Mindshare beats Carat to €150m SFR media-buying and planning account

August 1, 2012

Word reaches me that Aegis’ Carat has just lost one of France’s biggest media accounts to WPP’s Mindshare. SFR, the mobile phone carrier owned by Vivendi, has a media budget of about €150m (£120m). Overall, it is one of France’s biggest advertisers, ahead of Orange, but behind Renault, with a total budget of about €300m.

For WPP, it’s second time lucky. In 2009 a joint-ticket of Mediaedge-CIA and Mediacom got into the final frame of a review, but was seen off by Carat, which has now been the incumbent agency for about 15 years. OMD and Zenith-Optimedia also participated in the 2009 pitch. It is not known whether other agencies were involved in the current one.

SFR, which offers fixed line, mobile and broadband services, spends the biggest part of  its advertising budget on television – about €92m last year. Next comes outdoor, with a spend of €65m, then digital, with €62m.

Separately, Carat will have been shaken by the news that Joel Ewanick, the man responsible for placing General Motors’ $3bn global media account in their hands, has been abruptly fired by his company.

Earlier last week, John Gaffney, who led Carat’s North American General Motors account out of Detroit, quit the media agency. The circumstances surrounding Gaffney’s departure are unclear. Some sources maintain his departure was related to client dissatisfaction with Carat’s performance. Others more directly connected to the situation insist Gaffney’s exit was not directly related to performance on the GM assignment.


The jury’s out on Cannes’ creative verdict

June 27, 2012

One way or another the “C” word defined this year’s Cannes International Festival of Creativity. Naively, I came away from the ad industry’s annual Rivièra fest thinking “C” stood for Chipotle and Creative Artists Agency (CAA), the duo that pulled off the film grand prix and the top lion for one of this year’s new categories, branded content & entertainment. What a deserved breakthrough for the Colorado-based fast food outfit, whose wholesome message may one day may do McDonald’s some serious brand damage.

And here, just to prove that the Cannes judges not only know a winner when they see one but are prepared to back it without fear or favour, is that very “Back to the Start” grand prix winner, to the tuneful accompaniment of Willie Nelson:

How wrong I was about the “C” word, though. It turns out that “C” stands for Corruption. No sooner had WPP emerged as the top Holding Company of the Year for the second time in a row, and its subsidiary Ogilvy & Mather as Agency Network of the Year, than the allegations of vote-rigging began to fly. What, momentarily, had seemed WPP global creative director John O’Keeffe’s triumphal moment – in which he definitively proved that last year’s laurels were more than a passing fluke – was soon clouded by recrimination and counter-recrimination.

At the centre of the row is Amir Kassaei, worldwide creative head of Omnicom-owned DDB, who has accused WPP agencies on the Cannes jury of wresting what he clearly regards as Omnicom’s rightful crown from it by foul means. WPP racked up 1,554.5 points in the competition, and Omnicom – at number two – 1375.5, leaving Publicis Groupe trailing a distant third on 1032. Here’s what Kassaei had to say:

“We had a meeting in New York just ahead of Cannes, and I made a very, very clear statement to all our jury members that this festival is about integrity and responsibility. I said to them, you have to vote for the best work, no matter which agency is behind it.

“I have since been notified by no fewer than 12 jury members that people from other holding companies this week are being briefed to kill Omnicom, especially BBDO, DDB and TBWA, this is a fact.

“This is not about being a bad loser, or even supporting Omnicom, this is about the integrity and responsibility of the Cannes Lions Festival as a beacon of excellence around the world.”

Right on, Amir. But actually, no. It’s just part of the rough and tumble that afflicts Cannes voting patterns every year. Next year Omnicom may boycott Cannes, you say? Come off it. It’s about as likely as me selling my grandmother (if I still had one) into slavery.

The Great Holding Company Award Scandal is simply a continuation by other means of a long-running guerrilla war between WPP, Omnicom and Publicis Groupe over who’s best boy creatively. Before the award was given official embodiment two years ago, the bosses of the three big network groups used to engage in a covert but nevertheless acrimonious tally of who had actually bagged the biggest statue haul. Frankly, Omnicom used to win by a country mile, even after discounting any creative arithmetic; which meant that the most entertaining part of the contest – vigorously disputed by WPP boss Sir Martin Sorrell and head of Publicis Groupe Maurice Lévy – was over who had come second.

