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FOR MORE NEWS GO TO ADAGE.COM
■BY DAVID KILEY adageeditor@adage.com
joel martin, principal of Eight Mile
Style Music and co-owner of
Eminem’s song catalog, is used to get-
ting the cold shoulder from Michigan
automakers who have generally found
the rap artist’s song lyrics too spicy for
their mainstream audiences. So, imag-
ine his surprise when he got a call on
his cellphone one day last December
from an assistant at his Ferndale,
Mich., office that said “The president
of Chrysler is here looking for you.”
The assistant didn’t have it quite
right. Olivier François is CEO of the
Chrysler brand, as well as chief market-
ing officer for all of Chrysler, which
includes the Dodge, Jeep and Ram
brands. He’s also CEO of Fiat’s Lancia
brand in Europe and CMO of Fiat. And
to know how Mr. François operates is to
know that it was very much in charac-
ter for him to drive over to Mr.
Martin’s office with no appointment,
hoping, or even expecting, that he
would be there to discuss using a classic
Eminem song, “Lose Yourself,” in a
Super Bowl ad. In the end, the meeting
took place at 10 p.m. on a Sunday night.
Mr. François, 49, on the job at
Chrysler for 15 months, is gaining a
reputation among his ad agencies, deal-
ers and staff for surprising them and
taking the kinds of risks that make
ONLY RED-BLOODED MALES NEED APPLY
■BY NAT IVES AND ABBEY KLAASSEN
nives@adage.com, aklaassen@adage.com
the firing last week of Jack Griffin
by Time Inc., just months after being
brought in amid much fanfare to turn
the magazine giant around, sent shock-
waves through the close-knit New
York publishing industry, and raised
the inevitable question: Why bring in a
change agent if you don’t want too
much change?
According to Time Warner’s version
of events, it wasn’t about resistance to
change—but came down to a clash in
management approach. In his memo
announcing Mr. Griffin’s departure,
Time Warner CEO Jeff Bewkes was
blunt: Mr. Griffin’s “leadership style
and approach did not mesh with Time
Did Griffin push Time too fast?
Coming to Mobile Man Caves and Testosterone Zones near you: Dr
Pepper Ten, a low-calorie soft drink targeted strictly to men. Ladies,
get your own beverage.
Read the
story on
P. 4

SeeFRANÇOIS on Page 6
SeeGRIFFIN on Page 28
U.S. $4.99, CANADA $4.99, U.K. £3.95
Sears riles shops with demand:
We will own your ad-pitch idea
Calling the practice ‘unreasonable,’4A’s
prevails upon consultant SRI to intervene
■BY MAUREEN MORRISON
mcmorrison@adage.com
who would turn down the oppor-
tunity to work on an iconic retail
brand that spent nearly $500 million
last year and ranked No. 22 among all
U.S. megabrands in 2009? How about
Omnicom Group’s DDB Worldwide
and TBWA Worldwide; Interpublic
Group of Cos.’ Deutsch; and Publicis
Groupe’s Leo Burnett Worldwide, all
of which are snubbing Sears, Roebuck
& Co.
SeeSEARS on Page 29
FEBRUARY 21, 2011
FRANÇOIS:
“You’ve got to tell
stories that grab
people by the
collar.”
Imported from France: How Chrysler
chief Olivier Francois is selling Detroit
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Change agent didn’t ‘mesh’with entrenched corporate culture
JACK GRIFFIN:
Quiet and distant,
maybe. But
alienating?
20110221-NEWS--0001-NAT-CCI-IN_-- 2/18/2011 7:33 PM Page 1
Your guide to
highlights
from Ad Age
and Creativity
THIS WEEK
INDUSTRY TURNS OUT FOR AD AGE’S AGENCY A-LIST PARTY
2 February 21, 2011 | Advertising Age
How the insurance industry got into a $4 billion a
■ BY E.J. SHULTZ eschultz@adage.com
when talking about Allstate’s
Mayhem campaign, Nina Abnee gets
right to the point. “We wanted to kick
Flo’s ass.”
By emphasizing discounts,
Progressive’s perky sales clerk character
was apparently getting under the skin
of Allstate, the second-largest auto
insurer behind State Farm and a client
of Leo Burnett, where Ms. Abnee is
exec VP. By 2009, Allstate’s market
share had fallen two straight years
to 10.5%, only slightly ahead of
Geico (8.21%) and Progressive
(7.46%), according to the
Insurance Information Institute.
The good-hands people
needed their own over-the-top
personality to push their message
that there is more to insurance
than price. “Nobody wants to sit
around and talk about car insur-
ance,” Ms. Abnee said. “In order to
combat that, we needed to enter-
tain. We needed to get people’s
attention.”
Thus was born Mayhem, played
by actor Dean Winters, a character
that embodies all that can go wrong
with your car. Playing a satellite dish,
he falls from the roof, crushing a sedan.
As a malfunctioning GPS, he sends a
driver swerving, crashing into another
car.
Allstate got what it wanted: People
noticed. And the campaign entered the
pop culture, even spawning Halloween
costumes. “I saw Mayhem walking
down my street trick-or-treating,” said
Ms. Abnee, a more than 20-year
agency veteran, calling the moment a
career highlight that gave her chills.
Car insurance—a $161 billion indus-
try obsessed with risk protection—is
anything but conservative when it
comes to marketing these days. The top
players are doling out the dollars once
reserved for categories like beer and
travel, pouring impressively lavish
budgets into funding splashy cam-
paigns, partnerships with celebrities and
rock bands, Facebook pages and Twitter
feeds. Insurers seem to be slapping their
names everywhere. Farmers just agreed
to shell out $700 million over 30 years to
put its name on a planned NFL stadium
in Los Angeles.And the city doesn’t even
have a team yet.
“This category has gone from a
kind of forgotten category to a catego-
ry with real sizzle,” said Jeff Charney,
LIGHTSPEED
chief marketing officer for Progressive,
who proudly boasts that Flo, who
debuted in 2008, has helped lure nearly
2.5 million fans to the insurer’s
Facebook site.
When all lines of insurance are
included (some ads plug multiple prod-
ucts) spending for 2009 was $4.15 bil-
lion, more than double what the indus-
try spent in 2000, according to indus-
try-reported ad spending figures cited
by J.D. Power & Associates that include
some direct marketing expenses. That
far outpaced the rate of growth for all
categories combined, which in that time
edged up by just 2.7%, according to
ZenithOptimedia.
Not only is the once-staid insurance
industry luring top talent—Mark
LaNeve, General Motor Corp.’s former
top marketer, left to take the Allstate
CMO job in 2009—but insurance
Can’t tell all these insurance campaigns
apart? From Mayhem to The World’s
Greatest Spokesperson in the World, we
offer the facts and figures behind the faces
in one handy cheat sheet.
MORE INSIDE
➜ See PA PA P GE 31
SeeINSURANCE on Page 30
SURVEY
GEICO
98
%
When participants
were asked to match
brands to ads they
recognized, Geico
was the clear winner.
PROGRESSIVE
92
%
USAA
79
%
STATE FARM
76
%
NATIONWIDE
75
%
ALLSTATE
63
%
FARMERS
59
%
ESURANCE
52
%
TRAVELERS
24
%
LIBERTY
MUTUAL
10
%
AMERICAN
FAMILY
INSURANCE
9
%
Resource Interactive,
Wieden, Mullen,
McGarryBowen,
Rosetta, Pereira &
O’Dell—execs from
agencies honored in
our A-List issue were
on hand for the big
shindig held in
Manhattan.
Geico’s gecko and Progressive’s Flo have goaded Allstate
and others into upping marketing ante
C
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20110221-NEWS--0002,0003-NAT-CCI-AA_-- 2/18/2011 6:45 PM Page 1
www.downmagaz.com
n ad brawl
CONSUMERS: WHO’S WHO?
‘The Greatest Movie
Ever Sold’ is buying in
Product placement is explored but not bashed
by ‘Super Size Me’ filmmaker Morgan Spurlock
■BY NAT IVES nives@adage.com
will morgan spurlock’s new doc-
umentary, “POM Wonderful Presents:
The Greatest Movie Ever Sold,” turn
product placement into the
greasy fast food of the mar-
keting world? Probably not.
Product placement pres-
ents a seemingly tempting
and certifiably growing target
for someone like Mr.
Spurlock. Viewers saw 5,381
major prime-time product
placements across 12 major
broadcast and cable TV net-
works last year, up 22% from
2006, according to Nielsen.
Mr. Spurlock, of course, is
best known for his 2004 Oscar-nomi-
nated documentary, “Super Size Me,”
which vilified McDonald’s and raised
awareness around portion size and
calorie counts in the process.
But this amiable, entertaining docu-
mentary funded entirely through prod-
uct placement isn’t necessarily trying to
change anything.
The movie does make worthwhile
stops along a familiar tour of advertis-
ing’s wrongs. Mr. Spurlock and the film’s
talking heads note our lives’
inescapable saturation with ads;
marketers’ self-interested
influence over our culture; ads’
insinuation that we’re lacking
unless we buy products; and
marketers’ hooks in children.
When the movie visits São
Paulo, Brazil, which has banned
outdoor advertising, the audi-
ence marvels at its uncluttered
cityscape and envies residents
who can walk down the street
without having to constantly
fend off marketing slogans.
Mr. Spurlock doesn’t, however,
spend much time building a case that
product placement or advertising in gen-
eral hurts anybody very much. Instead
SeePRODUCT PLACEMENT on Page 29
Start spreading the news:
Walmart could take NYC
After losing previous rounds, retailer finds right
approach—with some help from the Obamas
■BY JACK NEFF jneff@adage.com
if walmart can make it there, it may
well make it anywhere. And increas-
ingly, it looks like earth’s biggest retail-
er will get the foothold in New York it’s
sought for decades.
Even some who aren’t
fans of Walmart’s big-city
dreams, such as retail con-
sultant Burt Flickinger, who
frequently works for super-
market retailers whose busi-
ness will be seriously affected by the
retailer’s New York expansion, believe
things will be different this time. For
that he largely credits a marketing and
PR strategy that has turned the Obama
administration from enemy to ally and
neutralized or co-opted segments of the
traditional Walmart opposition such as
environmentalists, building trade
unions and advocates for nutrition and
the urban poor.
Progress in New York and other
urban areas where Walmart is weak
couldn’t come at a more welcome time
for the retailer. Walmart has had six
consecutive quarters of
declining same-store sales in
the U.S., and signs point to
the quarter ended Jan. 31 as
being particularly rough
(Walmart doesn’t report
results for its fiscal fourth
quarter until Feb. 22 and declined to
comment on results prior to that.)
Consumer panel data from
SymphonyIRI, for example, show
Walmart losing significant share in
several packaged-goods categories,
according to Deutsche Bank analyst Bill
SeeWALMART on Page 28

