Months after the CEO of parent Softbank harshly criticized its advertising effort, Sprint is conducting an agency review, sources confirm. The review is focused on TV creative advertising, which is currently handled by Figliulo & Partners, which has handled the assignment since late last year. The shop replaced Leo Burnett, which still handles certain “below-the-line” chores like in-store and retail, which are not part of the review. Nearly 60% -- or about $450 million of Sprint's 2013 advertising expenditures -- were earmarked for TV, according to Kantar. The company's total measured media spending last year amounted to $765 million, per the ad tracker. The review comes after recent management changes at Sprint including most recently a CEO switch — Dan Hesse was replaced by Brightstar chief Marcelo Claure last month. Last fall, new CMO Jeff Hallock came on board. In January Softbank CEO Masayoshi Son blasted Sprint’s advertising effort in a guest column written for Nikkei Asian Review, in which Son said that “Sprint spends a large amount of money on advertising every year, but its effects have been almost negligible.” For now, only the creative TV advertising assignment is under review, per sources. Starcom MediaVest Group continues to handle media and sibling agency DigitasLBi remains the company’s digital agency. A Sprint rep declined to comment on what he termed "speculation" about the review. The agencies either declined to comment or couldn’t be immediately reached. Word of the agency review also comes a short time after Sprint ended its pursuit of a merger with rival T-Mobile. The two competitors are now once again engaged in a price-cutting war in a bid to steal each other’s customers. This story has been updated with 2013 ad spending figures for Sprint from Kantar.
Dr Pepper is the first official college football championship partner and presenting sponsor of the new National Championship trophy, and now, the beverage brand's "One of a Kind" campaign is designed to fully integrate and capitalize on this sponsorship deal. Developed by Deutsch LA, the initiative centers around the character Larry Culpepper, a longtime Dr Pepper “concessions guy” with a deep-rooted passion for college football. Essentially, Larry serves as a stand-in for fans to get them excited about games and this new football playoff system. "Our goal was to create the ultimate college football fan, someone who shares Dr Pepper’s passion for College Football in a unique and relatable way," says Ryan Lehr, Creative Director, Deutsch LA. "Relatable, because anybody who has spent any time around sports has known a 'Larry Culpepper.' A self-proclaimed 'expert' who loves nothing more than to talk about the game with anyone who will listen. “We also wanted to give Larry the unique [point-of-view] that with the first year of the College Football Playoff it truly is a one of a kind season and Larry would argue, "the first season that really counts." As part of the narrative, the “Meet Larry” spot - airing nationally and online - conveys his excitement after having seen all there is to see when it comes to college football, until now. This season ushers in the one thing he hasn’t seen, which is a college football playoff. The spot ends with Larry declaring this season the first and only one that counts. Then, Dr Pepper will release additional spots featuring Larry where he will discuss relevant topics, such as exploring the new Selection Committee and more information about the new National Championship trophy, which is presented by Dr Pepper. Later this season, “Larry on the Field” spots will show him chatting up players after using his role as a Dr Pepper vendor to get on the sidelines. Although Larry seems like a regular person, he is actually a paid actor and these are scripted spots. The campaign was directed by Caviar Content’s Jonathan Krisel, director and co-creator of the IFC series, Portlandia. The campaign includes TV, digital, social media, and is expected to deliver over two billion media impressions across both traditional and digital media platforms. At the same time, Dr Pepper is integrating its tuition giveaway program with ESPN properties this year. Dr Pepper Snapple Group declines to break out ad spend by category. However, 2Q 2014 marketing spend represented 7.8% of second quarter sales, slightly ahead of its full year target of 7.5%, according to company financial results. Thus far, the company's marketing spend has declined $18 million year-over-year, which executives explain is the result of launching the new brand Ten last year. Deutsch LA has worked with Dr Pepper since 2008.
