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Can Chris MacDonald hack it at McCann New York?

April 26, 2013

Chris MacdonaldHaving, a while back, complimented Chris Macdonald on the improved quality of his tailoring, it would be churlish not to congratulate London’s sharpest suit on landing the hot seat at McCann New York, where he will soon become president.

Macdonald, who combines the position of McCann London group chairman with agency chief executive, is one of several senior executives to be reshuffled in the first significant management changes to be made by Harris Diamond, Nick Brien’s replacement as Worldgroup chief executive. In effect, Macdonald is to take up a position that has been – inexplicably in a creative agency –  left vacant for over a year. His predecessor, Thom Gruhler, quit for Microsoft after – like many around him – coming to blows with Brien over his shoot-from-the-hip management style. The seat had in the interim been kept warm by Hank Summy – a Brien hiring with no traditional agency experience – who has now been elegantly side-shifted to the bafflingly esoteric role of president, commerce at Worldgroup’s digital and direct arm, MRM.

Diamond is evidently throwing away the fairy-cycle stabiliser wheels and proving his own man earlier than expected (or perhaps, more accurately, than I had expected).  When he was picked as McCann Worldgroup CEO last November, McCann’s parent Interpublic hit upon the curious expedient of appointing two “handlers” – hemispheric presidents, Luca Lindner and Gustavo Martinez – to babysit the new boy while he learned the ropes. That was wholly understandable, given that Diamond was a former PR man with no experience of creative advertising. But might have sent out the wrong signal to clients: does McCann trust this man to do the job properly, or not?

In the event, the gamble involved in appointing him – he is well-regarded for his EQ – appears to be paying off. Six months into Diamond’s tenure, McCann has seen off Goodby Silverstein, recaptured the front-end of the General Motors pantomime pony; and won US domestic business as well. Quite a reversal of the negative business spiral that had dogged his predecessor’s two-and-a half-year reign.

It’s easy to see why Diamond might have called upon the services of Macdonald. Where his predecessor loved technical complexity, Diamond is all for human simplicity. “This is a straightforward business,” he told AdWeek recently. “If you can come up with great ideas and make an impact on your clients’ business you do well.”

The great idea, so far as Macdonald is concerned, is threefold. First, his London group role since 2008 has given him invaluable experience of breaking down silo walls and making the various parts of the marketing services machine interoperable. Second, Macdonald is very good with big clients, who these past few years have been feeling a bit bruised and under-loved. Third, London has had a good new business record under his stewardship, in contrast to certain other parts of the McCann empire.

But will the Macdonald pixie dust be enough to salvage McCann’s battered global reputation? That is the question observers are asking. Twenty-five years ago, or so, it was relatively easy for a smooth-talking, self-possessed Brit to make it “Over There” after making it over here. Britain’s reputation for advertising creativity and big brand marketing was second to none in the world. And, if that were not recommendation enough, we could also play the consumer and strategic planning card.

That was then. Now, our effortless superiority in those disciplines should not be taken for granted. And besides, the world has moved on in other ways. It’s a grimmer, greyer place. Post-crash, clients are challenged and risk-averse. As one source of mine puts it: “The need to meet quarterly numbers is more important than waving a magic wand of creativity. This is a low- to no-growth environment.” Add to that the complications of procurement, the massive disruption of traditional channels caused by social media, and the fiendish complexity of planning and measuring campaigns these days, and it becomes triply more difficult for any individual, however talented, to achieve cut-through.

McCann has many weaknesses as a creative agency brand, but one of its great strengths over the years has been its knowledge-in-depth of client businesses. That reputation took a knock under Brien. We have yet to find out whether Macdonald is the man to restore it.

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Agencies pick over Ewanick’s GM legacy

July 30, 2012

“He failed to meet the expectations that the company has for its employees,” said General Motors spokesman Greg Martin cryptically. That looks like being GM global marketing supremo Joel Ewanick’s epitaph. The marketing whirligig quit abruptly last weekend, after two years at the steering wheel of one of the world’s biggest car companies.