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Advertising Age | February 21, 2011 3
This won’t come as a surprise, but Warren Buffet knows
what he’s doing when it comes to money.
When the Oracle of Omaha told Geico CMO Ted Ward,
“The one thing I don’t want you to have stand in your way
[to market Geico] is money,” he made yet another brilliant
investment. According to a Lightspeed Research study for
Advertising Age, 93% of consumers recognize a
description of Geico’s advertising, well above the No. 2
most-recognized ad, Progressive, with 82%. Better yet,
98% were able to link the ad description to Geico.
But after Geico and Progressive, there’s a lot of confusion
among consumers. The survey, conducted online among
502 Americans last week, gave respondents unbranded
descriptions of 11 TV ads and asked them to identify the
insurer. Of the 11, only four (Geico, Progressive, Allstate and
State Farm) were recognized by at least half of respondents.
When they were given a list of insurance companies to match
them to, only five were correctly identified at least 75% of
the time (add Nationwide to the above list). Fewer than 25%
of respondents could recognize seven of the ads.
“It’s sad that I can recognize some of the commercials
but not the companies,” wrote one respondent.
The exceptions were spots featuring Flo and the Geico
gecko, whose unbranded ads were recognized by at least
three-quarters of respondents. While almost everyone
who recognized the ads was able to link the lizard to Geico,
Flo came in a close second with 92% of consumers
knowing that she represented Progressive. But while many
raved about both characters (“Funny and entertaining and
sometimes catchy”) it wasn’t clear that the message was
getting across. “50 minutes can save you 50% on your car
insurance,” wrote one respondent, vastly overstating
Geico’s pledge of “15 minutes can save you 15% or more on
your car insurance.”
As for Flo, one respondent went so far as to give her
fashion advice: “I wish Flo from Progressive would comb
her hair or get a new style … and lighten up the flaming red
lipstick.”
But look out, Flo, Mayhem is moving up the charts. After
the top two, the most-recognized ad description was
Allstate, with 65% of consumers saying they knew the ad,
although when those same consumers were asked to
associate it with a brand, only 63% correctly matched
Mayhem with Allstate. (Overall, however, among the total
sample, Mayhem clocked in with only 41% of respondents
being able to link him to Allstate.) All that said, Mayhem got
a lot of rave reviews. “The Mayhem ad made me laugh out
loud!” said one. “Hilarious!” said another.
But beyond brand association, there might be a
question as to whether all these ads are selling. “I love the
Geico and Allstate commercials. They are forever stamped
in my brain,” said one respondent, who then added, “That
being said, I am not a customer of either. I just enjoy the
commercials.” Another commenter captured the dynamic
that is driving ads in the category: “I do not buy insurance
by the commercials. I go online and buy by price.”
And then there’s this comment, typed in indignant all-
caps: “Just give us better rates. Save money on all the
stupid commercials and pass the saving on to the policy
holders!” —JUDANN POLLACK
PHOTOS BY ROB TANNENBAUM
PART OF A SERIES
BEYOND
BENTONVILLE
SPURLOCK:
Latest film does not
build case against
product placement.
20110221-NEWS--0002,0003-NAT-CCI-AA_-- 2/18/2011 6:57 PM Page 2
■BY NATALIE ZMUDA nzmuda@adage.com
it’s hard to imagine that a brand the
size of Diet Pepsi spent just $500,000
on measured media in the past three
years combined, but that’s exactly
what happened.
With the focus on programs like
Refresh Project and brands like Pepsi
Max, Diet Pepsi was pushed to the side-
lines. The brand has been included in
trademark campaigns—it was featured
in media buys for Refresh Project
throughout last year—but it’s been four
years since Diet Pepsi received dedicated
attention. According to Kantar, Diet
Pepsi spent $63 million on measured
media in 2006, less than half that in 2007
and just a half-million dollars since then.
Surprisingly, sales have been steady
despite the piddling advertising outlay.
According to Beverage Digest, though
volume has declined, the decline is in
line with what’s happening across the
diet cola and carbonated soft-drink cate-
gories. “It’s not that we haven’t invested
in Diet Pepsi, but everyone related
[Refresh Project] to Pepsi,” said Ami
Irazabal, marketing director at Pepsi.
“We are going to actually start talking
to our consumer again. … We have our
loyal followers that are a specific psy-
chographic, and we want to make sure
we talk to them on a one-to-one level.”
To that end, the brand is introducing
a new package, the Skinny Can, and
building a major marketing program
around it, slated to run throughout
2011. The can will become part of Diet
Pepsi’s permanent lineup. (Pepsi’s
Skinny Can is a full 12 oz. serving.
Competitor Coca-Cola has experiment-
ed with slimmer and shorter cans that
are not a full 12 oz. in some markets.)
“The challenge is making sure that
packaging is a legitimate way to do mar-
keting,” Ms. Irazabal said. “Sometimes
people think innovation is about chang-
ing what’s inside. But sometimes I think
it’s about celebrating what’s inside in a
different way.”
Ads promote the can but also convey
the idea of “getting the skinny” or the
inside scoop on the latest in culture, fash-
ion, style and design. The can will be
available nationwide in March and will
be touted with an array of media, includ-
ing print, out-of-home, TV and digital
buys. “Modern Family’s” Sofia Vergara
is featured in early print and out-of-
home executions and is being consid-
ered, along with several other personali-
ties, for TV ads, Ms. Irazabal said. She
declined to comment on marketing
spend for the effort, though she called it
“substantial.” TBWA/Chiat/Day, Los
Angeles is working on the campaign.
A slew of partnerships and retail pro-
motions are also a part of the effort. A
promotion that gives consumers $5 off a
purchase at Target when they buy a
four-pack of Skinny Cans and a People
magazine is launching late this month.
And Diet Pepsi was an official sponsor of
New York Fashion Week, where the can
was presented as a fashion item and
handed out to the trendsetting crew that
frequents runway shows.
To help conceive the effort, it formed
a “Pop Culture Council,”including per-
sonalities like Simon Doonan, creative
ambassador for Barney’s, and convened
at Eventi Hotel in Manhattan in
December. Because of contractual obli-
gations, Diet Pepsi declined to name all
those in attendance, but said the group
included well-known designers and
stylists. Ms. Irazabal said that the group
was presented with various ideas and
advertising concepts and told to “pull
them apart and rebuild them.”
“They were saying you need to stop
thinking as a staple product and
think as we think in the fashion
and design industries,” Ms.
Irazabal said. “That’s not our
expertise, so we need to be smart
enough and humble enough to
call those that know better
than us.”
The effort is not with-
out controversy. The
National Eating Disorders
Association put out a press
release saying it “takes
offense” to the idea. “Pepsi
should be ashamed for
declaring that skinny is to
be celebrated,” said Lynn
Grefe, president-CEO of
NEDA. Various blogs and
news outlets have also
decried the Skinny Can and
a company press release
that called the can “slim”
and “attractive.”
Ms. Irazabal says she
anticipated some would respond
negatively to the Skinny Can, adding
that it’s a topic her team addressed with
the Pop Culture Council. The fashion
industry, after all, is no stranger to con-
troversies related to body shape.
Because of those discussions, Ms.
Irazabal says she’s felt confident in
responding to criticisms. “It’s the new
shape of a product. We’re not talking
about the form or shape of a woman,”
she said. “And it’s also the marketing
platform, getting the skinny, the inside
scoop, on fashion, style and design.”
Eric Gustavsen, founding partner at
creative firm Graj & Gustavsen who has
no connection to the project, said he
expects controversy will blow over
quickly. “It’s more of a fun idea than it is
derogatory to a group,” he said, adding
he expects consumers will gravitate
toward the new can because it’s novel.
“This particular idea is simple enough
and understandable enough that it may
very well have mass appeal. It’s cool and
different.That doesn’t mean it’s going to
redefine what a soda can shape is, but
there’s nothing wrong with breaking
away and experimenting.”
■BY NATALIE ZMUDA nzmuda@adage.com
dr pepper doesn’t want there to be
any confusion. Its new 10-calorie soda
is simply “Not for Women.”
Dr Pepper Ten, a reduced-calorie
soda, is unapologetically tar-
geting men, a bold move in
a category that has had its
fair share of marketing
missteps. Coke Zero and
Pepsi Max, both billed as
full-flavored sodas with
zero calories, had difficulty
nailing down the right
message for a diet product
that’s meant to appeal to
men.
Aware of those mis-
steps, Dr Pepper is rolling
out an extensive test cam-
paign for the new product,
its packaging and market-
ing. Dave Fleming, direc-
tor-marketing at Dr
Pepper, called the test,
which runs from now
through June, “elaborate,”
saying the strategy is atyp-
ical for the company,
though he declined to dis-
cuss his competitors’ for-
ays in the space. Coke Zero
appeals to men via a
Nascar partnership and
movies such as “Tron: Legacy”
and Pepsi Max through its sponsorship
of the NFL, though neither explicitly
proclaim they are men’s products.
Pepsi Max scrapped its “diet cola for
men” tag last year.
Dr Pepper Ten was created for 25-
to 34-year-old men who prefer regular
Dr Pepper but want fewer calories.
And its inclusion of 10 calories, rather
than zero like its competitors, allowed
it to deliver a flavor closer to the regu-
lar version, Mr. Fleming says.
“We have a lot of excitement about
this and wanted to give it fair treat-
ment, so it would resemble a national
launch in test markets,” he said. “We
want to make sure that, if we do take
this national, we understand all the
variables.”
To that end, Dr Pepper Ten will be
trotted out with commercials created
by Interpublic Group of Cos.’ Deutsch,
Los Angeles, which also handled out-
of-home, digital and in-store efforts. A
mobile “Man Cave” will also travel to
each of six test markets, including
Denver and Colorado Springs, Colo.;
Des Moines, Iowa; Kansas City, Mo.;
and San Antonio and Austin, Texas.
The branded trailer will set up in
“testosterone zones”such as ball fields
or car shows and give men a place to
watch TV and play video games. Mr.
Fleming declined to comment on the
budget for the effort, though he said it
resembles what the brand would
spend for a national launch, on a local
basis. Interpublic’s Initiative handled
media buying.
The packaging and marketing are
both heavy on masculinity, but also
clearly state the brand proposition,
something Coke Zero and Pepsi Max
struggled with. Coke Zero’s first cam-
paign, “Everybody Chill,” left con-
sumers confused, as did Pepsi Max’s
original billing as a diet drink that was
a cross between an energy drink and a
cola.
On the can, a slate gray background
is offset by Dr Pepper’s logo and a red
box proclaiming the product’s “10 Bold
Tasting Calories.”The commercial fea-
tures a muscled commando type
sprinting through the jungle dodging
lasers and toting a space-age weapon.
“Hey ladies, enjoying the film?” he
asks. “’Course not. Because this is our
movie, and Dr Pepper Ten is our soda.”
He signs off by telling women every-
where they can “keep the romantic
comedies and lady drinks.”
Mr. Fleming said he’s not out to
alienate women, that the goal is to be
direct and have fun. “Did we have a
conversation about how far we wanted
to go with this message? Absolutely,”
he said. “But we did the research, and it
scored well with men and women.”
In theory, so-called mid-calorie
sodas will appeal equally to men and
women, with a sweet spot among 25-
to 34-year-olds, said Bill Pecoriello,
CEO of Consumer Edge Research. But
he points out that Dr Pepper Ten is
clearly intended to appeal to the target
market staked out by Coke Zero and
Pepsi Max. Both brands have found
success. Pepsi Max became PepsiCo’s
19th billion-dollar brand in 2009, and
Coke Zero is one of Coke’s most suc-
cessful launches ever, consistently
posting double-digit sales gains.
Mid-calorie sodas such as Dr
Pepper Ten could be just the boost the
struggling soft-drink category needs,
as consumers look to trim calories
from their diets and health advocates
blame the fizzy drinks for obesity and
diabetes. Earlier efforts, including C2
and Pepsi Edge, flopped, but now some
in the industry believe this in-between
category could appeal to consumers,
said John Sicher, editor and publisher
of Beverage Digest. “I think that full-
calorie beverages continue to have dif-
ficult headwinds,” Mr. Sicher said.
“The performance we’re seeing from
brands like Coke Zero, Diet Mtn Dew
and Diet Dr Pepper indicates that diets
and perhaps mid-cals may be the
future route to growth for the soda
category.”
Mr. Fleming hedged when asked
what sort of potential Dr Pepper Ten
could have, saying only that the com-
pany is “very excited” and would be
closely watching the test markets to
see how consumers react to the prod-
uct and the marketing.
NO GIRLS ALLOWED:
New spots declare
Dr Pepper 10 a man’s
soda.
THIN IS ALW ALW AL A WA W Y AY A S IN:
In fashion, that is—
and Pepsi hopes in
soda, too.
4 February 21, 2011 | Advertising Age
Can Dr Pepper’s mid-cal
soda score a 10 with men?
Skinny Pepsi can launch
is heavy with controversy
BATTLE OF THE SEXES HITS THE SODA AISLE
Pepsi rolls out slim can to appeal to the fashion-forward,while Dr Pepper joins ongoing effort to make diet drinks appeal to men
20110221-NEWS--0004-NAT-CCI-AA_-- 2/18/2011 4:06 PM Page 1
www.downmagaz.com
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Conference and Awards Show: July 27-28, 2011 - Denver, CO
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AA010277 2/17/11 2:32 PM Page 1
6 February 21, 2011 | Advertising Age
Allina Health Systems | Alltel | AT&T | BAE Systems | Bombardier | Brass Craft | California Association of REALTORS | Carrier | Center for
Disease Control - Immunization | Center for Disease Control - National Prevention Media Initiative | Environmental Protection Agency | Federal
Citizen Information Center | GM | Ghirardelli | GMAC | Hagerty Insurance | HAVEN | Kaiser Permanente | Lowe’s | McKesson | National
Fatherhood Initiative | National Flight Academy | NEC Corporation | NY State Dept. of Health | OnStar | The Partnership for a Drug-Free America
|PPG/Oly-mpic Paint and Stain | USAA | United States Department of Education | U.S. Mint | United States Naval Academy |United States
Navy | United States Navy Reserve | United States Postal Service | United States Postal Inspection Service | University of Michigan Health
System | Wyndham Worldwide — Campbell-Ewald is one of the largest advertising and digital communications agencies in the United States, with
almost $2 billion in annual billings. The company currently has over 30 clients. Campbell-Ewald has offices in Los Angeles, Washington D.C., and San
Antonio and has its headquarters in Warren, Michigan, just north of Detroit. The agency currently has over 1,100 employees. They are the agency be-
hind campaigns for Kaiser Permanente (“Thrive”), The U.S. Navy Life”), Alltel Wireless (“Come and Get Your Love”), and Chevrolet
(“The Heartbeat of America”, “Like a Rock”, “An American t of the Interpublic Group of Companies. Contents [hide] 1
Controversy 2 History 3 Capabilities 4 Clients 5 References 6 Controversy Campbell-Ewald’s Social Media group gained notoriety
in 2006 with a controversial campaign for the Chevrolet Tahoe Apprentice which allowed the public to create their own Tahoe ad in
hopes of winning a new Tahoe SUV. Controversy arose when se groups began creating anti-Chevrolet ads that garnered national
media attention. Over 400 negative ads were created, however positive ads were created making it one of the earliest and most
successful examples of user-generated content. Overall, the controversy only helped as the Tahoe had the most successful launch in Chevrolet history.
[1] edit] History The agency has a long-standing history in the Detroit area and is approaching its 100th anniversary in the advertising industry.
In 1911, Frank Campbell and Henry Ewald merged their individual Detroit companies to form Campbell-Ewald, beginning with just six employees.
Chevrolet became the agency’s first major client in 1919, and by 1922, Campbell-Ewald was awarded all of General Motors’ ad business. The agency
has continued its partnership with GM for more than 90 years, while diversifying their client base into the government, health care, retail, technology,
and many other fields. Campbell-Ewald became a part of the Interpublic Group of Companies (IPG) in 1972 to further its influence and recognition
in the industry. In April 2010, GM moved Chevrolet ad works to rival agency Publicis Worldwide, ending a 91-year relationship with Campbell-Ewald.
[edit] Capabilities Creative Campbell-Ewald has an award-winning creative staff that uses an integrated model; most creatives are equally proficient
in both traditional and emerging medias. Custom Publishing Campbell-Ewald’s Custom Publishing content pieces include newsstand magazines, print
and digital newsletters, branded content and other related digital content. Direct Marketing Direct marketing is one of the largest disciplines within
Campbell-Ewald. The Direct Marketing group at Campbell-Ewald is responsible for a number of outputs, including strategy consulting, design and art-
work development, direct response advertising, direct mail production coordination, database design and development, media and list planning, email
and interactive media marketing, loyalty and incentive programs, and qualitative and quantitative research. Environmental Marketing Environmental
marketing, also known as Green Marketing, is a practice at Campbell-Ewald that involves sustainable marketing products and practices deemed safe
for the environment. The practice was founded in 2007 by Campbell-Ewald President, Mark Bellissimo. Experiential Marketing Since 1998, Campbell-
www.picrow.com
years!
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congratulates
Campbell Ewald
pictures in a row
We’re proud to be part of your history.
them feel more confident than
they ever did while owned by
German carmaker Daimler or pri-
vate-equity firm Cerberus Capital.
His latest roll of the dice was a two-
minute, $9 million Super Bowl ad,
featuring Eminem’s anthem and
the rap star himself, to launch a
new strategy and tagline around
the Chrysler brand: “Imported
From Detroit.”
“He’s a maniac,” said Mr.
Martin of Mr. François, noting that
he and Eminem turned down over
100 deals to use the song in ads
before agreeing to sell it to
Chrysler. “The whole thing had a
surreal quality to it … this French
guy and all this he was telling us
about loving Detroit and how
important [Eminem] is to the city.”
If it weren’t for Mr. François’s sales-
manship, “We never would have
done it,” he said.
While the gambit took a lot of
ad-watchers off-guard, the idea of
featuring the city of Detroit and
playing up the heritage and history
of making cars is not a new idea.
“This idea has come up for Chrysler,
Chevrolet and Pontiac a handful of
times in the last 20 years,”said Gary
Topolewski, an independent creative
director who has worked on
Chrysler, Dodge, Jeep and other car
brands.“But it always got shot down
by the executives who have worked
in Detroit their whole lives, fearing it
wouldn’t play on the coasts.”
But Mr. Olivier greenlighted
the idea, which originated with
Wieden & Kennedy. “Maybe it
takes people from outside the city
to see the possibilities and passion,”
said Mr. Olivier. Of the four brands
he took over, Chrysler has been the
biggest challenge. It is not general-
ly viewed as a luxury brand, but he
is positioning it as “new” luxury.
“Beautiful, passionate design and
comfort for people who don’t for-
get where they came from,” said
the Paris-born Mr. François, who
thought he would enter the diplo-
matic corps after getting a political
science degree in the late 1980s. An
advertising and marketing degree
from Sorbonnes Celsa, however,
led him to Citroen and then Fiat.
When Fiat took control of
Chrysler after the federally assisted
bankruptcy, it didn’t take long for
Mr. Olivier to hit on the need to
change the way the company
thought about its messaging. Long-
time agency BBDO was served
notice after working on the Chrysler
business for 65 years. A review
ensued in which agencies had to pre-
pare strategies for Chrysler, Dodge
and Ram Truck brands.The Richards
Group of Dallas won Ram; Fallon
Worldwide took Chrysler and
Wieden & Kennedy took on Dodge.
Global Hue retained Jeep and multi-
cultural duties.
Since then, Mr. Olivier has
restructured things, separating
agencies by job rather than brand.
Wieden now leads on all national
branding for Chrysler, Dodge and
Jeep. Doner, Southfield, Mich.,
replaced Fallon when the latter
resigned Chrysler to take on
General Motors’ Cadillac, and han-
dles the retail-driven ads for all four
brands. Richards retains Ram, with
the thinking that the truck market
is a unique ad space, and also
because Chrysler plans to introduce
more models—such as commercial
vans—under the “Ram” brand.
And Global Hue handles multicul-
tural ads on all four brands.
“Things sorted themselves out
based on which agency was doing
the best job at each function,” said
Mr. François, who admits it can be
tough for agencies to work with
him because of how much he gets
involved “as a creator.”
He is known for making fast
decisions mostly on instinct.
“Meetings tend to run fast, and
ideas don’t get a lot of wind-up,”
said Richards Group CEO Stan
Richards. In November 2009, Mr.
François approved putting “rip”
videos (mood videos created with
stock photography and voiced by
agency staff used largely for inter-
nal use) produced by Richards for
Ram truck and Global Hue for Jeep
on national TV as commercials
despite low production values. “I
was shocked, but I did not object,”
said Mr. Richards, whose voice was
on the ad, with a laugh.
Last August, Mr. François
approved an idea after just a few
minutes of brainstorming with
Wieden staffers on how to respond
to protests from animal-rights
groups over the use of a chimp in a
Dodge retail ad—the chimp was
removed, but the clothes he was
wearing were left behind, giving the
ad an odd “invisible chimp” effect.
Not only was PETA pleased, but the
new commercial went viral; the
original hadn’t. And for an
Independence Day-timed Dodge ad,
he approved a spot showing George
Washington leading a column of
Continental soldiers into battle
against British redcoats driving
Dodge Challengers. “Some of our
team had a lot of doubts, but I knew
right away and approved it off the
FRANÇOIS FROM P. P. P1
storyboards,”Mr. François said.
Advertising “American” for
Detroit automakers has been a kind
of taboo, especially since, until
recently, they badly lagged Asian
companies such as Toyota and
Honda. But Mr. François and his
agencies have injected images of
Americana and messages of pride,
hard work and reward into their ads.
“We’re from America,” proclaimed
the Super Bowl ad. “The things that
make us American are the things we
make,” go the Jeep ads. Mr.
François hints that he has much
more in store to link the Chrysler
brand to the comeback of the city of
Detroit, in which he wants Chrysler
to be a key player.
“You can do this sort of thing
very badly,”said independent mar-
keting consultant Dennis Keene.
“But I have to say that Chrysler is
bringing so much art to the mes-
saging that I think it flies, though
they are walking right on the line.”
Doner CEO David Demuth
says working with Mr. François is
“like working with a creative direc-
tor on the client side.” He doesn’t
just approve or reject ideas or sto-
ryboards like most CMOs. For
example, trained early in his life in
music, Mr. Olivier sits down with
composers and tells them exactly
what he wants or is looking for. For
the Super Bowl ad, he worked with
composer Luis Resto on the adap-
tation of “Lose Yourself.”
The ad did not include
Eminem’s lyrics, just the music.
Wieden cast Detroit gospel choir
Selected By God to perform in the
Super Bowl ad, but it was Mr.
François, said Mr. Resto, who
directed the crescendo leading into
Eminem’s line: “This is the Motor
City. This is what we do.” Added
Mr. Resto,“How many car market-
ing guys can sit down and tell you
why he wants a ‘melancholy
piano’…that was a first for me.”
Indeed, Mr. François, who does not
play piano, has nevertheless com-
posed or co-composed music for
numerous Lancia and Fiat ads. He
gets no royalties or payments.
What he’s doing is importing
the strategy to Chrysler that he
has long used in Europe on Lancia
ads. “You’ve got to tell stories that
grab people by the collar, and that’s
what we try to do,” said Mr.
François. In a 2007 ad for the
Lancia, he approached fashion
designer and gay icon Stefan
Gabbana to appear in an ad. Mr.
Gabbana initially refused. But
after Mr. François laid out the sto-
ryline of the ad in which Mr.
Gabbana, driving a Lancia Delta,
would be tempted by a beautiful
woman and end up in a passionate
kiss, he not only agreed, he agreed
to do it for no fee. The ad created a
publicity sensation in Europe and a
sequel was produced.
Mr. François coyly said he does
not like to use “spokespeople.” But
his two ever-present BlackBerrys
run deep with celebrities who have
appeared in his ads: Carla Bruni
Sarkozy, Richard Gere and even the
Dalai Llama. Of those, only Mr.
Gere took a fee, and it was for his
charity. Even Eminem sold
Chrysler rights to his song for 20%
of what he could have gotten just to
be part of the ad. Oscar-winning
actor Adrien Brody directed a
Chrysler ad late last year, his com-
mercial directing debut, and voiced
the ad as well.
Clearly Mr. François doesn’t
mind poking at beehives. He
launched the Richard Gere ad spot-
lighting the plight of Tibet the week
the Beijing Olympics kicked off.
And for the past three years he cre-
ated Lancia ads to run the week of
the annual World Summit of Nobel
Peace Laureates to spotlight the
imprisonment of Nobel Peace
Laureate Aung San Suu Kyi, a
Myanmar pro-democracy leader.
The ads show laureates arriving in
Lancias, and close to show a Lancia’s
rear door opening with no laureate
riding in the backseat, representing
Ms. Suu Kyi’s absence. Mr. François
was editing the latest ad when he
got word Ms. Suu Kyi would be
released, necessitating fast changes
to the ad, which he directed from a
Delta Airlines flight.
Given his track record, few
doubt Mr. François’ ability to get
attention for Chrysler’s slowly
recovering brands. The Super Bowl
ad, for example, generated more
online buzz and news coverage
than Chevy’s five ads combined.
Dodge brand CEO Ralph Gilles
defends Mr. François’s penchant for
risk-taking. “People get all the
product information they need
online … the role of the ads should
be to light a fire under them, and
drive them online to check us out.”
But Mr. François has to turn
those bursts of attention into sales
and favorable opinion. Chrysler’s
retail market share before Fiat took
it over in 2009 was 8.9%, according
to Automotive News figures, and
by 2010, it hit 9.4%. In the three
years Mr. François ran Citroen in
Italy, the brand more than doubled
market share to 6.5%.
The Chrysler-Fiat team has
worked at breakneck pace since
summer 2009 to make dramatic
improvements to core vehicles. The
300 makeover alone cost $1 billion.
“We are no longer ashamed of the
products we are selling,”said brutal-
ly frank CEO Sergio Marchionne.
The biggest obstacle is the
mostly terrible quality ratings
from Consumer Reports and J.D.
Power. The makeover has corrected
many past sins, but it will take two
to three years for the ratings to
move up to reflect it because of
how the organizations work their
rankings, and even longer for con-
sumers to trust.
Chrysler this year plans to do its
initial public offering in the fall. It’s
imperative that institutional
investors and stock analysts believe
Mr. Marchionne’s team and opera-
tion is headed in the right direction.
Not only do retail sales need to
climb, but the overall operation,
from product to marketing, needs
to have credibility with investors
and the public.
Last year, Mr. François com-
missioned a corporate ad effort
from Gotham, New York, but
decided not to run it, deciding
instead to plow the money into the
Jeep Grand Cherokee launch. Said
one Chrysler insider, “He knows
where the priorities are: sales.”
20110221-NEWS--0006-NAT-CCI-IN_-- 2/17/2011 6:16 PM Page 1
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buy tickets: adage.com/ideadetroit
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AA010278 2/17/11 3:31 PM Page 1
Congratulations, Campbell-Ewald, on reaching a birthday few achieve in this business.
We salute you on a century of great work.
©2011 General Motors. All rights reserved.
AA010272 2/15/11 1:23 PM Page 1
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A SPECIAL ADVERTISING SECTION OF
CAMPBELL EWALD
aa08p 2/16/11 12:46 PM Page 1
We know what it means to serve. ®
AA010270 2/15/11 1:20 PM Page 1
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CAMPBELL
EWALD
SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
C3 FEBRUARY 21, 2011
Time and time again, CE has been ahead of the curve in
seeking solutions for its clients’ business needs—but quietly
and without fanfare. As it begins its second century, CEcon-
tinues to push the boundaries of what an “advertising
agency” means and does.
Phil Guarascio, who workedwithCEfor 15 years as Gen-
eral Motors Corp.’s VP-corporate advertising & marketing,
remembers his first up-close exposure to the agency’s work
in the mid-1980s. “My first insights and thoughts were that
in their world, they were the agency of the future—because
the breadth of work they performed for Chevrolet was so
wide that it really defined what you’d call the whole egg the-
ory,” Mr. Guarascio says.
CE Chairman-CEO Bill Ludwig says the agency is “a
product of our client needs. If you think about the kinds of
clients we have, they are complex clients with complex
needs—parent brands and subbrands, complex relation-
ships between national marketer and local entities.”
As a key agency for GM since 1919, and until last year
agency of record for Chevrolet—for years the largest single
advertising account inthe nation—CEhad the opportunity
and the challenge of managing an account that entailed big
national image ads, co-op dealer advertising and local retail
marketing. Agency founder Henry Ewaldactually purchased
a Chevy dealership in 1928 to better understand his client.
The experience of managing such a demanding piece of
business steered CE into integrated communications long
before it became an industry trend. Says former CE Chair-
man Tony Hopp: “If it hadn’t been for our relationship with
GM, we would not have home-grown these capabilities—
in research, analytics, direct marketing, CRM. It drove us to
be what we are today.”
The flip side was that for years, Chevy and the agency’s
legendary campaigns for the brand defined CEto the world.
Just 10 years ago, GMrepresented 80 percent of the agency’s
billings. It was then that Mr. Hopp and his team began to
diversify.
Michael Roth, chairman-CEOof parent Interpublic, re-
members visiting CE’s Warren, Mich., headquarters when
he assumed his post. “I challenged them to recreate their
agency so that they wouldnot be as dependent onone client.
They did a remarkable job, bringing in excellent clients.”
By last year, CE’s diversification meant that Chevy only
represented 25 percent of billings. Says Mr. Roth, “So while
the loss of Chevy was not good news, they were positioned
to handle it.
“They have also done a remarkable job with digital and
social media and developing the other revenue streams that
have become so important in this business,” he says. “In a
lot of ways I don’t think they get enough credit for what they
have done.”
For Chief Client Officer Jim Palmer, who has led the
agency’s diversificationpush, a“watershed moment”arrived
in 2000, when CE pitched the U.S. Army account and came
in second to Leo Burnett USA. “As soon as we lost that one,
the NAVY account came up for review,” says Mr. Palmer.
“We applied the insights we had uncovered and won the
NAVY account against a lot of big players.”
The deep and broad capabilities CE brings to the table
have helpedit developa client roster of blue-chipcompanies
representing a diverse group of industries—from complex
government entities such as the NAVY and the U.S. Postal
Service to companies whose products represent serious con-
sumer commitments, including Kaiser Permanente and
USAA. Each client, however, came to CE in search of more
than clever creative.
Mr. Ludwig says it’s about understanding that “it is not
about producing ads or commercials, but creating content
that engages consumers no matter what the channel. There
are great branding agencies andgreat promotionagencies out
there, but we manage the entire process better than anyone.”
Take the breadthof the workCEhas done over 11 years as
agency of recordfor the NAVY. Inadditiontoits TVandprint
ads, CEhelpedthe NAVYcreate andmanage a computerized
system that tracks recruits from boot camp until they are
placed on duty. The agency also designed NAVYFor-
Moms.com, an interactive community that brings together
mothers of NAVYrecruits—whose concerns about their chil-
dren are frequently a key barrier in recruiting efforts. These
are not advertising solutions, but business solutions.
CE began making news in social media back in 2006,
with several initiatives for Chevrolet. One campaign invited
consumers to make their own ads for the Chevy Tahoe and
post them online. Inevitably, about 400 submissions were
parody ads, poking fun at the Tahoe and the Chevy brand.
At the time, Chevy and CE were lambasted for allowing the
negative ads to be seen online. But they held firmand, in an
early understanding of the importance of democracy and
transparency in social media, let all the submissions stand.
Ultimately, the negative ads were drowned out by thousands
of other videos—andfive years later, marketing experts con-
tinue to point to the Tahoe effort as a groundbreaking mo-
ment in the development of social media.
Today, social and digital media account for a growing
part of CE’s staff andwork. Its efforts include developing on-
line communities for clients suchas the NAVYandGM’s On-
Star, creating websites and digital tools for USPS and using
its social media monitoring teamas a primary research tool.
CE does have a portfolio of landmark, innovative adver-
tising as well—stretching from“Capitalist Tool” for Forbes
magazine to a long list of memorable Chevrolet campaigns,
including “See the U.S.A. in Your Chevrolet” and“Baseball,
Hot Dogs, Apple Pie and Chevrolet.”
Chief Creative Officer Mark Simon says, “I don’t think
there is a CE style of advertising, but there is definitely an
approach.”
That approach begins with a search for what CE calls the
Quality of Life Insight. Mr. Simon says it’s about finding that
point where the brandpromise—its functional benefit—con-
nects with consumers’ emotions. The goal, ultimately, is to
provide what Mr. Ludwig calls“a NorthStar for the business.”
The “Thrive” campaign for Kaiser Permanente has been
a NorthStar for the healthcare provider inunexpectedways.
“My target audience is the nonmember consumer,” says
Debbie Cantu, VP-brand marketing & advertising for KP.
“My expectation was that this work would cause those con-
sumers to take another look at KP and consider signing up
for our plans. But I never expected that one of the groups
deeply affected by this work would be our employees.”
When the company previewed the“Thrive”campaign for
employees, the KPstaff stooduptoapplaudandtoldthe mar-
keting team that the ads expressed their feelings about why
they had gone to work in healthcare in the first place. “This
campaignhas changedhowwe thinkabout what we do, as well
as howwe are perceived in the marketplace,”Ms. Cantu says.
CE’s own North Star has always been its clients.
“We have had, since our founding, a client-first culture,”
says Mr. Hopp, who spent his 41-year advertising career at
CE. “Our founder, Henry Ewald, said, ‘Put the clients’ inter-
ests first, last and always, and the rewards will flow back to
you.’ That is our culture. We put our clients in the center;
that is what we drive toward.”
Inthe single-minded pursuit of great business results for
clients, CE has always thought above the line, belowthe line
andout of the box. Mr. Simonrecalls a promotioncampaign
in the agency’s early years. “Frank and Hank,” as he likes to
refer to agency founders Campbell and Ewald, “were really
innovators. Visionaries,” he says. “They worked to promote
a steamship line with what today we’d call a guerilla mar-
keting tactic: They arranged to have a car drive through the
ship’s steamstack—the point being that the ship was so big
you could drive a car through it. It was an amazing way to
look at that marketing problem.”
Says Mr. Simon, “I believe that spirit of innovation, risk-
taking and client focus still exists in our work today.”
A STEPAHEAD
campbell ewald at 100
For 100 years, Campbell Ewald has been a step ahead: Pioneering integrated mar-
keting by launching a custom-publishing unit in the 1930s. Driving auto marketers
into TV sponsorships in the 1940s. Being the first to try new approaches on TV—
live spots, color commercials—in the 1950s. Developing social media campaigns
before anyone had heard of Facebook or YouTube.
By Julie Liesse
1920
1995
2011
CE2011:Layout 2 2/16/11 1:24 PM Page 3
Mike Hughes: WhenI think of Campbell Ewald, some things
come to mind for me. I hate it when somebody stereotypes
my agency, but I stereotype everybody else’s. And the first
things I think of whenI think of your agency are: big, broad-
shouldered, all-Americanadvertising. Advertising that’s both
inspired and inspiring. And I think of Chevrolet. How are
youfeeling about Chevrolet and General Motors these days?
Bill Ludwig: General Motors is still a great client of ours. We
have a significant piece of the General Motors’ customer re-
lations business. Andwe’re very proudof the workwe’ve done
over the years withOnStar. We just launcheda newcampaign
in the fall, OnStar’s “LiveOn,” and that’s doing great. During
my tenure on Chevrolet, I think we produced some of the
most iconic advertising in automotive history. Having spent
much of my career on that account, I’ll always love and care
for the brand. I wish Chevy its greatest success and, given the
product they’ve got today, I think they will succeed.
Mr. Hughes: You talk about iconic advertising … Campbell
Ewald created “See the USA in Your Chevrolet” and “The
Heartbeat of America.”“Baseball, Hot Dogs, Apple Pie and
Chevrolet.” But even today, “Thrive” for Kaiser Permanente,
“Come and Get Your Love” for Alltel—these are big cam-
paigns. Howdoyouguys dothis? Howdoyoukeepdoingthis?
Mr. Ludwig: We have a unique agency, and we’ve built our
agency based on the needs of our clients. Early on we at-
tracted clients that require big purchase decisions—joining
the NAVY, buying a car. Package delivery decisions for a small
business owner are big. Because of those clients, we’ve had
towrestle witha lot of complexity—bothinthe purchase de-
cision process and the complexity between creating that
strong emotional bond with a national brand—and then
driving it right down to the local markets, activating sales,
managing one-to-one communications betweena customer
and the company. Because of that, I think we attract clients
that have big issues to wrestle with.
Mr. Hughes: Youhave a lot of infrastructure to handle things
aroundthe country, but you’ve also hadthese big retail kinds
of jobs. Selling cars, for instance, requires a certain nimble-
ness. Howdo you manage to do both of those things?
Mr. Ludwig: Retail requires a very, very fast turnaround, sowe
built the company on that, and more important, we’ve built
a culture aroundthat. Whenyouhave a culture like that, when
anyone pulls that fire alarm, we spring into action—whether
it’s tosmother a problemor toleapat anopportunity. I think
it’s healthy tothink of yourself as a start-upcompany, andwe
surely do. So we’re consciously behaving that way. Because of
that nimbleness, and because of our breadth of services and
our depthof services, we canscale upor scale down, whichis
interesting. We can take on a huge client with complex needs
and manage them across a breadth of services. But we can
also take on clients that need nimbleness, need a smaller
group—maybe somebody who wants a CRM program or
creating, monitoring and managing a community in a social
space—we can handle those projects as well.
Mr. Hughes: You’ve also been a leader in the digital space.
Tell me about what you’re doing there.
Mr. Ludwig: We were early pioneers of the social space and
realized that most of our clients need to have one-to-one
engagement with their customers. It’s built around our be-
lief that the way to truly deliver business-transforming ideas
onbehalf of our clients is to create fans of the brand and en-
dorsers of the products that will ignite conversations and
experiences that candemonstrate howa brand enhances the
quality of life to a targeted consumer. We’re really handing
a megaphone to our fans of brands to have them become
advocates on behalf of the brands. That’s what branding is
about—howcanI alignthe conversationwithwhat we want
themto be saying? And howcan we create promoters of the
brand and reduce the number of detractors out there?
Mr. Hughes: Every agency today wants to do, for example,
different things that define an era. Back in the ’80s, I re-
member, the hip agencies didn’t want taglines and they
didn’t want to do music. And Campbell Ewald was doing
these really big things. It should be that your time has come
now, I think, because everybody else is trying to do that
now. Do you have any thoughts about that?
Mr. Ludwig: I keep wanting to do a great jingle again.
Wouldn’t it be fun to reinterpret it for the newmillennium?
We found ourselves creating tools and methodologies that
allowed us to gain great consumer insight. We were one of
the pioneers of anthropological research in the late ’80s.
That was a conscious effort that allowed us to strike such a
deep emotional chord with “Like a Rock.” We ended up
branding that process later on, calling it our Quality of Life
Insight. It was the belief that the brands that truly endeared
themselves to the hearts and minds of their consumers were
brands that transcended facts and features. The brands that
had this deep bond with their consumer really demonstrate
how the brand enhanced the quality of life for their target
consumer. Nike is a goodexample. Nike never talks about air
bladders in their shoes. They never talk about the fact that
these air bladders allow you to get a certain vertical lift on
your jump shot. What they do is say, “If you want to be a su-
perstar in whatever you endeavor to do, just do it.” That’s a
Quality of Life Insight.
The pursuit of this Quality of Life Insight has enabled us
to establish a deeper bond with consumers on behalf of our
clients’ brands. It’s the guy who wants to be seen as being
like a rock to his friends, family, the guys at work. It’s a mom
who’s wrestling with the fact that her son has just come in
and announced that he wants to enlist in the NAVY, and she
needs to have a deeper conversation with the people out
there also wrestling with this issue. So we send her to NAVY-
ForMoms.com, where she can talk to 40,000-plus mothers
with children in the NAVY.
Mr. Hughes: Let’s talk about you for a minute. Why are you
still in this business?
Mr. Ludwig: Youand I have beeninthis business a long time,
and this may be the most exciting time in my career. The ra-
pidity of change in technology right nowis just astounding.
What I can learn from kids coming out of school is phe-
nomenal. And the ways in which consumers interact with
brands, or the potential ways that we can leverage con-
sumers and manage that interaction, has changed so radi-
cally. We have our work cut out for us because I don’t think
that consumers are as loyal to brands as they used to be. And
the competitive set has changed. Just a secondago I was talk-
ing about scaling up and scaling down. That’s great, and we
CAMPBELL
EWALD
SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
C4 FEBRUARY 21, 2011
QA
&
BILL LUDWIG
with
Bill Ludwig was named chairman-CEO of Campbell Ewald just over a year ago and has
been leading the creative charge at the agency for more than a decade. Reflecting on
CE’s successes and his vision for the agency going forward, Mr. Ludwig opted for an un-
usual twist on a traditional question-and-answer session: A few weeks ago he sat down
in New York for a conversation with Mike Hughes, his counterpart at Interpublic Group
of Cos. sibling The Martin Agency, where Mr. Hughes is president. Segments of their an-
imated, wide-ranging discussion, videotaped by Radical Media, New York, are posted
at brandedcontent.adage.com/campbellewald2011/.
CE2011:Layout 2 2/16/11 1:24 PM Page 4
www.downmagaz.com
Press the OnStar® button, and you’re connected to the help you need. When
we call CE, it’s the same thing. From the brand-defining launch campaign
to the iconic Real Calls radio to our Live On campaign, CE always delivers
strategic, impactful campaigns. Here’s to the next 100 years of big ideas.
© 2011 OnStar. All rights reserved.
AA010271 2/15/11 1:22 PM Page 1
CAMPBELL
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SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
should leverage that. But that also means that our compet-
itive set has increased tenfold as well. So it’s not always a fun
business, but it sure isn’t dull.
Mr. Hughes: That’s true. If Frank Campbell and Henry
Ewald could come back to life and visit the very different CE
of today, they would be surprised by a lot of things. What
do you think they would still like about it?
Mr. Ludwig: They had a motto when they started the com-
pany: “Advertising Well Directed.” That is the kind of agency
we grew up to be, but the tools and the technology we may
be using today may astound them. I think they’d see, once
we explained it to them, that the ways in which we can en-
gage consumers—have that one-to-one conversation—have
enabled us to direct that advertising. So that it may be more
well directed than it has ever been, and I think they would
appreciate that.
Henry had a philosophy that we’ve adapted to CE over
time: Everything we dois inthe client’s best interest, first, last
and always—from advertising to sales activity. And I think
what we excel at is just that. We are able tofly the plane at the
40,000-foot level of big branding and create that emotional
bond. But we’re also able to land the plane in the local mar-
kets toactivate sales andcreate that one-to-one engagement.
Henry, for instance, was so passionate about under-
standing that he bought a car dealership so that he could ex-
periment with sales promotions and advertising within the
dealership. So I think he would appreciate the fact that we
can manage everything, soup to nuts. I remember a GMex-
ecutive one time saying, “Everything except for the cars and
carpets in the dealerships is designed by Campbell Ewald.”I
think Henry especially would appreciate that.
Mr. Hughes: What surprises new business prospects when
they come in?
Mr. Ludwig: I think newbusiness prospects are surprised by
our depth of thinking—and that’s not just strategic think-
ing, but thinking in all its forms and all its planning—the
tools andmethodology, the rigor that we gothroughtodrive
deep consumer insights. And thenthey’re surprised and im-
pressed by our innovation in all forms of communication.
Mr. Hughes: If I asked your clients about CE, what would
they tell me?
Mr. Ludwig: It’s funny because recently we were working on
a new business pitch and somebody reached out to one of
our clients. I saw the letter, and I was touched by it. The
client said that CE makes their clients’ business success their
business. I’mparaphrasing, but she said, I have not seen this
level of dedication or commitment with any other agency
I’ve ever worked with. And what impressed me was she’s
worked [with] some pretty good agencies.
Mr. Hughes: What accounts would CElike to get tomorrow?
Mr. Ludwig: I would like a big beer brand and a pet food. So
Budweiser, because I think we are great at understanding
bothmainstreamAmerica andGenYvalues. I’ma dog lover,
so I guess Purina. I think we could create a strong emotional
bond with dogs as well.
Mr. Hughes: Detroit has looked at you as a corporate citizen
for a long time—tell me about that.
Mr. Ludwig: Detroit is our headquarters, and we have offices
in San Antonio and Los Angeles, as well. We are passionate
about these communities. For example, about five years ago
I founded the D Show to celebrate the creative class in De-
troit—not just advertising, but design, photography, illus-
tration, etc.—and to bring the community together and to
rally around it. It has been a big success. It’s a unique city
that deserves celebration, and that’s why we feel so passion-
ate about it. Spinmagazine calledit “anenigmatic city fueled
by broad creativity.” When you’re living in Detroit day-to-
day, you see it. No other city in the world has contributed
more to music—and not just Motown, but hip-hop, garage
rock, techno.
The plaque in our lobby has a great quote by Elmore
Leonard, who was a copywriter at CE before he was a nov-
elist. It says: “Other cities get by on their good looks alone;
Detroit has to work for a living.” I think it’s true of Detroit
and it’s true of CE.
Mr. Hughes: What are your priorities nowgoing forward for
this new century?
Mr. Ludwig: My priority is to make CE the most respected
and recognized agency in America. I’ll settle for America.
I t onl y took us ei ght months to know
why you’ ve been around for 100 years.
MotorCity Casino Hotel and MotorCity Casino Hotel design
are trademarks of Detroit Entertainment, L.L.C.
©2011 Detroit Entertainment, L.L.C. All rights reserved.
Our relationship with CE only goes back to June of last year. Since that time, you’ve continued to impress us with your
creativity, intelligence and passion. It’s paid off with a true partnership that has reaped profits and helped
tell our story to everyone in Detroit and beyond. Mot or Ci t yCas i no. c om
A M I L L I O N M I L E S A W A Y ,
R I G H T D O W N T H E S T R E E T.
aa08p 2/16/11 12:46 PM Page 2
www.downmagaz.com
Congratulations Campbell-Ewald on
100 years of success.
©