Choice Hotels International has selected Interpublic’s McCann Erickson in New York as its integrated agency of record and sister agency, MRM//McCann, to handle digital and customer relationship marketing responsibilities. The selection follows a competitive review and is effective immediately. Choice Hotels International, with 11 brands in the U.S., is one of the world’s largest hotel companies. The company spent about $48 million on ads in 2013 according to Kantar. “Today, we are building on our existing loyal customer base by aggressively expanding into the upscale segment, targeting millennials and business travelers, all while adding higher-end hotels and resorts, in premier destinations, to our portfolio,” said Robert McDowell, svp, marketing and distribution for Choice Hotels. “We were looking for a strategic and creative partner who can help us take the communications of our brands to the next level,” McDowell added. “McCann presented a strategic, creative vision and platform for telling the powerful Choice story.” Media responsibilities were not part of the review and continue to be handled by Havas Media. WPP’s Cohn & Wolfe remains Choice Hotels PR agency of record.This story has been updated with a 2013 ad spending total for Choice Hotels from Kantar.
Creative agency Partners + Napier has been selected by Bob Evans Farms to handle its shopper marketing assignment for its consumer packaged foods group, Bob Evans Foods Although Bob Evans Farms operates full-service restaurants and sells a variety of grocery products, the agency will work primarily on Bob Evans refrigerated sides and sausages businesses. The agency landed the account after a competitive review with an undisclosed number of agencies. Its previous shopper marketing agency was Ryan Partnership. “We chose Partners + Napier because they’re an integrated agency first with a specialty in shopper marketing," said Thyme Hill, Director of Marketing at Bob Evans Foods. "Their strong experience with retailers, ability to execute, and smart and clear allocation of our budget was exactly what we were looking for." Now, Partners + Napier will focus on increasing brand preference and purchase in priority accounts including Publix and Meijer. Greg Smith, who has led the agency's ongoing investment to build a stronger shopper marketing capability, will oversee the account. Bob Evans Farms spent $4.55 million in media last year, according to Kantar. Partners + Napier is part of Project: WorldWide, an independent global network of agencies. The agency's clients include Constellation Brands, Keurig Green Mountain, Delta Private Jets, ConAgra Foods, and Capital One.
Over the past 11 years, Kaiser Permanente and advertising agency Lowe Campbell Ewald's Thrive campaign has promoted health and wellness via traditional media. This year, however, the campaign is turning its focus to the accessibility of care online and in the doctor's office, and is utilizing geo-location capabilities. "In the last few years we've shifted our ‘Thrive’ campaign much more into the digital space," said Christine Paige, Senior Vice President, Marketing and Digital Services, Kaiser Permanente. "Our targeted digital strategy, along with TV, radio, and outdoor advertising, reflects the rapidly changing media landscape and how leading brands are connecting effectively with consumers." The campaign will target online users with digital and mobile ads tailored to highlight local landmarks, such as the Golden Gate Bridge, the Capitol Mall in Washington, D.C., and, of course, their nearest Kaiser Permanente facilities. "Brands are going 'glocal'," explained Paige. "We're combining a global message about our high-quality health care, super convenience and digital capability with very local representations of what that means. We think that will be powerful." Still, the campaign is relying on tried-and-true tactics. In addition to three new television advertisements, the 2014 campaign features radio, print, online, and out-of-home ads. “Thrive” advertising will run in select media markets in California, Hawaii, Oregon, Colorado, Georgia and Maryland. At the same time, the campaign is extending its outreach to Hispanic families. Two of the three TV spots are running in Spanish. The "Three Boys" spot captures a day in the life of a busy mother with three young boys by showing how having all of a care team — specialists, pediatricians, and pharmacists — under one roof makes life easier. And "Juntos" features three generations accessing Kaiser Permanente services on the same day and in the same building. Company executives decline to specify current ad spend. However, Kaiser Permanente has regularly budgeted $50 million annually for the Thrive campaign. Founded in 1945, Kaiser Permanente is one of America's leading health care providers and not-for-profit health plans. The organization serves approximately 9.5 million members in eight states and the District of Columbia.