But with WPP out in front – and officially out in front at that – Omnicom seems to have lost its seigneurial disdain for such squabbling.

Not that WPP is exactly blameless in this regard. Clearly nettled by the fact that Omnicom-owned Manning Gottlieb OMD won the Media grand prix for a Google campaign, Sorrell recently told Mediaguardian:

“One thing I’ve noticed this year in particular [are] some practices creeping in that are a bit disturbing. Practices of pressure on the jury by [the chairman] of the judges. There are some techniques to these things. I was at a dinner and there was lots of chatter about one of the functional areas [awards categories] where lots of pressure was put on an organisation in terms of voting.”

Although Sorrell is not category-specific in his complaint Group M, the WPP media buying network that includes Mediacom and Mindshare, is known to have made a complaint to the Cannes festival management. While a little mischievous to do so, it is worth mentioning that the chairman of the media category judges was Mainardo de Nardis. De Nardis is, of course, chief executive of Omnicom-owned agency OMD Worldwide. But perhaps just as importantly, he is not best buddies with Sir Martin. The feud dates back to the Marco Benatti scandal, when de Nardis was a WPP employee.

Plus ça change, as they say at Cannes, plus c’est la même chose.


Chinese corruption probe extends to Publicis media operation

September 14, 2010

In the global village, there’s nowhere you can hide – for long. A spreading corruption scandal in the little-known Chinese city of Chongqing (population about 35 million) will be causing the worldwide media bosses of Vivaki Exchange (Publicis Groupe) and OMG (Omnicom) some sleepless nights. It’s a cautionary tale about using Chinese brokers as intermediaries in media negotiation. All the main global networks, with the exception of WPP, use one – though not necessarily the same one. They broker the client rather than the media owner.

Last week, the chief executive and number two at Publicis’ buying point in China, Vivaki Exchange, left (or more likely were forced to leave) abruptly. Vivaki Exchange is an on- and offline amalgam of Publicis’ Solutions Digitas, Starcom MediaVest and Zenith Optimedia, formerly known (in China) as China Media Exchange (CMX). The reason for the two executives’ departure?  Warren Hui (left) and Ye Pengtao had had dealings with a media broker called Chongqing Huayu, which operates in China’s so-called South Western markets (Yunan and Sichuan as well as Chongqing itself). Chongqing Huayu is owned by a certain Zheng Zhixiang, recently arrested by the police in connection with the Chongqing Hilton prostitution scandal (highlighted here in the Daily Telegraph). The allegation is that he had been using the media broker to launder money from the prostitution racket. If convicted, Zheng will probably face the death penalty.

According to well placed sources, the broker Huayu (unusually in China, I’m told) owes money to the two buying points: perhaps Rmb100m (£10m) in the case of Vivaki Exchange; the amount owing to OMG (which uses the same broker) is unknown. Whatever the exact nature of the shortfall, it will now be impossible to make good, owing to the scandal. As a measure of how serious the situation is, both Hui and Ye were interviewed by the police on September 4. They were released after 48 hours, but told not to leave the country pending further investigation. I understand that police enquiries have extended to the general manager of Pepsi’s bottler in south-west China. Pepsi is Huayu’s second largest client. Media buying is handled by OMG via OMD.

China is one of the fastest developing advertising markets in the world. Asia Pacific, of which China is the largest component, will overtake North America in size by 2014, according to recent research sponsored by Starcom MediaVest. China’s ad market is already nearly as big as that of Western Europe.

UPDATE 13/10/10. OMD China has “let go” its managing director of five years Winnie Lee and replaced her with Siew Ping Lim, formerly of WPP-owned Mindshare, who holds the upgraded title of ceo. Lee, who “does not have a clear plan at the moment“, will leave next month. Is her departure by any chance related to the above events?

FURTHER UPDATE 23/11/10. More evidence of stress and strain at OMD China. OMD’s Johnson & Johnson global account director, Ben Jankowski, who relocated to China in June – because, he said, it was the place to be – has quit. He is crossing the line to become global media head of Mastercard early next year. Team turmoil is said to be the cause.


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