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AA010242 2/1/11 2:21 PM Page 1
“See the USA,” “We Earn Our Wings Every Day,” “Heart-
beat of America” and “Like a Rock”—these aren’t merely
great campaigns, they are arguably some of the most iconic
work in the history of advertising. Before you accuse me of
agency bias, knowthat (sadly) I had nothing to do with any
of that work.
What these campaigns all had incommonwas their abil-
ity to make a strong emotional connection with people. It
transcended what the product did and focused on how it
made you feel. It’s what we continue to do every day. CE’s
ability to create a strong emotional connectionbetweenpeo-
ple and our clients’ brands has been articulated through
what has been called the Quality of Life Insight—going be-
yond the facts and features of a product to demonstrate how
the brandenhances the quality of life of the target consumer.
It appeals to a deep emotional place that exists in us all.
I call it the“humantruth.”Deepdown, emotionally, what
are people really looking for? Beyond price, beyond con-
venience, beyond any of the functional benefits, what is it
that people really want? “Like a Rock” was about people’s
desire to feel strong and dependable. To be that person that
everyone counts on to get the job done, no matter what.
Chevy trucks embodied that desire.
The “Thrive” campaign for Kaiser Permanente came
from the human truth that when it comes to healthcare,
people feel lost. They’re tired of their bodies being treated as
profit centers by healthcare providers. They want more than
someone to care for them when they’re sick. They want a
partner to help themavoid getting sick in the first place. For
USAA, the human truth comes from a deep, personal un-
derstanding of military life. Many at USAA have served, so
their members know that the service representative they’re
talking to “gets me.” The “Take Time to Be a Dad Today”
campaign for the Ad Council came from the human truth
that most men want to be good fathers, but the pressure to
be“superdad”is overwhelming. The reality is that the small-
est moments can have the biggest impact on a child’s life, so
we encourage dads to simply spend time with their kids.
Today as we create work in an environment that com-
bines traditional and digital advertising, CE’s approach re-
flects this changing landscape. Advertising has moved from
a model based on demographics and impressions to one
based on behavior and engagement. The consumer’s ex-
perience with the brand drives everything. It’s no longer
about one-way communication; rather, it’s about a dialog
with the consumer that spans both the physical and vir-
tual environments. It’s why at CE we’ve fostered a culture
of collaboration and participation—a place where a diver-
sified collective of inspired minds come together to create
remarkable work.
My motto has always been “The best idea wins.”
Whether it’s your first day here or you’ve been here 10 years,
ideas are the great equalizer. Everyone across the agency can
make a contribution, not just those in the creative depart-
ment. With today’s ever-expanding media landscape, it’s
not just about the “Big Idea,” it’s about the 100 little ideas
that come together to create business-transforming solu-
tions for our clients.
Our work for the U.S. NAVY is a prime example. The
success of the campaign is based on crafting a completely
integrated solution that starts with engagement and ends
with activation. It’s allowing each channel to do what it does
best and having them all work in harmony.
The creative philosophy and approach at CEhas evolved
over the last century and will continue to do so as we begin
our second 100 years. At its core will always be a driving pas-
sion to uncover the human truth and develop communica-
tions that get people engagedwithbrands—maintaining the
simple goals we started with: to do effective work and serve
each client well.
I think Frank and Hank would be proud.
Mark Simon is chief creative officer of Campbell Ewald.
CAMPBELL
EWALD
C8 FEBRUARY 21, 2011
CONNECTION
making the emotional
In February 1911, when Frank Campbell and Henry Ewald set up their six-person agency,
they had two simple goals: Do effective work and serve each client well. Their success is
evident in the history of creativity and innovation that have been hallmarks of the agency
for the past 100 years and continue in our ever-evolving business today. Among the many
CE firsts: creating the first automotive ad with color—the $2,000 premiumin 1916 would
be equivalent to producing a Super Bowl ad today; placing the first live TV commercial
in 1946; and producing TV programming such as “The Dinah Shore Show” and “Chevro-
let on Broadway” in the 1950s—precursors to today’s branded entertainment.
By Mark Simon
Mark Simon
Kaiser Permanente
USAA
CE2011:Layout 2 2/16/11 1:24 PM Page 8
www.downmagaz.com
C9 FEBRUARY 21, 2011
SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
1911–Frank Campbell and Henry Ewald open shop
with two clients: D&C Navigation and Hyatt Roller
Bearing
1916–First auto ad to use color: red taillight for
Hyatt Roller Bearing
1919–Produces Chevrolet’s first ad campaign—an
all-type ad placed in 45 newspapers; first ad with
art runs in the Saturday Evening Post in 1921
1922–Wins all GM’s ad business, valued at $6
million; propels CE to the ranks of top 5 U.S.
agencies
1928–Creates automotive co-op advertising; other
automakers adopt the revolutionary technique
1928–Mr. Ewald buys a Chevrolet dealership to gain
deeper knowledge of client’s business
1928–Uses color photography to produce first four-
color ad of a motor car for Buick
1931–Becomes first to use gold ink (Saturday
Evening Post)
1934–Helps Chevy make history with Soap Box
Derby, described as the “greatest amateur racing
event in the world”
Late 1930s–Distributes “minute movies” for Chevro-
let to 4,800 movie theaters nationwide
1941–Becomes one of the first to experiment with
TV, trying out the medium for the Hat Style Council
in New York
1946–Positions Chevrolet as the first auto company
to regularly sponsor programs on America’s first TV
network, DuMont TV
1946–Places first live TV commercial
1948–Introduces “See the USA in Your Chevrolet”
1950s–Begins long legacy of branded entertain-
ment with production of variety shows, including
“The Dinah Shore Show,” “The Garry Moore Show”
and “Pat Boone’s Chevy Showroom”
1953–Henry G. “Ted” Little is named second chairman
1957–Becomes first to use color in TV commercials
1959–Begins era of “spectacular” TV spots, win-
ning four gold awards in five years at the Interna-
tional Advertising Film Festival for Chevrolet work,
including “Family Shopping Trip,” “Olympics” and
“Magic Ride”
1961–Helps establish the nation’s first college
of advertising program at Northwood Institute in
Midland, Mich.
1962–Creates six-minute Chevy spot integrated
with a “Bonanza” episode
1963–Wins the Detroit Economic Club’s Gold Door
Knob for “opening career doors for women”
1964–Produces famous Chevrolet ad of Impala
perched atop 1,500-foot Castle Rock in Utah
1964-66–Undertakes significant diversification with
more than 35 new clients, including Forbes maga-
zine, for which it coins the slogan “The Capitalist
Tool”
1966–Lawrence Nelson is named third chairman
1968–Thomas B. Adams becomes fourth chairman
1972–Acquired by Interpublic Group of Cos. in the
largest agency merger in the history of the industry
1975–Produces live racing event spots for Goodyear
Tire & Rubber Co., landing its largest non-GM client
1975–Premieres “Baseball, Hot Dogs, Apple Pie
and Chevrolet”
1978–Moves from Detroit to Warren, Mich., to occupy
its own building
1981–Wins Eastern Airlines account, pushing its
non-Chevrolet business to 45 percent of billings; de-
velops iconic “We Earn Our Wings Every Day” slogan
1984–Paul John becomes fifth chairman
1985–Dick O’Connor becomes sixth chairman
1985–Premieres “The Heartbeat of America,” win-
ning more than 400 awards in four years
1987–Forms subsidiary CE Communications, an
industry pioneer of integrated marketing communi-
cations
1991–Begins 13-year run of iconic “Like a Rock”
campaign for Chevy Trucks
1993–Establishes consolidated media buying unit
for General Motors, “breaking media rate cards”
1997–Tony Hopp is named seventh chairman
1998–Restructures to consolidate all areas of agency
expertise, including CE Communications, under
Campbell-Ewald brand
2000-2010–Diversifies by adding more than 40 new
clients, including U.S. NAVY, its first government win,
positioning it for additional growth in the category
2000–Launches OnStar “Batman” campaign; wins a
Gold Effie
2001-2010–Develops memorable campaigns:
•“Life, Liberty and the Pursuit of All Who Threaten
It,” NAVY (2001)
•“Thrive,” Kaiser Permanente (2004)
•“American Revolution,” Chevrolet (2004)
•“Come and Get Your Love,” Alltel (2006)
•“Take Time to Be a Dad Today,” Ad Council/
Fatherhood (2008)
•“A Simpler Way to Ship,” U.S. Postal Service (2009)
•“LiveOn,” OnStar (2010)
•“A Global Force for Good,” NAVY (2010)
2004–Wins Ad Age’s “most likeable” Super Bowl
spot for Chevy “Soap”
2007-2009–Launches industry “firsts” for the NAVY:
first click-to-video mobile campaign, first address-
able TV test with Cablevision, among first to use ani-
mated banner in mobile
2008–Becomes first in industry to implement third-
party home page takeover; Chevrolet “Yahoo’s Digital
Domination” draws 800 million impressions in one day
2009–Pioneers Integrated Content Development
2010–Bill Ludwig becomes eighth chairman
2010–Becomes first agency to win three Grand
Ogilvy awards (2004, 2006, 2010)
2010–Wins trifecta of coveted awards for USPS’
“Simpler Way to Ship”: Grand Ogilvy, Effie, Media Plan
of the Year
2011–The Next CEntury
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
1911
1916
1951
1959
1975
1964 2010 2010
1981
1985
1991
2000
2007
100 YEARS OF CE INGENUITY
1928
1962
1964
CE2011:Layout 2 2/16/11 1:25 PM Page 9
Kaiser Permanente: From industry to cause
When Kaiser Permanente, the nation’s largest not-for-profit
healthcare service organization, came to Campbell Ewald in
2004, it was viewed as just another big, uncaring HMO
needing to reposition its brand and reverse negative per-
ceptions and declining enrollment.
Today, that has all changed, due in great part to how
Kaiser Permanente’s “Thrive” campaign has redirected the
public conversation about healthcare.
Kaiser Permanente and its agency faced a big challenge:
howto make an emotional connection with consumers and
standout fromother insurance providers. Researchrevealed
that while people were interested in their total health for
mind, body and spirit, they did not respond to messages
about “healthcare” as an industry, which was howproviders
advertised, talking about co-pays, convenience and access,
and quality doctors.
As a brand representing integrated care with a focus on
prevention, KPwas well-positioned to talk about health and
wellness. This became the core of the“Thrive”campaignCE
created. The campaign is all about empowering people to
be happy and healthy at every stage of life and redefines
healthcare not just as an industry, but as a cause.
Ongoing research has indicated that almost all image at-
tributes of KP have improved for all audiences: companies
that offer its health plan and those that don’t, as well as KP’s
own employees, physicians and current members. Further-
more, KP membership increased, and the positive percep-
tion of the brand has strengthened the relationship
members have with the company. “Their loyalty has grown
over the last seven years,”says Debbie Cantu, Kaiser Perma-
nente VP-brand marketing & advertising, who has shep-
herded the effort from the beginning.
“This campaign speaks to people in a way that nobody
else does inthis category,”she adds, noting that it took some-
thing that was perceived as unapproachable and made it rel-
evant to individuals.
An important aspect of the campaign was to make sure
the“Thrive”message—“We stand for health”—got through
to the target audience. This meant that in addition to TV
and print, ads were created for transit, airports and stair
wraps—even tags on broccoli in grocery stores.
KP also incorporated some fairly uncommon programs,
such as a sponsorship of the Los Angeles Dodgers featuring
much more than signage at the ballpark. It includes radio
shows featuring players talking about healthier eating, joint
community events and healthier food sold in the park
through Healthy Plate Carts. In a number of cities, KP has
opened healthcare campuses, many in inner cities, as well as
farmers’ markets to encourage eating fresh food often not
otherwise available nearby.
Ms. Cantu credits CE with helping KP “do things that
people who had been at Kaiser Permanente a long time
never thought could be done. I’ve tried to structure an en-
vironment where no idea is a bad idea and we can kick
around anything. Incredible ideas have come fromit. We’ve
changed people here and their pride inthis organization. CE
has helped us get through hard parts. If it hadn’t been for
their courage totell us howthings wouldplay out, we couldn’t
have gotten such big rewards.”
—Nancy Giges
U.S. NAVY: Building trust via social media
For Rear Admiral Craig S. Faller, commander, NAVY Re-
cruiting Command, having a similar set of values with a
business partner is critical. That’s why he believes the U.S.
NAVY’s partnership with CE is so successful.
“The values we, the NAVY, have as an organization are
courage andcommitment. I sense a similar set of values with
CE people who work on the NAVY account. Sure, I know
it’s a job; but it feels like it transcends that. They really get the
sacrifice and what it takes to serve. There’s a real connec-
tion,” he says.
It also hasn’t hurt that the NAVY has met all its recruit-
ing goals for 10 years running, an accomplishment that the
admiral says isn’t easy: “The talent we seek doesn’t just come
walking in the door. We have to go hunting for it. The mar-
keting and advertising campaign is a really big piece of that
search for talent. It helps us connect; it helps build credibil-
ity; it helps us build trust. It helps explain who we are and
the opportunity we offer. The way CE is so creative draws
people in, and it is so important.”
A key part of the work is in social media. Rear Adm.
Faller explains that the NAVY wants to surround its target
with the best possible mix of media. For this young target
audience, that mix happens to be heavily digital. Infact, dig-
ital accounts for almost 90 percent of NAVY advertising.
CE has built a presence for the NAVY on a number of
key social media sites, including YouTube, Flickr, Twitter,
Facebook, MySpace and a website, NAVYForMoms.com.
The number of subscribers, fans, views and clicks has
been impressive, but for Rear Adm. Faller, the measure of
success is the number of people who join the NAVY every
year. “That’s a pretty good metric,” he says, “and we’ve been
doing very well.”
One of its most successful sites has been NAVYFor-
Moms.com because it connects with influencers: mothers
whose immediate response to a child’s desire to join the
NAVY isn’t always enthusiastic. This social community lets
moms hear about the experiences of peers who have been
there, done that.
Withalmost 44,000 members, the site has beenextremely
popular and won numerous awards since its debut in 2008.
Another successful NAVY program was a partnership
with Discovery Channel, which created a series of TV
shows about the NAVY that began running in 2009. “This
was far and away the most integrated programwe had ever
undertaken in terms of its depth froma content standpoint
and its breadth across multiple networks, across multiple
platforms,”says Clark Bunting, president-general manager,
Discovery Channel.
In addition to running across various Discovery chan-
nels, video appeared onYouTube, VODand NAVYand Dis-
covery properties on the web. CE also created 14 TV spots
clearly separate fromthe Discovery editorial but very much
related to the content of the programming.
“It ended up being a huge success for everyone,” Mr.
Bunting says.
—Nancy Giges
CAMPBELL
EWALD
C10 FEBRUARY 21, 2011
PARTNERS
in profile
“We have helped build an iconic brand that’s sold
more cars and trucks than any other in history. Let’s
take that know-how and apply it to other clients.”
Jim Palmer stood up and made that statement at a
Campbell Ewald staff meeting 15 years ago. It
marked the beginning of a serious effort to expand
the agency’s client base beyond its automotive
roots—an effort that has produced a roster of blue-
chip clients, award-winning creative and distinctive marketing solutions, all driven by
CE’s long-standing business philosophy–to serve clients beyond their expectations.
Mr. Palmer, now the agency’s chief client officer, has led CE’s new business charge
and says the current client lineup “reflects who we are as an agency—clients with
complex challenges and considered purchases. It’s a roster we are extremely proud
of.” Several of CE’s clients discuss how the agency has taken these complex mar-
keting challenges and activated multilayered creative solutions.
Jim Palmer
CE2011:Layout 2 2/16/11 1:26 PM Page 10
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OnStar: Driving a brand evolution
Campbell Ewaldhas beenthe agency partner onthe GMOn-
Star brandsince 1997 whenthe product became available on
a number of GMvehicles. Since then, CE has helped OnStar
evolve its brand, as the company added new services while
maintaining its core message of safety and security.
“OnStar and Campbell Ewald have been together from
our beginning through three phases of great marketing,”
OnStar CMO Sam Mancuso says.
“It started with the creation of the ‘Batman’ campaign.
OnStar was a new company, a brand with relatively low
awareness, and people didn’t have a great understanding of
the technology because it was so new,” Mr. Mancuso says.
“‘Batman’ catapulted OnStar’s awareness, making it part of
the pop-culture vernacular.”
CE followed that auspicious debut with the long-run-
ning“Real Calls”radio campaign, using true stories to illus-
trate OnStar’s Automatic CrashResponse andStolenVehicle
Assistance features. Replaying actual calls received by On-
Star advisers, the campaign showcased OnStar as “an au-
thentic and personal brand, further elevating awareness and
highlighting the positive difference OnStar was making in
the lives of our customers,”says Mr. Mancuso. The effort has
been lauded as one of the most recognizable and effective
radio campaigns of recent times, he adds.
With the rise of expectations of almost perpetual con-
nectivity, OnStar has advanced its mission to meet cus-
tomers’ changing needs. In September, the “LiveOn” cam-
paign debuted, portraying OnStar in an expanded light.
“In the past, OnStar was depicted primarily as a safety
and security system providing the peace of mind of know-
ing it was there, but not necessarily wanting to have to use
it because that meant there was an accident or your car was
stolen,” Mr. Mancuso says. “The ‘LiveOn’ campaign main-
tains that peace of mind but also shows uses of OnStar in
everyday circumstances that are bright, energetic, positive
and optimistic.”
The “LiveOn” campaign’s message of “safely connecting
you in ways you never thought possible” details new cus-
tomer services such as enhanced navigation with Google
Maps anda mobile appfor iPhone andAndroiddevice users
that can unlock a car’s doors, start the car and report diag-
nostics such as fuel level, tire pressure and oil life.
Mr. Mancuso says the CE partnership has “helped make
OnStar the undisputed leader in connected vehicle tele-
matics—and an important element of vehicle purchase
consideration. In fact, 80 percent of people buying GM ve-
hicles equipped with OnStar say OnStar was “an important
reason in their purchase decision.”
CEwill soonroll out the next phase of OnStar marketing,
which will take the brand beyond new GM vehicles to the
wider driving public.“Campbell Ewald will continue to help
us buildour brandas we embark onbringing OnStar totens
of millions of non-OnStar-equipped vehicles on the road
today by way of a newOnStar product,” Mr. Mancuso says.
—Christine Bunish
MotorCity Casino Hotel: Local matters
Last year, Campbell Ewald gambled on a pitch to Detroit’s
MotorCity Casino Hotel—and both the house and the
agency came up winners.
“Detroit is a very unique market,” says Jenny Holaday,
senior VP-operations at MotorCity Casino Hotel, a AAA
Four Diamond entertainment property and the only lo-
cally owned and operated casino in Detroit. “We’ve expe-
rienced economic hardship for a long time and, as a result,
a strong sense of survival and pride defines us. I’ve lived in
quite a few cities, and here, more than others, ‘local’ mat-
ters. We wanted to figure out a way to capture that feeling
in our advertising.”
Ms. Holaday says she was surprised when she received a
bound book from CE containing two advertising concepts.
She began looking through it, and even before she got to the
secondpitchshe knewCE’s bet wouldpay off.“The moment
I saw the first concept, I knew we’d found our campaign,”
she says. “[MotorCity Casino Hotel owner] Marian Ilitch
sawthe work that same day andcompletely agreed. The tim-
ing couldn’t have been better.”
MotorCity Casino Hotel engaged the agency last June
and launched its “A Million Miles Away. Right Down the
SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
WORK
IS NOT A
FOUR LETTER WORD
Find more candidates who live to work and not the other way around on CareerBuilder.
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START BUILDING
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CAMPBELL
EWALD
SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
Street” campaign three months later, producing TV and
radio spots, print, outdoor and online ads.
“Campbell Ewald just got it,” says Ms. Holaday. “Great
strategic ideas, gorgeous creative and a fast turnaround—
and all on budget.”
The outdoor component quickly captured attention in
suburban Detroit. “We wanted to connect to the emotional
state of escape, but needed to do so in a local and relevant
way,” Ms. Holaday says. “We bought 20 billboards and tai-
lored versions of the escape theme to each location. The one
in Royal Oak, Mich., for example, says, ‘Royal Oak to Royal
Flush: 6 miles.’ It says ‘local’ and it says ‘escape’ is just six
miles away. It’s brilliant.
“Campbell Ewald took us in a totally different direction
with a very high-energy brand spot showing the nongaming
amenities of escape: our entertainment, hotel, spa and fine
dining,” Ms. Holaday says.
MotorCity’s market share was shrinking prior to the
campaign launch but moved to positive territory the very
first month.“Our newbusiness is updouble digits, andwe’re
at our highest market share in 20 months,” she says.
“I’ve worked closely with half a dozenagencies inmy ca-
reer,” Ms. Holaday says, “and Campbell Ewald is far and
away the best. They understand your strategy and how to
convert it into a compelling message that drives business.
They’re a very effective, full-service group of strong thinkers
and true business partners.”
—Christine Bunish
USPS: Pushing the interactive envelope
As it approached the 2010 holiday season, the U.S. Postal
Service was looking for a way to continue the success of its
Priority Mail Flat Rate Boxes, whichappeal toconsumers and
business shippers alike for their simplicity and convenience.
A previous campaign by CE had been very successful
in debunking a widely held perception that “shipping is
complicated.”The effort featured the familiar letter carrier
Al providing his simple, sage advice: “If it fits, it ships.”
Now, the Postal Service wanted to make it convenient for
more consumers to try the boxes.
“We needed to find highly engaging yet useful channels
to have the time-pressed target audience learn about and
sample Flat Rate Boxes during the holiday period,” says
Mark Bellissimo, managing director of Campbell Ewald.
USPS had tried interactive TV before as a way for con-
sumers to request the Flat Rate Box shipping kit. Now an-
other new cable technology was being launched that could
make ordering the product even simpler.
The technology from Canoe Ventures, a joint venture
of the six largest cable companies in the U.S., allowed USPS
to use its existing commercial with an overlay message ask-
ing viewers if they would like a free Flat Rate shipping kit
delivered to their home. With just two clicks of their cable
remote, viewers could indicate “yes.” Since cable compa-
nies already know their customers’ home addresses, there
was no need to enter any additional information.
USPS was one of the first advertisers to try the new
technology, which will soon be in 20 million households,
says Canoe CEO David Verklin. Formed two years ago,
Canoe is making cable TV interconnected and interactive
across multiple cable operators using standardized plat-
forms, tools and technologies.
“In the case of USPS, other interactive TVmeasures had
proven successful, so we wanted to test the new technology
offered by Canoe Ventures,” Mr. Bellissimo says. The com-
mercial was tested on two networks, AMCand Style, as well
as on Cablevision Advanced Platforms, and was deemed a
success all around.
“Engagement and requests for more information ex-
ceeded our expectations,” Mr. Bellissimo says, “and the cost
per lead was competitive with other forms of media.”
Mr. Verklin says the results exceeded all expectations.
“We had a really great partner in CE,” he says. “This tech-
nology takes the best functionality of the Internet but does
it within the commercial. People have been talking about
this for years, and CE and USPS did it.”
—Nancy Giges
Ad Council: Touching the heart
Campbell Ewald has been a partner with the Ad Council
since 1946, just four years after the industry’s nonprofit pub-
lic service agency debuted.
CE’s first work for the Ad Council addressed the housing
shortage for returning WorldWar II veterans with headlines
such as “Share your home with a veteran.”
Today, the agency works on the “Fatherhood Involve-
ment” campaignfor the Department of Health and Human
Services’ Administrationfor ChildrenandFamilies, Office of
Family Assistance and National Responsible Fatherhood
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www.downmagaz.com

