The World: Marketers grumble over agency pay

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[london] A total of 70% of marketers with global advertising contracts are unhappy with their agency-remuneration deals, according to a survey by the Incorporated Society of British Advertisers, as compared to only 9% for the last survey in 2003. ISBA, the U.K.'s industry group for advertisers, does in-depth research every three years, asking major marketers how they pay their creative and media agencies and manage those relationships.

The survey is anonymous, but ISBA's members include Procter & Gamble, PepsiCo, Unilever, HSBC, Ford Motor Co., Kraft Foods, General Motors Corp.'s Vauxhall, Colgate-Palmolive, BMW and Heinz.

"Three years ago there were lots of new global deals, and people were happy and excited and looking forward to a global working relationship," said Debbie Morrison, director-membership services at ISBA. "But now 70% are unhappy with the structure of the deal and the way it is going. It is a dramatic turn."

Since the last survey, marketers including Reckitt Benckiser, Adidas-Reebok, HSBC and Samsung all have put their business into one network or holding company after hard-fought pitches.

By contrast, more marketers said they were satisfied with purely U.K. ad deals.

Financial-services marketers were least satisfied with their deals, and satisfaction went up for all categories as agency remuneration levels went down.

ISBA also found that advertisers with deals that included an element of payment by results, or PBR, were more likely to be happy. "PBR demands a commitment from both parties for a greater dialogue," the group said. "You have to be more open and honest and all those things that make for a good relationship."

ISBA is using the survey to design a payment mechanism, which it intends to publish in a report this fall.

-emma hall

BK spot pokes fun at U.S. border patrols

[montreal] U.S. tightening of border controls has become a target of humorous Canadian advertising.

Burger King Canada has revived a documentary-style commercial that found both sales and creative success during last year's U.S. embargo on Canadian beef due to a mad-cow scare.

BK had added Canadian bacon and cheddar to the traditional Whopper, and the creative idea came up "because we felt a little sad for our neighbors to the south who couldn't taste this new Whopper made with Canadian ingredients," said Gaetan Namouric, creative director at BK's national agency, Bleublancrouge, Montreal. Sales surpassed expectations.

Now the spot has been adapted amid more rigorous U.S. border patrols and closer checks for drugs, guns and other dangerous goods traveling between the U.S. and Canada.

The new commercial features a customs officer on a mission to keep the illicit Whoppers out of the U.S. "We catch 'em coming back from Canada looking all innocent-like, but I can spot 'em," he says. When he stops a family at the border and pops their trunk, he discovers a suitcase full of the contraband BK burgers. "Dang, you're in big trouble." A chase ensues against the backdrop of a U.S. flag, as the customs officer yells: "No Canadian Whoppers past this point! No how!"

"It ain't easy keepin' the Canadian Whopper in Canada," he adds.

The spot has won a local creative award, and the Beef Information Center is using it as a benchmark. The American-sounding customs agent, who is really Montreal actor Terry Simpson, has become so attuned to BK that the agency brings him into strategy sessions for insight.

-gail chiasson

Brazilian adman forms new holding company

[sao paulo,brazil] Pursuing a long-term goal to build a diversified Omnicom Group-like holding company in Brazil-and create the first Brazilian agency group listed on Sao Paulo's stock market-adman Nizan Guanaes has formed a new holding company combining his existing YPY group with a strong sales-promotion business called B/Ferraz. YPY already includes a sizeable stake in DDB Brasil, an agency Mr. Guanaes, 48, used to run, and Africa, a fast-growing Sao Paulo agency he started in 2002. The plan is for B/YPY to grow to 12 companies by 2008, starting with Garage, a new interactive-marketing agency for mobile marketing, digital TV and online games. Bazinho Ferraz, founder of B/Ferraz, will be CEO of B/YPY.

-claudia penteado

FYI ...

mtv networks Latin America has started, a social-networking site for bands and music fans featuring new music, profiles, blogs, pictures and forums. The site started with a platform sponsored by Motorola Corp. called, where unknown bands could showcase their music and persuade fans to vote for them to perform at a monthly event called "MTV Alerta Live."
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