Gateway's estimated $250 million media review will be drawing to a close soon, according to executives involved. The list includes incumbent shop Interpublic Group of Cos.' Universal McCann, as well as sibling Initiative Media and Havas Advertising's Media Planning Group, New York. Media buying and planning had been handled by Universal McCann, New York, until the computer marketer pulled its creative account from parent McCann-Erickson Worldwide and brought it in-house. According to an executive close to Gateway, the company had considered bringing its media buying in-house but abandoned the idea.
Zenith Media cuts U.S. ad spending forecast by half
Zenith Media, London, slashed its forecast for U.S. ad spending this year nearly in half, from growth of 4.6% to growth of just 2.4%. That's down from a surge of almost 13% in 2000. With Internet ad spending, growth will edge up to 2.9%, Zenith predicted. It downgraded growth in TV ad spending from 6% to 3% in 2001, but raised its forecast for magazine ad spending growth to 6% from 4%.
Envoy purchase of Leagas encounters another snag
Envoy Communications' purchase of London agency group Leagas Delaney, set to close in March, has been at least temporarily halted by Leagas Delaney's slide. The agency laid off half the staff in its San Francisco office in February. The deal, first set to close in January, was postponed because of a drop in Envoy shares. Envoy President-CEO Geoff Genovese said the companies are in talks and the previously agreed $85 million purchase price now looked optimistic. He expects the deal to be resolved-or abandoned-within weeks. (See Adage.com.)
Verizon consolidates at Draft and Lowe Lintas
Verizon Communications consolidated its estimated $400 million ad account at Interpublic's DraftWorldwide and Lowe Lintas & Partners Worldwide, both New York. Verizon's account had been handled by Havas' Arnold Worldwide, Boston; Lord Group, New York; and True North Communications' Temerlin McClain, Irving, Texas. Zenith Media, New York, jointly owned by Cordiant Communications Group and Publicis Groupe, continues to handle media. Verizon Wireless' business remains with True North's Bozell Worldwide, New York.
Kia exec resigns after denying rumor of ouster
Dick Macedo, exec VP-sales and marketing for Kia Motors America resigned after nearly eight years with the South Korean car importer. AdAge.com reported April 3 that Mr. Macedo was being forced out, which he denied. Kia said Mr. Macedo "decided the time was right to spend more time with his family and turn his interests elsewhere." Kia said it sold a record 19,159 vehicles in March, 51% more than a year ago. But an executive close to the situation said Mr. Macedo's Korean bosses had wanted a 70% sales rise. Mr. Macedo told AdAge.com that he had "missed" projected goals but called news of his ouster a "rumor."
Study examines radio's reach with teen buyers
Radio is a powerful medium to reach teen consumers, according to a study released by radio rep company Interep, New York. Interep, citing a study by Teenage Research Unlimited, said listening to FM radio is the most popular leisure activity for teens after watching TV. Teens spent $153 billion in 1999, most heavily in categories including clothing and entertainment; 55% of teens have some input into the brands their households purchase, according to the study.
Omnicom Group's BBDO North America named Ted Sann, 55, co-CEO and chief creative officer of BBDO New York, to vice chairman, chief creative officer, BBDO North America. Mr. Sann also assumes the chairman post. ... The Massachusetts Bay Transit Authority pulled an MTV ad that says "Can I get MTV from kissing?" It called the ad too suggestive and will replace it with another MTV ad. The agency is Boston's Modernista! ... Clearly Canadian Beverage Corp. is rolling out enhanced water. Reebok Fitness Water, which is being licensed by the footwear maker, will have vitamin B, C and other nutrients.