Congratulations on a century of navigating
brands through the power of conversation.
Your commitment to excellence is an inspiration to all.
We’re proud to be part of the dialogue.
Your friends and colleagues at Casale Media.
c a s a l e me d i a . c o m

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EWALD
SPECIAL ADVERTISING SECTION OF ADVERTISING AGE
Clearinghouse. Its involvement stretches back more than a
decade. CE has produced a popular series of TV spots and
other ads that carry the tagline, “Take time to be a dad
today.” One of the commercials features a father beside his
grade-school daughter, running through her cheerleading
routine. That spot has won several awards, including a
Bronze Lion in the public awareness messages category at
the 2009 Cannes Ad Festival, and is so popular it has its own
Facebook page.
“‘Cheerleader’ reflects the strengths of Campbell Ewald,
which is work grounded in great consumer research and
strategic insights—work that stands the test of time,” says
Peggy Conlon, president-CEO of the Ad Council.
CE has supported other Ad Council initiatives as well.
After World War II and through the 1950s and 1960s, the
agency produced the council’s campaign for U.S. Savings
Bonds, helping to sell $160 million in savings bonds.
Inthe early 2000s, CEproduced anaward-winning cam-
paign about colon cancer detection and prevention for the
American Cancer Society, featuring “Polyp Man” recom-
mending, “Get the test. Get the polyp. Get the cure.”
CEhas produced“a rich body of work,”Ms. Conlonsays.
“It illustrates how important they consider the outreach
work they do. They have the biggest hearts. They get it. They
knowthe social change they can create by putting their best
and brightest against these campaigns.”
—Julie Liesse
USAA: Integrating a message of service
For 90 years, the privately held, member-owned USAAhas
been serving the financial needs of members of the mili-
tary. What started as an organization open only to officers
has evolved to welcoming enlisted members, veterans and
now anyone who has ever served in the U.S. Armed Forces
and their children, which essentially doubled the number of
eligible Americans to 60 million.
USAAoffers insurance, banking, investments and finan-
cial and retirement planning designed to meet the unique
needs of military families and prides itself on its excellent
service in helping keep its members protected financially.
Traditionally relying heavily on word-of-mouth, USAA
named CE as its agency two years ago with the idea of fo-
cusing on direct and e-mail advertising. But with the ex-
panded market potential, USAA needed national visibility
and the ability to reach an audience that hadn’t previously
received its direct messages. That led to a fully integrated
campaign that included TV for the first time.
While the choice of media has changed, the core message
remains the same. “All aspects of our advertising and com-
munication reflect that we are proud of the people who have
servedthe country, andwe talkmore about themandthe fact
that we are providing a service to them. It really is the mis-
sionthat separates us fromanyone else that provides financial
services,”says USAACMORoger Adams.
The spots, using the tagline, “We knowwhat it means to
serve. Let us serve you,”showscenes in the daily lives of mil-
itary families and encourage viewers to learn more by call-
ing a toll-free number or going to the USAA website.
“We are marketing the fact that we have a higher purpose,
and that purpose is we are serving the menand womenwho
are serving the country,”Mr. Adams says.“The values that the
companysubscribes toare best reflectedbyour top-line mem-
ber service representatives who take calls frommembers.”
Mr. Adams says that CEhas a goodunderstanding of how
to articulate a brand to the external market that is consistent
with and reflects the way USAA feels about its brand inside
the organization. The agency’s experience in the military
space withthe NAVYaccount helps withthat, as does the fact
that CE is one of the fewfully integrated agencies, he says.
—Nancy Giges
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JUST THIS ONCE, SCREW THE BROCCOLI.
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Advertising Age | February 21, 2011 25
Edited by
Jennifer Rooney,
jrooney@adage.com
CMO STRATEGY
■BY JACK NEFF jneff@adage.com
l’oréal has never had CMOs at the
country level or globally until last year.
That changed, with the U.S. leading the
way for the Paris-based beauty mar-
keter, the world’s biggest. To fill the post,
Frederic Roze, CEO of L’Oréal USA,
turned to an outsider—Marc Speichert,
a career Colgate-Palmolive Co. executive
with experience in France, Greece and
Mexico, including heading person-
al care for Colgate’s crucial Latin
America region.
Up to now, L’Oréal’s divi-
sions included consumer
products, with the mass
L’Oréal Paris and
Maybelline-Garnier units; a
luxury division anchored by
Lancome; an active-cosmetics divi-
sion including La Roche-Posay; and a
professional division with Matrix and
Redken in addition to such retailers as
Kiehl’s and The Body Shop. Mr.
Speichert’s mission is to find synergies
among those divisions and help develop
common strategies to realize L’Oréal
global Chairman-CEO Jean-Paul
Agon’s vision of adding a billion new
consumers by the end of the decade.
Competitors such as Procter &
Gamble Co., of course, have similar
ambitions (in its case, a billion new con-
sumers by 2015). One difference with
L’Oréal: It’s counting on a lot more of
those consumers to come from the
U.S., where the company still believes it
can be much bigger.
To that end, L’Oréal is already
spending more—with its measured-
media spending through the first 10
months of 2010 on pace to top $1 billion
for the first time ever. But it also needs
to spend smarter, Mr. Speichert said, and
part of that is more spending on digital,
facilitated by his recent decision to name
Publicis Groupe’s Moxie Interactive,
Atlanta, as the company’s first digital-
media agency of record.
Such moves aren’t coming at the
expense of L’Oréal’s traditionally heavy
reliance on magazine advertising, Mr.
Speichert said. And he’s using his her-
itage at Colgate—a traditionally frugal
spender—to look for opportunities to
improve bang for the buck, including
going where rivals aren’t or can’t easily
follow.Among those has been a relation-
ship with prolific and popular video blog-
ger Michelle Phan, and, launching last
year, L’Oréal Paris’ own exclusive
Destination Beauty channel on YouTube.
In an interview with Ad Age, Mr.
Speichert outlined how he sees his new
role and how he’s going about making
sure the U.S. contributes at least its
share of L’Oréal’s new consumers over
the next decade.
SPEICHERT LOOKS FOR ‘BIG
GROWTH BETS’ AS FIRST CMO
L’Oréal’s top marketer is working to find common strategies
for various units as company seeks a billion new consumers
through even though you might have less
money to spend. Maybe the third one is
relationship building. Colgate is a very
relationship-driven company, and so is
L’Oréal.
Over the years L’Oréal has been
pretty strong in print media.Is
that going to continue or will you
move money to digital?
It’s definitely going to continue to be a key
medium for us. We’ve been able to show a
relationship with print that’s just very
unique as far as beauty’s concerned.
One of the things we’re doing is to partner
with some of the publishers and embrace
some of the new things. We are one of the
very first to embrace what some of the
publishers have done with the iPad.
We’ve definitely increased our spending
in print, and so the digital spend didn’t
come at the detriment of print.
What one emerging medium or
one trend in marketing is the
biggest new thing?
We’ve been using in the past and still
obviously use celebrity spokespersons as
endorsers. One of the things we’re seeing is
that you can kind of transform that model,
which we’ve done very successfully with
Lancome with Michelle Phan. She’s getting
on average between 2 and 2.5 million views
per [Lancome] video. It’s the new way of
leveraging an endorser. This is a 23-year-
old Vietnamese-American blogger who’s
talking about how she is using the product,
and it’s very authentic in a very
approachable way that reaches a whole
new set of consumers.
How do you measure return on
investment in marketing?
In looking at things more broadly we
started to look at paid, owned and earned
and how to assess investment for those
specifically. I read an intriguing article on
adding two new dimensions to it, which
they called “sold” and “hijacked.” Sold
meaning you created a media property
that becomes so powerful ... that you
could start selling advertising on, which
for me is kind of ideal. And then the
hijacked one, which is sort of the flipside,
because consumers take over the media
property and don’t necessarily do with it
what you would like them to do.
Destination Beauty is a beauty channel
that we created on YouTube. ... It’s bringing
[[together] a whole bunch of different
beauty bloggers who create how-to videos
and give you tips on makeup, some hair
care, and who really kind of engaging and
creating a kind of community. That’s an
example of where we are creating a media
platform, and obviously the challenge is:
How do you make sure you manage that
community and that channel in the proper
way so that you don’t get hijacked?
I’ve been spending quite a bit of time on
preparing for the future and trying to
align innovation to where the big
growth bets will be. In that capacity you
need to look at it universally. You need
to look at those synergies where they
exist and make sure there’s the least
amount of overlap between the brands
and initiatives we’re doing.
Your role spans divisions and is
really new for L’Oréal.How do
you see your role here?
The vision was really twofold. One is to
really push innovation to the next level.
Having the brands set up within a
channel of distribution is what made the
company successful, and that is not
going to change, but it’s where do we
create synergies that make sense?
There’s also the opportunity to think
about it from a market-research
perspective [to create a] view of our
consumers and our shoppers in how
they move from one department or one
channel to the other.
Though last year was good for
L’Oréal,a couple years toward the
end oflast decade weren’t as strong
as you would expect.Why ?
2008 and 2009 were tough markets in
the industry. The good thing for us was
that we took the bold move to make sure
we’re not going to step down from
investment. So we continued to
aggressively spend media specifically.
We’re now seeing a very nice kind of
return on that investment. We very
aggressively continue to spend on R&D
as well, so a lot of the products that we
are launching right now were fine-tuned
in those tougher years.
Are there lessons you learned at
Colgate that seem particularly
applicable here?
One of the things that I learned was to
scrutinize every dollar spent. The other
was to really look for those white-space
opportunities from a media
perspective, so you are able to identify
an area where you think you can break
5 TIPS
1. Digital is a
multi-
dimensional
revolution.
Embrace it or
perish.
2. Consumers
wield power
over your
brands like
never before.
Join and
enable the
conversation.
3. Winning the
content battle
is key. Define
your content
model.
4. 2011 is finally
the year of
mobile. Make it
a priority.
5. Consumer-
centricity is a
must. Make
sure you listen
before you
talk.
Within the past year L’Oréal on a global
basis and here in North America has
created this chief marketing officer role.
Why?
The U.S. is a huge growth engine for the company,
which makes it very exciting for everybody here in
this building, because you know it’s one of the very
few developed countries that has a really big share to
contribute toward the billion consumers.
THE CM
O
INTERVIEW
MARC SPEICHERT
Learn more
about the
successful
strategies of top
industry CMOs.
Go to AdAge.com/
cmostrategy

