Burnett aids Bounty intro; in skies again with SAS
Procter & Gamble Co. today introduces Bounty paper towels in the U.K. with $16 million in ad support from Leo Burnett Co., London. P&G promises the introduction will be one of its biggest-ever product launches. Support will include a massive direct marketing campaign reaching more than half of all U.K. households. Elsewhere in Europe, Scandinavian Airlines System moved its estimated $13 million worldwide account to Burnett's Stockholm office from Grey Advertising after five years there. The win gives Burnett another airline account three years after it lost United Airlines.
Cordiant revenue up 7.8% in first 5 months of '99
Starting its second full year of independence, Cordiant Communications Group, London, on June 8 reported 7.8% revenue growth for the first five months of 1999 vs. a year ago. The holding company, parent of Bates Worldwide, recorded its strongest growth in North America and continental Europe. Cordiant achieved new-business gains of $200 million for the first five months. Cordiant said it's on track for revenue growth at least in line with the market and a 10% operating margin.
Oprah plans her own spot on the magazine racks
Hearst Magazines next March plans to publish the first issue of a women's magazine inspired by TV talk-show host Oprah Winfrey. Discussions between Hearst and Ms. Winfrey's Harpo Entertainment Group began in January, culminating in a deal signed last week in Telluride, Colo., where Hearst Magazines President Cathleen Black and Ms. Winfrey met. Ellen Levine, editor in chief of Hearst's Good Housekeeping, developed the concept for the magazine, but a separate editor will be named. Ms. Black also plans to name a publisher soon. Hearst wants to place a stunning 850,000 copies on newsstands for the first issue. Depending on response, Hearst plans to produce either four or six issues next year.
Titleist sues Nike over Woods golf ads
Acushnet Co., marketer of Titleist golf clubs and balls, filed suit against Nike in a bid to get the athletic shoe and apparel company to stop airing two TV spots featuring Tiger Woods (AA, July 5). In the suit in U.S. District Court, Boston, Acushnet said the commercials have caused the company "irreparable harm" because Mr. Woods, who is also an endorser of Titleist products, is touting Nike Golf equipment-a violation of the Titleist/Woods deal. Mr. Woods' deal with Nike is for apparel and golf shoes.
McD's broils over BK's new kids meals
McDonald's Corp. is suing archrival Burger King Corp. over BK Big Kids Meals, a new national line of large-size meals for kids. In a lawsuit filed June 30 in U.S. District Court in Detroit, McDonald's charges unfair competition and contends it was first to target older kids via a program called "Big Kid's Meals" launched last year for three weeks in 240 McDonald's outlets in southeastern Michigan. Burger King said it will "vigorously" defend its right to use the name.
CBS buys Medscape stake; NBC ups ValueVision
CBS Corp. said it will acquire 35% of Medscape, an online health information source (AA, June 28). Medscape will get a license to use the CBS trademark and logo as well as promotion and branding, valued at $150 million over seven years, across CBS media properties in broadcast and cable TV as well as those of its radio and outdoor subsidiary, Infinity Broadcasting Corp. The companies are working together to develop a consumer Web site (CBS.Medscape.com), which will become the exclusive consumer healthcare site integrated into CBS News. Separately, NBC and sibling company GE Equity upped their stake in ValueVision International, Minneapolis, to 39.9% from 19.9%. They purchased about $175 million in stock to boost their stake in the TV home shopping and direct mail company.
'Source' creates promotion division
The Source created One Nation, a marketing and promotion division to help advertisers reach the hip-hop generation. One Nation will market the publication's special events and create new opportunities such as grassroots/ sampling programs, tour and event planning, and Web site projects.
EMAP acquires men's publisher Wagadon
EMAP acquired Wagadon Ltd., a specialist publisher of hip men's and fashion magazines including Arena, Arena Homme Plus, The Face and Frank. Those titles complement EMAP's U.K. men's titles FHM and FHM Collections. EMAP already has