Ogilvy & Mather has promoted Chris Reitermann to CEO for its China operations, the agency said Wednesday. Reitermann, a native of Germany, has spent most of his professional life working in Greater China. In his new position he’ll have responsibility for the daily management and operation of O&M China, in addition to retaining his current role as President for O&M Advertising in the Asia Pacific region. Reitermann succeeds Shenan Cheung who is shifting to the role of Vice Chairman of O&M Greater China. In her new role she is tasked with “helping the agency to shape and maintain its strong culture, in addition to building and maintaining key client relationships.” Reitermann reports to Paul Heath, Chairman and CEO O&M Asia Pacific. Heath said that Reitermann’s “journey working in China and throughout the region is a brilliant one. He was one of the very first people to embrace the industry’s move to digital, and has been an agent of change for us.” Reiterman is a 16 year Ogilvy veteran. He was named President O&M Advertising for the APAC region in 2011. Before that he was President Greater China at OgilvyOne, an operation he set up in 2000. He joined Ogilvy Direct in London after a career in banking and then moved to Ogilvy & Mather Advertising in Taiwan before taking on the OgilvyOne assignment.
Google, Vibrant Media and WPP's Media Innovation Group went beyond “routine commercial behavior” when they allegedly circumvented Safari users' privacy controls in order to set tracking cookies, a group of consumers says in new court papers. “Rather than being consensual, these cookies were designed by the defendants to hack their way around the privacy settings of plaintiffs’ chosen browsers that were specifically marketed and designed to block tracking cookies,” the consumers say in papers filed on Tuesday with the 3rd Circuit Court of Appeals. The consumers are seeking to revive their privacy lawsuit against the companies, all of which allegedly “hacked” Safari's default privacy settings in order to track users with cookies. The users filed suit two years ago, shortly after a Stanford grad student reported in 2012 that Google, Vibrant Media, WPP and PointRoll had circumvented Safari's no-tracking settings. As a result, they were able to set tracking cookies and serve ads to Web users based on their Internet activity. Google, Vibrant Media and PointRoll confirmed Mayer's report when it came out, and said they had stopped tracking Safari users or would soon do so. WPP has never confirmed the report. None of the companies were accused of linking cookie-based data to users' names or other personally identifiable information. U.S. District Court Judge Sue Robinson in Delaware dismissed the lawsuit last year, ruling that the consumers didn't have “standing” to proceed in court because they weren't harmed. She also said that even if the companies tracked users, doing so didn't violate the federal wiretap law -- which applies when companies intercept the “content” of a communication. Robinson said in the decision that any interceptions were of URLs, or Web site addresses, as opposed to “content.” Earlier this year, the consumers asked the 3rd Circuit to reverse Robinson's ruling. They argue that they experienced a “concrete injury the moment the defendants intruded upon their protected right to be left alone.” Google, Vibrant Media and WPP's Media Innovation Group opposed that bid, arguing that the appellate court should uphold Robinson's ruling. Google said in its papers that cookies “are a standard feature of the modern Internet used for a host of legitimate purposes.” Vibrant Media and WPP added that the accusations against them center on “routine commercial behavior.” The consumers now say in their reply papers that they suffered a concrete injury as a result of the tracking cookies. “Plaintiffs allege that defendants violated their privacy (invading a 'fundamental human right'), secretly disabled their privacy protections (impairing their browsers), and misappropriated their personally identifiable information (which has monetary value and which the defendants unjustly profited from).” The users also point to a recent Supreme Court decision requiring the police to obtain a warrant before searching cell phones. The consumers say that decision supports the view that a URL can be “content.” The Supreme Court said in that case that Internet search and browsing history “could reveal an individual's private interests and concerns.” This lawsuit isn't the only fallout from Mayer's original report about the Safari-hack. Google agreed to a $22.5 million settlement with the Federal Trade Commission for circumventing Safari users' privacy settings. The company also agreed to pay an additional $17 million to 36 states and the District of Columbia. PointRoll settled the allegations by promising to delete any cookies it collected from Safari users. The company also said it will issue a public statement that its data-collection from Safari users was “not consistent with best industry practices.”