Want more CMO Strategy? Subscribe now for a roundup of key analysis, insight,
opinion and perspective on marketing strategy for marketing leaders delivered
to your inbox each week. Sign up at AdAge.com/cmostrategy
“We use celebrity
endors endors endor ers ers er . You c Yo u Y an
trans tra nstr form that model,
which we’v ’v ’ e done
successfully with
Lancome with
Michelle Phan.”
20110221-NEWS--0025-NAT-CCI-IN_-- 2/17/2011 6:17 PM Page 1
EDITORIAL
FIVE TIPS TO KEEP
THE AGENCY-CLIENT
FLAMES BURNING
Marketers must change or die. Agencies must change or die. But
that does not mean marketers must change agencies.
In our Relationship Issue (Feb. 14), Ad Age analyzed
client/agency marriages that have lasted nearly or longer than a
century. (Go to AdAge.com/centurymarks for story and timeline.)
We were struck by the caliber of marketers on the list,
including Unilever, Procter & Gamble, Ford and General Electric.
Each of those companies is a case study in how to succeed over
the long haul through leadership in management, innovation,
corporate strategy and marketing.
GE succeeds as a corporation because it is always in the
process of reinventing itself, yet it has not reviewed its account
since hiring BBDO in 1920. That’s intriguing.
The agency partners in these relationships are true leaders.
The list includes BBDO, DraftFCB, JWT, McCann Erickson and
Saatchi & Saatchi. Those five shops ranked among the nation’s 10
largest agencies both in Ad Age’s most
recent tally and (under earlier names) in
our first agency ranking in 1944.
In an industry that lives for new and
improved, some marketers and brands
lead decade after decade. Some agencies
lead decade after decade by taking
ownership of whatever is new.
It’s easy for a CMO to fire the old agency.
It’s tempting to have a fling with the hot
agency of the moment. But there are
lessons to be learned from successful long-
term client/agency relationships:
1. Marketers and agencies share responsibility for maintaining
the relationship. Don’t take anything for granted.
2. Trust, respect and understanding lead to better work. If the
agency is always on edge, the work will suffer.
3. Marketer and agency must change, grow and adapt for the
relationship to last—and for each to remain relevant.
4. Keep it fresh. Marketer and agency both need a mix of
veterans who know the past and of new talent who challenge the
future. If there’s a problem, the first step should be to change the
people, not the agency.
5. A longstanding agency that knows the marketer and is
passionate for the brand may be better for the brand long term
than a new agency loyal only to the new CMO. Odds are the CMO
will be gone in a few years.
Great brands should live forever. Maybe great relationships
can, too.
HOW DOES THE LATEST HARLEY SPOT COMPARE WITH
THE WORK PRODUCED BY FULL-SERVICE AGENCIES?
WHAT Y WHAT WHA OU SAY AY A
62
%
The majority of Ad
Age readers weren’t
impressed.
One of the fir f s firs fir t lessons
we le e l arn in
communication 101 is ommunica tion ommunic
don’t leave the vie ve v wer
with a negative image in negative negativ
association with your yo ury
brand. W bra nd. br ith this ad, I
remember the c re memberr age ca gec s
more than the bik more mor e bike bik .
–PAMELA WOLF
An agency that agency agenc
knows the ws w
marke marke mark ter and is
passionate fo fo f r
the brand ma bra ndbr y
be better for the fo rf
brand than a bra ndbr
new agency agency agenc
loy loy lo al only t ya ly o the
new CMO.
This adds more pr more mor oo pro opr f
that the work from fro mfr
cro cro cr wdsourcing is jus ourc ing our t as
good as that from mo fro mfr st
full-service agencies.
Which is to sa o s y, y, y not v , ery ve v
good at all.
–HAROLD SOGARD
Remind me to make make mak
sure I check t sure sur o s o s ee if a
pro pro pr fe fe f ssional made my
Harley Harley Harle , y, y not s , ome
“passionate amateur. eur. eur”
–ANDREW CARTY
I saw the ad and actually
wa wa w nted a Harley f Harley Harle or the fo r f
firs firs fir t time ev ev e er ve rv . B er. Ber ut hey hey he , y, y
what do I know? I’ w? m just
a consumer. onsumer. onsumer
–GREG HOY
As someone who isn’t a
rider, this ad r rider, rider eminds me re mindsr
ex ex e actly why I shouldn’t
ride—a bike lack bike bik s an lacks lack y
prot pro tpr ection at all.
–TOM CUNNINGHAM
The concept definitely
had/has potential, but
the ex ex e ecution is wa wa w y off ff f . f. f
–GABRIEL REICHMAN
26 February 21, 2011 | Advertising Age
Edited by
Ken Wheaton,
kwheaton@adage.com VIEWPOINT
Do you have something to say? Send letters and corrections to
viewpoint@adage.com or to Advertising Age, Viewpoint, 711 Third Ave., New York,
NY 10017. Please limit letters to 250 words
Apologies to David Ogilvy, but while the
consumer still isn’t a moron, chances are
that she bears a declining resemblance
to your wife as well. While Ogilvy’s
famous exhortation reminded a
generation of advertisers that the
household consumer is a thinking,
reasoning, sentient being who doesn’t
deserve condescending copy, he might
have inadvertently created another
problem—the presumption that we
advertisers and marketers share more
than we actually do with our audience,
and that our experience is a valid proxy
for our consumers.
I’m probably giving Mr. Ogilvy a little
more credit and/or blame than he
deserves for this. After all, looking at the
world through the eyes of our personal
experiences is a fairly common error in
human judgment. Cognitive bias such as
this has spawned an entire subgenre of
psychology devoted to studying and
categorizing these mostly subconscious
“patterns of deviation.” (My favorite bias
is the self-serving bias: “Perceiving
oneself responsible for desirable
outcomes but not responsible for
undesirable ones.”)
But while these common lapses in
judgment might be fairly harmless in the
everyday review of events or even helpful
in explaining why America might choose
Bristol’s awkward moves over Brandy’s
clearly superior technique, they can
seriously undermine our professional
determinations as marketers.
In marketing and advertising, our
effectiveness depends many times on
our abilities to act as a proxy for
someone who might be interested in our
brands and products. And while we
might think that our instincts are very
good, all too often our thinking is biased
toward our personal sociocultural status
and experience. This can be fatally
misleading.
Next time you’re in a meeting, take a
look around and make an inventory of
your peers, especially the senior ones
calling the shots. If you work at a mainline
advertising agency or major marketing
organization, you’ll notice that the
majority of those seated at the table are
probably married, have children and are
white or sometimes Asian (we’ve certainly
made strides here since Mr. Ogilvy’s time,
but we’re not where we should be!).
Now turn on network TV and take a
similar inventory. More often than not,
you’ll see a world that reflects what you
saw around the table.
Now, let’s compare that to the truth
on the ground in America. We’ll see what
the 2010 Census will yield. But in 2008,
the U.S. Census Bureau’s American
Community Report showed very
different picture.
For instance, the most typical family
featured in advertising, “married with
children,” is actually the third-most-
common household, at only 22% of
households. The largest household
group, 28%, is actually the “married
with no children” home. In fact, the “one-
person household,” only 17% of the
population in 1970, became 27% of the
population by 2007 and is still growing.
White, non-Hispanic families are a
minority in the two largest states,
California and Texas.
Surprised? We were, a little. Our
clients were, a lot.
Clearly, communication that seeks to
reflect any given brand’s “typical” user is
in danger of getting it wrong, most of the
time. And shifting household size has
implications beyond communication. For
instance, product development that
trends towards larger, family-size
packaging is maybe misguided in a world
of shrinking households.
But there’s a larger truth in the
evolving landscape of the American
household. We can no longer default to
common but perhaps lazy formulations
of the “mass consumer” or “general
audience,” because aggregations under
these banners necessarily sand off likely
profitable differences between
audiences. Brands with clear, salient
internal values and a sense of purpose
will continue to attract consumers. We’re
truly moving into an era where
successful brands will act as magnets,
not mirrors for their consumers.
The good news is that we have many
more tools at our disposal than Mr.
Ogilvy did when he was writing print
copy for his wife. There will always be a
need for brands to stand for larger,
cultural truths in broadcast media, but
we now have sophisticated direct, digital
and experiential arsenals to engage in
multithreaded, hyper-relevant
conversations with different types of
consumers. Easy? No. Complex?
Incredibly. Rife with new business
opportunities and communications
platforms? Definitely. We’re helping our
clients navigate this new world of
multiple conversations. In fact, we’re
launching a process, the Evolving
American Household Project, which is
dedicated to enabling brand marketers
to keep pace with this critically
important and rapidly evolving arena for
brand perception, usage and shopping.
Ultimately, we hope to inspire the
development of unique marketing
platforms directed at discrete groups of
consumers to supplement mainline
marketing efforts.
Yes, your
wife/husband/son/daughter might be a
great target for your brand, but don’t
forget, they make up a small component
of a larger truth. Get their input, but
don’t stop there. And get ready for an
even bigger wake up call with the new
Census findings this year.
It’s time to toss out Ogilvy’s adage
about the consumer being your wife
OPINION
MATT HERRMANN MCCANN WEST
Matt Herrmann is chief strategy officer
at McCann West.

Last week, Harley-Davidson introduced its first work from crowdsourcing agency Victors &
Spoils. The winning idea came from a Kentuckian, Whit Hiler, described by Evan Fry, Victors &
Spoils’ chief creative officer, as a “passionate amateur.”
20110221-NEWS--0026-NAT-CCI-AA_-- 2/18/2011 11:02 AM Page 1
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RANCE CRAIN Editorinchief rcrain@crain.com
DAVID S. KLEIN Publishing/editorialdirector dklein@crain.com
ALLISON P. ARDEN Vicepresident,publisher aarden@adage.com
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HOW TO CONTA ONTA ONT CT EDITORIAL
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DATACENTER
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ART
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ADVERTISING & SPONSORSHIP SALES
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KEITH E. CRAINChairman RANCE CRAIN President
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KATHYHENRY Corp. circulationdirector PAUL DALPIAZChiefinformationofficer
G.D. CRAIN JR. Founder(1885-1973) MRS. G.D. CRAIN JR. Chairmanemeritus(1911-1996)
The advertising industry has a big stake
in what’s happening in Egypt and other
repressive societies. Advertising and
branding not only helped foment the
revolution but can play a part in bringing
more openness and even stability to
countries trying to establish a new order.
For advertising to flourish, it needs to
be created and consumed by people
free to embrace and celebrate their
sense of humor, irreverence, intelligence
and tolerance—all the aspects of a free
people. And for democracy to flourish,
the people governing need to embrace
and celebrate that their citizens
combine the same characteristics.
I was struck by the comments of the
Egyptian adman we quoted in a recent
issue. He likened the mind-set of the
Egyptian consumer to the Egyptian
citizen: Neither gets the respect he
deserves.
Ali Ali, the head of agency Elephant
Cairo, told our Laurel Wentz that too
often clients reject his idea for a
campaign because they say Egyptians
won’t get it.
With the protests, “consumers have
proved to be intelligent, and they have a
voice now. They’re not stupid.”
Mr. Ali was also hopeful that
advertisers would view digital advertising
more seriously. “This is a social-network
revolution that started on Twitter and
Facebook,” he said, a fact that every
brand manager is now aware of.
Wael Ghonim, the Google marketing
executive who set up the Facebook page
that helped shape and coordinate the
Egyptian uprising, told The New York
Times: “I worked in marketing, and I
knew that if you build a brand, you can
get people to trust the brand.”
He also accomplished what
advertisers often fail to do. He refined
what he wanted to get across to the
protestors to a simple message: “This is
your country; a government official is
your employee who gets his salary from
your money, and you have your rights.”
So what role can marketing and
advertising play in generating a more
realistic and enlightened position among
governments about the capacity of their
citizens to handle more liberties?
By giving consumers more credit for
understanding the world around them,
marketers can set an example of how
governments can interact with citizens.
Advertising is a form of free speech,
and for governments to put their faith in
advertising is to put their faith in their
citizenry to accept new ideas, to think for
themselves, to do new things. People
want desperately to make their own
choices so they don’t need to rely on
government.
That’s where advertising and the
aspirational desires of people
everywhere intersect. And that’s why
advertisers shouldn’t be timid about
prodding governments to give their
citizens more freedom of choice.
China, for one, has come to the
conclusion that advertising can play a
major role in its success. Advertising is
“fundamental to economic development
and sustaining a harmonious society,” a
top official declared last fall. The Chinese
government is incorporating advertising
as a “pillar” of the country’s economy in
its latest five-year plan.
Note that China considers
advertising as a key component of
“sustaining a harmonious society.”
That’s a reality to be embraced by
governments under siege and why
advertisers need to play a key role in
opening up the dialogue. “Now our
nightmare is over. Now it is time to
dream,” Mr. Ghonim told the Times. And
the advertising business knows
something about dreams.
Marketing, advertising can play a
role in revolutionary movements
OPINION
RANCE CRAIN EDITOR IN CHIEF
I have to say it’s been a bit surreal for me
to watch the recent pile-on regarding
AOL’s $315 million acquisition of The
Huffington Post and hiring of Arianna
Huffington as editor in chief.
The New York Times’ David Carr, in a
column titled “At Media Companies, a
Nation of Serfs,” bemoaned the
downward pressure HuffPo has put on
the value of content and content-makers.
At Slate, Farhad Manjoo examined its
“sketchy” SEO-humping practices. To
grasp HuffPo’s M.O., wrote Tim Rutten at
the L.A. Times, “picture a galley rowed by
slaves and commanded by pirates. … No
child labor, yet, but if there were more
page views in it …” Meanwhile, some
angry HuffPo bloggers have started a
Facebook group called “Hey Arianna,
Can You Spare a Dime?” (“We’re asking
you to give a little back to the unpaid
writers who built the Huffington Post.”)
Geez, what took everybody so long?
Back in October 2007, I wrote that
“HuffPo sure seems willfully ignorant of
American labor history.” In June 2008, I
noted that unpaid HuffPo blogger Mayhill
Fowler—who famously recorded Barack
Obama’s ruminations about “bitter”
working-class voters—had gotten the OK
to post from Arianna herself.
“Vacationing on a yacht in Tahiti,” the
L.A. Times reported, “Huffington gave
her assent.” My reaction: “Ha! When the
Huffington Post eventually sells, Fowler
and the other industrious HuffPo
bloggers sure aren’t gonna get yachting
vacations in Tahiti out of the deal.” And I
wondered “how quickly all those
bloggers who have been dutifully tilling
the fields will suddenly run screaming
from Arianna’s media plantation.”
In January 2009, I wryly suggested
that HuffPo could increase its valuation
by offshoring its actually-paid staff
positions to Third World child labor. In
June of that year I wrote a column titled
“Trashy Parasitism as a Get-Rich-Quick
Scheme? Hi, HuffPo,” in which I
deconstructed the site’s cynical SEO-
friendly aggregation/theft. (Feeling like
a broken record, I dropped my HuffPo-
bashing after awhile.)
Why, in 2011, are so many people
suddenly agreeing with me? Beyond the
fact that money ($315 million) changes
everything, I think HuffPo has just
pushed its luck one too many times not
only with its anti-journalistic practices,
but with its audience.
Visiting HuffPo is, simply, an icky
experience—like visiting pre-Disney
Times Square. (Click on this! Click on
that! Girls Girls Girls!) As I type this,
HuffPo is hyping “stories” including “All
The Details On Irina’s Bikini” and “Justin
Bieber Leaves His Fly Down at the
Grammys (PHOTOS, POLL).” Meanwhile,
if you actually come to the site for some
of its “serious” aggregated content, and
then click through to the original source,
you get to feel dirty and used (and
complicit) in a whole different way.
HuffPo launched in 2005. Remember
2005? That’s when Rupert Murdoch’s
News Corp. bought MySpace for $580
million. Back then, gaudy, cynical, trashy
MySpace was “hot,” drawing a huge
audience. But that audience, and
advertisers, ultimately grew tired of all
that was gaudy, cynical and trashy.
As it turns out, though, those who fail
to learn the lessons of internet history
can get jobs at AOL.
Welcome aboard the anti-HuffPo
bandwagon; took you long enough!
OPINION
SIMON DUMENCO THE MEDIA GUY
Email Ad Age media columnist Simon
Dumenco at sdumenco@adage.com

