Monday, November 29, 2010

There is a new personality at play in the marketing world...

As reported on Adweek.com 28-November 2010


Focused on marketers, WME aims to replace shops


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Ari Emanuel

Ari Emanuel wants your lead agency status.

With the launch of Lverage, WME Entertainment’s latest venture into brand marketing, Emanuel, co-CEO of WME, has set his sights on replacing, not supplementing ad agencies, said sources who’ve discussed the venture with him. To that end, he has surrounded himself with partners like former Omnicom Group vice chairman Michael Birkin who knows the ad game and is well connected with marketers.

Birkin is chief strategist for Red Peak Group, a New York-based specialist in brand consulting and experiential marketing that WME acquired for Lverage, said sources. Red Peak’s CEO is Jay Lenstrom, former CEO of Omnicom’s Radiate Group. WME also acquired the Red Interactive Agency in Santa Monica, Calif., and forged ties with Marc Byron, founder of Trivergance Business Resources, a direct marketing firm in Fort Lee, N.J., that remains a separate company.

In conversations with other potential partners, Emanuel has positioned WME as “more connected” than chief rival Creative Artists Agency and its more established marketing arm, which opened in 1998 after CAA shocked the ad industry by (briefly) overtaking McCann Erickson as lead agency on Coca-Cola. CAA Marketing today operates largely as an added resource for marketers who already have lead shops. As one source put it, “It doesn’t feel like CAA is trying to disintermediate advertising agencies. These guys (at WME), really their goal is to get some big accounts and be the AOR.”

The broader ambitions represent a break from WME’s past efforts in this space via Endeavor Marketing and its chief, Mark Dowley. While Dowley this summer helped introduce Emanuel to players in the ad world, he may not play a role in Lverage, said sources. Endeavor Marketing is now part of Lverage. Dowley could not be reached, and Emanuel, through a representative, declined to comment.

The simple reason, of course, why Emanuel’s marketing goals are bigger this time is that his agency is bigger. WME is the product of last year’s merger of the William Morris Agency and Endeavor, the shop Emanuel opened with three colleagues from ICM in 1995. Additionally, WME now has access to fresh capital via a $300 million private equity fund at The Raine Group, in which the agency has a minority stake. The fund will enable WME to make investments that, in turn, could aid efforts to link talent and brand marketers.

Marketers are particularly alluring to WME these days because their dollars represent a potentially sizeable source of revenue for the agency’s clients. As WME co-CEO Patrick Whitesell said of his clients at Google’s Zeitgeist 2010 conference in September, “We know what their value is to consumers. We know what they are to advertisers. So, the next step is for us is, how can they economically benefit from those things that are out there and happening?” At the same conference, Emanuel added: “We’re having more conversations with advertisers every day, whether it be the P&Gs, the GMs of the world. Almost on a daily basis now, you’re having those conversations.”

To move beyond transactional deals with such marketers and build brands long term, however, WME will likely need more strategic and creative firepower, said sources. That may explain why Emanuel approached former JWT North American president Rosemarie Ryan -- a strategic planner by trade -- and ex-JWT chief creative officer Ty Montague before the duo launched Co: in September, according to sources.

“There’s absolutely merit in finding a way to bring that kind of creative pool together with advertisers and marketing companies,” said a source. “What that (also) entails is really understanding brands, how they get built and all of that stuff. I think they see it solely as a creative endeavor and not necessarily a strategic endeavor as well. And I think you have to do both.”

Friday, November 19, 2010

NBC...It's Must House Clean TV!

As reported on Adweek.com...


Comcast Reveals NBCU Leadership Structure

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Steve Burke

It was the worst-kept secret in the history of worst-kept secrets, but after weeks of leaks and speculation, Comcast at long last announced the new executive lineup at NBC Universal.

The cable giant detailed the roster in a memo from Comcast chief operating office and incoming NBCU CEO Steve Burke. Given the volume of leaks pouring out of NBCU, there were few (if any surprises), though a few new positions were introduced.

As Mediaweek previously reported, all but a handful of the bold-faced names at NBCU will retain their posts. (CEO Jeff Zucker in September announced he would leave after the deal closes, while NBCU entertainment president Jeff Gaspin was shown the door earlier this week.)

