Grey Reports $6.6 Mil. Loss in Second Quarter
NEW YORK--Grey Advertising reported a second quarter net loss of $6.6 million compared to earnings of $8.3 million a year ago, as domestic gains failed to stem continued losses overseas. For the first six months, Grey recorded a net loss of $6.5 million
versus a gain of $13.4 million. Gross billings were up
11.9 percent to $1.7 billion in the quarter, and up
8.9 percent to $3.2 billion for the half. Grey recently added new business from Oracle, Hasbro, Procter
& Gamble and British American Tobacco.
LaRock Assumes Top Planning Post at Y&R
NEW YORK--Marta LaRock has been promoted to director of brand planning at Young & Rubicam, assuming duties formerly held by Stephanie Kugelman, who became chief executive of the New York office in May. LaRock, 45, was one of three managing directors of brand planning. A 10-year veteran of Y&R, she has worked on such brands as Colgate, Dr Pepper, MetLife and Fisher-Price. She'll oversee a department of about 25, continue to work on creative strategy and play a key role in new business pitches, Kugelman said.
VH1 to Produce Hilfiger Spots
LOS ANGELES--Viacom's VH1 won't be getting into the ad business but will produce three TV spots for fashion designer Tommy Hilfiger."Basically, this is a one-off situation," said Monica Halpert, creative director of the cable channel's in-house department. Hilfiger awarded the task in appreciation of VH1's annual fashion awards. The self-promotional "Behind the music" campaign also influenced the decision, but that work was created in conjunction with VH1 lead agency Rubin Postaer and Associates, Santa Monica, Calif. Calls to Hilfiger were not returned. The status of Hilfiger roster shops AG and Kirshenbaum Bond
& Partners, both New York, remains unchanged.
Ford Sets Live Focus Work
DETROIT--Ford Motor Co.'s campaign for its new Focus model will include more than 60 live TV spots to air over the next six months. The campaign, from Ford division agency J. Walter Thompson in Detroit, is set to break Sept. 9 with three live commercials shot and shown during the MTV Video Music Awards. The spots will feature comedienne Annabelle Gurwitch, host of TBS' Dinner & a Movie, and will use the tagline: "Live it. Live." [Adweek, June 28.] Additional live spots will run through March 2000 on network prime-time programs that attract large audiences of young people and will air simultaneously on the Internet.
Dell and JWT Settle Legal Claims
NEW YORK--Dell Computer Corp. and J. Walter Thompson have settled a legal battle that stemmed from JWT's dismissal as Dell's agency for global branding. Dell had fired JWT last September and shifted its $100 million account to BBDO in New York. A month later, JWT sued the Round Rock, Texas, computer
maker, seeking more than $6 million in unpaid fees.
In December, Dell countersued for unspecified damages. Under the settlement, Dell will pay JWT an undisclosed amount, and both suits will be dropped.
Feds Drop Gambling Ad Issue
WASHINGTON, D.C.--The federal government will no longer prohibit broadcasters from airing ads that show people gambling or display gaming odds, even in the 39 states where casino gambling is illegal. The U.S. Department of Justice and the Federal Communications Commission said they will not enforce a law banning those ads in the wake of a Supreme Court decision declaring the restrictions unconstitutional. "You couldn't be in the business and not be encouraged by this decision," said Hal Shoup, evp of the American Association of Advertising Agencies.
Newswire Roundup
Lowe & Partners/SMS, New York, landed creative and media duties for Drkoop.com, a clearinghouse for health information developed by former U.S. Surgeon General C. Everett Koop. Billings were estimated at
$15 million. Other contenders included Deutsch/LA in Marina del Rey, Calif., and GSD&M in Austin, Texas, sources said Earle Palmer Brown, New York, has changed its named to EPB Communications and acquired New York-based independent media-services company RJ Palmer. Terms were undisclosed. RJ Palmer has an
estimated $350 million in billings. The shop's clients include Church & Dwight, The Scotts Company, Siemens Corp. and Cooke Pharma Spalding Sports Worldwide replaced Hill, Holliday, Connors, Cosmopulos after 21 years, consolidating its golf business at Greenberg Seronick O'Leary
& Partners in Boston. Billings were estimated at $10 million Carat Global Media will open a full-service office in Atlanta to handle a growing list of area clients, including the $15 million Church's Chicken account. Mentos, Club Med and Werther's Candies are among the accounts that will shift from Carat's New York office. Arthur Kennedy will direct the office as evp and general manager Leagas Delaney, San Francisco, was tapped by Internet retailer 911gifts.com after a search of undisclosed shops. Sources estimated spending at about $15 million Makos Advertising, Marketing & Design, Austin, has won the estimated $6 million consolidated account of Dell Refurbished, a division of Dell Computer Corp. The move shifts some work from Ammirati Puris Lintas, New York, which has Dell's small- and home-business account. Makos had worked for Dell Factory Outlet, a discount retail venue Hasan Ramusevic, managing partner at AAR/Bob Wolf Partners, is leaving the consultancy, effective Aug. 31. Ramusevic, 32, who has been with AAR for 10 years, is exploring options within the ad industry. Managing partner Leslie Winthrop said the firm will soon decide whether to replace him Bill Brooks, an evp/group account director at Lowe & Partners/SMS, is heading to Ogilvy & Mather, the New York shop confirmed. Brooks, who worked on Sprite, Excite and Diet Coke, is expected to work on Ogilvy's American Express account, said sources. Brooks could not be reached for comment.