The Week

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Search-related advertising was largely responsible for Yahoo! more than doubling its third-quarter earnings, which it reported last week. Sponsored search, whereby marketers pay to have their Web sites top Internet search result listings, is expected to be a $1.6 billion marketplace by year-end, according to Jupiter Research (See Interactive, P. 62). Yahoo!'s $1.83 billion acquisition of Overture Services, the No. 2 search firm after Google, closed Oct. 8. Third-quarter revenue rose $356.8 million from $248.8 million. Yahoo! told analysts it expects to report full-year income from operations of as much as $286 million; the previous estimate was for no more than $260 million. Yahoo! executives said that apart from search, the company is selling more advertising and sponsorships on high-traffic areas of its site, including the front-page and premium-service areas, such as personals and HotJobs. Marketers flocking to Yahoo! of late include Gap, PepsiCo, Ford Motor Co. and movie studios. AdAge.com QwikFIND aap06c

Chemistri taps top creative as chairman

Publicis' Chemistri,Troy, Mich., named its top creative, Gary Topolewski, chairman last week. Mr. Topolewski also remains chief creative officer at the General Motors Corp. agency, a post he's held since May 2001. Roger Haupt had been chairman of the agency since its founding in March. He remains president-chief operating officer of parent Publicis. Chemistri said the change frees Mr. Haupt to handle his duties at the holding company level, which include more responsibility for Leo Burnett overseas. Mr. Topolewski told Ad Age the change "symbolizes that when it comes to ideas, creativity is tops." Chemistri will continue to report to Mr. Haupt. Patrick Sherwood remains Chemistri's president-CEO. AdAge.comQwikFIND aap05t

Banana Republic looks for agency

Banana Republic, San Francisco, is expected to select an ad agency following presentations from Omnicom Group's TBWA/Chiat Day, New York; Publicis Groupe's Leo Burnett, Chicago; and two independently owned agencies, Laird & Partners and A/R Media, both New York. All agencies presented in September and a decision is expected this month. Jack Calhoun, Exec VP-Banana Republic marketing, said in a statement: "We're looking to complement our in-house skills with an outside creative agency to strengthen our brand's position and deliver a clear message to our customers." The retail giant spent $495 million on measured media in 2002, according to TNS Media Intelligence/CMR. Publicis Groupe's Leo Burnett, Chicago, has worked on corporate projects for Gap Inc., and in June, Susan Wayne, a former exec VP-group account director at the agency, moved to become senior VP-marketing at Old Navy. Laird & Partners produces the Gap's notable campaigns that include spots starring Madonna and Missy Elliott. Clients of A/R Media, New York, include designers like Valentino. AdAge.com QwikFIND aap06i

DDB assigns Tilley to McDonald's biz

McDonald's Corp. got a new lead creative at Omnicom Group's DDB Worldwide, Chicago, last week. Paul Tilley, senior VP-group creative director on the agency's Dell computer account, succeeds Jim Ferguson, who left in August to join Interpublic Group of Cos.' Temerlin McClain, Dallas. Mr. Tilley, who, a spokesman said, requested the assignment, will continue to work on Dell. "He's passionate about his work, our agency and the opportunity to work on McDonald's, one of his all-time favorite brands," said Bob Scarpelli, chairman of DDB Chicago and U.S. chief creative officer. AdAge.com QwikFIND aap05n

Do-not-call back after court ruling

The off, on, off, do-not-call list turned fully on again as a three-judge panel of the U.S. Court of Appeals for the 10th Circuit stayed a lower-court decision that the Federal Trade Commission's list was unconstitutional. While the Federal Communications Commission had continued requiring telemarketers to use the FTC list, the lower court order had blocked new sign-ups and blocked marketers from accessing the list. Both resumed last week. The appellate court set Nov. 10 in Tulsa for a more complete hearing. The Direct Marketing Association was debating whether it would immediately appeal the decision to grant a stay, while the American Teleservices Association said it would wait for the Tulsa hearing.AdAge.com QwikFIND aap05y

FYI...

The Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) has narrowed its $25 million creative review to three shops: Modernista, Boston; Omnicom Group's TBWA/Chiat/-Day, New York; and the incumbent, WPP Group's Ogilvy & Mather, New York. Siltanen Keehn, El Segundo, Calif., was eliminated. The three remaining shops will make final presentations to Steve Goldstein, TIAA-CREF's VP-marketing, at the end of the month and into the first week of November. A decision is expected shortly thereafter. AdAge.com QwikFIND aap05v ...AT&T Wireless starts a $125 million branding effort based on the vintage "Reach out and touch someone" tag line of the late `70s. The campaign, first from Omnicom's Goodby, Silverstein & Partners, San Francisco, is tagged "reach out on the wireless service America trusts" which will replace the short-lived mLife campaign from AT&T's other shop, WPP Group's Ogilvy & Mather, New York. Mike Sievert, chief marketing officer, AT&T Wireless said the new campaign will help AT&T Wireless "stand apart from the glib giveaways and promotions" expected when federal rules go into effect Nov. 24 allowing consumers to switch take their number with them when they switch carriers. AdAge.com QwikFIND aap06h

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