But just what did Martin mean by failed expectations? It appears that Ewanick fell down badly on the small print in the 5-year sponsorship deal he signed with Manchester United. Details remain sketchy, although they will undoubtedly emerge over time. Some financial liability is likely involved should GM fail to deliver on its side of the bargain; this seems to be what Ewanick ‘forgot’ to disclose to his superiors.

GM may be glad to see the back of him, but we hacks will miss Ewanick – with his uncanny ability to manufacture a headline. Here is the man who said ‘No’ to extortionate prime-time Super Bowl advertising; and put two-fingers up to Facebook – commercially speaking – just before it foundered in a very rocky public flotation. The Manchester United sponsorship was to be his masterly counter-coup: Ewanick bringing in the vibrant Old World (China and emerging markets included) to redress a marketing overspend in the tired old New.

Alas, attention to detail seems foreign to Ewanick’s nature. Now we shall never really know whether he was a marketing visionary with a bold grasp of the Big Picture, or simply a publicity-hungry megalomaniac revelling in world-renown.

What matters from here on in is the unpicking of Ewanick’s legacy. Hundreds of millions of dollars of revenue are at stake for the agencies that signed up to the Ewanick dream. Doubtless their lawyers are already assessing the strength of the contracts they co-signed with him. What now for Carat’s tenure of the $3bn global media account? And for Commonwealth, the complex advertising vehicle set up so that Goodby Silverstein and McCann Erickson could jointly service most of the global Chevy creative account? The holding companies of all three agencies – Aegis Group, Omnicom and Interpublic – have already made substantial investments in staffing up in and around Detroit to service the newly streamlined accounts.

Advertising relationships in the auto-industry have traditionally been very personality-driven. Despite a thick coating of metrics-speak in all their public utterances, this has been transcendentally true of Ewanick and his advertising coterie.

Goodby looks particularly vulnerable, given the close personal relationship between Ewanick and Goodby founder Jeff Goodby – who shared the stage at this year’s Cannes International Festival of Creativity.

All eyes will now be on Ewanick’s (at least temporary) successor, Alan Batey, head of US sales and service.

Little is known of him other than that he was once a car mechanic. But of one thing you can be certain. Agencies, on and off the GM roster, will be doing their damnedest to find out more. Just in case.

UPDATE 31/7/12: The problem with the Manchester United shirt sponsorship deal is that Ewanick paid too much, it has emerged. He committed to a 7-year deal at £25m ($39m) a year without disclosing how “full” the terms were to GM’s board. $300m represents a premium of 25% to what the current sponsor, AON, is paying – and is a lot more than Ewanick seems to have implied to his colleagues during negotiation.


McCann and Goodby to work together on global Chevy brief, but how harmoniously?

March 28, 2012

Once again, General Motors CMO Joel Ewanick has demonstrated his ability to surprise and to innovate, with the announcement of his “Commonwealth” solution to the global Chevrolet creative account.

GM spent $4.7bn on advertising last year, and the majority of that was channelled through Chevy, a brand accounting for 70% of GM’s US sales. So, all eyes will be on what Ewanick, after much agonising, has done with one of the world’s largest creative accounts.

Which is, exactly? The easy bit is that he has fired most of the 70 agencies that were, somehow, somewhere, working on the account – superfluously bloating management and production costs.

More controversially, Ewanick has placed the two winning agencies, Goodby Silverstein & Partners and McCann Erickson, in a joint venture dubbed Commonwealth. It will be based in Detroit, home of GM, but have 3 other creative hubs dotted across the globe at Milan, Mumbai and Sao Paolo. And the controversial bit is that the two agencies – Goodby, which holds the Chevy business in the USA, and McCann, which is strong in Latin America, Mexico, China and Canada – are owned by rival ad holding companies, Omnicom and Interpublic Group respectively. Omnicom and IPG are 50/50 owners of Commonwealth, we are told, but profits will be allocated “geographically”.

