April 2, 1998
Bozell names North America chief: Bozell Worldwide named Eugene F. Bartley Jr. to the newly created post of president of North American operations, from president, New York operations. Succeeding Mr. Bartley as president of New York operations is Tom Bernardin, general manager of Bozell's New York operations.
Burnett hires OgilvyOne exec: Leo Burnett USA, Chicago, named Tim Claffey as director of its Direct & Promotions Unit. Mr. Claffey, 45, was previously general manager and executive creative director at OgilvyOne, Chicago.
Drake backs joint Four A's/ANA meet: A joint annual meeting of the American Association of Advertising Agencies and the Association of National Advertisers was endorsed by Four A's President-CEO O. Burtch Drake in a speech to Four A's members at the group's annual meeting in Scottsdale, Ariz., today. Mr. Drake cited cost savings, the ability to attract high-profile speakers and the potential for increased attendance. "There is more in it for us than the ANA," he conceded, but added, "we have a lot of issues in common so why not let us each share in those." He said he would consider having a joint task force explore the idea. ANA President-CEO John Sarsen, in attendance at the Four A's meeting, said afterwards that prospects for early action on such a joint convention were not good. "In the short term, given the different agendas, it's not going to happen," Mr. Sarsen said.
MGM buys 'Seinfeld' finale ad: Metro-Goldwyn-Mayer Home Entertainment, Santa Monica, Calif., has bought a 30-second unit in the last episode of NBC's "Seinfeld" to promote rentals of its 1997 James Bond feature film "Tomorrow Never Dies." MGM is the third Hollywood studio to buy time in the show. Warner Bros. will promote the theatrical release of "Lethal Weapon IV," due in theaters in July, while Sony Pictures Entertainment will tout its TriStar Pictures' release, "Godzilla," arriving in theaters Memorial Day weekend. The cost of a 30-second commercial in the "Seinfeld" finale has been estimated at $1.5 million.
Dell ad triggers record FTC fine: Dell Computer Corp. agreed to pay an $800,000 civil penalty to settle Federal Trade Commission charges that it advertised in 1995 a computer system bundled with software that it didn't really have. It was the largest civil penalty FTC ever assessed from an individual company for violating its Mail Order Rule. FTC said Dell advertised its Dell Dimension system as being bundled with a third-party Dell Software Suite, but then shipped computers with a coupon for the software instead of the software. The FTC said Dell violated the Mail Order Rule by soliciting orders for merchandise it couldn't deliver, and failing to offer consumers the option of either consenting to a delay or canceling their orders.
NEC hires Marsteller: NEC USA, Melville, N.Y., moved its $5 million to $6 million corporate ad account to Marsteller Advertising from Hampel/Stefanides, both New York. Hampel/Stefanides lost NEC Technologies' computer peripherals account last year, but still works on Packard Bell NEC's NEC computer division.
Watch new rivals, says WPP's Sorrell: WPP Group CEO Martin Sorrell cautioned ad agencies to look at their positioning as clients seek strategic and branding counsel from companies other than agencies. "We face competition not just from each other," he said, pointing to management consultancies and boutique "idea-factories" that are beginning to invade agencies' turf. He said there is a pressing need to recruit more MBAs into the ad agency business. He spoke to the American Association of Advertising Agencies annual meeting.
Bronner to open New York office: Relationship marketing agency Bronner Slosberg Humphrey, Boston, will open a 65-person New York office April 6. Chief Creative Officer Mike Slosberg will relocate from Boston to New York.
Washington State Lottery, Olympia, Wash., to EvansGroup, Seattle, for its estimated $7 million account; the review included incumbent McCann-Erickson Worldwide and Bozell, both Seattle.
Michael Stewart to senior VP-account director, loyalty marketing services group, C-E Communications, Warren, Mich., a new post, from national account manager, BI Performance Services, Detroit...Rick Rabe to creative director/managing director, Merkley Newman Harty, Atlanta, a new post, from creative director of the agency's New York office.
Died: Jack Ehrig, 68, former vice chairman, EvansGroup, Seattle, March 23, from a heart attack, in Phoenix.