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Goodby Tops Publicis For HP Global Assignment

NEW YORK Goodby Silverstein & Partners will handle the next global brand campaign for HP's imaging and printing division, sources said. In what has turned into a perennial pitch, the San Francisco shop—lead agency for the client—beat out roster shop Publicis in Seattle. Spending could not be determined, but one source said, "They spend hundreds of millions of dollars on this campaign; it's where most of their money goes." Both agencies referred calls to HP. A client representative would not comment.



Client Conflicts Could Cloud IPG Media Realignment

NEW YORK At least one potential downside to IPG's realignment of its media shops (see story on page 11) is client conflicts. IPG sources said that major clients were briefed on the reorganization before it was announced and that none raised strong objections. Still, observers wondered how Wal-Mart, which is about to select new creative and media agencies for its $570 million account, would feel about contender DraftFCB having oversight of Initiative, which handles Home Depot. DraftFCB is paired with Aegis' Carat in the Wal-Mart review. Wal-Mart referred questions to Select Resources International, which did not return calls. Initiative and DraftFCB also did not return calls seeking comment.



Citing Agency Reorganization, Leo Burnett Cuts Personnel

CHICAGO Publicis agency Leo Burnett cut 16 positions, or between 1-2 percent of its U.S. staff, an agency representative said. According to the rep, the cuts were part of a "strategic agency reorganization" and affected all departments. "These moves follow a comprehensive evaluation of our organization and talent to determine how we can better structure ourselves to meet the existing and future demands of our business," the rep said.



Fallon Launches Follow-up To 'Balls' for Sony Europe

CHICAGO Publicis' Fallon used more than 70,000 liters of paint and 455 explosive devices to create the follow-up to its award-winning "Balls" spot for Sony Europe's Bravia TV sets. The commercial from the agency's London office depicts colored paint shot fireworks-syle from cannons in a drab neighborhood in Glasgow, Scotland. The spot, which launched on Web sites last week and will appear on European TV later this month, continues the tagline, "Colour. Like no other." Fallon's previous effort for Sony Europe, which showed 250,000 colorful balls bouncing down a San Francisco street, was a runner-up for the Grand Prix at Cannes.



Philips Electronics Reviews $600 Mil. Global Business

new york Philips Electronics has placed its global media account into review, the Dutch company has confirmed. The incumbent on the account, Aegis' Carat, has been invited to defend and will do so, an agency rep said. Carat won a consolidated review for the global Philips account in 2001, with estimated spending at the time of $600 million. The review is being handled at Philips' headquarters in Amsterdam, a rep for the client said.



GM Plans to Boost Digital Ad Spending, Report Says

NEW YORK General Motors is expected to further increase the media dollars it spends on digital media, according to a report issued Friday by Merrill Lynch. The car manufacturer plans to allocate more of its national ad budget to the Web even as the company faces widespread spending cuts and heavy revenue losses, according to Merrill Lynch. In the report, analyst Lauren Rich Fine wrote that, based on recent conversations she's had with top GM marketing officials, "more of GM's marketing budget will go online despite an already 10-15 percent share of the national ad budget [being spent on the Web]. Online as a percent of total spend will rise as will the total dollars spent online despite the company's continued auto sales challenges." GM's plan to shift more ad dollars to the Web would seem to contradict recent statements by Yahoo, which partly blamed softness in the ad market for auto manufacturers on its recent growth shortfalls. A GM representative declined comment.