In an effort to amp up the ongoing pitch process for the Miller Lite account, Leo Burnett employees have taken to social media. Employees such as Director of Operations David Kuta, EVP Cliff Schwander, Account Supervisor Emily Myjak, Creative Director Chad Ingram, Finance Manager (and 2010 ABC The Bachelorette participant) Frank Neuschaefer along with many others are posting images of themselves with Miller Lite on Twitter, Facebook and Instagram with the hashtag #ItsMillerTimeLB. Nothing like a social media blitz to get an agency stoked for a pitch...and to let the client know the agency is fired up. The brand launched the creative review in mid-August. Also participating are TBWA LA and Ogilvy's Royal Order. May the best...ahem...hashtagger win! Hmm. This could end badly. With questionable wisdom, Campbell Soup has tapped crazy Seattle Seahawks NFL player Richard Sherman for the its Chunky Soup "Mama's Boy" campaign. Sherman's mother will appear in the ads as well. Sherman has a long list of drama including getting fined by the NFL for taunting San Francisco 49ers receiver Michael Crabtree on ESPN and calling ESPN host Skip Bayless "an ignorant, pompous, egotistical cretin." Oh and let's not forget his almost suspension for going against the NFL's policy on performance-enhancing drugs. We can't wait to see what happens when Sherman finds out there's more chemicals in Campbell Soup than he's ever consumed on his own. Well Sprint is a mess, right? With Goodby, Silverstein & Partners in 2011, the brand shifted the account to a collection of Publicis agencies only to hand the account to Figliulo & Partners last year. And the brand has also dumped that agency's Frobinson's campaign. Remember IBM OS/2? How about Polaroid or Kodak? How about Zenith? How about Circuit City? How about Blockbuster? All killed either because their competitors did it better or the market left them behind. Sprint is a bit like these companies in that, really, do we honestly need more than AT&T and Verizon to handle our personal telecommunications needs? With the massive girth these two giants have, how can a company like Sprint possibly hope to make even the tiniest dent? But forge ahead they will. And select a new creative agency they will. Because, dammit, Nextel was gonna be awesome and we still can be! Creative veteran Shira Bogart, formerly with AKQA and Chiat/Day, has joined San Francisco-based Swirl as creative director. She brings account experience such as Levi's, Nike, Target, Gap and Old Navy to the agency. Recently, Bogart was selected to be a member of the Facebook Creative Council and was named to Business Insider’s list of “Most Creative Women in Advertising.” Of her joining the agency, Swirl ECD Kevin McCarthy said, “Shira brings the passion of a great storyteller and a unique and diverse set of skills and experience to Swirl. She’s also an adept communicator, prototyping experiences with clients rather than just explaining them. We are excited to add such a powerful creative mind to our digital creative team.”
Clients often ask consulting and advertising firms, "why should I hire you if you are working with my competitor(s)?" The answer is always the same: We value your business and we’ve constructed elaborate Chinese Walls to prevent the leakage of ideas, customers or work product from one team to another. After all, we have the brightest, most creative people working hard to serve your interests. We’ve seen pictures of the Great Wall of China from space so it goes to show that the walls must be formidable. But almost daily we hear stories about the breaching of these walls. JP Morgan Chase and Barclays Bank are but the most recent examples. The wall was breached and the information shared, allegedly by low level operatives. Management is aghast and appalled by this stain on their credibility. How did the breach happen? Honestly, it’s just too tempting to peek over the wall. The potential benefits outweighed the risk of breaching the walls: competing strategies could be assessed, clients urged to strengthen their position, personal failure can be avoided, riches can be made. We know human nature is curious and motivated by recognition and reward. How many people unconsciously look over shoulders to read emails, glance at their neighbors notes, check out their competitors' desk, linger over visitor logs? People do it because it’s just too tempting. Admit it, you’ve done it, too. Add reward to the mix and it’s irresistible. We know as long as there are ten foot walls, someone will find a twelve foot ladder. What is our policy? How is our wall stronger? As an organization, United Incentives simply won’t work for clients who compete in the same space. We give all of our focus to one client in each category. Instead of building walls we build solutions. Have you ever been faced with this conflict? What would you do?
It’s the time of the year when the editors of MEDIA and OMMA magazines begin considering candidates for their annual Agency of the Year awards, so if you’ve got any organizations—or people—you want to nominate for the following categories, please send them to joe@mediapost.com. Media Agency of the Year OMMA Digital Agency of the Year Agency Holding company of the Year Social Agency of the Year Search Agency of the Year Mobile Agency of the Year Creative Agency of the Year Client of the Year Supplier of the Year Executive of the Year