Moving to the top of the broadcast heap is ex-Showtime mastermind Bob Greenblatt, who will assume the role of chairman, NBC Entertainment. In his new role, Greenblatt will oversee NBC's prime-time and late-night programming, as well as business affairs, West Coast research, marketing, public relations, scheduling and NBC Universal Media Studios.

Joining Greenblatt (and moving back East) is current Comcast entertainment group CEO Ted Harbert, who joins NBCU as chairman of the broadcast flagship. Harbert will keep his eye on advertising sales, affiliate relations, research, domestic syndication and the NBC station group.

On the cable side of the ledger, Bonnie Hammer will become chairman, NBC Universal Cable Entertainment and Cable Studios. In addition to her current charges, which include USA Network, SyFy, Chiller, Sleuth, Universal HD and Universal Cable Productions, Hammer will add oversight of Comcast's E! and G4. Neil Tiles will remain president of G4, reporting to Hammer, as will an as-yet unidentified new E! topper.

Lauren Zalaznick will become chairman, NBC Universal Entertainment & Digital Networks and Integrated Media. Bravo, Oxygen and iVillage will continue to report to Zalaznick, as will the Integrated Strategic Marketing Group, which includes Green Is Universal, Healthy at NBC Universal and Women at NBC Universal. Zalaznick will also manage the digital properties Daily Candy and Fandango, as well as the Spanish-language network Telemundo; moreover, she'll add cable nets mun2, Style and PBS Sprout to her roster.

Telemundo will continue to be led by president Don Browne and COO Jackie Hernandez, while Salaam Coleman Smith will stay on to lead Style.

In the early going, ad sales will take on a bifurcated structure, with Marianne Gambelli taking on the broadcast duties as the new president of NBC Network Advertising Sales and Dave Cassaro assuming oversight of all cable network and digital sales. Along with prime time, Gambelli will be responsible for news and sports ad sales.

Gambelli will report to Harbert, while cable ad sales president Cassaro will report to Hammer and Zalaznick. Steve Mandala, Peter Naylor and Mike Rodriguez will remain, reporting to Cassaro.

NBCU president of sales and marketing Mike Pilot will leave upon completion of the acquisition, which could close as soon as late December. In his memo to staffers, Burke addressed the departure of Gaspin and Pilot by noting, "These transitions are often difficult, and at times, people who have made great contributions end up leaving."

Pilot took the reins at the NBCU sales unit in 2006, after being shifted from his previous post as chief executive of the equipment finance group at GE.

Among those staying on at 30 Rock are: NBC News/MSNBC president Steve Capus, CNBC president Mark Hoffman and NBC Sports chairman Dick Ebersol. The veteran deal maker will add the Golf Channel, Versus and the Comcast Regional Sports Networks to his plate; Jon Litner (RSNs), Jamie Davis (Versus) and Earl Marshall (Golf) will report to Ebersol.

Jeff Shell will move to London to become chairman of NBC Universal International.

"The team described above will not begin to operate the company until after the transaction closes, which will occur following regulatory approval," Burke said. "Between now and then, each business will continue to be managed by its respective leadership team, and NBC Universal will continue to be led by Jeff Zucker, whose talent, hard work and commitment have been instrumental in building NBC Universal into the company it is today."

Burke said employees could expect further announcements before the $13.8 billion transaction is wrapped up. He signed off with a brief forward-looking statement: "I hope you are as excited as I am by the prospect of what we can accomplish together in the future."

Zucker earlier today said that NBCU and Comcast are now in the final stages of the regulatory review, adding that issues having to do with online video were of paramount concern to Washington lawmakers.

Tuesday, November 16, 2010

Yogurt anyone?...courtesy of Mullen

As reported on Adweek.com...

Interpublic Group's Mullen has picked up U.S. advertising chores for the Fage Greek yogurt brand, succeeding WPP's Ogilvy & Mather, which worked on the account for three years.

Fage spent almost $4 million on ads during the first two-thirds of 2010, almost as much as it spent in all of last year, per Nielsen.