Rance Crain is the editor in chief of
Advertising Age. rcrain@adage.com

Advertising Age | February 21, 2011 27
2. WPP to Roll Up Digital
Agencies Into New Unit
3. Apple’s Steve Jobs Finally
Makes iPad Subscription
Offer to Wary Publishers
4. Facebook Advertisers:
Fanatics or Lunatics?
That Is the Question
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Apple’s Terms, Starts
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20110221-NEWS--0027-NAT-CCI-AA_-- 2/18/2011 11:03 AM Page 1
Schmitz. Marketers such as Church &
Dwight have noted dollar stores have
been taking share from Walmart and
others.
Amid such pressures, it’s become a
priority to find growth where new
Walmart stores won’t cannibalize sales
from old ones. New York City, where
the closest Walmart stores are on Long
Island and in New Jersey, certainly
qualifies.
The U.S. as a whole has one
Walmart per 83,000 people (not count-
ing Sam’s Clubs). To reach the same
level of Walmart density, New York
City would need nearly 100 of them.
Just getting one, of course, has been
a challenge, one that the company’s for-
mer CEO, now chairman, Lee Scott
walked away from last decade. This
time around under CEO Mike Duke
and Walmart U.S. CEO Bill Simon,
however, looks different.
For one thing, the marketing cam-
paign has been far more extensive.
Walmart began moving PR executives
into New York last year to prepare for a
battle launched largely this year. It’s
been running ads from the Martin
Agency, Richmond, Va., on TV and
radio focusing on employee testimoni-
als, and culling credit-card data from
suburban stores showing how many of
the city’s consumers already cross over
to shop.
While Walmart has been engaged in
the usual battle of dueling studies with
opponents regarding its health benefits
and whether its stores are net creators
or killers of jobs and wealth, the retail-
er has changed its game significantly in
New York.
For one, it’s chosen so far not to fight
City Hall, at least not for permission.
Walmart didn’t send representatives to
a hearing last month where it was
broadly excoriated by politicians and
activists. Instead, it sent ads, such as a
mailer to city residents that read: “You
don’t ask the special interests or the
political insiders for permission to use
the bathroom. So why should they
decide where you shop?”
In that hearing, however, Walmart
did get support from building trade
unions as the retailer repeats a strategy
that helped it win permission to build a
supercenter in Chicago last year.
Walmart secured that support by
promising to use union labor on new-
store construction—something Mr.
Restivo said Walmart has been doing in
many places for years anyway.
Walmart spokesman Steven
Restivo, the retailer’s point man in New
York, declined to comment on where it
might seek to build stores, but most
reports have it seeking developments
where it wouldn’t need a zone change
or other new permits, such as a
100,000-square-foot Brooklyn site.
The retailer also is preparing a series
of tests of small-store formats that
would easily fit into New York or other
urban areas. For the smallest, a 3,500-
square-foot Walmart on Campus phar-
macy/convenience store it opened in
Fayetteville,Ark., last month, the retail-
er is using an outside delivery service to
supply the store, though it has plenty of
other options on its home turf, in an
apparent effort to replicate how small
urban stores might operate.
Mr. Flickinger, principal in the con-
sulting firm Strategic Resource Group,
sees every indication Walmart’s new
strategy will work in New York, follow-
ing successes in the past year getting
supercenter approvals in Chicago and
San Diego. He gives much credit in
swaying public opinion in these and
other urban locales to Walmart’s woo-
ing of “Team Obama,”in a considerable
turnabout.
Consider that the United Food and
Commercial Workers Union, an
implacable foe of Walmart expansion,
played a pivotal role in shifting support
to Mr. Obama from Hillary Clinton in
the 2008 Iowa caucuses, while
Walmart’s Mr. Scott urged managers to
do whatever they could to defeat Mr.
Obama.
Three years later, thanks largely to
the efforts of Walmart Stores Exec VP-
Corporate Affairs Leslie Dach, Mr.
Flickinger said, Walmart last month
became the linchpin corporate support-
er of First Lady Michelle Obama’s fight
against childhood obesity.
It was a program that generated
massive national coverage anchored by
an early break in The New York Times,
and Mr. Restivo acknowledged the
messages regarding Walmart’s com-
mitment to locating stores in “food
deserts” lacking affordable fresh pro-
duce dovetailed well with its efforts to
build stores in New York and other
urban areas.
The Walmart-Obama combo, Mr.
Flickinger said, is “the most powerful
pairing America may have ever seen.
It’s the worst nightmare for the super-
market sector, food retailers and whole-
salers and [unions].”
Inc. and Time Warner.”
Yet Mr. Griffin, who spent just five
months in the job and added the title of
Time Inc. chairman in January, wasn’t
known as particularly alienating in his
prior post running Meredith Corp.’s
magazines, according to people who
have known and worked with him for
years.
The discrepancy appears to boil
down to two things: conflicting expec-
tations of what he was brought in to do
and the way in which he went about
doing it in a place with a deeply
entrenched culture and powerful veter-
ans. Some have called it a classic exam-
ple of “change agent” complex, a com-
mon issue in adland, where exciting
new hires are brought in and start mak-
ing moves that companies aren’t ready
for—or don’t intend for them to make.
Mr. Griffin was certainly billed as
someone capable of changing up Time
Inc. At Des Moines-based Meredith, he
successfully led the company’s move
toward consultative-based selling and,
using the direct relationships Meredith
had with readers and its expertise in
women, launched a marketing-services
business, investing in social-media and
digital agencies.
But at Meredith, where Mr. Griffin
held a variety of posts during two sep-
arate stints in the 1990s and the 2000s,
he had time to gradually get to know
the players while hiring and promoting
others. In his few months at Time Inc.,
he made changes without building
much constituency for them, a Time
Inc. employee said last week. “He
brought in all these consultants who
were telling us how everything we
were doing was stupid, and actually
some things we were doing were pret-
ty smart,” the employee said.
Mr. Griffin could be described by
some as distant during his time at
Meredith. But was he imperious?
“That isn’t the management style I
knew,” said an industry executive who
has worked with Mr. Griffin. “He was
demanding and very clear and focused
on what he wanted. I’ve heard he’s
tough. He doesn’t show a lot of emo-
tion. But many people who I know
who’ve worked for him over the past
five years loved him.”
“Jack doesn’t suffer fools gladly, and
I know that he was trying to change the
culture at Time Inc.,” this executive
added, “but why do you bring in some-
one from the outside if that’s not what
you want him to do?”
That’s a matter up for debate as well.
In announcing the hire last fall, Mr.
Bewkes said Mr. Griffin would “further
advance our lead position in the indus-
try and accelerate the expansion and
innovation of our titles on all plat-
forms.” That’s not exactly asking for a
kick in the pants.
Time Warner maintains that Time
Inc.’s business was looking up by the
time Mr. Griffin arrived and its strate-
gy—which includes reversing a decline
in circulation revenue and margin;
extending a direct relationship with
customers, making content available on
all digital platforms; and expanding a
footprint in marketing services—will
continue, according to the corporate
parent.
But Mr. Griffin’s departure is disap-
pointing, said one person who buys
print media. He was skilled at applying
new thinking to traditional models and
his arrival at Time Inc. was seen as
“exciting and appealing.” Yet this per-
son, along with others both inside and
outside Time Inc., questioned certain
personnel moves, for example letting
go of Kirk MacDonald, former presi-
dent-digital at Time Inc., and in
December moving Kim Kelleher from
publisher of Sports Illustrated, where
she had made several hard changes that
were starting to pay off, into the pub-
lisher role at Time.
For his part, Mr. Griffin issued an
equally terse statement on Friday after-
noon, defending his short tenure at the
publisher.
“I was recruited and hired by Time
Warner to lead the business transfor-
mation of Time Inc., based on my clear
record of success and results in the
industry,” Mr. Griffin said in a state-
ment issued Friday, the day after he was
ousted. “This continued at Time Inc.,
with the consistent and documented
acclaim of Time Warner’s senior man-
agement. ... My exit was clearly not
about management style or results. I
leave behind a first rate team and wish
them all the best of success.”
Mr. Griffin succeeded Ann Moore as
Time Inc. CEO in September and added
the title of chairman in January. His
changes at the company included split-
ting the news and sports group in two;
shuffling publishers at Time, Sports
Illustrated and Money; elevating
Martha Nelson from editor of the style
and entertainment group to the compa-
ny’s No. 2 editorial post, behind Editor
in Chief John Huey; promoting Paul
Caine to exec VP-chief revenue officer,
handing him many duties that had
been handled by Stephanie George;
naming Ms. George CMO, a newly cre-
ated position; and hiring Randall
Rothenberg, who had been president-
CEO of the Interactive Advertising
Bureau, as Time Inc.’s first chief digital
officer.
Mr. Griffin will be replaced on an
interim bases by three executives man-
aging as a committee, Chief Financial
officer Howard Averill, General Counsel
Maurice Edelson and Mr. Huey.
Under the hands-off management
style of former Time Inc. CEO Ann
Moore, the three were said to have
gained power and operated fairly inde-
pendently—and insiders note they
worked closely with Mr. Bewkes. While
some in the industry were floating Mr.
Rothenberg, brought in by Mr. Griffin,
as a potential replacement,Time Warner
said it would conduct a full search and
wouldn’t rule anyone in or out.
Meanwhile, the industry absorbed
the shock.
“Frankly don’t get it,” a Meredith
employee said on Facebook, saying he
worked for Mr. Griffin for six years and
also had worked at Time Inc. “JG too
smart...”
CONTRIBUTING: ANN MARIE KERWIN
GRIFFINFROM P. P. P1
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0-50,000
50,001-100,000
100,001-150,000
150,001-200,000
200,000 +
HAWAII
ALASKA
HAWAII
ALASKA
0-50
51-100
101-150
151-200
200 +
WALMART BY THE NOS. How Walmart looks across the country.
Walmar Wa lmarW t has
chosen so f o f a fa f r
not to fight o
City Hall, at City Cit
least not fo fo f r
permission. It
sent ads, such
as a mailer to
city r city cit e re r sidents
that re re r ad:
“You don “Yo u“Y ’t
ask the
special
intere re r sts or
the political politica l politic
insiders f insiders insider o fo f r
permission to
use the
bathroom. S athro om. athr o
why should
they decide they the
where y where wher o yo y u
shop?” shop? ” shop
DataforDistrict of Columbiawasnot available. Source: Walmart Stores201010-K, U.S. CensusBureau
NUMBER OF WA WA W LMART STORES:
Texas and Florida have the most
Walmarts in the country.
POPULATION PER W POPULAT ION POPULA A WA W LMART STORE:
New York and California have the most
residents per Walmart store.
JEFF BEWKES:
When it wasn’t working, he made
a change—quickly.
28 February 21, 2011 | Advertising Age
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20110221-NEWS--0028,0029-NAT-CCI-IN_-- 2/18/2011 7:38 PM Page 1
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Advertising Age | February 21, 2011 29
he primarily maps where and how
marketing is marching these days.
So he slides into a functional MRI
machine to report on neuromarket-
ing, for example, which comes off
as creepily as ever. “Is neuromar-
keting evil?” he asks Martin
Lindstrom, chairman of Buyology.
“Advertising as a concept is manip-
ulation,” Mr. Lindstrom answers.
It’s a little unsettling, but not exact-
ly breaking news.
Mr. Spurlock also shows us
examples of overpowering product
placement, with clips from NBC’s
“Chuck” and the CW’s “90210” in
which characters name products to
the point of embarrassment. These
integrations are so crass, though,
that they can’t possible deceive any
consumers. They sully TV shows,
but they aren’t fooling anyone.
The cultural effects of “Super
Size Me,” in which Mr. Spurlock’s
steady diet of McDonald’s quickly
hurt his health, drew a lot of energy
from the movie’s shock value. “I’m
an overweight guy; I know the
issue,” said Georges Benjamin,
executive director at The American
Public Health Association. “Having
said that, I’ve seen the movie sever-
al times. I still find it very informa-
tive.And to me the more telling part
of ‘Super Size Me’ was the fact that
he saw challenges to his health so
quickly. That was pretty shocking.”
“Super Size Me” probably did
bring a little bit more awareness to
some of the negative effects of fast
food, said R.J. Hottovy, a senior ana-
lyst at Morningstar who covers
McDonald’s. “And ultimately I
think it probably had an impact on
making McDonald’s be a leader
when it comes to healthier alterna-
tives,”he said.
But there’s nothing shocking in
the current film. People probably
already catch and understand most
product placement. “From the
days that movies started, when
someone was smoking a cigarette
we knew that someone placed that
cigarette there,” said Jeffrey
Hayzlett, the former Kodak CMO
who’s now an industry consultant.
“No one’s been hiding it.”
In addition to POM Wonderful,
the sponsors of “The Greatest
Movie Ever Sold” include JetBlue,
Hyatt Hotels & Resorts, Mini
Cooper, Merrell shoes, Sheetz con-
venience stores, Amy’s Kitchen
food, Thayers Natural Remedies,
Seventh Generation home prod-
ucts, MovieTickets.com, the Aruba
Tourism Authority and Ban
deodorant. They all come off pretty
well, playing along with Mr.
Spurlock’s premise and getting
some exposure in the process. And
because so much of it is negotiated
on camera, they emerge as the most
transparent brand integrators in the
history of the form.
“We decided to participate not
only because we admire Morgan’s
work as a filmmaker, but also as a
way to show that we don’t take our-
selves or the industry so seriously
that we can’t have fun,” said Karen
Frank,VP for U.S.skin-care market-
ing at Kao Brands, which sells Ban.
The only participating brand
that has to struggle for Mr.
Spurlock’s respect is Original Mane
‘n Tail, a line of hair products for
both people and horses that he finds
while prospecting store aisles for
potential sponsors.“You gotta love a
product that says ‘Instructions for
Human Use’ and then ‘Instructions
for Animal Use,’” he says, cracking
up as he reads a bottle.
Executives at the brand prove to
be good sports when he cold-calls
them, so the movie eventually
includes a funny commercial for it.
(The audience also learns that The
Original Mane ‘n Tail did not pay
for its appearance in the film—a dis-
closure it required in its contract.)
As the movie progresses, Mr.
Spurlock seems to decide that
advertising’s effect on consumers is
less disturbing than its effect on the
people who participate in it. Once
you open the door to being “brand
friendly,” he decides, the door stays
open. Mr. Spurlock isn’t selling out,
a guy wearing a sandwich board in
Times Square assures him, but Mr.
Spurlock doesn’t seem convinced.
There’s not much that can be
done about any of this anyway, Mr.
Spurlock seems to conclude. One of
the final moments of the documen-
tary shows Ralph Nader giggling as
he opens a box of Merrell shoes that
Mr. Spurlock has given him.
“Payola!” Mr. Nader yells happily.
He’s joking around, but he’s also
doing a pretty good impression of a
guy who likes free shoes.Who does-
n’t like them?
Maybe all a consumer can do,
Mr. Spurlock says, is go outside,
take a nice long walk and locate
some places without advertising.
He and his son demonstrate this on
screen by playing in a stream. He’s
wearing, of course, Merrell shoes.
PRODUCT PLACEMENT FROM P. P. P 3
The reason is simple: Sears is
demanding that participants relin-
quish ownership of materials and
ideas they present during the
review—even if they don’t win
the business. That demand is so
unpalatable that agencies are opt-
ing out—and Sears stands to lose
out, unless an enterprising agency
can convince it to waive the
requirement specifically for them.
While such provisions have
popped up over the years, the one
attached to the Sears review stands
out because of its scope. “I have not
seen language this broad,” said Tim
Finneran, exec VP-agency manage-
ment services at the 4A’s. “From
time to time clients will suggest that
they want the rights to use ideas.But
the wording in this case is so broad
that it is outside the norm. Here is a
client saying to agencies,‘It’s all ours
whether we hire you or not.’”
It’s so vexing that the 4A’s took
the unusual step of sending a letter
to the consultancy on the review,
Select Resources International,
regarding the provision, which is
tucked into the marketer’s nondis-
closure agreement. The group is
asking Sears to allow the agencies
to retain ownership of materials.
“The 4A’s has been very clear
about the fact that it’s unreason-
able and unfair for any client to
expect ownership with no com-
pensation for the agencies,” said
Mitch Caplan, North American
CMO at Interpublic’s McCann
Erickson, and former chairman of
the large-agency new-business
committee of the 4A’s. “If agencies
are going give their ideas away, it
sends the wrong message to the
marketplace, to the industry and to
agency employees.”
Sears and SRI did not com-
ment, nor did its creative agency of
record, Y&R.
But agency execs who spoke on
condition of anonymity said they
attempted to revise the draconian
nondisclosure agreement, only to
receive what one agency exec
called a “non-response” from
Sears via SRI, which laid out con-
cerns raised by Sears. The mar-
keter’s two major beefs are that it
will be providing agencies with
information about Sears and the
retailer does not want any shop to
use ideas formed on that informa-
tion for other clients; and that
because it’s common for similar
ideas to be presented by different
agencies, Sears needs to be free to
use those independently devel-
oped ideas without any agency
believing it is specifically its idea.
Several agency execs said that
those concerns are not only com-
mon, but easily remedied with a
simple provision in the nondisclo-
sure agreement, such as a clause
that gives agencies ownership of
materials while also protecting
marketers should multiple agen-
cies generate similar ideas. The
4A’s, in its guidelines for best prac-
tices, offers sample agency-search
agreements that include provi-
sions specifically crafted to protect
marketers from scenarios like the
ones Sears mentioned.
In some reviews, agencies have
been compensated with a nominal
amount of cash—say, $25,000 or
$50,000—but even that is hard for
shops to stomach, as it can cost
multiples of that to prepare for a
review.
The head of one agency that
rebuffed the NDA agreement said
that with compensation “at least
I’m getting a client who respects
the process. That says that the
client respects and values the intel-
lectual property agencies create.”
Marketers from Hilton Hotels
to AutoZone to Kraft Foods have
in recent years demanded that
agencies relinquish rights to their
ideas, even if they’re not hired.
Sears, of course, will not be the
last—as long as there are agencies
out there that will sign what many
consider egregious agreements.
“If agencies continue to agree to
these NDA’s, it certainly doesn’t put
any pressure on clients to behave
otherwise,” said Linda Sawyer,
North American CEO at Deutsch.
“Not only does it undermine other
agencies in the long run, it under-
mines any agency willing to sign an
NDA with an ownership-of-prop-
erty clause, because it shows that
agency is operating from a position
of weakness.”
CONTRIBUTING: NATALIE ZMUDA
SEARS F ROMP . P. P1
20110221-NEWS--0029-NAT-CCI-AA_-- 2/18/2011 6:56 PM Page 1
accounts are now coveted, even
cool, at ad agencies. “You’re creat-
ing brand personality campaigns.
What creative doesn’t want to be a
part of that?” said Dave Schneider,
a former account director at DDB
who worked on State Farm for sev-
eral years.
But is the spending sustainable?
And how are insurers differentiat-
ing themselves in the crowded
market? There are no fewer than
11 major TV campaigns on air,
running the risk of consumer con-
fusion (see sidebar, facing page).
Ad Age talked with top mar-
keters and ad agency execs repre-
senting 10 leading insurers. What
we found is that no one plans to
apply the brakes anytime soon. If
anything, insurers believe the way
to stand out is to spend more. “We
have no indication of a slowdown
from a competitive standpoint and
we know that we’re not going to
slow down until we get the job
done,” said Pam El, VP-marketing
at category leader State Farm.“And
our job is to capture the hearts and
minds [of potential customers].”
State Farm, which has 18.6%
of the market with premium rev-
enue of $30.5 billion in 2009, and
Allstate are fending off pesky
challengers Geico and Progressive,
while smaller players such as
Liberty Mutual and American
Family Insurance are seeking
attention with very un-Geico-like
serious messages.
Behind it all is an important
market dynamic: the shift from
the traditional insurance agent to
do-it-yourself rate shopping
hyped by companies like Geico
and Progressive that taught mil-
lennials, the 76 million people
born between 1977 and 1992
increasingly entering the insur-
ance market, to seek quotes
online. Some 48% of millennials
turn to the web first, compared
with 28% of baby boomers,
according to J.D. Power &
Associates’ 2010 Insurance
Shopping Study. Years in the
making, this transition is reaching
a tipping point, forcing companies
that once marketed through
agents to make their appeal direct-
ly to the consumer.
At first “companies like
Progressive and Geico were shak-
ing things up, but many of the tra-
ditional carriers essentially wrote
them off,” said Jeremy Bowler, a
senior director at J.D. Power. But
“now traditional [agent-model]
companies cannot ignore this
direct competition. They have to
compete on their terms.”
The old stalwarts are still find-
ing their way in this new world,
experimenting with different
messages and even running mul-
tiple campaigns at once. State
Farm, which last year began run-
ning a discount message that
sounded a bit like Geico’s, is
broadening its pitch, hoping to
convince young people they still
need agents. Other insurers are
touting added benefits like emer-
gency roadside service and car
replacement.
How can they afford such exor-
bitant ad outlays? Firstly, compa-
nies have emerged from the reces-
sion with plenty of profits to help
spread their ad messages. Net
income in the property/casualty
insurance industry reached $26.7
billion in the first nine months of
2010, compared with $16.4 billion
a year earlier, according to
Insurance Information Institute.
Secondly, because it’s a mature cat-
egory, insurers must steal share
from each other to grow, experts
said. “I see no reason to think
[advertising] is going to slow
down,” said Meyer Shields, an
insurance analyst with Stifel
Nicolaus.
In many ways you can trace
the ad evolution back to one
man—Warren Buffet, who in
1996 made Geico a subsidiary of
his Berkshire Hathaway. To this
day, Geico Chief Marketing
Officer Ted Ward can recite word-
for-word what Mr. Buffet told him
that year. “You’ve got a great busi-
ness model. Everything is work-
ing,” Mr. Buffet told him and
other managers of the then-
upstart car-insurance company.
“The one thing I don’t want you
to have stand in your way is
money. That’s what I’ve got.”
It was a marketer’s dream. “I
wrote it down,” Mr. Ward recalled
in a recent interview. Then “I went
down and told my folks to start
working on plans to become more
aggressive and figure out a way to
hold him to his word.”
That moment would launch an
onslaught of advertising the likes
of which the car-insurance indus-
try had never seen before—filled
with pigs, cavemen, googly eyes
and, of course, a little green lizard
that was first conceived on the
back of a napkin and debuted in
ads in 2000. Geico’s gambit of
injecting humor into the sleepy
and conservative category
worked, propelling the insurer to
yearly market-share gains and
forcing competitors to step up
their game. Insurer after insurer is
now hitting the airwaves with
character-driven campaigns, from
“Mayhem” to State Farm’s
“magic jingle” to Nationwide’s
“Greatest Spokesperson.”
Still, some marketers are learn-
ing that humor has its limits—
this is insurance, after all, not beer
or soda pop. Just ask Allstate,
which was recently forced to
retract what was supposed to be a
funny press release linking acci-
dent rates to zodiac signs. Some
customers took it seriously,
prompting this clarification:
“Astrological signs have absolute-
ly no role in how we base coverage
and set rates.”
The goal is to grab the atten-
tion of consumers who would
rather not think about insurance.
Experts say most people only pon-
der policies when they have an
accident, buy a new car, move, or
renew their existing agreement,
which usually happens twice a
year. Today there are about 187
million insured privately owned
vehicles on the road. Turnover is
relatively low from year to year—
11% of consumers switch their
policies while an additional 20%
shop but don’t switch, according to
J.D. Power. But that still means
more than 20 million people are in
the market each year. And because
there isn’t much seasonality in the
business, thousands of customers
are shopping every single day.
Yet the average shopper can
name just four insurance brands
off the top of their head, according
to J.D. Power. And the way to get
on that list is to advertise—all the
time. “There’s enormous overlap
between the companies that
advertise a lot and the companies
that are growing faster,” Mr.
Shields said. “It seems very much
to work.”
INSURANCE FROM P. P. P 2
30 February 21, 2011 | Advertising Age
BRAND AWARENESS MARKET SHARE
2010 (first three quarters)
AD SPENDING
USAA 24% 6% 4.25% $45
Esurance 53% 5% 0.6% $78
American Family 59% 26% 1.91% $101
Travelers 71% 11% 2.31% $116
Farmers 55% 27% 5.99%* $223
Nationwide 65% 18% 4.24% $223
Liberty Mutual 72% 11% 4.56% $245
Progressive 49% 45% 7.6% $388
Allstate 23% 74% 9.96% $418
State Farm 17% 80% 18.24% $514
Geico 24% 73% 8.29% $827
Dollars in millions AIDED UNAIDED
Adspendingincludesall insurancelinesfor2009, andareindustry-reportedfigurescitedbyJ.D. PowerandAssociateswhichincludesomedirect
marketingexpenses. *includes21st CenturySources: J.D. PowerandAssociates, InsuranceInformationInstitute
THE NUMBERS How the nation’s top insurers stack up in awareness, market share and ad spending
AACROOSS ALL MEDIA PLAAATFOORM MMSS, Bloomberg is the trusted
provider of unparalleled news and analysis for the world’s largest, most
powerful network of global business executives. Our 2,300 news and
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Bloomberg Mobile, and Bloomberg Markets®.
TED WARD: WA RD:W
Geico’s chief marketing officer still
remembers Warren Buffet’s exact words
when he handed him a blank check for
marketing the insurer.
20110221-NEWS--0030-NAT-CCI-AA_-- 2/18/2011 4:49 PM Page 1
www.downmagaz.com
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Advertising Age | February 21, 2011 31
THE FACTS AND FIGURES BEHIND THE FACES
What’s behind the latest car-insurance ads and what might be coming next? Here’s a cheat sheet:
—E.J. SHULTZ
STATE FARM
Here’s all you need to know
about where State Farm is
headed: The 89-year-old
insurer founded by a retired
farmer recently had rock
band Weezer cut a version of
its iconic “Like a Good
Neighbor” jingle, originally
written in 1971 by Barry
Manilow. You can find it on
their “State Farm Nation”
Facebook page, launched late
last year.
These are among the
ideas springing from the
Illinois heartland, where State
Farm marketers plot their
next ad moves in a massive,
cubicle-filled headquarters
building in the city of
Bloomington, two hours
south of Chicago. The “magic
jingle” campaign, launched
last year by New York-based
Translation, seeks to get
younger consumers to
realize the importance of the
company’s 18,000 agents.
(The company sells policies
online, in person and by
phone but still assigns every
customer an agent.) Ads
feature agents who magically
appear when summoned by
young drivers and apartment
dwellers who need insurance
help, including one spot with
LeBron James that debuted
Saturday.
Meanwhile, the company
plans to revamp a separate
TV campaign launched about
a year ago by DraftFCB that
instructs users to visit a
special website to check for
discounts of up to 40%. The
new effort, to be led by roster
agency DDB, will put less of a
focus on discounts and more
on the company’s multiple
insurance lines, including
homeowners and life—partly
an appeal to millennials, who
will need more products as
they age. “This campaign will
evolve to a bigger message to
cover all the needs a
customer may have,” said
Pam El, VP-marketing. The
insurer spent $300 million on
its auto business in the 11
months of 2010, up from the
$174 million it spent in all of
2009, according to estimates
from Kantar Media.
GEICO
Geico, the category’s biggest
ad spender, is watching its
competitors closely but “we
think our approach … will
eventually win out,” said CMO
Ted Ward. That approach, in a
nutshell, is positioning
insurance as a commodity-like
product where price trumps
all. The company, based just
outside Washington, D.C., runs
multiple campaigns by Martin
Agency—with the gecko as the
centerpiece to keep people’s
attention as it spreads a very
simple message that “15
minutes can save you 15% or
more.” And it’s working: From
1999 to 2009, Geico more
than doubled its market share
to 8.21%, according to the
Insurance Information
Institute, and its share is
growing more this year to
8.29% through third quarter.
In the first 11 months of 2010,
Geico spent $535 million on
measured media on its auto-
insurance business, outpacing
2009’s total of $477 million
and double what it spent in
2006, according to Kantar
Media.
PROGRESSIVE
Progressive, based in a
Cleveland suburb, has made
similar market gains, jumping
from 4.7% in 1999 to 7.6% in
third quarter 2010. Much of
the credit goes to Flo. She is
the star of the “Superstore”
campaign, by agency-of-
record Arnold Worldwide,
Boston, which is meant to turn
insurance into something
“you can touch and feel,” said
Jeff Charney, chief marketing
officer for Progressive. While
Flo is designed to close the
deal with consumers who are
already in the market,
Progressive’s new character,
called the Messenger, is meant
to get more people thinking
about insurance. In ads, the
mustachioed, leather-jacket-
wearing man lurks in places—
such as a mattress store—
where he sneaks up on
customers, pitching them on
discounts. “Flo helps when
you shop, he reminds you that
you should shop,” Mr. Charney
said. For 2010, measured
media spending on auto
through November was $364
million, up from $291 million in
full-year 2009.
ESURANCE
San Francisco-based Esurance
launched in 1999 during the dot-
com boom as an online play and
is now working to broaden its
message. The animated pink-
haired “Erin Esurance” has been
sidelined in favor of “The Saver,”
an actor who plays a customer-
service agent who reminds
consumers they can talk to
“people when you want them.”
The campaign is by
Duncan/Channon, San
Francisco. “The internet-
shopping population had moved
very mass market ... we wanted
to more appropriately direct our
messaging,” said CMO John
Swigart. Esurance, which
commands less than 1% of the
market, through November of
2010 spent an astounding $80.9
million on measured media on
auto, according to Kantar Media.
FARMERS
Los Angles-based Farmers is
seeking attention by going
back to school. The “We Are
Farmers” campaign, launched
in September bySanta
Monica, Calif., indie shop RPA,
is set in a fictional university,
modeled after the real-life
University of Farmers
employee-training program. A
character named “Professor
Burke” guides agents though
over-the-top scenarios meant
to sell the insurers multiple
insurance lines, such as one ad
showing a jet ski caught in a
tree. The effort replaces the
touchy-feely “True Stories”
campaign by Farmers’ former
agency Richards Group, which
showcased real customers.
The ads tested well, but “in the
living room it just wasn’t
cutting through,” said Chief
Marketing Officer Kevin Kelso.
“We needed something that
was a little bit more
entertaining.” Measured
media spending on auto in
2010’s first 11 months was $47
million, down from $54 million
in all of 2009, according to
Kantar.
NATIONWIDE INSURANCE
Columbus, Ohio-based
Nationwide Insurance has also
introduced a character, a
pitchman called the “The World’s
Greatest Spokesperson in the
World,” who in one ad stars
alongside zookeeper Jack
Hanna and three parrots. The
spokesperson is “an icon that
represents Nationwide and
being an advocate for the
consumer … showing how we
can help them in their everyday
life,” said Jennifer Hanley, senior
VP-marketing for the insurer,
which has 3,300 agents and
5,200 storefronts. Nationwide’s
agency is indie shop McKinney,
Durham, N.C. The insurer spent
$49 million in measured media
on auto in the first 11 months of
2011, compared with $52.9
million for full year 2009,
according to Kantar.
LIBERTY MUTUAL
With so many light-hearted
campaigns running, some
insurers think the way to
break through is to get
serious. Liberty Mutual, of
Boston, touts car-
replacement coverage in an
ad by Hill Holliday, Boston,
where a car is rear-ended,
shattered and then magically
put back together as somber
piano music plays. Consumers
“want more than a chuckle
when they see an ad,” said
Greg Gordon, senior VP-
consumer marketing for the
insurer, whose measured
media spending on auto has
jumped from $35 million in
2009 to nearly $50 million
through November 2010,
according to Kantar.
AMERICAN FAMILY INSURANCE
American Family Insurance, of
Madison, Wis., is touting
emergency roadside service in
an ad where a young woman
runs into car trouble only to be
bailed out by a friendly tow-truck
driver. The insurer and agency of
record Ogilvy & Mather, Chicago,
are prepping a new TV campaign
set for debut in the spring that will
be more “breakthrough,” said
Telisa Yancy, the insurer’s
director-advertising. But don’t
look for any cartoonish
characters. The insurer would
rather avoid such over-the-top
appeals, which Ms. Yancy called
“the white ocean with a lot of
activity and a lot of blood in the
water.” According to estimates
from Kantar, the insurer spent
$7 million on measured media on
auto in the first 11 months of 2010,
about what it spent in 2009.
ALLSTATE
Allstate, based in suburban
Chicago, is moving full-speed
ahead on its “Mayhem”
campaign. “It’s working. If you
look at our quotes and our new
business, it’s way up,” President-
CEO Thomas Wilson said on a
recent earnings call. Mayhem
even has a cousin—a character
named “Mala Suerte” (bad luck)
aimed at Hispanic consumers.
And the insurer is still running ads
with longtime pitchman Dennis
Haysbert, who offers a trusted
voice. Mayhem “has become the
villain to [the] Dennis Haysbert
hero,” said Lisa Cochrane, VP-
integrated-marketing
communications. Still, Allstate
continues to lose market share. It
dropped to 9.96% in third
quarter 2010, according to the
Insurance Information Institute.
Analysts pin some of the blame
on rate increases in some big
states to improve profitability,
especially in homeowners, which
could have a spillover effect into
auto for those who bundle
insurance. Allstate spent $202
million in measured media in the
first 11 months of 2010 on auto, up
from $178 million for full year
2009, according to Kantar.
20110221-NEWS--0030,0031-NAT-CCI-AA_-- 2/18/2011 4:07 PM Page 2
Ior a century. you've de|ìvered on|y the best for your c|ìents.
from brì||ìant campaìens to precìse audìence tareetìne on
Monster.com. 5o. ìnnovator to ìnnovator. we'd [ust |ìke to
say conerats. and thanks for [oìnìne forces wìth us! We |ook
forward to contìnuìne thìs partnershìp for another 100 years.
100
TH
HAPPY
CAMPBELL
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EWALD!
NOW “YEARS” IS YET ANOTHER WAY
YOU CAN MEASURE YOUR SUCCESS.
Project1:fp template.qxd 2/15/11 11:37 AM Page 1
www.downmagaz.com

