Sorrell not faring too badly in this recessionOn this first-anniversary weekend of the collapse of Lehman Brothers, which triggered the worst economic crisis in a generation, the Guardian reminds us that some have felt the pain a whole lot less than the rest of us over the past year. In its annual salary round-up, the U.K. paper reports that even as FTSE 100 companies were laying off tens of thousands of staffers and their stock prices lost a third of their value, the people running these companies saw their basic salaries rise 10 percent, with full- and part-time directors of those businesses sharing a windfall of more than $1.65 billion. WPP Group chief Sir Martin Sorrell is a regular top performer in the survey, but even he took a hit last year, dropping from the No. 1 most-highly-compensated exec in the U.K. to No. 4. The 64-year-old, who has had to lay off an estimated 7,200 staffers in the wake of cutbacks from marketers, pocketed $33 million in 2008, bringing his five-year payday to a total of more than $166 million. (Sorrell, a pioneer in share-price performance scheme payouts, earned $39 million in 2007 and $86 million in 2005.) For investors in WPP Group's American Depository Receipts, returns over the past five years have been decidedly less than lucrative: The ADRs have declined 40 percent from $49.30 on Dec. 31, 2003 to $29.59 on the same day last year. —Posted by Noreen O'Leary |
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Published on September 14, 2009 | Permalink
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Japan sells government bonds with taxi adsAs the U.S. continues to set new records for deficit spending, America could look to Japan for a little inspiration, at least when it comes to advertising government bonds. Late last month, Japan's ministry of finance began hawking bonds on the backs of Tokyo taxi seats. The pitch, which will also use posters (like the one here) and TV spots, is the latest in a series of campaigns using celebrities to flog the country's massive debt. Earlier ads starred Koyuki, the one-named actress and model who starred alongside Tom Cruise in The Last Samurai. Current ads feature Junko Kubo, a former anchor on Japan's public broadcaster NHK. They use the tagline, "Peace of mind. Piece of happiness." That promise of mental bliss is a hard sell: At current spending levels, Japan's debt is expected to become 197 percent of GDP next year and 300 percent within 10 years. The lessons of Japan, itself the second-largest holder of U.S. government paper, appear to be lost on Washington: By the end of fiscal year 2010, U.S. debt is expected to reach nearly 100 percent of GDP, meaning that for every dollar the U.S. economy produces, the government will owe a dollar. —Posted by Noreen O'Leary |
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Published on August 24, 2009 | Permalink
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London biz world not so tough to impress
—Posted by Noreen O'Leary |
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Published on July 14, 2009 | Permalink
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Massimo d'Amore and a shaken-up PepsiCoBusinessWeek has a look at the sturm and drang inside PepsiCo's marketing ranks since Massimo d'Amore took over as CEO of the company's Americas Beverages unit 16 months ago. The former engineer, who for a CEO has an unusually high amount of hands-on control of marketing, even helped Peter Arnell create and edit the SoBe Michael Jackson "Thriller" spot with Naomi Campbell and the dancing lizards. The article relates how d'Amore increasingly shut out his own marketing execs in favor of Arnell, with one Pepsi exec calling the experience "d'Amoralizing." There are some good inside details, like those describing a top Pepsi strategy meeting between PepsiCo CEO Indra K. Noovi, d'Amore and Arnell—again, no Pepsi marketing execs were present—where Noovi said she wanted Pepsi's can to become a design icon akin to an iPod. Arnell would come out of the meeting gushing about how the brand needed to "reparticipate in popular culture." This is a good read about d'Amore's self-described "big bang" with PepsiCo's most valued brand assets and the outsiders lighting that fuse. —Posted by Noreen O'Leary |
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Published on April 17, 2009 | Permalink
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Mary Wells gets into blogging at wowOwowMary Wells' latest career? Blogging. The Madison Avenue pioneer has signed up to share her thoughts on everything from money and politics to culture, gossip and relationships on wowOwow.com, the site created and written by well-known women in the media and entertainment worlds. The self-described group of women "who weren't born yesterday" includes Lesley Stahl, Peggy Noonan, Liz Smith, Joni Evans, Sheila Nevins, Joan Juliet Buck, Whoopi Goldberg, Julia Reed, Joan Ganz Cooney, Judith Martin, Candice Bergen, Lily Tomlin, Jane Wagner and Marlo Thomas. Before setting up their virtual coffee klatch, the women were offline friends. Wells, who describes her home these days as a boat on the Mediterranean, became a member of the New York-centric wowOwow crowd after becoming friends with Evans, a book publisher, while the Wells Rich Greene founder was writing A Big Life in Advertising, published in 2001. —Posted by Noreen O'Leary |
