AdweekMedia’s Agency of the Year 2010

Finding companies that have done something different is not that difficult. Finding firms that have been both innovative and successful is somewhat harder. We’re pleased to have found no less than eight such companies. 

This year, in a break with our tradition, we have selected six “insurgents” alongside our Creative Agency and Media Agency of the Year. These shops have forced their way into our attention by conducting business in unique ways or by focusing on endeavors ignored by others. 

Our insurgents span a range of disciplines, from PR to branded entertainment to marketing software. There are even a couple of ad agencies in there. All push at the edges of the advertising and marketing business, collectively illustrating the future. 

Our Agency of the Year, Wieden + Kennedy, raised the bar this year for cross-platform campaigns and gave new meaning to the phrase “join the conversation” with its campaign for Old Spice. Others will be trying to emulate its approach for years to come. 

Horizon Media, our Media Agency of the Year, is the largest such shop not owned by a holding company. Led by CEO Bill Koenigsberg, it has shown the way forward by diversifying aggressively and profitably. 

This is the 25th time we’ve made these selections of the best in our field. We believe the new structure of our choices presents a collection of ventures that are reshaping the industry.

WIEDEN + KENNEDY
Embracing digital via Old Spice and Nike creative leads to AOY laurels.

HORIZON MEDIA
The last big indie evolves under the leadership of CEO Bill Koenigsberg.

ANOMALY
Impressing more major clients with its ideas, not ads.

BREAKFAST

“Hardware hackers” build “toys” in the service of marketing.

BUDDY MEDIA
Making Facebook more friendly to marketers’ brands.

ELECTUS
Reality TV and product placement color Ben Silverman’s new venture.

OUTCAST

This tech marketing powerhouse is not your standard PR practice.

GREAT WORKS
Swedes combine digital advertising, filmmaking and art in New York.

WIEDEN + KENNEDY

Sweet Smell of Success

A cross-platform campaign for Old Spice catapults the agency into the digital elite

By Eleftheria Parpis

Photos by Chris Mueller

Wieden + Kennedy was in a digital death spiral. The iconic creative shop behind Nike was blocked on how to adjust its psyche and personnel to embrace the digital shift transforming media and marketing.

It already had lost some Nike business when, in 2007, the agency’s founding client shifted its core running division due to Wieden’s lack of interactive depth. The shop needed to evolve quickly or die.

“We were not the swiftest picking up on the digital revolution,” says Dan Wieden, co-founder and global ecd. He told his staff, he says, that “whether we like it or not, the rest of the world has eclipsed us. If we don’t get our act together, we are going to be a footnote.”

Now, thanks to its breakout campaign for Old Spice’s Red Zone Body Wash—which broke with a Super Bowl weekend TV spot—Wieden is the agency your agency could smell like.

The work, a slightly twisted, tongue-in-cheek production starring a towel-wearing Isaiah Mustafa, was part of a concerted effort by the agency to strengthen its digital offerings. The results have landed the shop in its own version of Bizzarro World, a place where other marketers are looking to “The man your man could smell like” for ideas on how to run their own campaigns. The creative has garnered the brand a 2,700 percent increase in Twitter followers, 800 percent increase in Facebook fan page visits and a 300 percent increase in traffic to the Old Spice Web site. It’s also generated an estimated 140 million YouTube views.

According to Marc Pritchard, global marketing and brand-building officer of Old Spice at parent company Procter & Gamble, it has helped the brand lead market share and is “growing sales in double digits.”

Indeed, the Portland-Ore.-headquartered indie has had one of its best performing years in its 28-year history. It saw client growth in both Portland and New York, and increased its U.S. revenue and billings nearly 22 percent (billings to $1.5 billion, revenue $145 million).

For the most part, it mined existing client relationships. Chrysler added Jeep, Target gave Wieden lead agency status, P&G added a corporate branding assignment as well as Ivory North America, Nokia added North America, and Coca-Cola digital assignments for Diet Coke and Coca-Cola targeting teens.

The agency has also produced some of its best work for Nike, a client Wieden calls “the soul” of his agency. (Its running business returned to the shop in 2008.) “We were born in that cauldron of the early ’80s, when [Nike] wanted to be the Saturday Night Live of the Fortune 500,” he says.