Boston-based Mullen will handle traditional and digital chores including creative development, media planning and buying and social media outreach.

All told, domestic Yogurt sales tallied $4.97 billion in the 52-week period ended Oct. 2, a 7.6 percent increase vs. the same frame in 2009, Nielsen said. So the win gets the agency into growing category.

Ogilvy two months ago launched a major push for Fage online. One ad showed a woman's necklace pressed into a bed of "ridiculously thick yogurt." The tag: "Fashionably low in fat." Three blueberries -- dangling as pendants -- added a splash of color to the creamy white background.

The client called that effort one of its largest ad pushes ever, but the Ogilvy relationship apparently soured. The first fruit of its association with Mullen appears early next year.

Thursday, November 11, 2010

Mr. Goodwrench is filing for unemployment benefits...

As posted on November 11, 2010 in Adweek.com


Why GM's Scrapping Mr. Goodwrench

After 38 years, the automaker plans to discontinue the long-running campaign in February


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After 38 years, GM is sending its iconic "Mr. Goodwrench" to the junkyard. The automaker plans to discontinue the long-running campaign in February, as part of a de-emphasis on GM as a brand and a greater focus on the "new GM" -- meaning its roster of brands that include Chevrolet, Cadillac, Buick and GMC.

Despite the fact that GM is in the midst of a road show with institutional investors to promote its initial public offering this month, there is little appetite at GM for any marketing activity, outside of investor relations.

"It is ironic that most companies doing an IPO would do anything they could to promote their corporate brand, but GM is . . . [calling] attention to the stock and the IPO, and then changing the subject as quickly as possible to Chevy and Cadillac," said independent marketing consultant Dennis Keene.

Dating back to 1972, the idea behind Mr. Goodwrench was to embody in a single character a set of standards that all GM dealerships adhered to in providing good service with GM certified parts. The tactic was born out of an advertising tradition of conveying a product or service attribute through a fictionalized character. (Other examples are Mr. Clean, Aunt Jemima, Uncle Ben and Mrs. Butterworth.)

The original Mr. Goodwrench was a bald, nerdy looking guy with black-rimmed glasses; he looked more like a high school science teacher than a mechanic. The idea back in the early 1970s was to use an image that would engender trust -- a father-figure who looked like he had knowledge and would never hoodwink a customer or take advantage of a woman. The campaign surrounding Mr. Goodwrench gained significant awareness among consumers throughout the decades.

The current embodiment of Mr. Goodwrench on the Goodwrench.com website is a buff-looking younger man, holding up a clipboard that displays completed service on a vehicle. For reasons beyond knowing, Mr. Goodwrench is on his knees. He also has shockingly clean and manicured hands, despite his profession.

But that's also part of the reason why Mr. Goodwrench is out of favor. There isn't actually a lot of grease and wrench-work going on with new cars today. If something goes wrong on a vehicle, it usually requires fixes to the on-board computer. "Goodwrench" doesn't quite reflect the technical sophistication of today's vehicles. Maybe "Mr. Goodchip" would be more appropriate.

Starting in September, each of GM's brands will advertise its own branded certified repair work with no connection to GM. De-emphasizing GM has been an ongoing campaign for the last few years. Small GM badges on the outside of cars, inside cars, on safety-belt buckles and keys have been disappearing.

The company's bankruptcy and government bailout last year is most associated with the GM brand, not with the individual brands, according to the automaker's research. It's no wonder GM wants to steer clear of that tarnished image.

Except for this month, when the company starts trading shares again. It's ticker symbol will be GM.

Wednesday, November 10, 2010

Mmmm...spam...just what I want on my vacation...

Spam and a slow tow for thousands on cruise ship

SAN DIEGO – The former fun seekers of the Carnival Splendor are cruising again — but just barely.

In a scenario likely none of its more than 3,000 passengers pictured when they planned their seven-day jaunt on the Mexican Riviera, the disabled cruise liner was being towed to San Diego by tugboats. Instead of a lavish seafood buffet, passengers were subsisting on Spam.