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Published on April 8, 2009 | Permalink
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Phantom promo costs Domino's 11,000 piesClever viral-marketing hoax or simple accident? On March 30, Domino's franchisees were hit with 11,000 orders overnight as part of a free medium-pie promotion that didn't even exist. Or so they thought. Turns out in December, Crispin Porter + Bogusky devised an online promotion using the password "bailout." It never got the green light from corporate, but no one went back and disabled the code, says Domino's rep Tim McIntyre. Three months later, he says, a consumer, tinkering with Domino's online ordering, "randomly" typed in the word and triggered the free coupon. That happened late this past Monday night. By the time store owners opened Tuesday, their computers were "dinging" with orders. More than half of the 5,000 U.S. stores had at least one redemption. Based on the volume of orders at two particular stores, the company thinks the whole thing started at a college near either Cincinnati or Salt Lake City. Soon, value blogs picked it up, the run on free pizzas spread. The company, which is reimbursing franchisees for the cost of food, disabled the promotion at 11:30 a.m. on March 31, the day before April Fool's Day. "That was just a quirk of timing. This isn't a hoax, scam or hacker. It's an honest-to-goodness mistake," insists McIntyre. But he admits it's "reinforced to us the power of viral marketing and the power of the word 'free' with 'pizza.' " And in these grim times, it proved cathartic for consumers: "When word got around and people found out that it was a mistaken free promotion, they liked it even more," he says. "People liked it because they felt, 'We just stuck it to the man.' " —Posted by Noreen O'Leary |
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Published on April 3, 2009 | Permalink
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Let's blame the economic crisis on 'Forbes'Forget about the sub-prime mortgage meltdown and Wall Street greed. The real cause of global economic turmoil? Underpaid journalists and the capitalist tool they wield at Forbes. That's the view of Russian tycoon Alexander Lebedev, who is suing the magazine for reporting that he lost $2.5 billion in the current financial crisis. "I am positive that Forbes magazine, which has repeatedly posted wrong information about me and some others, must be held responsible for the world financial and economic crisis," he says. "The magazine had been inflating the false bubble of billionaires for too long. The bubble blew up and struck a blow to the finance and economy of many developed countries." OK then, the former KGB officer may have found one way to make money in these dismal times: He is demanding "compensation of material and moral damage caused by this defamation." Lebedev appears to be in good company. Forbes estimates that Russia has lost two-thirds of its billionaires, with oligarch-heavy Moscow being replaced by New York as the city with the world's most billionaires. (What Wall Street meltdown?!) Lebedev is no stranger to the cause of free speech. In January, he bought London's loss-making Evening Standard for a whopping £1. He now owns a 75 percent stake in the publication and wants to add politicos like Mikhail Gorbachev and Tony Blair to its editorial board. He also owns a 39 percent stake in Russian newspaper Novaya Gazeta. —Posted by Noreen O'Leary |
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Published on April 1, 2009 | Permalink
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Is Ikea really getting into the auto business?In the same week as the launch of India's super-cheap car, the Tata Nano, aimed at putting one of the world's most populous countries behind the wheel, there are Internet mutterings about a new ecologically friendly car from none other than Ikea, purveyor of affordable design to the masses. Whether an elaborate April Fool's viral gag or a new mobility concept, the idea has captured the imagination of the Web. Ikea recently made a significant financial commitment to eco-friendly practices: Just last August, it announced the formation of Ikea GreenTech, a $67 million venture-capital fund to make investments in companies that will commercialize green technologies and products for its stores. The fact that Ikea's "Leko" vehicle teaser showed up on a French Web site also fits in with France's forward-looking ideas about urban public transport. Two years ago, outdoor advertising giant JCDecaux launched an ambitious bicycle-sharing program in Paris, which is changing the daily patterns for many of the capital's consumers: The French company estimates that after just one year, each of its 16,000 bicycles have eight to 10 users a day. As two of Detroit's leading automakers sweat the final week before a March 31 deadline for additional Washington financing, it's intriguing to think that future innovations in transportation may come from the most unlikely of places—whether from Mumbai entrepreneurs or Swedish flat-pack manufacturers. —Posted by Noreen O'Leary |
