $1 billion account, consolidating "brand building" under Publicis Groupe's Leo Burnett in North America, Europe and Latin America.
Burnett's gain appears to be JWT's pain. At the outset of the review, Kellogg indicated to agencies it hoped to cut its roster to about five shops from around 30. The two busiest of those 30 shops, by far, have historically been Leo Burnett and WPP's JWT. Prior to the consolidation, Burnett worked in 32 countries, including the U.S., and JWT toiled in 21.
Canadian Loyalty Marketing Agency Seeking Larger U.S. Base, Access to 'Sticky' Client Roster
Posted
by Jeremy Mullman
on
11.03.09
@ 01:46 PM
CHICAGO (AdAge.com) -- Minneapolis marketing-services giant Carlson Marketing has been sold to Montreal-based Groupe Aeroplan, merging the two top global companies in the loyalty-marketing category.
A Hybrid Model Can Be a Win-Win Solution for Clients and Agencies
Posted
by Sharon Napier
on
11.02.09
@ 03:05 PM
Losing business because a client takes its work in-house can be a very frustrating challenge for a shop that's put its heart and soul into coming up with innovative ideas. But what agency folks sometimes forget is that a client's decision to go in-house usually isn't driven by creativity or quality of work, but instead by the need for a new operating model, lower costs or faster turnaround.
At my agency, many clients have extensive retail-based execution needs, things such as point-of-sale materials, coupons, sales-team sell sheets and highly localized ads. Such work is the kind that many brand-oriented advertising agencies have a hard time supporting cost-effectively and time-efficiently.
We didn't want to stand by and watch our clients take that work in-house, nor was it in their best interest for us to try to force-fit it into our standard agency model. So, a few years ago, we created a second model, one we call the "in-house outsource," or studio model.
How does it work? Like a traditional model, the clients have a dedicated team to serve their business, one that's steeped in the client's brand guidelines, process and work flow. However, for the studio model, the process is streamlined.
There are no account executives or trafficking positions; clients work directly with a designer who is responsible for every aspect of the project, from the first request to the work getting out the door, much like having an on-staff designer. The studio team works as an agency within an agency -- it has its own leader, its own process, its own job description and career path.
At the same time, the guys on these teams are still exposed to everything we do at the agency to inspire creativity (agency meetings, shared learnings, outside speakers, etc.), so they can keep their creative juices charged by exposure and involvement in the broader agency.
We've found this model works well, especially for retail-oriented clients and in situations where we're executing against creative concepts and brand standards that have already been agreed to.
One example is Vine Design, a custom, in-house outsource group for Constellation Wines U.S. that we created in 2001. This group has a staff of only 17, yet last year they completed more than 1,800 projects with more than 3,800 individual components across 94 brands. As a result of this success, we've also established studios for Sorrento Cheese, Bausch & Lomb and Kodak.
We think this setup can be a win-win for marketers and their agencies. Some benefits to the client include:
- Eliminating the costs and infrastructure of maintaining an internal creative team.
- Accessing agency personnel who are fully dedicated to them and live their business every day, yet who benefit from the training, culture and resources of a full-service agency.
- More efficient pricing and an average hourly rate befitting the nature of the work -- which adds up to significant cost savings vs. a traditional agency model.
For the agency, benefits include:
- Strengthening the client relationship by helping clients avoid the cost and complexity of creating an in-house agency.
- Helping clients ensure campaigns are flawlessly executed down to the most minute details.
Finding new ways of working isn't easy, but at the end of the day clients are always looking for innovation and better and more cost-effective solutions. It might take a leap of faith at first, but being flexible and offering new models to solve clients' needs can help deepen an agency's relationship its clients.
| ABOUT THE AUTHOR |
|
Sharon Napier is president-CEO of Partners & Napier. The Rochester, N.Y.-based agency works with Kodak, Constellation Wines, Philips and Bausch & Lomb, among others. |
In Latest Crowd-Source Move, Mtn Dew Lets Public Pick Its 'Agency'
Posted
by Natalie Zmuda
on
11.02.09
NEW YORK (AdAge.com) -- The trend of marketers relying on the wisdom of crowds to create marketing campaigns is escalating as PepsiCo turns over the choice of agencies for three product launches to the masses, ramping up the potential threat to ad shops bypassed or relegated to a supporting role in implementing the resulting efforts.
Consumers voted on the color they wanted for three new Dewmocracy products and then a paintball of that color was shot at volunteers. The volunteer covered with the most paint at the end won.
In a contest beginning this month, Mtn Dew will hand off marketing duties, at least temporarily, for a $100 million-plus business to several potentially unknown players selected by consumers. Via the contest, any agency, independent film company or individual can submit 12-second clips via
www.12seconds.tv outlining their ideas for marketing three new Mtn Dew line extensions.
Those line extensions themselves were created by the crowd. Distortion, Whiteout and Typhoon are the latest results of Dewmocracy, an initiative designed to open up product development to consumers. Last year, the Dewmocracy brands accounted for 25 million cases -- or a couple hundred million dollars, according to John Sicher, editor and publisher of Beverage Digest. By comparison, Coke Zero, a major growth engine and core brand for Coca-Cola, sold 96 million cases last year.
Agency Behind Classic Wendy's Ad and 'Pizza, Pizza' Shutters After 22-Year Run
Posted
by Kunur Patel
on
11.02.09
A correction has been made in this story. See below for details.
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