Carmaker Dumps Omnicom's DDB for IPG's Carmichael Lynch
NEW YORK Subaru of America last week said it would move creative and media duties on its ad account to IPG's Carmichael Lynch. The client spent $200 million on U.S. measured media last year, according to Nielsen Monitor-Plus. Creative and media duties had been handled by Omicom units DDB and Prometheus, respectively. Michael McHale, director of corporate relations at the client, attributed the sudden reassignment to Tim Mahoney, CMO of Suburu. "Tim knew [Carmichael] back in his Porsche days," McHale said. Mahoney spent seven years working at Porsche when Minneapolis-based Carmichael was the automaker's lead agency. Last month, Porsche shifted its $40 million account to independent Cramer-Krasselt in Chicago after a review.
Crispin Grabs Another Slice Of $170 Mil. Domino's Account
NEW YORK Domino's Pizza has tapped Crispin Porter + Bogusky for general-market media planning on its $170 million account, the client confirmed. This appointment comes on the heels of the Miami-based MDC shop's selection last month as the chain's national creative agency following a review. Incumbent JWT, which Crispin replaced, had handled planning chores and sibling shop MindShare took over those duties briefly after JWT's departure from the creative account. MindShare retains media buying. "We were intrigued by Crispin's branding, strategic and execution ideas. They brought to the table not only what to do, how, but also where" in terms of media placement strategy, said a client representative.
AOL Cuts 2,000 From Workforce As Part of Ongoing Restructuring
NEW YORK AOL laid off roughly 2,000 people as part of an ongoing organizational shakeup at the Web pioneer. The Time Warner company plans to reduce its worldwide workforce of 10,000 by close to 2,000 people. The reduction in staff is tied to AOL's recent reorganization, which emphasizes its advertising network business. Last month, it created a new unit, called Platform A, to house several of its network businesses, including the recently acquired Tacoda and Third Screen Media. In a signal of its intention of fully casting its lot with advertising, AOL is relocating its headquarters to New York from Dulles, Va.
Carat Wins Outback/Carraba's $110 Mil. Media Account
NEW YORK The parent company of Outback Steakhouse and Carraba's Italian restaurants has tapped Aegis' Carat for media chores on its $110 million ad account, the client has confirmed. WPP's MindShare and independent Horizon Media, both in New York, were the other finalists. Previously, the business was split between Havas' MPG and independent agency Doner, neither of which elected to defend. Select Resources International in Santa Monica, Calif., oversaw the search.
Ogilvy Becomes Lead Motorola Shop As OMC Model Dissolves
PHOENIX Motorola has scrapped its global creative resources model with Omnicom and reinstated WPP's Ogilvy & Mather as its lead network, though it will also use a handful of creative shops for specific product lines, chief marketing officer Casey Keller told Adweek last week. At the same time, Motorola, with an estimated annual global media spend of $400 million, is looking to further consolidate its worldwide media duties and is "moving towards" roster shop MindShare as lead agency, though the assignment is not yet finalized, Keller said. Previously, WPP's MindShare handled media chores in international markets while Aegis' Carat had U.S. duties. Carat said it resigned its business because it couldn't reach terms on a new contract. Among the agencies going forward are independent Mother, whose New York and London offices work on music-oriented devices, and Ogilvy, which is handling featured phones, Keller said. Motorola is also eyeing shops for assignments on multimedia devices and productivity devices. Ogilvy will be lead agency in North America, Asia, Latin America and possibly Europe, though Motorola is considering other options there as well, Keller said. Despite the shift in models, Motorola has maintained ties to BBDO, whose New York office now handles consolidated creative duties on business-directed products, said Keller.
WaMu Moves $120 Mil. Account To TBWA\C\D and OMG
LOS ANGELES After less than two years with Publicis' Leo Burnett in Chicago and Starcom, Washington Mutual Bank confirmed a report on Adweek.com last week that it had shifted its $120 million creative and media account to Omnicom's TBWA\Chiat\Day in Playa del Rey, Calif., and to Omnicom Media Group, respectively. According to sources, TBWA\C\D and WaMu had first discussed a partnership back in 2005, but those talks fizzled as the agency had been pursuing Visa at the time. In late 2005, Burnett had prevailed in a review conducted by Select Resources International against sibling shop Publicis in Seattle.