Kraft Considers Revamping Its Agency Compensation System

CHICAGO Kraft Foods is considering changing its agency compensation system and has asked some roster shops for names of consultants, sources said. The client revised its compensation about three years ago, keeping a system of commissions and incentive bonuses. Kraft agencies include WPP’s J. Walter Thompson and Ogilvy & Mather; IPG’s Foote, Cone & Belding; and Publicis’ Leo Burnett. Shop officials declined comment. A Kraft rep said the company does not discuss compensation.

AOL 9.0 Ads From BBDO Will Star Sting; Music Promos Part of Mix

NEW YORK Music will be a focal point of America Online’s campaign for its new AOL 9.0 broadband and dial-up service. Sources said one spot will feature Sting and a song from his album Sacred Love, due in September. As part of the music promotion, a song from a different artist will be played each week on Fox’s new drama The OC; viewers will be told they can see the band exclusively on AOL. Other spots will be “stories” involving AOL’s “running man” icon, sources said. Last week, the AOL Time Warner division broke a spot on The OC with Carson Daly, who is denied access to a concert, while the running man is admitted. That ad carried the tag “Life needs.” The work is from Omnicom’s BBDO, New York. Neither AOL officials nor agency execs could be reached.

Y&R’s Fudge Evaluates Senior Ranks and New-Business Team

NEW YORK Three months after taking the top job at Young & Rubicam, worldwide CEO Ann Fudge is eyeing senior-management ranks, which may result in a handful of layoffs, sources said. One department under the microscope is business development, which will be restructured, sources said. Fudge, a former Kraft Foods division president, could not be reached.

Bates’ Pfizer Biz Lands at JWT; Other Accounts Unresolved

NEW YORK Nearly $260 million in Pfizer’s consumer healthcare business, including the Rolaids and Visine accounts, will shift from Bates to a new division of WPP’s J. Walter Thompson called Health@JWT. The shift was expected after WPP bought Bates parent Cordiant Communications Group. Pfizer has also shifted $40 million in brands from other roster shops to JWT. Still unresolved is the fate of Bates clients including Estée Lauder ($110 million in billings), T. Rowe Price ($35 million) and Cadbury Schweppes ($30 million). JWT is a Cadbury roster shop, but the client wants to maintain a dual-agency setup and is looking at agencies including McCann-Erickson and Publicis, said sources. Bates’ Estée Lauder account team will move to JWT in New York, at least temporarily, while the client decides what to do. Estée Lauder could not be reached, and JWT declined comment. A T. Rowe Price rep said the client is mulling its next move.

FDA to Issue New Rules For DTC Drug Ads

WASHINGTON The Food and Drug Administration will issue new guidelines for direct-to-consumer ads for prescription drugs this fall, FDA Commissioner Mark McClellan said last week. The move comes as the FDA steps up enforcement of false or misleading drug ads. The FDA has also increased the number of warning letters it sends to drug companies. In a letter to Bristol-Myers Squibb last week, the FDA ordered the company to pull print ads claiming its anti- cholesterol drug Pravachol also prevents strokes. The company must now run counter ads.

News Roundup

The Walt Disney Co. is seeking ideas for a theme park in a bid that could lead to a new brand positioning for the entertainment conglomerate, sources said. It was unclear which park agencies have been asked to address in September presentations, although one source said Disney is hearing pitches for its Hong Kong theme park, set to open in 2005. Leo Burnett is pitching the Hong Kong account, sources said. The client could not be reached. … Travelocity has hired consultancy The Rojek Cutcher Group as the client considers launching a review for its estimated $30 million account, sources said. Both the client and consultant declined comment. Independent The Richards Group in Dallas and its interactive affiliate, Click Here, have handled Travelocity work for the past four years.