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Published on March 25, 2009 | Permalink
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Difficult times for 4A's old haunt GreenbrierReading about the bankruptcy filing of the storied Greenbrier resort conjured the ghosts of advertising's past—stodgy white men in pink and green linens on velvety golf links, blissfully unreachable in the verdant Allegheny Mountains of West Virginia. The historic 231-year-old Greenbrier was the longtime meeting spot for the American Association of Advertising Agencies' annual boondoggle and recalls a simpler era of Mad Men mores where the business at hand was conducted over patio cocktails and on the Greenbrier's three championship golf courses and indoor and outdoor tennis courts. Wives—in demurely feminine Lilly Pulitzer—pretty much summed up the female contingent, tucked away in the resort's 40,000 square-foot spa. The 4A's gathered there as recently as 1991, when nighttime hallway signs still advised quiet because "it's sleepy time down South." By its own definition a "five-diamond, luxury resort," the Greenbrier was also the one-time host to presidents and royalty and even boasted an underground bunker in case of nuclear attack for its oh-so-important guests. Its very elitism was reinforced by the difficulty of getting there—after flying in to West Virginia, guests had to take a train into the mountains—and the Greenbrier's insular symbolism was a luxury the 4A's felt it could no longer afford by the mid-'90s. —Posted by Noreen O'Leary |
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Published on March 23, 2009 | Permalink
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Bailed-out BofA still enjoys its U.K. footballAmericans, here's your tax dollars at work: In the U.K., Liverpool's football team has just signed up Bank of America as a major sponsor. BofA, which has received about $45 billion in U.S. federal rescue money after its acquisition of Merrill Lynch and its toxic assets, is the parent of MBNA, which supplies Liverpool's credit card for supporters. (At the end of the year, MBNA announced major worldwide layoffs, so it's a safe bet many of those on the street might have liked a little of the cash that will now underwrite the careers of Bentley-driving footballers and their high-maintenance WAGs.) Liverpool, currently sitting at No. 3 in the U.K.'s Premier League, has a rich history, and wants to leverage its potential globally. (The club also demolished Real Madrid 4-0 in the Champions League on Tuesday.) Team manager Rafael Benitez has made no secret of his frustration that Liverpool doesn't get the same place on the world stage as Manchester United. But Liverpool already has deep pockets, with revenues of more than $277 million annually—hardly in need of a bailout money from the U.S. government. —Posted by Noreen O'Leary |
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Published on March 11, 2009 | Permalink
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Sign of the times at Russia's Millionaire FairIt's been only four years since the first Millionaire Fair in Moscow, and already we're getting nostalgic for those heady early years of petrodollar excess, as falling oil prices and the global economic crisis take their toll on Russia. This year's fair, a three-day testament to hyper-luxury "must-haves" like diamond-encrusted hubcaps, wrapped up on Nov. 30 with a thud, as men in suits and women in gowns searched the exhibition hall for any hint of the Laurent-Perrier champagne that flowed so freely in previous years. The over-the-top event, imagined as only the nouveau riche could after years of Soviet deprivation, was described by Pravda, in its first year, as offering "goods that wealthy people need in their everyday lives: gold-plated coffee pots, marble angels, jewel-encrusted pens, Lamborghinis, yachts and helicopters. There was even a live tiger on a lead near the stand filled with gold suitcases." Most of it was still there this year. The only thing missing were the roubles to finance such gilded lifestyles. Turns out those mega-rich Russian oligarchs are more like us than we knew, cutting back on everyday necessities in tough times! —Posted by Noreen O'Leary |
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Published on December 9, 2008 | Permalink
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Honey, I shrunk the actors in the sofa spots