2

February 21, 2011 | Advertising Age

THIS WEEK
Your guide to highlights from Ad Age and Creativity

INDUSTRY TURNS OUT FOR AD AGE’S AGENCY A-LIST PARTY
Resource Interactive, Wieden, Mullen, McGarryBowen, Rosetta, Pereira & O’Dell—execs from agencies honored in our A-List issue were on hand for the big shindig held in Manhattan.

How the insurance industry got into a $4 billion
Geico’s gecko and Progressive’s Flo have goaded Allstate and others into upping marketing ante
■ BY E.J. SHULTZ eschultz@adage.com

LIGHTSPEED SURVEY
When participants were asked to match brands to ads they recognized, Geico was the clear winner.

when talking about Allstate’s Mayhem campaign, Nina Abnee gets right to the point. “We wanted to kick Flo’s ass.” By emphasizing discounts, Progressive’s perky sales clerk character was apparently getting under the skin of Allstate, the second-largest auto insurer behind State Farm and a client of Leo Burnett, where Ms. Abnee is exec VP. By 2009, Allstate’s market share had fallen two straight years to 10.5%, only slightly ahead of Geico (8.21%) and Progressive (7.46%), according to the Insurance Information Institute. The good-hands people needed their own over-the-top personality to push their message that there is more to insurance than price. “Nobody wants to sit around and talk about car insurance,” Ms. Abnee said. “In order to combat that, we needed to entertain. We needed to get people’s attention.” Thus was born Mayhem, played by actor Dean Winters, a character that embodies all that can go wrong with your car. Playing a satellite dish, he falls from the roof, crushing a sedan. As a malfunctioning GPS, he sends a driver swerving, crashing into another car. Allstate got what it wanted: People noticed. And the campaign entered the pop culture, even spawning Halloween costumes. “I saw Mayhem walking down my street trick-or-treating,” said Ms. Abnee, a more than 20-year agency veteran, calling the moment a career highlight that gave her chills. Car insurance—a $161 billion industry obsessed with risk protection—is anything but conservative when it comes to marketing these days. The top players are doling out the dollars once reserved for categories like beer and travel, pouring impressively lavish budgets into funding splashy campaigns, partnerships with celebrities and rock bands, Facebook pages and Twitter feeds. Insurers seem to be slapping their names everywhere. Farmers just agreed to shell out $700 million over 30 years to put its name on a planned NFL stadium in Los Angeles.And the city doesn’t even have a team yet. “This category has gone from a kind of forgotten category to a category with real sizzle,” said Jeff Charney,

GEICO

98%
PROGRESSIVE

92%
USAA

79%
STATE FARM

76% 75% 63% 59% 52% 24%
chief marketing officer for Progressive, who proudly boasts that Flo, who debuted in 2008, has helped lure nearly 2.5 million fans to the insurer’s Facebook site. When all lines of insurance are included (some ads plug multiple products) spending for 2009 was $4.15 billion, more than double what the industry spent in 2000, according to industry-reported ad spending figures cited by J.D. Power & Associates that include some direct marketing expenses. That far outpaced the rate of growth for all categories combined,which in that time edged up by just 2.7%, according to ZenithOptimedia. Not only is the once-staid insurance industry luring top talent—Mark LaNeve, General Motor Corp.’s former top marketer, left to take the Allstate CMO job in 2009—but insurance See INSURANCE on Page 30

NATIONWIDE ALLSTATE FARMERS ESURANCE TRAVELERS LIBERTY MUTUAL

MORE INSIDE
Can’t tell all these insurance campaigns apart? From Mayhem to The World’s Greatest Spokesperson in the World, we offer the facts and figures behind the faces in one handy cheat sheet.

10% 9%

AMERICAN FAMILY INSURANCE

See PAGE 31 P

www.downmagaz.com

Advertising Age | February 21, 2011

3

PHOTOS BY ROB TANNENBAUM

DIGITAL CONFAB TO BE HELD APRIL 6-7
Want to see what happened when adland’s best walked off the red carpet? We’ve got candid photos and more online. ➜ AdAge.com/agencya-list
The Ad Age Digital Conference will draw more than 700 attendees over its two days. The conference will showcase the best and most interesting digital innovation, highlight how technology is changing consumer behavior, and highlight what’s working for marketers, all while looking forward at how the landscape will continue to unfold. Speakers include: Google CMO Lorraine Twohill, Dell CMO Karen Quintos, Best Buy Senior VPNA Marketing Drew Panayiotu, Twitter President of Revenue Adam Bain, RadioShack CMO Lee Applbaum, Foursquare CEO Dennis Crowley and more.

ad brawl
CONSUMERS: WHO’S WHO?
This won’t come as a surprise, but Warren Buffet knows what he’s doing when it comes to money. When the Oracle of Omaha told Geico CMO Ted Ward, “The one thing I don’t want you to have stand in your way [to market Geico] is money,” he made yet another brilliant investment. According to a Lightspeed Research study for Advertising Age, 93% of consumers recognize a description of Geico’s advertising, well above the No. 2 most-recognized ad, Progressive, with 82%. Better yet, 98% were able to link the ad description to Geico. But after Geico and Progressive, there’s a lot of confusion among consumers. The survey, conducted online among 502 Americans last week, gave respondents unbranded descriptions of 11 TV ads and asked them to identify the insurer. Of the 11, only four (Geico, Progressive, Allstate and State Farm) were recognized by at least half of respondents. When they were given a list of insurance companies to match them to, only five were correctly identified at least 75% of the time (add Nationwide to the above list). Fewer than 25% of respondents could recognize seven of the ads. “It’s sad that I can recognize some of the commercials but not the companies,” wrote one respondent. The exceptions were spots featuring Flo and the Geico gecko, whose unbranded ads were recognized by at least three-quarters of respondents. While almost everyone who recognized the ads was able to link the lizard to Geico, Flo came in a close second with 92% of consumers knowing that she represented Progressive. But while many raved about both characters (“Funny and entertaining and sometimes catchy”) it wasn’t clear that the message was getting across. “50 minutes can save you 50% on your car insurance,” wrote one respondent, vastly overstating Geico’s pledge of “15 minutes can save you 15% or more on your car insurance.” As for Flo, one respondent went so far as to give her fashion advice: “I wish Flo from Progressive would comb her hair or get a new style … and lighten up the flaming red lipstick.” But look out, Flo, Mayhem is moving up the charts. After the top two, the most-recognized ad description was Allstate, with 65% of consumers saying they knew the ad, although when those same consumers were asked to associate it with a brand, only 63% correctly matched Mayhem with Allstate. (Overall, however, among the total sample, Mayhem clocked in with only 41% of respondents being able to link him to Allstate.) All that said, Mayhem got a lot of rave reviews. “The Mayhem ad made me laugh out loud!” said one. “Hilarious!” said another. But beyond brand association, there might be a question as to whether all these ads are selling. “I love the Geico and Allstate commercials. They are forever stamped in my brain,” said one respondent, who then added, “That being said, I am not a customer of either. I just enjoy the commercials.” Another commenter captured the dynamic that is driving ads in the category: “I do not buy insurance by the commercials. I go online and buy by price.” And then there’s this comment, typed in indignant allcaps: “ Just give us better rates. Save money on all the stupid commercials and pass the saving on to the policy holders!” —JUDANN POLLACK

‘The Greatest Movie Ever Sold’ is buying in
Product placement is explored but not bashed by ‘Super Size Me’filmmaker Morgan Spurlock
■ BY NAT IVES nives@adage.com

➜ AdAge.com/digital2011

uct placement isn’t necessarily trying to change anything. will morgan spurlock’s new docThe movie does make worthwhile umentary, “POM Wonderful Presents: stops along a familiar tour of advertisThe Greatest Movie Ever Sold,” turn ing’s wrongs. Mr. Spurlock and the film’s product placement into the talking heads note our lives’ greasy fast food of the marinescapable saturation with ads; keting world? Probably not. marketers’ self-interested Product placement presinfluence over our culture; ads’ ents a seemingly tempting insinuation that we’re lacking and certifiably growing target unless we buy products; and for someone like Mr. marketers’ hooks in children. Spurlock. Viewers saw 5,381 When the movie visits São major prime-time product Paulo,Brazil,which has banned placements across 12 major SPURLOCK: outdoor advertising, the audibroadcast and cable TV net- Latest film does not ence marvels at its uncluttered works last year, up 22% from build case against cityscape and envies residents product placement. who can walk down the street 2006, according to Nielsen. Mr. Spurlock, of course, is without having to constantly best known for his 2004 Oscar-nomi- fend off marketing slogans. nated documentary, “Super Size Me,” Mr. Spurlock doesn’t, however, which vilified McDonald’s and raised spend much time building a case that awareness around portion size and product placement or advertising in gencalorie counts in the process. eral hurts anybody very much. Instead But this amiable, entertaining documentary funded entirely through prod- See PRODUCT PLACEMENT on Page 29

SMALL AGENCY AWARDS ‘11 OPEN
Registration for Advertising Age’s 2011 Small Agency Awards is open. Now in its third year, the Small Agency Awards recognize the power of small. Nimble, creative, independently minded, small is beautiful. More and more marketers recognize that, and Ad Age does, too. We will also be holding a Small Agency Conference and Awards Show. This year’s proceedings will be held July 27-28 at the Brown Palace in Denver, Colo. Registration deadline is March 31. Independent agencies and agencies that are not majority owned by a holding company or network are eligible. Entry is open to agencies with fewer than 150 employees.

➜ AdAge.com/smallagencyawards

Start spreading the news: Walmart could take NYC
After losing previous rounds,retailer finds right approach—with some help from the Obamas
unions and advocates for nutrition and the urban poor. if walmart can make it there, it may Progress in New York and other well make it anywhere. And increas- urban areas where Walmart is weak ingly, it looks like earth’s biggest retail- couldn’t come at a more welcome time er will get the foothold in New York it’s for the retailer. Walmart has had six sought for decades. consecutive quarters of Even some who aren’t declining same-store sales in BEYOND fans of Walmart’s big-city U.S., and signs point BENTONVILLE the quarter ended Jan. 31 to dreams, such as retail conthe as sultant Burt Flickinger, who being particularly rough frequently works for super- PART OF A SERIES (Walmart doesn’t report market retailers whose busiresults for its fiscal fourth ness will be seriously affected by the quarter until Feb. 22 and declined to retailer’s New York expansion, believe comment on results prior to that.) things will be different this time. For Consumer panel data from that he largely credits a marketing and SymphonyIRI, for example, show PR strategy that has turned the Obama Walmart losing significant share in administration from enemy to ally and several packaged-goods categories, neutralized or co-opted segments of the according to Deutsche Bank analyst Bill traditional Walmart opposition such as environmentalists, building trade See WALMART on Page 28
■ BY JACK NEFF jneff@adage.com

CONTACT AD AGE
ADAGE.COM: AdAgeEditor@adage.com. Also see masthead on, page 27 Subscription & single copy sales1-888-288-5900 Advertising (212) 210-0246, Classified 1-800-248-1299 Library services (312) 649-5329 NEWS OFFICES: New York (212) 210-0100, Chicago (312) 649-5200, London +44 (0) 794-123-7761 REPRINTS: For reprints of print and online articles, contact Wright’s Reprints at 1-877-652-5295or sales@wrightsreprints.com
Contents copyright 2011 by Crain Communications Inc. All rights reserved.
Advertising Age (ISSN 0001-8899) Vol 82, No. 8. Published weekly, except the first and third week of July, the first, third, and fifth week of August, and the fourth week of November by Crain Communications Inc. at 360 N. Michigan Ave, Chicago, IL 60601 - 3806. Periodicals postage paid at Chicago and additional mailing offices. POSTMASTER: Send address changes to Advertising Age, Circulation Department, 1155 Gratiot Avenue, Detroit, Mich. 48207-2912. $3.99 a copy, $149 a year in the U.S. In Canada: $5.00 a copy, $199 per year, includes GST. Europe and Mexico $349, all other countries $419, includes a one-year subscription and expedited air delivery. ‘‘Canadian Post International Publications Mail Product (Canadian Distribution) Sales Agreement No. 40012850’’ GST #136760444. Canadian return address: 4960-2 Walker Road, Windsor, ON N9A6J3. Printed in U.S.A. Four weeks’ notice required for change of address. Address all subscription correspondence to Circulation Department, Advertising Age, 1155 Gratiot Avenue, Detroit, Mich. 48207-2912 1-888-288-5900. Microfilm copies are available from University Microfilms, 300 N. Zeeb Rd., Ann Arbor, Mich. 48103. Microfiche copies are available from Bell & Howell, Micro Photo Division, Old Mansfield Rd., Wooster, Ohio 44691. Ad Age is available for electronic retrieval on the NEXIS® Service (800 227-4908) and Dow Jones & Co. (800 522-3567).

style and design. and convened at Eventi Hotel in Manhattan in December. marketing director at Pepsi. with a sweet spot among 25to 34-year-olds. a slate gray background is offset by Dr Pepper’s logo and a red box proclaiming the product’s “10 Bold Tasting Calories. Its new 10-calorie soda is simply “Not for Women. Dr Pepper Ten will be trotted out with commercials created by Interpublic Group of Cos.” including personalities like Simon Doonan.” Ads promote the can but also convey the idea of “getting the skinny” or the inside scoop on the latest in culture. though volume has declined. “Everybody Chill. Irazabal said. According to Beverage Digest. the Skinny Can. editor and publisher of Beverage Digest. Coke Zero and Pepsi Max. Irazabal says she anticipated some would respond negatively to the Skinny Can. the decline is in line with what’s happening across the diet cola and carbonated soft-drink categories. Sicher said. “Sometimes people think innovation is about changing what’s inside.” Ms. We’re not talking about the form or shape of a woman. serving.” he said. Surprisingly. after all. With the focus on programs like Refresh Project and brands like Pepsi Max. And Diet Pepsi was an official sponsor of New York Fashion Week.” He signs off by telling women everywhere they can “keep the romantic comedies and lady drinks.” Mr.” THIN IS ALWAYS IN: ALWA WAY In fashion. as did Pepsi Max’s original billing as a diet drink that was a cross between an energy drink and a cola. But sometimes I think it’s about celebrating what’s inside in a different way. Fleming hedged when asked what sort of potential Dr Pepper Ten could have. Both brands have found success.” said Lynn Grefe.” he said.com . But he points out that Dr Pepper Ten is clearly intended to appeal to the target market staked out by Coke Zero and Pepsi Max. that the goal is to be direct and have fun. rather than zero like its competitors. Dr Pepper Ten was created for 25to 34-year-old men who prefer regular Dr Pepper but want fewer calories. though he declined to discuss his competitors’ forays in the space. president-CEO of NEDA. said he expects controversy will blow over quickly.” said Ami Irazabal.“It’s more of a fun idea than it is derogatory to a group. Because of contractual obligations. though neither explicitly proclaim they are men’s products. flopped. Dave Fleming. adding he expects consumers will gravitate toward the new can because it’s novel.” Dr Pepper Ten. style and design.“But we did the research. sales have been steady despite the piddling advertising outlay. dr pepper doesn’t want there to be any confusion. A promotion that gives consumers $5 off a purchase at Target when they buy a four-pack of Skinny Cans and a People magazine is launching late this month. The branded trailer will set up in “testosterone zones” such as ball fields or car shows and give men a place to watch TV and play video games. “Pepsi should be ashamed for declaring that skinny is to be celebrated. Pepsi Max became PepsiCo’s 19th billion-dollar brand in 2009. Ms. Los Angeles is working on the campaign. out-of-home. Diet Mtn Dew and Diet Dr Pepper indicates that diets and perhaps mid-cals may be the future route to growth for the soda category. had difficulty nailing down the right message for a diet product that’s meant to appeal to men. slated to run throughout 2011. Because this is our movie. Fleming said he’s not out to alienate women. a bold move in a category that has had its fair share of marketing missteps. … We have our loyal followers that are a specific psychographic.” In theory. (Pepsi’s Skinny Can is a full 12 oz.” To that end. said Bill Pecoriello. “I think that fullcalorie beverages continue to have difficult headwinds. something Coke Zero and Pepsi Max struggled with.less than half that in 2007 and just a half-million dollars since then. Irazabal said that the group was presented with various ideas and advertising concepts and told to “pull them apart and rebuild them. including C2 and Pepsi Edge. called the test.” he said. but everyone related [Refresh Project] to Pepsi. The can will be available nationwide in March and will be touted with an array of media. so-called mid-calorie sodas will appeal equally to men and women.while Dr Pepper joins ongoing effort to make diet drinks appeal to men Can Dr Pepper’s mid-cal soda score a 10 with men? ■ BY NATALIE ZMUDA nzmuda@adage. where the can was presented as a fashion item and handed out to the trendsetting crew that frequents runway shows.That doesn’t mean it’s going to redefine what a soda can shape is. Irazabal says she’s felt confident in responding to criticisms. but there’s nothing wrong with breaking away and experimenting.000 on measured media in the past three years combined. allowed it to deliver a flavor closer to the regular version. along with several other personalities. Various blogs and news outlets have also decried the Skinny Can and a company press release that called the can “slim” and “attractive. and Dr Pepper Ten is our soda. on a local basis. Fleming declined to comment on the budget for the effort.” left consumers confused. its packaging and marketing. saying only that the company is “very excited” and would be closely watching the test markets to see how consumers react to the product and the marketing. so it would resemble a national launch in test markets. creative ambassador for Barney’s. on fashion.” Mr. To help conceive the effort. though he said it resembles what the brand would spend for a national launch. Mr. that is— and Pepsi hopes in soda. Mo.” she said. “This particular idea is simple enough and understandable enough that it may very well have mass appeal. is no stranger to controversies related to body shape. CEO of Consumer Edge Research. is unapologetically targeting men.“It’s not that we haven’t invested in Diet Pepsi. Because of those discussions. Mid-calorie sodas such as Dr Pepper Ten could be just the boost the struggling soft-drink category needs. 2011 | Advertising Age BATTLE OF THE SEXES HITS THE SODA AISLE Skinny Pepsi can launch is heavy with controversy ■ BY NATALIE ZMUDA nzmuda@adage.” saying the strategy is atypical for the company. Texas. and it scored well with men and women. Ms. She declined to comment on marketing spend for the effort.downmagaz. Diet Pepsi spent $63 million on measured media in 2006. and building a major marketing program around it.. adding that it’s a topic her team addressed with the Pop Culture Council. Ms. “Modern Family’s” Sofia Vergara is featured in early print and out-ofhome executions and is being considered. The brand has been included in trademark campaigns—it was featured in media buys for Refresh Project throughout last year—but it’s been four years since Diet Pepsi received dedicated attention. The National Eating Disorders Association put out a press release saying it “takes offense” to the idea. getting the skinny. Dr Pepper is rolling out an extensive test campaign for the new product.” TBWA/Chiat/Day. but also clearly state the brand proposition. A slew of partnerships and retail promotions are also a part of the effort. too. “elaborate. we understand all the variables. www.” Eric Gustavsen.. Irazabal said. “We want to make sure that. Coke Zero’s first campaign. as consumers look to trim calories from their diets and health advocates blame the fizzy drinks for obesity and diabetes. “It’s the new shape of a product. NO GIRLS ALLOWED: New spots declare Dr Pepper 10 a man’s soda. “Hey ladies. Irazabal said. Pepsi Max scrapped its “diet cola for men” tag last year. though she called it “substantial. and we want to make sure we talk to them on a one-to-one level.com it’s hard to imagine that a brand the size of Diet Pepsi spent just $500.fashion. According to Kantar. Interpublic’s Initiative handled media buying. Mr. A mobile “Man Cave” will also travel to each of six test markets. Des Moines. “And it’s also the marketing platform. Los Angeles. but that’s exactly what happened. Coke Zero appeals to men via a Nascar partnership and movies such as “Tron: Legacy” and Pepsi Max through its sponsorship of the NFL.com Pepsi rolls out slim can to appeal to the fashion-forward. Fleming says. Kansas City. which also handled outof-home.including print. “Did we have a conversation about how far we wanted to go with this message? Absolutely.’ Deutsch. which runs from now through June. It’s cool and different. “That’s not our expertise. “We have a lot of excitement about this and wanted to give it fair treatment. On the can. in some markets. for TV ads. Earlier efforts. both billed as full-flavored sodas with zero calories. the inside scoop.) “The challenge is making sure that packaging is a legitimate way to do marketing. The fashion industry. consistently posting double-digit sales gains. and San Antonio and Austin. the brand is introducing a new package. and Coke Zero is one of Coke’s most successful launches ever. Competitor Coca-Cola has experimented with slimmer and shorter cans that are not a full 12 oz. but now some in the industry believe this in-between category could appeal to consumers.4 February 21.” Mr. “The performance we’re seeing from brands like Coke Zero. founding partner at creative firm Graj & Gustavsen who has no connection to the project. but said the group included well-known designers and stylists. TV and digital buys.” To that end. The can will become part of Diet Pepsi’s permanent lineup.” The effort is not without controversy. said John Sicher. a reduced-calorie soda.” “They were saying you need to stop thinking as a staple product and think as we think in the fashion and design industries. The packaging and marketing are both heavy on masculinity.” The commercial features a muscled commando type sprinting through the jungle dodging lasers and toting a space-age weapon. Aware of those missteps. “’Course not. digital and in-store efforts. including Denver and Colorado Springs. it formed a “Pop Culture Council. And its inclusion of 10 calories.” Ms. “We are going to actually start talking to our consumer again. enjoying the film?” he asks. Diet Pepsi was pushed to the sidelines. if we do take this national. Iowa.” Ms. Diet Pepsi declined to name all those in attendance. so we need to be smart enough and humble enough to call those that know better than us. director-marketing at Dr Pepper. Colo.

