Burnett Poised to Pick Up Toys ‘R’ Us
CHICAGO–Leo Burnett was in final negotiations on Friday with Toys ‘R’ Us for its $50-75 million account, sources said. Burnett pitched the media and creative account with Starcom Media Services. Burnett referred calls to the client, which could not be reached. Deutsch in New York and Doner in Detroit both pitched for creative duties. The Media Edge and Western Initiative Media, both New York, chased the media portion.
Boeing Hires Consultant to Begin A Search
LOS ANGELES–Boeing began sending proposals for its $30 million account to agencies with global capabilities, the client confirmed. The Seattle-based aerospace giant hired consultant Geduldig & Ferguson in New York to handle the review. The process will take approximately three to four months, a Boeing exec said. Incumbent Cole & Weber, Seattle, has been invited to defend.
Progressive Narrows List to 3 Shops
CHICAGO–Finalists for Progressive Insurance’s $70 million ad account are: Foote, Cone & Belding in Chicago; Doner, Southfield, Mich.; and Hill, Holliday, Connors, Cosmopulos, Boston, sources said. The Cleveland-based client split with Arnell Group Brand Consulting, New York, saying it wanted a stronger direct agency.
WPP Buys Stake in Multicultural Agency
NEW YORK–WPP Group has purchased a 49 percent stake in The Market Segment Group, a Coral Gables, Fla.-based consulting firm that specializes in ethnic markets. “Clients are eager to more closely align the research and execution of integrated communications services,” said John Zweig, chief executive at WPP’s Specialist Communications Group, which will house the new unit. Terms of the deal were not disclosed.
American Media Taps Arnell
NEW YORK–American Media has selected Arnell Group Brand Consulting to handle Star magazine, worth about $12 million, sources said. The deal is not yet finalized, but an announcement is due this week. Arnell is also poised to win The National Enquirer account, worth a similar amount in billings. The five other contenders were: Della Famina/Jeary and Partners; DiNoto Lee; Mad Dogs & Englishmen; Mezzina/Brown and Spier, all New York.
Account Activity
Leo Burnett exited Budget Group’s review citing possible conflicts with General Motors. Remaining contenders for creative duties on the $40 million account: incumbent Publicis & Hal Riney, Chicago; Fallon McElligott, Minneapolis; Cliff Freeman and Partners and Deutsch, both New York; and GSD&M in Austin, Texas Empire State Development Corp. has selected five finalists in the state-mandated review of its $8 million “I Love New York” tourism account: incumbent Toolbox; Moss/Dragoti, Grey Advertising and Partners & Shevack/ Wolf in New York; and Smith Advertising Group, Syracuse. A winner will be chosen next month.