The Week

Published on .

CBS picks Initiative for $130M account

cbs selected Interpublic Group of Cos.' Initiative Media to handle its estimated $130 million account, according to executives familiar with the matter. The decision ends a months-long review that also included incumbent Aegis Group's Carat, New York, and Omnicom Group's OMD. Initiative will handle national advertising planning and buying duties for TV, print, cable, radio, newspaper, magazines and interactive. Local TV and radio is not part of the review. The decision is a blow to Carat, which won the account, one of its first in the U.S., almost eight years ago after the U.K.-based media agency established a beachhead here under the leadership of David Verklin, then CEO of Carat Americas, and Charlie Rutman, president of Carat U.S. Cheryl Lodinger, head of Los Angeles-based consultancy Opinion, handled the review. She did not return calls. CBS declined to comment. The agencies couldn't be reached for comment. QwikFIND aar53j

Time Inc. to pay $4.5M in subscription settlement

time inc. agreed to a $4.5 million settlement with 23 state attorneys general who alleged their constituents had been charged for magazine subscriptions without their consent in a practice known as "automatic renewals." The company will also offer compensation to affected consumers that might total $2 million to $4 million. The subscriptions in question were automatically renewed between 1998 and May 2004, according to the attorneys general, who also faulted Time Inc. for sending renewal notices that looked like bills. Time Inc., which admitted no wrongdoing in the settlement, estimated that 108,000 consumers may be eligible for compensation. QwikFIND aar53d

Saatchi's Rabosky leaves for Dailey top creative post

dailey & associates, trying once again to establish itself as a national agency, has hired veteran creative Steve Rabosky as president-chief creative officer and heir apparent to Chairman Cliff Einstein. Mr. Rabosky, former chief creative officer at Saatchi & Saatchi, Torrance, Calif., where he helped develop Toyota's "Moving forward" campaign, will partner with CEO Brian Morris in overseeing the agency's accounts, which include Safeway, ConocoPhillips, Nestle and Dole Foods. Mr. Einstein, who co-founded the $400 million Interpublic Group of Cos.' shop, remains chairman. QwikFIND aar53s

La Comunidad wins Remy Martin cognac

cognac maker Remy Martin announced that it has named Miami-based La Comunidad its new U.S. agency of record.The incumbent on the estimated $5 million account was Euro RSCG Worldwide, which handled all of the brand's global marketing. Remy was the No. 17 distilled spirits brand worldwide during 2005, and the No. 2 cognac. Jose Molla, founder and creative director of La Comunidad, said the marketer, like other cognac makers, will continue to target urban males. QwikFIND aar53k

Colgate-Palmolive buys stake in Tom's of Maine

colgate-palmolive co. is entering the natural-personal-care market with its planned acquisition of a majority stake in privately held Tom's of Maine. The acquisition of an 84% stake in Tom's for $100 million is Colgate's first acquisition of a U.S. brand in a decade and could signal the beginning of a more acquisitive bent for the company, which has focused most expansion efforts on overseas markets in recent years. Tom's, with estimated sales of $40 million to $50 million, is the leading player in natural toothpastes and also sells deodorants. QwikFIND aar53h

WildTangent rolls out online game currency

wildtangent has introduced WildCoins, a currency of tokens for online game players so they can extend their game play. Coca-Cola Co. is the charter sponsor, and is offering tokens as a reward through a loyalty program on its MyCoke Rewards site. WildTangent is also for the first time releasing software to game developers that will let them create place-holders for ad units inside games as they are creating them. WildTangent sells the ads. If a user buys a game for downloading, the ads are shut off. QwikFIND aar53q

XM finds text display increases ad recall 47%

what if radio were a little more visual? Unaided ad recall would increase by 47%, according to a recent study from XM Satellite Radio's ad sales team. XM commissioned a study from OTX to test the impact of its text display function, which features artist and song information on the music channels but can also be used to display a URL, brand name or phone number during an ad message. In the study, those listeners who heard an ad on XM radio accompanied by a text ad had a 47% recall rate while those who heard an ad on terrestrial radio (without text) had a 32% rate. The ads and creative were controlled among the various groups. The study is a boon for the satellite radio ad sales proposition since many satellite receivers can receive text-and the next iteration of the XM devices will have the ability to feature logos, according to D. Scott Karnedy, senior VP-sales and marketing solutions for XM Satellite Radio. QwikFIND aar53i
Most Popular
In this article: