4 Shops Chase $200 Mil. Adidas-Salomon Global Media
NEW YORK Four contenders are vying for Adidas-Salomon's estimated $200 million global media business, sources said. The athletic footwear giant is looking to consolidate its business following its $3.8 million acquisition of Reebok in January, sources said. Pursuing the account are Adidas' lead shop, Aegis' Carat; the team of Reebok shops OMD and PHD, both Omnicom agencies; Publicis' Starcom; and WPP's Media-Com, sources said. The agencies either could not be reached or declined comment. Adidas, which is based in Germany, could not be reached. Each brand has spent about $100 million annually on a global basis, sources said.
Doner Resigns Circuit City's $135 Mil. Broadcast Creative
CHICAGO Changes at the client and a desire to move to a project-based relationship has led independent agency Doner to resign Circuit City's $135 million broadcast creative account, according to Doner CEO Alan Kalter. It was unclear whether the company would hold a review for the business, and a company rep declined comment. Last week, Philip Schoonover took over as the Richmond, Va., company's CEO. Fiona Dias was named CMO of the company, replacing Ernest Speranza, in May. Circuit City spent just over $180 million on all measured media last year; about $135 million of that was for broadcast ads, per Nielsen Monitor-Plus.
Gatfield Takes Lowe CEO 'Assignment' for 3 Years
new york New Lowe CEO Stephen Gatfield will lead the agency for just three years, and in the final year will hand off to a successor, according to an 8-K that parent IPG filed last week with the Securities and Exchange Commission. The document, which was filed Thursday and details how Gatfield will be compensated in the new role, came a week after IPG confirmed that Gatfield, an evp at the corporate level, had replaced Wright as CEO. At the time, IPG said Wright would shift to worldwide chairman. The filing, however, said Gatfield would also take the chairman's title, effective May 1. But in an amended filing on Friday, IPG said Thursday's document "incorrectly indicated" that Gatfield would be chairman. To run Lowe, IPG will pay Gatfield, 47, an annual salary of $892,500— up slightly from the $850,000 he made previously, according to the 8-K.
Publicis Reports Income, Revenue Growth in 2005
NEW YORK Publicis Groupe on Friday said its net income surged 39 percent to $464 million in 2005 on a 7.7 percent increase in revenue to $4.96 billion. Organic revenue growth climbed 6.8 percent. The Paris-based holding company said fully diluted earnings per share rose 36.4 percent to $2.11. In a statment, Publicis CEO Maurice Lévy credited the performance to organic growth, improved profitability and new business strides. The company said it pulled in $9.8 billion in new business in 2005.
Bill Westbrook Returns to Fallon as Vice Chairman
CHICAGO In his new role as vice chairman of Fallon, Bill Westbrook will have responsibility for all U.S. operations, an agency rep said. Westbrook, 61, had served as president and creative director of the Publicis agency from 1993 to 1999 and has since been running No Fences Brand Consultancy in Irvington, Va. Westbrook's return to the Minneapolis shop had been rumored since the agency fired ecd Paul Silburn earlier this year. Fallon continues to search for a new ecd and a long-term successor for founder Pat Fallon.
Dow Chemical Co., said it would hear pitches from two holding company teams for its consolidated ad and marketing duties, pegged by sources to be worth about $25-35 million. They are: IPG's Foote Cone & Belding, Chicago, with Golin/Harris; and WPP's Young & Rubicam, Mediaedge:cia, pollster Penn, Schoen & Berland Associates, Landor Associates and roster shop Burson-Marsteller. ... Wireless telecom provider Orange last week confirmed that it had split duties for its estimated $200 million pan-European account between Publicis' Fallon in London, which teamed with sibling Marcel (consumer) and Havas' Euro RSCG in London and Paris (b-to-b).