EarthLink Inc. plans to move its account to TBWA/Chiat/Day, said an executive familiar with the situation. The shift follows creation of a major alliance between the No. 2 Internet service provider and Apple Computer. In February, EarthLink and MindSpring merged, and the combined account, with anticipated spending of $50 million, went to BBDO West's San Francisco office. TBWA/Chiat/Day, Playa del Rey, Calif., is Apple's agency of record, and Apple Chairman Steve Jobs is a close friend of TBWA Worldwide Chairman-Chief Creative Officer Lee Clow. An EarthLink spokesman said: "We don't have any news to put out right now." TBWA's New York office handles rival Prodigy Internet, but Carl Johnson, president of that office, said it isn't a conflict because the offices operate separately.
Lucent spin-off calls FCB for its $50 mil account
Lucent Technologies awarded a projected $50 million account to FCB Worldwide, San Francisco, for its newly named Enterprise Networks Group, to be spun off later this year. The review had narrowed to FCB and Deutsch, New York; the latter withdrew earlier this month. The Enterprise Networks Group is a provider of networking technology and business communication solutions, including service and support for voice and data networks, customer relationship management, call centers, and messaging. FCB, New York, and the agency's international network also will work on the account.
IHOP selects Horizon for $30 mil media account
IHOP Corp. named Horizon Media, Los Angeles, to handle the $20 million to $30 million media account for its International House of Pancakes chain. Incumbents Masterminds, Severna Park, Md., and Tony Walch Media, Cincinnati, retained portions of the business. IHOP traditionally has used spot media, but Horizon President-CEO Bill Koenigsberg said there could be a national component. "We've had a strong record of being able to identify the right media vehicles with little waste," he said. The win is the latest in a series for Horizon, which has picked up $150 in new accounts over the past two months, including Sports Authority and two dot-coms.
MVP.com awards branding to Y&R's Digital Edge unit
New sporting goods e-tailer MVP.com awarded its integrated online branding business to Digital Edge, New York. Digital Edge is the interactive arm of Young & Rubicam's Media Edge unit. Digital Edge will handle all online media planning and buying, as well as strategic development. The agency will work with Agile Industries on MVP.com's online creative. Leagas Delaney, San Francisco, handles MVP.com's offline account.
Campbell hikes ad budget as part of turnaround bid
In the wake of a quarterly earnings decline of 14%, Campbell Soup Co. interim and former CEO David Johnson outlined a turnaround plan that includes product innovation centered on its core soup business as well as increased marketing spending. Among the initiatives: introducing seven of Campbell's popular condensed soups as well as some ready-to-serve varieties in pull-top cans; launching a new tomato noodle soup; adding more chicken to chicken noodle soup; and leveraging the health benefits of tomato soup, which contains the supposed cancer-fighting ingredient lycopene. Mr. Johnson acknowledged the inefficiencies in Campbell's marketing spending over the past year and vowed to improve the impact of advertising, though he didn't offer specifics. Campbell spent $184 million in media last year, according to Competitive Media Reporting. BBDO Worldwide, New York, handles the bulk of Campbell's soup advertising; Y&R Advertising has Chunky soup and Pepperidge Farm.
Heyer joins WPP board
Steve Heyer, a top executive at Young & Rubicam in the early 1990s, was named a non-executive director of WPP Group, London, as WPP prepares to acquire New York-based Y&R. Mr. Heyer, currently president-chief operating officer at Turner Broadcasting System, served only two years in Y&R's executive suite. At age 40, he was recruited to Y&R in 1992 directly from the ranks of management consultants by then Y&R Chairman Alex Kroll and President Peter Georgescu. A senior VP-managing partner at Booze, Allen & Hamilton, Mr. Heyer joined Y&R as an exec VP with the parent holding company and added the title of president-chief operating officer of the core Y&R Advertising agency when Mr. Georgescu became CEO in late 1993. Though regarded as an eventual contender for the top spot at Y&R, less than six months after becoming chief operating officer at Y&R Advertising Mr. Heyer unexpectedly left to join Turner.
Procter backs out of Dr. Laura shows
Procter & Gamble Co. last week pulled its advertising from programs hosted by Dr. Laura Schles-singer due to her controversial remarks about homosexuals. The Gay & Lesbian Alliance Against Defamation and the Horizons Foundation both commended P&G after the company announced it would withdraw its plans to advertise on the upcoming syndicated TV program "The Dr. Laura Show" and would stop buying time on her radio programs. "We've chosen not to be involved with a show that will require time and resources to deal with this kind of controversy," P&G said. "Today, there are lots of programming options, and we've decided there are better ones for us." The Horizons Foundation launched an advertising and letter-writing campaign in February to convince stations not to carry the TV show, while GLAAD had been meeting with local station managers. Later in the week, United Airlines said it pulled ads from its in-flight magazine "Hemispheres" for Dr. Schles-singer's radio show, citing her comments about gays. But the syndicator of the radio show, Premiere Radio Networks, said its ad contract was for the March issue only and had been fulfilled.
AT&T's Graham leaves as marketing chief
AT&T Corp. lost its top marketing executive as Stephen Graham resigned to pursue other interests. Mr. Graham, who topped Advertising Age's Power 50 list in 1999 and oversaw a $650 million ad budget, held the title of VP-marketing communications worldwide. He was known to be actively pushing for change within AT&T and had sought a more empowered position as chief marketing officer.