United Airlines Taps Starcom For $80 Mil. Global Media Work
NEW YORK United Airlines has awarded media chores on its global ad account to Publicis’ Starcom following a review, the client said. The Chicago-based shop bested Omnicom’s OMD and WPP’s Mediaedge:cia, both in New York. The latter has handled the bulk of the business. Publicis’ Fallon in Minneapolis has worked on United’s U.S. planning and print media, but did not defend. Fallon also handles United’s creative assignment, which was not in review. The client spent $80 million on domestic ads in 2005 and $55 million in 2006, per TNS Media Intelligence. Global ad spending in 2007 is likely to exceed $100 million, sources said. The win could be particularly significant for Starcom, which handled media chores on the account for years when creative was developed at sibling shop Leo Burnett. Burnett lost the creative account to Fallon after a review 10 years ago.
American Legacy Foundation Hands Buying, Planning to PHD
BOSTON The American Legacy Foundation said it has named Omnicom’s PHD to handle media buying and planning following a review. Independent Media Head in New York handled the media account for the past four years. Other contenders in the review led by Pile and Co. could not be determined. Legacy has spent about $35 million in measured media in each of the past two years, per TNS Media Intelligence. Creative chores, consisting mainly of executions in the “Truth” anti-smoking campaign, are handled mostly by Havas’ Arnold here and MDC Partners’ Crispin Porter + Bogusky in Miami. Omnicom’s GSD&M in Austin, Texas, also works on Legacy creative. When the media review began, Legacy said a competition for the creative portion of the business would follow, though no timetable had been set. A Legacy rep said last week, “There is no creative review planned at this time.”
Deutsch Gains Assignment From GM’s OnStar Brand
LOS ANGELES IPG’s Deutsch/LA has added an OnStar assignment from General Motors, according to sources. The agency and GM declined comment. Deutsch sibling Campbell-Ewald in Warren, Mich., has been handling the business. A rep for that agency acknowledged Deutsch’s work, but maintained that C-E would retain lead duties on the account. Deutsch’s office in Marina del Rey, Calif., has added significant GM business in the last two years. Last fall, the agency was awarded all duties relating to a GM warranty program. In January, the shop snagged GM’s Saturn brand when the client parted with Omnicom Group’s Goodby, Silverstein & Partners, San Francisco. GM spent $80 million advertising OnStar in 2006, per Nielsen Monitor-Plus.
$75 Mil. Hertz Stays With DDB, OMD Following Review
NEW YORK Car rental company Hertz has retained Omnicom’s DDB as its lead creative agency and sister shop OMD as its primary media partner after a review, sources said. The other creative finalist was Omnicom’s BBDO, sources said. That agency’s media partner could not be determined. The client spent approximately $75 million in domestic measured media in both 2006 and 2005, according to TNS Media Intelligence. Agencies involved in the review either declined comment or referred questions to Hertz, where a company representative did not return calls. The account review occurred as the client is trying to streamline its operations. Two weeks ago, Hertz said it would cut 1,350 jobs “to eliminate unnecessary layers of management.”
Gadsby Will Oversee SMG’s Realigned Multicultural Shops
CHICAGO Publicis’ Starcom MediaVest Group has realigned its multicultural marketing approach, creating a new agency to specifically serve MediaVest and an umbrella agency—SMG Multicultural—to oversee all the company’s multicultural initiatives. Monica Gadsby, who had been CEO of SMG’s multicultural unit Tapestry, will head SMG Multicultural as CEO, overseeing Tapestry and new units Forty Two Degrees (which will work with MediaVest) and a multicultural unit of General Motors’ media agency GM Planworks. Tapestry New York managing director Caleb Windover will head Forty Two Degrees, while Tapestry managing directors Danielle Gonzalez and Isabella Sanchez will continue in those roles in Chicago and Miami, respectively. Go to Adweek.com for exclusive Q&A with Gadsby
Avenue A/Razorfish’s French Buy Is Latest in Global Spree
NEW YORK AQuantive’s Avenue A/Razorfish continued its international expansion with the acquisition of French digital agency Duke. The deal is the latest in a series for Avenue A/Razorfish to extend its international reach. In the past 14 months, it has acquired agencies in Australia, China, Germany and the U.K. With the addition of Duke, it will have outposts in the three largest European Internet markets. Duke is a Paris-based independent agency, founded in 1999, offering strategy, design and marketing services. Duke does Web site creative, online films, media planning and buying, relationship management and mobile marketing. Clients include McDonald’s, Nike and Nissan. It has 130 employees and expects to generate $12-14 million in revenue for the rest of the year. Purchase price was not disclosed. It will be based on a three-year earn-out provision, with $7.9 million paid upfront.
Keller Will Serve as Chairman Of Contact, Content for Clios
NEW YORK Andrew Keller, vp ecd of MDC’s Crispin Porter + Bogusky, has been named chairman of the Contact and Content jury for the 48th International Clio Awards. Established four years ago, the jury looks at non-traditional advertising in areas such as gaming, mobile marketing, branded entertainment and blogs. The Clio Awards are owned by Adweek parent The Nielsen Company. Peet Pinaar, cd at Daddy Buy Me a Pony in Capetown, South Africa, was also named chairman of the design jury.
Web Ad Spending Hits New High In 2006, Up 34% to $17 Bil.
NEW YORK Internet advertising spending hit record levels in 2006, nearing $17 billion, according to the Interactive Advertising Bureau. The group said it estimates interactive ad spending was $16.8 billion for the year, a 34 percent increase from 2005. In the fourth quarter, Net ad spending was $4.8 billion, up 32 percent from Q4 2005. The report is the latest sign that Web advertising continues to gain share of marketing budgets. The fourth quarter, which is traditionally the biggest spending quarter for online ads, saw a 15 percent increase over the third quarter, the IAB said.
Electronics Retailer Eyes 4 In Review for $200 Mil. Account
CHICAGO Best Buy has invited four agencies to pitch its creative and media planning business, currently handled in-house, the company confirmed. The shops—MDC’s Crispin, Porter + Bogusky in Miami, Publicis’ Fallon in Minneapolis and Omnicom shops TBWA\Chiat\Day in Playa del Rey, Calif., and GSD&M in Austin, Texas—are competing for about $200 million in business, including account planning, strategy and execution of the Minneapolis company’s brand advertising, as well as media planning and connection planning chores. Media buying, currently handled by Publicis’ Starcom in Chicago, is not affected by the review, nor are agency assignments for other Best Buy divisions including Best Buy for Business and Geek Squad. Select Resources International in Santa Monica, Calif. is running the search.
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United Airlines Taps Starcom For $80 Mil. Global Media Work