Sealy advertising comes
to rest at Long Haymes
Sealy Corp. selected Long Haymes Carr, Winston-Salem, N.C., for its $20 million account. Incumbent Leo Burnett USA, Chicago, didn't participate in the review for the mattress marketer's advertising.
Turner's CNN ad work
moves to Moss/Dragoti
Turner Broadcasting System's CNN moved its creative and planning account to Moss/Dragoti, New York, from Hill, Holliday, Connors, Cosmopulos, Boston. There was no review. Moss/Dragoti will evolve CNN's "You are what you know" campaign, with new creative from the agency slated to break today. The campaign, valued at $25 million, initially broke in July and will run on Turner Broadcasting properties.
Carat parent Aegis' profit
climbs 19% in 1st half
Aegis, the London-based holding company for media buying giant Carat, reported first-half pre-tax profits rose 19% from a year ago to $46.6 million on sales of $3.6 billion. Aegis had $806 million in net new wins, more than half of which were generated in the U.S. That compares with $770 million in net new business for all of 1998. Carat entered the U.S. in November 1996, and today the world's largest media market only accounts for 13% of its media business. Asked if Aegis would consider teaming up with a large U.S. media specialist, Chief Executive Doug Flynn said: "We're not a huge believer in alliances." The group isn't planning any major acquisitions, only in building the Carat network in Latin America and China, he said. Aegis is looking for acquisitions of customized market research companies such as U.S.-based Market Facts, which it bought in June for $297 million.
FTC asks changes in
alcohol ad self-regulation
The Federal Trade Commission's report, released to the public Sept. 9, on the alcohol industry's compliance with its own industry ad codes cites no specific problem but urges the industry to take major additional steps to limit its messages' impact on children. One new step suggested in the report is that the industry limit its ads to programming with much more of an adult audience. Although the Beer Institute's current code suggests ads not be in media where "most of the audience is reasonably expected to be below the [minimum alcohol] purchase age," the FTC is asking the alcohol industry to aim higher. An institute spokesman said brewers' ads generally appear on programming whose adult share is well over 50%. The FTC also recommends that the alcohol industry allow independent review of its enforcement of its ad codes; develop a "set of best practices" applying across the board to all three separate codes that the beer, wine and distilled liquor segments now have in place; prohibit ads that have "substantial appeal" to kids even if the ads also appeal to adults or are targeted to people 25 or older; and limit product placement to R and NC-17 rated films.
Lowe agencies form
new DTC specialist
Lowe & Partners/SMS and Lowe Healthcare Worldwide, both New York, jointly established Lowe Consumer Healthcare, a separate unit specializing in direct-to-consumer pharmaceutical advertising. The agencies said the new unit combines Lowe/SMS' consumer ad experience with Lowe Healthcare's strength in that field. Jim Sandino, 51, managing director of Lowe McAdams Direct, was tapped as president of the new entity. Charter clients include Hoffman-La Roche's anti-obesity drug Xenical, previously at Lowe/SMS, and Schering-Plough Corp.'s Nasonex allergy medication, previously at Lowe Healthcare. Nasonex generated $36 million in spending last year, per Competitive Media Reporting, while Xenical's DTC ads are expected to start later this year. Separately at Lowe Healthcare Worldwide, the shop said Braun and Oral-B Laboratories named it global agency of record for professional branding, advertising and promotion for Oral-B products, Braun Oral-B power-assisted oral-care products and Braun personal diagnostic appliances. Lowe & Partners won global consumer branding from Braun in 1984 and Oral-B Laboratories in 1997.
Newspaper ad spending
rises 5.1% to $21.5 bil
Newspaper ad spending climbed 5.1% in the first half of 1999 vs. a year earlier, to $21.5 billion, said the Newspaper Association of America. In the first six months, retail spending rose 3% to $9.7 billion, classified was up 3.9% to $8.5 billion and national up 15.1% to $3.3 billion. In the second quarter, classified grew 4% to $4.4 billion, national was up 17.4% to $1.8 billion and retail up 1.8% to $5.1 billion. Looking ahead, "We expect GDP to be stronger in the second half of the year, and that, combined with what was slow ad spending in the latter half of 1998, will boost the comparable numbers," said NAA VP-Market and Business Analysis Jim Conaghan.
Heinz serves up
Boston Market line
H.J. Heinz Co. on Sept. 8 unveiled its line of premium frozen side dishes and entrees under the Boston Market Home Style Meals banner. The line debuts initially in West Coast markets by the end of this month and is expected to roll national by next April. Heinz President-CEO William Johnson projected the line will reach sales of $200 million in the next two years with help from $29 million in marketing support that will include a print, radio and TV campaign from DDB Worldwide, San Francisco, as well as extensive promotions.
Visa's Soderstrom moves
to new post at Schwab
Jan Soderstrom, the Visa marketing executive who helped move the credit card to its current dominant position, is taking a marketing position at Charles Schwab & Co. Ms. Soderstrom switched from exec VP-international at Visa to the new post of senior VP-advertising and brand management at Schwab, reporting to Len Short, exec VP-advertising and brand management. Ms. Soderstrom will help Schwab become a "full-service brokerage," Mr. Short said. Mr. Short will take a more active role in Schwab's international expansion, he said. Schwab, with $200 million in advertising this year, also added to its roster a new shop called Red, founded by Don Easdon, a former East Coast free-lancer who has moved to San Francisco. BBDO Worldwide, New York, is Schwab's lead agency, and Bronnercom handles a