Wieden’s best Nike work this year was the stop-motion spot “Human Chain” and its “Write the Future” commercial directed by Babel’s Alejandro G. Iñarritu. The latter spot, which starred more than a dozen pro-soccer stars and debuted on Facebook, was also in play during the World Cup as a digital installation on a Johannesburg skyscraper. It received so much positive buzz that World Cup sponsor and rival adidas ended up looking as battered as England after being drubbed by Germany.

The creatives that led the effort, Mark Bernath and Eric Quennoy, were promoted to ecds of the Amsterdam office, which had produced the work with assistance from Portland.

And this month, Wieden opened a new office in Sao Paulo, Brazil, headed by Icaro Doria, ecd, and Andre Gustavo Soares, managing director.

Improving the shop’s digital output took four years. To start on that path, in 2006 the agency hired Renny Gleeson, former managing director at Aegis Group’s Carat Fusion, as global director of digital strategies. He built up the shop’s digital production capabilities, adding digital creatives, developers, designers, coders—”folks who help iterate,” says Gleeson. He also worked on communications planning—what he describes as “changing the way the media team approaches what it does, how ideas evolve”—and community management.

“It’s not like we flipped the switch,” Gleeson adds. “It was a build. And we needed the spark to set it off. That’s where Iain comes in.”

Iain Tait, recruited last April from Poke London, which he co-founded, joined Wieden as global interactive ecd. Within months of  his arrival, the Old Spice team let loose its “response” campaign. For three days in July, the agency created nearly 200 customized videos starring Mustafa that responded to mentions of the Old Spice TV spots on blogs and social networking sites like Twitter and Facebook. These videos spread virally and, in some cases, became ongoing two-way conversations, engaging participation from celebrities like Alyssa Milano and Ellen DeGeneres, not to mention a  random consumer who wrote in seeking help from Mustafa in proposing to his girlfriend.

This social marketing component generated 1.8 billion PR impressions for the brand.

Even before the Old Spice response campaign, Wieden was being recognized for its new digital expertise at Cannes. It won the Cyber Grand Prix for its 2009 Nike “Chalkbot” campaign—a collaboration with Deeplocal for Lance Armstrong’s Livestrong charity—and the Integrated Grand Prix for the Livestrong campaign of which it was a part. (Wieden also won the top prize in film, and a Best Commercial Emmy from the Academy of Television Arts and Sciences for its Old Spice work.)

With its global growth looking strong as well—it had a 10 percent jump in billings and revenue this year (billings to $2.3 billion, revenue $230 million)—the agency is especially optimistic about the future. Both Levi’s and P&G are expanding the agency’s duties with global assignments next year.

Wieden remains philosophical. “Brands are no different than people,” he says. “They lose their way and forget their way. You need to give them a jolt, hand them a mirror and put them on stage.”

HORIZON MEDIA

Endless Horizons

An aggressive expansion turns a media agency into a media player

By Steve McClellan

The media buying business is in many ways the antithesis of the personality-driven ad agency business—sometimes seen as a back-office, procurement function run by anonymous bureaucrats. And then there is Bill Koenigsberg—so ebullient, voluble, cocky and charismatic that he seems to be steering his company, Horizon, the largest independent media agency, out of the media buying business. Indeed, he is creating something that starts to feel like a hybrid of media buying and media making.   

His new initiatives to this end have included a sports marketing operation and a division that helps clients dispose of underperformance assets in exchange for advertising. Up next: a new joint venture with as-yet named partners that will focus solely on helping clients to devise new ad placement techniques in traditional and emerging media.

The last big indie standing has had a very good year. At a time when other media shops have been forced to scale back, total client billings for Horizon, Koenigsberg’s 21-year-old shop, are up 30 percent to $2.6 billion—more than twice the amount of any other independent media agency. And the shop won a handful of marquee accounts including Dish TV, Corona and Weight Watchers. The CEO, in fact, is feeling confident—so much so that he’s making a series of radical moves into diverse arenas like sports talent representation and event marketing.

His goal is to continue doing more of what he’s been doing: grabbing market share from the holding company agencies. Koenigsberg’s success has fueled endless speculation that he’ll sell the company, speculation he doesn’t dismiss while hedging on the timing.

