Cordiant still pays ex-chief Bungey
While WPP Group and U.K. investment company Active Value fought for control of Cordiant Communications Group, Cordiant disclosed last week that former Chief Executive Michael Bungey is being paid $157,000 a year through 2004 as a consulant in addition to a $1.2 million payment he received when he left the company in March. It also said former Bates America President Bill Whitehead received a $1.3 million payment when he left the company. AdAge.com QwikFINDaao80z
Military shifts recruiting tactic
The defense department shifts its target in a new joint-service recruitment ad campaign to parents and others adults from recruitment-age young people. Creative, from Interpublic Group of Cos.' Mullen, Wenham, Mass., features testimonials from athletes, dentists, musicians and executives about what they gained from military service. Ads broke in Time Inc.'s People, Sports Illustrated, Time, Washington Post Co.'s Newsweek and other magazines last week. A public service TV spot will be distributed in July. Initial budget is estimated at $1.7 million.
DTC ad curbs defeated in Senate
Ad groups remained concerned that direct-to-consumer prescription drug advertising will remain a political campaign issue after the U.S. Senate defeated proposals by a contender for the Democratic presidential nomination to curb DTC ads by requiring more information disclosures. The DTC ad provisions, offered by Sen. John Edwards, D- N.C., were opposed by the ad industry. Industry officials said they would effectively kill broadcast DTC ads because of the airtime needed in a spot to provide the extra information. AdAge.com QwikFIND aao80u
The $2.8 billion combination of Nestle and Dreyer's Grand Ice Cream, cleared by federal antitrust regulators last week, is expected to spark an agency realignment. Omnicom Group's Goodby, Silverstein & Partners, San Francisco, handles the Dreyer's brands. Three of those brands (Dreamery, Godiva and Whole Fruit Sorbet) will be divested to appease government concerns. Other Dreyer's brands (including Edy's, Dreyer's and Starbucks-licensed ice creams) go to the new unit. WPP Group's J. Walter Thompson, Chicago, handles Nestle ice cream brands Haagen-Dazs and novelty ice cream products including Drumstick and Nestle Crunch Bars. AdAge.com QwikFIND aao80q
Alexander through as KFC pitchman
Yum brands' KFC is preparing to launch new creative in August after confirming last week that it's ended its two-year relationship with pitchman Jason Alexander. "This advertising campaign has run its course," said a KFC spokeswoman. Last month, KFC was negotiating with the actor's reps to extend his contract but talks fell through. Omnicom's BBDO Worldwide, New York, is developing new creative. Neither KFC nor Mr. Alexander's representatives would comment on claims by animal rights group People for the Ethical Treatment of Animals that Mr. Alexander had agreed to lobby KFC on its behalf. BBDO referred calls to KFC. AdAge QwikFIND aao80a
Senate bill tightens media owner rules
The senate Commerce Committee, writing legislation to overrule liberalized media ownership limits enacted by the Federal Communications Commission, voted to eliminate a formula that lets station owners "discount" the household reach of UHF TV stations. Critics charged the formula allowed TV station groups to own stations reaching 90% of national TV households, far above the 45% set in FCC's new limits and the 35% ceiling in the old limit.
Roxio selected Venables, Bell & Partners, San Francisco, as its agency for its Napster division, which it will relaunch as a for-pay music online site. AdAge.com QwikFIND aao80o ... Donna Salvatore, 50, chief investment officer and former CEO of Publicis Groupe's MediaVest USA, New York, died June 20 of a brain aneurysm. AdAge QwikFIND aao78u...Jack Griffin, 42, Parade publisher, was named president of Meredith Corp.'s magazines, succeeding Jerry Kaplan, 56, who will retire at year's end. At Advance Publications' Parade, Exec VP-Associate Publisher Randy Siegel, 41, will succeed him. AdAge.com QwikFIND aao78u...CNN's President-sales and marketing Larry Goodman will retire; Greg D'Alba, exec VP-advertising, replaces him. AdAge.com QwikFIND aao79r