After two days adrift, the ship began moving again Tuesday when the first of several Mexican tugboats arrived. Rocking gently with the waves, the ship was pulled along slowly with a Coast Guard boat along one side and the USS Ronald Reagan aircraft carrier on the ship's other side. There were no visible signs of damage.

The 952-foot vessel was expected to arrive in San Diego on Thursday night, Miami-based Carnival Cruise Lines said in a statement.

The ship was 200 miles south of San Diego and about 44 miles off shore when an engine room fire Monday morning killed its power and set it adrift.

No one was hurt, but the nearly 4,500 passengers and crew were left without air conditioning, hot water, cell phone or Internet service. The ship's auxiliary power allowed for working toilets and cold water.

U.S. Navy Seahawk helicopters were ferrying supplies, including Spam, crab meat, croissants and Pop Tarts to the ship from the USS Ronald Reagan, an aircraft carrier that reached the Splendor after it was diverted from training maneuvers to help.

The Splendor only had enough food to last through midday Tuesday because refrigerators on the ship stopped working after the power was knocked out, Navy Commander Greg Hicks said. But thousands of pounds of food was delivered by Tuesday night.

The U.S. Coast Guard and Mexican Navy also sent resources to the ship.

The tugboats were originally set to take the Splendor to Ensenada, Mexico, but the cruise line changed its plans and will attempt to have it towed to San Diego, where hotel and flight arrangements would await the passengers, Carnival said.

If the process moves too slowly, it may still be taken to Ensenada, the statement said.

As of 9:30 p.m. Tuesday, the Splendor was about 190 miles south of San Diego, The San Diego Union-Tribune reported.

The ship was being towed by one Mexican tugboat while a smaller counterpart helped the ship maneuver. A third tug boat, the U.S.-based Monterey Bay, was scheduled to arrive late Tuesday night, the paper said.

Toni Sweet, of San Pedro, Calif., was frustrated when she couldn't reach her cousin, Vicky Alvarez, aboard the ship. She said she called her cell phone and did not get an answer.

"We know everything is fine, but we're just worried," Sweet said. "She was nervous about going on a cruise ship even before this happened and now with this, I don't think she'll ever go again."

Carnival spokeswoman Joyce Oliva said the ship's command is able to communicate with outsiders on a backup system.

Carnival Corp.'s stock was down about 1 percent Tuesday.

The situation will be costly for Carnival, which is refunding passengers, offering vouchers for future cruises and may have to dry dock the ship if the damage is extensive.

"We know this has been an extremely trying situation for our guests and we sincerely thank them for their patience," Carnival President and CEO Gerry Cahill said in a statement.

Accidents like the engine-room fire are rare, said Monty Mathisen, of the New York-based publication Cruise Industry News.

The last major cruise accident was in 2007 when a ship with more than 1,500 people sank after hitting rocks near the Aegean island of Santorini, Mathisen said. Two French tourists died.

In May, a machine room fire in a cruise ship off the coast of Norway forced 607 people aboard to evacuate.

"The ships have to be safe, if not the market will collapse," Mathisen said.


Tuesday, November 9, 2010

Have No Fear -- the Social Water is Fine!

As posted by Sarah Fay on November 5th, 2010 at 9:36 pm on iMedia Connection:

A resounding message came through to me at the ad:tech conference this week and that is: Social Media Programs are moving the needle for big brand marketers. And not just a little bit -- a LOT. But companies who implemented these programs had to let go of some major hesitations before jumping into what Lauren Zalaznick, President of NBC Universal Women and Lifestyle Entertainment Networks described as “brackish waters”. In her keynote on opening day, Zalaznick made note of her reasons to be wary of new technologies that are disruptive to her business, changing the rules and undermining her revenue streams. And yet her mantra is “No Fear”, while focusing on the consumer, and creating the content that will win. She sees technology as an enabler to give consumers what they want, when they want it, so they can become more deeply involved in programming. In fact, she pointed out that there is a direct correlation between consumer involvement in social spaces and programming success.

