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£1.7bn global ad review is creative solution to Johnson & Johnson’s money problem

July 25, 2012

It would be nice to think that Johnson & Johnson’s newly announced review of its £1.7bn annual advertising spend was driven by a need for greater creative consistency. But it isn’t.

Money’s the thing – saving it that is. J&J may be one of the world’s biggest brands, but it’s also a company in trouble. Since 2009 J&J has suffered numerous recalls in the US, mainly of its over-the-counter drugs like Tylenol and Benadryl; but the prescription and medical devices businesses have also been hard hit. All in all, it’s said to have lost $1bn in sales, partly through bad luck and mostly through sheer incompetence.

At first it was the staff – including the marketing department – who paid, by being made surplus to requirements. Now it is the spend that’s being trimmed. Judge for yourself from the officialspeak: “Johnson & Johnson is conducting a global agency review and consolidation to build greater value and deliver innovative and fully integrated solutions for our consumer brands.” Well, they wouldn’t want less innovative solutions would they? And they could hardly be less fully integrated than they are at the moment.

In truth, there’s an easy win here for the new kid on the block, Michael Sneed – who became J&J’s top marketing (and PR) officer at the beginning of this year. There could hardly be a less efficient way of running your global marketing services than the one that exists at the moment. Uncle Tom Cobbleigh and All are at the advertising trough. It would be simpler to name a global marcoms group that isn’t on the roster.

WPP has business through JWT and AKQA; Publicis Groupe through Razorfish; Interpublic through Deutsch, Lowe, The Martin Agency and R/GA; Omnicom through DDB and BBDO; and Havas through Euro RSCG. That leaves, er, Dentsu and MDC off the list.

Sneed is a company lifer who, at various stages of his J&J career, has shown considerable sensitivity towards advertising creativity. It will be interesting to see whether this natural instinct gets overridden by the all-powerful imperative of saving the company money. Don’t expect a self-aggrandising Ewanick moment – Sneed seems too modest for that. Do expect a financial deal, of the “Team WPP” or more likely “Commonwealth” variety, that dresses up financial expediency as a coherent creative solution.

The most interesting thing about this review may be the losers. If Interpublic is among them, perhaps group CEO Michael Roth will at last seek to do a deal with Publicis Groupe. The air is certainly thick with rumours to that effect at the moment.

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The real winner at Cannes? John O’Keeffe, WPP’s worldwide creative director

June 27, 2011

When you can’t come up with a great idea, do the next best thing – plump for an all-star cast and baroque production values. If the ad is slick enough, maybe no one will notice the difference.

Except we do. And we have, at the Cannes Creative International Advertising Festival. The winner, the crème de la crème, this year’s Film Grand Prix, simply wasn’t up to snuff. Nike’s Write the Future is a tired old trope, made worse by poor judgement in fielding Wayne Rooney. Mind you, it wasn’t as if there was much competition. I liked BBDO Argentina’s Braids and it was gratifying to see Deutsch’s Force (aka Little Darth) also pick up a gold. But they weren’t exactly compelling alternatives to Wieden & Kennnedy Amsterdam’s World Cup hymn. As my chum Stephen Foster drily points out, 2011 was not a vintage year for adland’s finest creative minds.

So who was the real winner this year? W&K? Droga5 (3 grand prix, 2 more than good old GB, which had to make do with AMV BBDO/PepsiCo garnering the new effectiveness award)?

Neither of these. I can exclusively reveal it was WPP’s worldwide creative director John O’Keeffe. He has managed to bag more prizes than anyone else. Not personally, you’ll understand, but on behalf of WPP – whose ecstatic CEO, Sir Martin Sorrell, was able to waltz off with the first-ever Holding Company of the Year award.

Readers of this blog will recall the acrimonious battle between WPP and Publicis Groupe 2 years ago over who had come second at Cannes. Last year, WPP nearly caught up with Omnicom, which regards being top dog as practically a birthright. And this year, O’Keeffe has finally kicked Omnicom’s supremacy into touch. The points-count, for those interested in “statue statistics”, was: WPP 1,219; Omnicom 1,152; Publicis 744.

Must be worth a few bob come bonus time, John.


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