Apple reports record revenue; stock falls
[Cupertino, Calif.] Apple beat expectations handily again last week with quarterly results of $3.24 billion in revenue, up 70% over the same quarter last year. About one-third of those sales came from the iPod. But the real news by the end of the week was the beating taken by Apple stock, which sunk as low as $35 from its pre-reporting price of $43. Analysts speculated Wall Streeters were spooked by Apple's warning that next quarter sales will increase only slightly, and the fact that Apple might not be able to come up with another blockbuster product
[Minneapolis] Trying to shake up its staid creative reputation, Campbell Mithun is tapping a top executive from Leo Burnett USA, Chicago, as its new president-chief creative officer, knowledgeable executives said. Campbell Mithun, part of Interpublic Group of Cos., is poised to hire Jonathan Hoffman, vice chairman-executive creative director at Burnett overseeing U.S. Army and Nintendo creative. Campbell Mithun President Jack Rooney becomes CEO; current CEO Les Mouser becomes chairman. A Campbell Mithun spokeswoman declined to comment. Mr. Hoffman declined to comment. A spokeswoman for Leo Burnett, part of Publicis Groupe, confirmed that Mr. Hoffman is leaving the agency.
McLernon takes role at CBS Digital Media
[New York] Scot McLernon, formerly VP, chief sales and strategy officer at CBS MarketWatch (now Dow Jones' MarketWatch), was named senior VP-advertising sales of the newly formed CBS Digital Media. Mr. McLernon will run the sales operation of CBS.com, CBSNews.com and CBS.Sports- line.com, which have been united into one digital unit. Ads can now be sold across the platforms.
P&G to keep Gillette, Duracell, Braun in place
[Cincinnati] Procter & Gamble Co. will keep Gillette Co.'s razor, Duracell and Braun appliance businesses in their current headquarters in Boston, Bethel, Conn., and Kronberg, Germany, in a separate P&G business unit to be headed by current Gillette Chairman-CEO Jim Kilts, who will be vice chairman of P&G after the deal closes, the companies said in a filing with the U.S. Securities and Exchange Commission late April 14.
Consumers to decide next flavor for Crest
[Cincinnati] Procter & Gamble Co.'s Crest will launch a campaign today to have consumers select the next flavor of Crest Whitening Expressions toothpaste, which will roll out later this year. The campaign, to be conducted election style with TV, print and online elements, kicks off at P&G headquarters with participation by several Cincinnati mayoral candidates, including David Pepper, a city council member and son of former P&G Chairman-CEO John Pepper. Publicis Groupe's Saatchi & Saatchi, New York, handles creative, and sibling Starcom MediaVest Group, New York, handles planning and buying.
Canadian government avoids no-confidence
[Montreal] Canada's federal government dodged getting a no-confidence motion last week, but as more and more information of alleged kickbacks, influence peddling, overpayments and other details are revealed in the scandal involving several Quebec advertising agencies, the ruling federal Liberal Party is hanging on by a thread. The Gomery Commission investigating the missing $83 million of a $208 million sponsorship fund funneled through advertising and public relations agencies is hearing from witnesses that are implicating politicians, Party organizers and even relatives and cronies of former Prime Minister Jean Chretien. While polls show most Canadians against a spring election, opposition parties are expected to team up for a no-confidence vote any day.
Microsoft effort looks beyond operating system
[Redmond, Wash.] Microsoft launches one of its biggest global campaigns for the Window operating systems today in celebration of its 30-year history. Tagged "Start Something," the multi-media campaign from Interpublic's McCann Erickson, San Francisco, pushes Microsoft forward from simply a computer operating system to the basis for a host of consumer electronics devices that run on Windows XP. Ads focus on and are tailored around specific passions such as cooking, sports, education and music.
Ford Motor Co., one of the largest online advertisers in the Hispanic market, is introducing a city guide hub on AOL Latino this week. The bilingual 16-city guides tie in with Ford's advertising tagline "Built for the road ahead." The agency is independent Hispanic shop Zubi Advertising. ... SBC Communications and BellSouth Corp.'s Yellowpages.com, moving to buoy its new online Yellow Pages and local search service, has begun a review for a $3 million to $5 million account. Wanamaker Associates, Atlanta, is the consultant. ... The U.S. Department of Education's Inspector General ripped the department and Ketchum Communications for subcontracting conservative columnist Armstrong Williams to promote the No Child Left Behind Act, deeming the work of "poor quality" and saying that it "most likely did not reach its audience." A Ketchum representative had no immediate comment.