In one instance, on Oxygen Live, a mobile marketing component for “The Bad Girls’ Club” turned viewers into marketers, and ratings jumped 87% on the east coast and 119% on the west coast on a season over season basis. Zalaznick also noted research that confirms 96% of women saying if they like your product, they will recommend it to everyone they know. It is no wonder that the NBC Universal Is weaving in all kinds of opportunities for audiences to interact with programming and has been first to execute with such new technologies as Foursquare and Groupon.

Jeffrey Hayzlett, the former CMO of Kodak, and keynote on Day 3 of ad:tech had a similar message that is drawn from his recently released book, “The Mirror Test – Is Your Business Breathing?” He talked about the need to innovate and to move quickly. In his hilarious and fast moving speech, he illustrated a brilliant use of Twitter: Kodak was on its way to market with a fantastic high resolution, waterproof product with a lackluster name, which was some combination of letters and numbers – Kodak style. In his frustration, Hayzlett sequestered his team until they came up with a better name. They thought of tapping Kodak’s huge Twitter following with a contest to come up with the best name. Great idea, but what about the legalities – all contests at Kodak have to be vetted through its vast legal department and there would not be enough time to make the launch deadline. Hayzlett calculated that the cost of a suit would be outweighed by the value of what was gained (not to mention the agency costs circumnavigated) so they did it – without Legal. What did they get? 28,000 submissions and a great name: “Play Sport”. Kodak brought the contest winners to CES and their pictures were inserted inside the product box, showcasing Kodak’s consumer involvement. Hayzlett went on to say that fear hobbles a company’s culture, and you have to fail at some things – he gamely made note of one opt in program that got just two responses. The good news: “No one died.” And the Kodak team was able to tweak the program and turn it into a winner.

Examples of harnessing the voices of influencers on behalf of brands are everywhere. I moderated a panel where Michele Sweeney, CRO of Netshelter demonstrated how marketers like Verizon and Microsoft garnered exponential returns on budget by immersing content into highly focused technology sites where influencers are engaged and actively weighing in with their opinions. High level executives on the panel, such as Lily Chakrabarty, an SVP of Starcom who heads up the Samsung account, and Stephanie Agresta, Managing Director of Social Media at Weber Shandwick are dedicated to creating long term social strategies for their clients.

This is happening! Why do I keep hearing reports of how hard it is to find people in the marketplace who believe in social media? The evidence is clear. For those who want to learn more about why social media is important, and how to go about creating successful programs for your company, you might want to read the recently released, “Perspectives on Social Media and Marketing” co-authored by Bonin Bough of Pepsico and Stephanie Agresta of Weber Shandwick.

Hopefully you will realize the water is safe – or at least worth the risk!

Thursday, November 4, 2010

CP+B apparently better like slacks for Christmas...

As posted on Adweek.com 4 November 2010:

Though Best Buy's creative assignment stays at Crispin Porter + Bogusky, the MDC Partners' shop was stung today by the retailer's decision to consolidate its $300 million media business at Publicis Groupe's Starcom. That shop, meanwhile, is enjoying a week of riches.

The assignment had been shared by the two agencies, with Starcom handling media buying and Crispin overseeing planning chores.

That marks two wins (MetLife and Cadbury's Milka brand) and a loss of note in the brief CEO tenure of Crispin's Andrew Keller, who was promoted to chief executive as October drew to a close after serving as the shop's creative leader. He has big shoes to fill, supplanting industry star Alex Bogusky as the agency's most visible human asset.

For Starcom, Best Buy was the second huge account acquisition this week. On Monday, Darden awarded the shop media duties for its Red Lobster, Olive Garden and LongHorn Steakhouse restaurants, with spending of about $300 million. Darden also cited integration as a key factor in its decision.

Along with Starcom, sister shops Razorfish and Tapestry will handle some duties on Best Buy as well. Razorfish is digital specialist while Tapestry focuses on multicultural assignments.

In a statement, the client said, "We regularly review all of our agency relationships and activities. In an effort to increase the efficiency and effectiveness of our media investments, we recently made a decision to move our media planning and buying to Starcom, in an integrated partnership with Razorfish and Tapestry under the Publicis umbrella. In addition, this move supports Best Buy's objective to drive an integrated marketing model."

With this consolidation, all four remaining shops are surely hoping this is sufficient "integration" for now.