Oh, those sneaky British ad guys! The U.K.'s Advertising Standards Authority has just banned TV ads for the country's largest furniture chain, DFS. Turns out the retailer not only slashed prices on sofas, it shrank the actors hawking the stuff in an attempt to make the furniture seem bigger, more luxurious and of better value. (The people were filmed against a green screen and then superimposed on the images of the sofas.) The retailer, known mostly for shrill, never-ending sales pitches, has long been suspected of deliberately using shorter actors in its ads. After receiving 21 complaints about the latest ads, from retail agency Gratterpalm, the ASA requested proof of sofa size from DFS. The company didn't comply, saying the promotion had ended and all the pieces had (conveniently) been sold. In fact, the executional sleight of hand is the least of the offenses here: In the ads, the height-challenged hucksters mindlessly mime, dance and play air guitar to Nickleback's "Rock Star"—cheesy creative in the best of times and downright insulting now that scores of Britons are losing their homes in the property crisis. |
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Published on December 4, 2008 | Permalink
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If nothing else, be thankful for all the beer!As if we needed further encouragement to crack open a few beers on Thursday, the National Beer Wholesalers Association is telling us that beer—and lots of it!—is now a mandatory part of any Thanksgiving meal. The trade group trots out Brasserie Beck's Bill Catron, a D.C. beer expert who's actually earned a Belgian knighthood for his knowledge of the stuff, to offer guidance: He suggests matching a cold, crisp pilsner with appetizers like shrimp; a 'spicy' blond ale with pumpkin soup; red Flemish ale with leafy greens; and Witt ale with cranberry sauce. After all that, you may have lost interest in the main course, but for those soldiering on with solid food, there's triple style ale to wash down the turkey and stuffing. And (God forbid) there's also beer with dessert, whether it's a Bier de Miel with pumpkin pie or Framboise Lambics with chocolate. If some of your more teetotal guests take issue with chef John Barleycorn's menu, blame it on the Pilgrims who, according to the NBWA, landed at Plymouth Rock with beer! |
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Published on November 26, 2008 | Permalink
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Does this mean Ty-D-Bol makes a good baby name?
—Posted by Noreen O'Leary |
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Published on November 8, 2005 | Permalink
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Ameriquest, you can’t always get what you want
—Posted by Noreen O’Leary Photo: Dave Hogan/Getty Images/Newscom |
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Published on August 23, 2005 | Permalink
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Maurice Saatchi adds injury to insult
—Posted by Noreen O’Leary Photo: Zuma/Newscom |
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Published on August 5, 2005 | Permalink
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A bumper crop of trustworthy customers
—Posted by Noreen O’Leary Illustration: Lee Hulteng/KRT/Newscom |
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Published on August 3, 2005 | Permalink
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Maurice Saatchi takes the Tories to task
—Posted by Noreen O’Leary Photo: Zuma/Newscom |
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Published on June 22, 2005 | Permalink
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Live Aid: The sequel
—Posted by Noreen O'Leary |
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Published on May 31, 2005 | Permalink
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Are Manchester Utd.’s sponsors in trouble?
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Published on May 17, 2005 | Permalink
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It’s the Charles and Camilla Show
—Posted by Noreen O’Leary Photo: Hussein Anwar/SIPA/Newscom |
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Published on April 7, 2005 | Permalink
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Budget squeeze brings out the Charmin
—Posted by Noreen O’Leary |
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Published on March 29, 2005 | Permalink
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Are low-sugar cereals really better for you?
—Posted by Noreen O’Leary |
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Published on March 22, 2005 | Permalink
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Marmite, that terrifying paste
—Posted by Noreen O’Leary |
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Published on March 16, 2005 | Permalink
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Big news—particularly on NBC
—Posted by Noreen O’Leary Photo: Clary/Agence France presse/Newscom |
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Published on March 8, 2005 | Permalink
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