“Someday but I can’t tell you if that someday is next year or 10 years from now. Right now I’m trying to understand where the media world is going to be a month from now and a month after that,” he says.

With marketers pressuring media agencies for cheaper rates, said one search consultant, the company was shrewd to offer additional services “so it doesn’t get squeezed on compensation.”

Koenigsberg, a one-time collegiate tennis player, founded the agency in 1989. He has invested roughly $50 million over the past two years, launching new services, adding staff and strengthening existing operations such as digital—where it added social media, search and customer relationship marketing expertise—and research, where it expanded its consumer insights group. The shop also is moving into a 150,000-square-foot space in downtown Manhattan that will consolidate its four offices around the city.

Koenigsberg’s decision to reinvest and build had much to do with the agency’s revenue growth. In 2009, when the recession was raging, Horizon increased revenue by 5 percent. This year, it’s up 27 percent to $135 million, according to sources. (Koenigsberg won’t confirm the company’s numbers.)

Of the several new units launched this year, the dive into sports—still in its planning stages—seems, on the surface, the most surprising. For a company whose clients include major sports advertisers (for instance, Geico, which along with NBC has been a client for over two decades, and Corona), it’s actually a calculated land grab. Horizon plans to represent talent, acquire the media and marketing rights to various sporting events, and assist clients with their sponsorship and marketing efforts.

Heading the unit is recruit Michael Neuman, a sports marketing veteran who pops up regularly on TV and sports Web sites. In 2006 he founded Amplify Sports Marketing and Entertainment, which consults for companies including Absolut Vodka and Nikon, and reps properties such as the U.S. Open.

Up and running is Horizon’s event marketing operation, which helps clients develop and implement programs such as conferences, Webinars and trade shows, and a new trading operation designed to help clients dispose of underperforming assets in exchange for ad time. Koenigsberg notes that things like conferences are “billboards for the company.”

Early next year, in league with several undisclosed partners, Horizon will launch a joint venture focusing on new and innovative uses of media (think eBooks and small video players in print magazines).

Jim Sabia, evp marketing at Corona parent Crown Imports, says it’s even more critical for a
challenger brand like Corona to have an innovative media agency. For example, the Gruden on the Bus Corona Light integration on ESPN’s NFL pregame show on Monday nights, says Sabia, has upped brand awareness and received excellent feedback from distributors and retailers nationwide.

Search consultant Russel Wohlwerth, a principle in Ark Advisors, credits Koenigsberg’s innovative attitude with keeping the shop hot. “It proves,” he says, “that you don’t need $20 billion in billings to be a success.”

ANOMALY

The Insurgents

Giant killer wins big by going beyond advertising and helping clients with growth strategy

By Andrew McMains

Since forming in 2004, all-star agency Anomaly has steadily built its reputation as a contender, picking up much-buzzed about business from the likes of Converse and Umbro. But 2010 was surely Anomaly’s banner year. The 120-person agency handily swept much larger shops aside to secure leading roles with Budweiser and Motorola in the U.S., and Sony Electronics in Europe.

The agency’s ability to think beyond the reaches of traditional advertising has been integral to its growth. (To land Virgin America’s creative duties in 2005, Anomaly didn’t even discuss ads with the client, but rather focused on cabin design, flight attendant outfits and in-flight entertainment.) More recently, the shop has ventured into creating its own products, launching a cosmetics line with YouTube makeup guru Lauren Luke and producing the PBS cooking show Avec Eric, starring Le Bernardin chef Eric Ripert. Along the way, Anomaly partners like Carl Johnson, Jason DeLand, Johnny Vulkan and Mike Byrne have attracted eclectic talent to their team, including the former global creative director at Urban Outfitters (Kevin Lyons) and an ex-marketing leader at Nike (Richard Mulder).

Johnson, an account man/entrepreneur, is the self-confident captain of Anomaly, which has offices in New York and London. Vulkan, a deep-dive thinker focused on innovation in communications and technology, and DeLand, a competitive multitasker equally comfortable in a pitch as at a shoot, are Johnson’s longtime first mates, having worked for him previously.