That in itself may be cause for friction. But just as interesting is who and what will be running Commonwealth day to day. It is to be led by an eight-strong “global advisory board”, overseeing creative initiatives and strategy, which consists principally of Jeff Goodby, the Goodby Silverstein & Partners founder, who will be creative chairman, Washington Olivetto, McCann Worldgroup Latin America chairman and chief creative officer, Linus Karlsson, the McCann New York and London chairman, and chief creative officer and Prasoon Joshi, the chairman of McCann Worldgroup India. A hat-tip to Goodby’s creative eminence, but note McCann’s dominance on the board.

Now, before muttering “sacks” and “cats”, let’s all take a deep breath and peer long and carefully into the glass half-full. There certainly is a rational case for Commonwealth, or something very like it. And part of it is saving an estimated $2bn in production and management costs over 5 years.

What’s more, we can expect some unwonted co-operative zeal from the two rival agencies. Both will be hugely relieved they have landed the business.

Goodby started as early favourite, not least because it was hand-picked for the US business by Ewanick himself. But  the work has disappointed. And, despite the pleasing publicity surrounding the Ford-knocking Silverado spots at this year’s Super Bowl, there have been gnawing doubts at the Goodby office about the agency’s ability to retain the account.

McCann, on the other hand, desperately needed a coup of any kind to stabilise its faltering performance. True, this is not the outright win that leaves it the undisputed global agency of record earlier rumoured. But it’s a fairly decent outcome, which consolidates McCann’s already strong position in high-growth emerging markets.

But once the novelty has worn off, what then? Will the creative dream-team pull together to make Chevrolet’s global message more consistent, or will the nightmare of agency politics take over? It’s anyone guess. For that very reason Ewanick should be taken at his word in describing Commonwealth as “historic”. We’ll find out soon enough how deep Chevy really runs.


After all that, Joel Ewanick awards $3bn GM global media account to – Carat

January 24, 2012

It seems the keeper of the world’s third largest advertising budget is a bit of a tease. Only the other day Joel Ewanick, General Motors global chief marketing officer, was telling us that, six months into the review, he simply couldn’t make up his mind about where to place GM’s $4.26bn advertising budget. Agencies on tenterhooks. Could there be a last minute reprieve for them?

Aegis Group chief executive Jerry Buhlmann: $3bn Carat win should bring a smile to his face

No there could not. Actually, Ewanick had long since decided to give the largest chunk under review – the $3bn global media planning and buying business (bar India and China) – to Aegis-owned Carat. You read it here first, as long ago as early December.

If there was last-minute anguish over the decision, it more likely related to brinksmanship over Carat’s fee and the administrative nightmare of reducing a media roster of 40 down to a single agency.

That said, another part of the review may prove more of a poser for him. Ewanick has yet to pronounce on who will win creative duties for the mega-billion dollar Chevrolet account (it’s GM’s biggest brand, accounting for over half of vehicle sales). Omnicom-owned Goodby Silverstein & Partners looked safe with the bulk of the account since it was hired on Ewanick’s personal say-so soon after his arrival at GM. But there is talk that IPG agency McCann-Erickson – which already handles Chevy in India, China and Latin America – is destined to become the first Chevrolet global agency of record (ie, the senior partner).

We can only hope that, for the sake of embattled McCann Worldgroup chief Nick Brien, this rumour turns out to be true.

Because there is little solace to be found elsewhere. Universal McCann’s Latin American media business – sizeable and, more importantly, booming – will now be moving to Carat.

It could be worse though, Nick. Biggest casualty by far of the media consolidation (and indeed of the general review) is Publicis Groupe. PG’s media unit Starcom MediaVest has held the dominant US slice of the business since spring 2005 (back then, way before Lehman Bros and Chapter 11, it was worth $3.5bn a year).

Until now, PG has had a very strong year, mostly at WPP’s expense. Starcom managed to wrest the $600m Novartis account from MEC and its Digitas unit recently won the $1bn Sprint telecoms business. But the crushing GM media loss comes on top of other, collateral, damage. Big Fuel, the social media agency which Publicis seems to have acquired partly at Ewanick’s behest (it certainly came highly recommended) has overnight been reduced to a shell of its former self. By the self-same Ewanick’s unhelpful decision to move the GM account – about three-quarters of its income – elsewhere. Gives a new meaning to “Le Défi Americain”, doesn’t it?


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