Byrne, the bearded creative chief (and Paul Giamatti look-alike), provides a creative aura beyond the shop’s output, based on his years as a creative director on Nike at Wieden + Kennedy.

Clients appreciate the team’s ability to adapt to their specific environments. “We think of them as Converse. We think of them as working here,” says Geoff Cottrill, chief marketing officer at the sneaker company, a client since 2007. Echoing the Virgin America experience, Cottrill adds, “The thing I like most about them is they bring us ideas and not ads.”

Sony’s confidence in Johnson, Vulkan and then new-hire Paul Graham led the company to hire Anomaly for its pan-European assignment just months after the shop opened its second office in London. Anomaly bested four rivals, including incumbent Fallon, to land the $50 million account. “They seem to instinctively understand how the communications landscape has changed,” explains Ben Moore, vp of marketing communications for Sony Europe. “It just felt like they were there.”

In its winning pitch, for example, Anomaly offered ideas on how to improve customer service, create broader digital platforms and better leverage the assets of sister units like Sony Music.

In 2010, Anomaly’s revenue rose 33 percent to an estimated $20 million, and only a quarter of that came from making ads. (Still, it’s worth noting that the shop did have two winners in the ad department this year, with its “Grab some Buds” campaign for Anheuser-Busch InBev and a Super Bowl spot for Motorola featuring Megan Fox.) The bulk of Anomaly’s work for the likes of Procter & Gamble, Umbro and new client PepsiCo (projects on various brands) revolves around new product development, brand strategy, design, branded content and technology. As Johnson sees it, the pressure on client CMOs has “moved to, ‘Have you got an answer or not? I don’t care how big you are. Have you got an answer?’ And that is fantastic for small companies. They’re valuing the thing that truly matters the most.”

BREAKFAST

The Insurgents

Inventing new ways to live in the real world

By Brian Morrissey

This past fall, the world’s first interactive blimp—bright orange, it promoted Conan O’Brien’s new TBS talk show—floated above New York. Hardware in the blimp checked in on Foursquare periodically for fans to track its whereabouts. Enthusiasts took out their mobile phones, checked in and earned a “blimpspotter” badge. Over 18,000 people followed it on Foursquare.

The program was the handiwork of a small crew of young, self-described inventors toiling in Brooklyn, N.Y. Their shop, Breakfast, is blurring the boundaries between virtual and real worlds, and, unlike typical ad shops that hand off their ideas, is doing it with gadgets they’re building themselves.

“They’re hardware hackers,” says Richard Schatzberger, chief technology officer at Co:, a brand studio that’s collaborating with Breakfast on projects. “But they’re not just doing this for art. They’re doing this for business.”

Andrew Zolty, who along with Mattias Gunneras and Michael Lipton are co-partners in Breakfast, says he and Gunneras were “kids who took apart our Walkmans and wired them up to make talking dolls.” Even Lipton, who’s also the account director, is a software engineer well versed in coding.

“A lot of crazy ideas die on the table because the agencies don’t have the know-how to make the client comfortable,” says Zolty.

Breakfast, launched in January of this year, first garnered attention with a bicycle ride. A friend of Zolty’s was riding her bike across country to raise money for charity, and the agency turned it into a tweeting machine by outfitting it with sensors that collected data on everything from weather conditions to location to speed. The data triggered tweets from the road and were gathered on a dashboard that charted the trip.

TBS executives, impressed with the the stunt, hired Breakfast to help them make a splash for Conan.

The agency is now working with Johnson & Johnson on a health initiative, still in development, that seeks to create a home medical device with Nike Plus-like game mechanics. It’s also doing more work for TBS, which not only loved the blimp project, but the speed in which it was accomplished.

Zolty says the brief TBS had given them was “crazy shit”: The network had a blimp, needed a way to make a splash online, and wanted it developed and completed in two weeks. Zolty and Gunneras met when working at ad agency Poke in London in 2008. While there, the two led the creation of BakerTweet, custom-built hardware installed in a local bakery. When muffins or scones came out of the oven, a worker turned a knob to the type of food and hit a button. That button updated a Twitter account followed by customers. It touched a nerve, garnering lots of blog coverage and industry commentary.

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