2011 .ll a . Award Entry Deadline: March 11th Conference and Awards Show: July 27-28.com/smallagencyawards11 sponsored by .Denver. CO To Enter: adage. This competition and conference will recognize and bring together great shops that are redefining the power of small and celebrate some of their best work. m en S p O is T Ad Age 2011 Small Agency Awards + Conference he Advertising Age announces the 2011 Small Agency Awards and Conference for the small agency community.

Chrysler this year plans to do its initial public offering in the fall.The Richards Group of Dallas won Ram.” said independent marketing consultant Dennis Keene. Wieden cast Detroit gospel choir Selected By God to perform in the Super Bowl ad. François. Clearly Mr. design and artwork development. health care. “Things sorted themselves out based on which agency was doing the best job at each function. The ads show laureates arriving in Lancias. The U. The Direct Marketing group at Campbell-Ewald is responsible for a number of outputs. branded content and other related digital content.”said brutally frank CEO Sergio Marchionne.com . “Beautiful.” But Mr.” said Mr.downmagaz. Southfield. trained early in his life in music. “You can do this sort of thing very badly. In a 2007 ad for the Lancia. It’s imperative that institutional investors and stock analysts believe Mr. print and digital newsletters. avy ife” (“The Heartbeat of America”. François said. François doesn’t mind poking at beehives. of Health | OnStar | The Partnership for a Drug-Free America |PPG/Oly-mpic Paint and Stain | USAA | United States Department of Education | U. who does not play piano. from product to marketing. featuring Eminem’s anthem and the rap star himself. it hit 9.. necessitating fast changes to the ad. Experiential Marketing Since 1998.S. New York.9%.The makeover has corrected many past sins. Overall. Mr. And for an Independence Day-timed Dodge ad. His latest roll of the dice was a twominute. An advertising and marketing degree from Sorbonnes Celsa. most creatives are equally proficient in both traditional and emerging medias. The 300 makeover alone cost $1 billion. han 000 posit positive successful examples of user-generated content. to launch a new strategy and tagline around the Chrysler brand: “Imported From Detroit. François commissioned a corporate ad effort from Gotham.” said the Paris-born Mr.6 February 21. Suu Kyi’s absence. and even longer for consumers to trust.” He doesn’t just approve or reject ideas or storyboards like most CMOs. When Fiat took control of Chrysler after the federally assisted bankruptcy. Gabbana initially refused. and qualitative and quantitative research. Mr. especially since. Mr. representing Ms.” go the Jeep ads. and ideas don’t get a lot of wind-up. The Chrysler-Fiat team has worked at breakneck pace since summer 2009 to make dramatic improvements to core vehicles. l helped h [1] edit] History The agency has a long-standing history in the Detroit area and is approaching its 100th anniversary in the advertising industry. What he’s doing is importing the strategy to Chrysler that he has long used in Europe on Lancia ads. Said one Chrysler insider. Richards retains Ram. François has to turn those bursts of attention into sales and favorable opinion.” www. François approved an idea after just a few minutes of brainstorming with Wieden staffers on how to respond to protests from animal-rights groups over the use of a chimp in a Dodge retail ad—the chimp was removed. Olivier to hit on the need to change the way the company thought about its messaging. Oscar-winning actor Adrien Brody directed a Chrysler ad late last year. an independent creative director who has worked on Chrysler. Olivier sits down with composers and tells them exactly what he wants or is looking for. François. The practice was founded in 2007 by Campbell-Ewald President. Campbell- pictures in a row congratulates Campbell Ewald 100 years! storyboards. Dodge. would be tempted by a beautiful woman and end up in a passionate kiss. Mark Bellissimo. however more tthan 20.” If it weren’t for Mr. Resto. generated more online buzz and news coverage than Chevy’s five ads combined. and Chevrolet Navy (“Accelerat Your Life” Navy A elerate Life”).com marketing. Last year. Contents [hide] 1 on”) he pa Controversy 2 History 3 Capabilities 4 Clients 5 References 6 Externall links edit] Contro Campbell-Ewald’s Social Media group gained notoriety iin d Controversy n in 2006 with a controversial campaign for the Chevrolet Tahoe called the Chevy Apprent which allowed the public to create their own Tahoe ad in oe he ev Apprentice hopes of winning a new Tahoe SUV. Global Hue retained Jeep and multicultural duties. Advertising “American” for Detroit automakers has been a kind of taboo. Dodge and Jeep. just the music.“The things that make us American are the things we make. is a practice at Campbell-Ewald that involves sustainable marketing products and practices deemed safe for the environment.” “He’s a maniac. Last August. Doner. François. for example. Gabbana. Richards.National Prevention Media Initiative | Environmental Protection Agency | Federal Citizen Information Center | GM | Ghirardelli | GMAC | Hagerty Insurance | HAVEN | Kaiser Permanente | Lowe’s | McKesson | National Fatherhood Initiative | National Flight Academy | NEC Corporation | NY State Dept. according to Automotive News figures. technology. Of those. his commercial directing debut. in which he wants Chrysler to be a key player. Marchionne’s team and operation is headed in the right direction. François laid out the storyline of the ad in which Mr.1 P them feel more confident than they ever did while owned by German carmaker Daimler or private-equity firm Cerberus Capital. media and list planning. François. Longtime agency BBDO was served notice after working on the Chrysler business for 65 years.” Mr. however. and by 1922. Environmental Marketing Environmental www. he approached fashion designer and gay icon Stefan Gabbana to appear in an ad. The biggest obstacle is the mostly terrible quality ratings from Consumer Reports and J. “We are no longer ashamed of the products we are selling. Mr. In the three years Mr. said Mr. “Meetings tend to run fast. and handles the retail-driven ads for all four brands. the controversy only h l d as the Tahoe had the most successful launch in Chevrolet history. loyalty and incentive programs. just north of Detroit. Richard Gere and even the Dalai Llama. until recently.” said Mr. separating agencies by job rather than brand. including strategy consulting. “Maybe it takes people from outside the city to see the possibilities and passion. few doubt Mr.D.4%. François. who directed the crescendo leading into Eminem’s line: “This is the Motor City. François’s salesmanship.” But his two ever-present BlackBerrys run deep with celebrities who have appeared in his ads: Carla Bruni Sarkozy. Controversy arose when several environmentalist grou began creating anti-Chevrolet ads that garnered national e groups ru media attention. and San Antonio and has its headquarters in Warren. and by 2010.Resto. Even Eminem sold Chrysler rights to his song for 20% of what he could have gotten just to be part of the ad. Of the four brands he took over. Not only was PETA pleased.” he said.C. but I knew right away and approved it off the Allina Health Systems | Alltel | AT&T | BAE Systems | Bombardier | Brass Craft | California Association of REALTORS | Carrier | Center for Disease Control .Immunization | Center for Disease Control . François and his agencies have injected images of Americana and messages of pride. Chevrolet and Pontiac a handful of times in the last 20 years. François approved putting “rip” videos (mood videos created with stock photography and voiced by agency staff used largely for internal use) produced by Richards for Ram truck and Global Hue for Jeep on national TV as commercials despite low production values. the idea of featuring the city of Detroit and playing up the heritage and history of making cars is not a new idea. Mr. needs to have credibility with investors and the public. has nevertheless composed or co-composed music for numerous Lancia and Fiat ads. But Mr. but it was Mr. though they are walking right on the line. Fallon Worldwide took Chrysler and Wieden & Kennedy took on Dodge. deciding instead to plow the money into the Jeep Grand Cherokee launch. Suu Kyi would be released. Over 400 negative ads were created. Mich. Campbell-Ewald has offices in Los Angeles. Jeep and other car brands. Direct Marketing Direct marketing is one of the largest disciplines within Campbell-Ewald.” proclaimed the Super Bowl ad.“But it always got shot down by the executives who have worked in Detroit their whole lives. which originated with Wieden & Kennedy. But after Mr.” Indeed. “The whole thing had a surreal quality to it … this French guy and all this he was telling us about loving Detroit and how important [Eminem] is to the city. but decided not to run it. he agreed to do it for no fee.” Doner CEO David Demuth says working with Mr. “You’ve got to tell stories that grab people by the collar. and it was for his charity.” said Mr. It is not generally viewed as a luxury brand. and also because Chrysler plans to introduce more models—such as commercial vans—under the “Ram” brand. The Super Bowl ad. with almost $2 billion in annual billings. and many other fields. François was editing the latest ad when he got word Ms. While the gambit took a lot of ad-watchers off-guard.S..” said Richards Group CEO Stan Richards. Wieden now leads on all national branding for Chrysler. In April 2010. noting that he and Eminem turned down over 100 deals to use the song in ads before agreeing to sell it to Chrysler. but the new commercial went viral. he not only agreed.” said Gary Topolewski. led him to Citroen and then Fiat.000 positt ads were created making it one of the earliest and most ver more h er. Campbell-Ewald became a part of the Interpublic Group of Companies (IPG) in 1972 to further its influence and recognition in the industry. with a laugh. Since then. François coyly said he does not like to use “spokespeople. Michigan.” But Mr. Power. and close to show a Lancia’s rear door opening with no laureate riding in the backseat. Mr. In 1911. replaced Fallon when the latter resigned Chrysler to take on General Motors’ Cadillac. François’ ability to get attention for Chrysler’s slowly recovering brands.fearing it wouldn’t play on the coasts. François is “like working with a creative director on the client side. “People get all the product information they need online … the role of the ads should be to light a fire under them.” He is known for making fast decisions mostly on instinct. Custom Publishing Campbell-Ewald’s Custom Publishing content pieces include newsstand magazines. and voiced the ad as well. database design and development. “But I have to say that Chrysler is bringing so much art to the messaging that I think it flies. “An American Revolution”).” The ad did not include Eminem’s lyrics. $9 million Super Bowl ad. [edit] Capabilities Creative Campbell-Ewald has an award-winning creative staff that uses an integrated model. he worked with composer Luis Resto on the adaptation of “Lose Yourself. they badly lagged Asian companies such as Toyota and Honda. The company currently has over 30 clients. the brand more than doubled market share to 6. Chevrolet became the agency’s first major client in 1919.“How many car marketing guys can sit down and tell you why he wants a ‘melancholy piano’…that was a first for me. Olivier has restructured things. For example. Given his track record. it didn’t take long for Mr. And for the past three years he created Lancia ads to run the week of the annual World Summit of Nobel Peace Laureates to spotlight the imprisonment of Nobel Peace Laureate Aung San Suu Kyi. Frank Campbell and Henry Ewald merged their individual Detroit companies to form Campbell-Ewald. Campbell-Ewald was awarded all of General Motors’ ad business. and that’s what we try to do. A review ensued in which agencies had to prepare strategies for Chrysler. François ran Citroen in Italy. whose voice was on the ad.” Added Mr. Martin of Mr. Olivier. he approved a spot showing George Washington leading a column of Continental soldiers into battle against British redcoats driving Dodge Challengers. and interactive media marketing. direct response advertising. The agency has continued its partnership with GM for more than 90 years. Chrysler’s retail market share before Fiat took it over in 2009 was 8. who admits it can be tough for agencies to work with him because of how much he gets involved “as a creator. “This idea has come up for Chrysler. “I was shocked. only Mr. Dodge brand CEO Ralph Gilles defends Mr. passionate design and comfort for people who don’t forget where they came from. Washington D.5%. email We’re proud to be part of your history. with the thinking that the truck market is a unique ad space. “Like a Rock”. Chrysler has been the biggest challenge. Mr. And Global Hue handles multicultural ads on all four brands. “Some of our team had a lot of doubts. The ad created a publicity sensation in Europe and a sequel was produced. “We’re from America. retail. the original hadn’t. “He knows where the priorities are: sales. which he directed from a Delta Airlines flight. They are the agency behind campaigns for Kaiser Permanente (“Thrive”). and drive them online to check us out. They are part of the Interpublic Group of Companies. Not only do retail sales need to climb. beginning with just six employees.picrow. François. a Myanmar pro-democracy leader. but it will take two to three years for the ratings to move up to reflect it because of how the organizations work their rankings. Dodge and Ram Truck brands. driving a Lancia Delta. ending a 91-year relationship with Campbell-Ewald. but the overall operation. while diversifying their client base into the government. “We never would have done it. Olivier greenlighted the idea. GM moved Chevrolet ad works to rival agency Publicis Worldwide. He gets no royalties or payments. Mint | United States Naval Academy |United States Navy | United States Navy Reserve | United States Postal Service | United States Postal Inspection Service | University of Michigan Health System | Wyndham Worldwide — Campbell-Ewald is one of the largest advertising and digital communications agencies in the United States. giving the ad an odd “invisible chimp” effect. but I did not object. Gere took a fee. For the Super Bowl ad. In November 2009. 2011 | Advertising Age FRANÇOIS FROM P. François hints that he has much more in store to link the Chrysler brand to the comeback of the city of Detroit.” said Mr. who thought he would enter the diplomatic corps after getting a political science degree in the late 1980s.100 employees. but he is positioning it as “new” luxury. Mr. also known as Green Marketing. François’s penchant for risk-taking. hard work and reward into their ads. The agency currently has over 1. He launched the Richard Gere ad spotlighting the plight of Tibet the week the Beijing Olympics kicked off. direct mail production coordination. but the clothes he was wearing were left behind. This is what we do.” said Mr. Mr. Navy (“Accelerate Your Liffe” Alltel Wireless (“Come and Get Your Love”). Mr.

These groups will come together to share their similar experiences and to demonstrate how a new way of thinking is helping change the future of Detroit. media and marketing executives that are leading their industries through a radical transformation and integration.com/ideadetroit BROUGHT TO YOU BY MAJOR SPONSORS VIP LOCATION SPONSOR PARTNER LUNCH SPONSOR LOCATION SPONSOR NOTEBOOK SPONSOR SUPPORTING SPONSOR CHARGING STATION SPONSOR BIG IDEA SPONSOR . 2011. michigan buy tickets: adage. 2011 * center for creative studies * detroit. SPEAKERS AARON DWORKIN Founder/President Sphinx Organization TOBY BARLOW Chief Creative Officer Team Detroit VERONIKA SCOTT Founder/Designer The Empowerment DALE DOUGHERTY Founder Make Magazine ERIC RYAN Co-Founder Method Soap JOSH LINKNER Founder ePrize CYNTHIA KOENIG Founder Wello DAVID MORROW Founder Warrior Sports REGISTER NOW! march 23. Each presentation will be designed to inspire and generate new ideas for doing business based on past success stories. CRAIN’S DETROIT BUSINESS brings the local Detroit business leaders together who are also helping to pioneer a significant shift in their hometown.INTRODUCING IDEA DETROIT ON MARCH 23. ADVERTISING AGE brings together the agency. IDEA Detroit will be a full day of fast insightful presentations from leaders across a variety of industries.

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” FEBRUARY 21. including Kaiser Permanente and USAA.” Says Mr. These are not advertising solutions. and the rewards will flow back to you. The goal. let all the submissions stand.” he says. Henry Ewald. came to CE in search of more than clever creative. “My first insights and thoughts were that in their world. CE does have a portfolio of landmark. who worked with CE for 15 years as General Motors Corp. they were positioned to handle it. color commercials—in the 1950s. They did a remarkable job. chairman-CEO of parent Interpublic. Simon says it’s about finding that point where the brand promise—its functional benefit—connects with consumers’ emotions. poking fun at the Tahoe and the Chevy brand. “I don’t think there is a CE style of advertising. For Chief Client Officer Jim Palmer.CAMPBELL EWALD SPECIAL ADVERTISING SECTION OF ADVERTISING AGE campbell ewald at 100 A STEP AHEAD By Julie Liesse For 100 years. But I never expected that one of the groups deeply affected by this work would be our employees. bringing in excellent clients. Hot Dogs. Driving auto marketers into TV sponsorships in the 1940s. and until last year agency of record for Chevrolet—for years the largest single advertising account in the nation—CE had the opportunity and the challenge of managing an account that entailed big national image ads. CE’s diversification meant that Chevy only represented 25 percent of billings.” The deep and broad capabilities CE brings to the table have helped it develop a client roster of blue-chip companies representing a diverse group of industries—from complex government entities such as the NAVY and the U.” says Debbie Cantu. when CE pitched the U. as well as how we are perceived in the marketplace. ultimately. headquarters when he assumed his post. “My target audience is the nonmember consumer. but creating content that engages consumers no matter what the channel. the KP staff stood up to applaud and told the marketing team that the ads expressed their feelings about why they had gone to work in healthcare in the first place. Developing social media campaigns before anyone had heard of Facebook or YouTube. CE has been ahead of the curve in seeking solutions for its clients’ business needs—but quietly and without fanfare. Visionaries. “We have had.” By last year. “They worked to promote a steamship line with what today we’d call a guerilla marketing tactic: They arranged to have a car drive through the ship’s steam stack—the point being that the ship was so big you could drive a car through it. an interactive community that brings together mothers of NAVY recruits—whose concerns about their children are frequently a key barrier in recruiting efforts.” The flip side was that for years. Guarascio says. Today. But they held firm and. direct marketing. creating websites and digital tools for USPS and using its social media monitoring team as a primary research tool. Michael Roth.“Our founder. “So while the loss of Chevy was not good news. Just 10 years ago. is to provide what Mr. Cantu says. but we manage the entire process better than anyone.” In the single-minded pursuit of great business results for clients.‘Put the clients’ interests first. Army account and came in second to Leo Burnett USA. in Your Chevrolet” and “Baseball. who has led the agency’s diversification push. social and digital media account for a growing part of CE’s staff and work. Mr. Inevitably.” When the company previewed the “Thrive” campaign for employees. we would not have home-grown these capabilities— in research. We put our clients in the center.“I believe that spirit of innovation. Hopp and his team began to diversify. One campaign invited consumers to make their own ads for the Chevy Tahoe and post them online. but there is definitely an approach. GM represented 80 percent of the agency’s billings. including “See the U. below the line and out of the box.” C3 . “were really innovators. Mich. complex relationships between national marketer and local entities. Apple Pie and Chevrolet.A. Roth. said. “We applied the insights we had uncovered and won the NAVY account against a lot of big players.” That approach begins with a search for what CE calls the Quality of Life Insight. Ultimately. The experience of managing such a demanding piece of business steered CE into integrated communications long before it became an industry trend.S. but business solutions. CE continues to push the boundaries of what an “advertising agency” means and does. 2011 1920 1995 2011 Mr. At the time. “Frank and Hank. however.S.. remembers his first up-close exposure to the agency’s work in the mid-1980s. last and always.com. Hopp.” he says. It was an amazing way to look at that marketing problem. Simon recalls a promotion campaign in the agency’s early years. the NAVY account came up for review. Time and time again. Says Mr. Palmer. It was then that Mr. There are great branding agencies and great promotion agencies out there. CE’s own North Star has always been its clients. risktaking and client focus still exists in our work today.” The “Thrive” campaign for Kaiser Permanente has been a North Star for the healthcare provider in unexpected ways. a“watershed moment” arrived in 2000. In addition to its TV and print ads. a client-first culture. “They have also done a remarkable job with digital and social media and developing the other revenue streams that have become so important in this business. As it begins its second century. Ludwig says it’s about understanding that “it is not about producing ads or commercials. they are complex clients with complex needs—parent brands and subbrands. since our founding. If you think about the kinds of clients we have. marketing experts continue to point to the Tahoe effort as a groundbreaking moment in the development of social media.” Mr. VP-brand marketing & advertising for KP. co-op dealer advertising and local retail marketing. remembers visiting CE’s Warren. innovative advertising as well—stretching from “Capitalist Tool” for Forbes magazine to a long list of memorable Chevrolet campaigns. about 400 submissions were parody ads. Each client. Simon.” Ms. The agency also designed NAVYForMoms. CE helped the NAVY create and manage a computerized system that tracks recruits from boot camp until they are placed on duty. “I challenged them to recreate their agency so that they would not be as dependent on one client. “As soon as we lost that one.” Chief Creative Officer Mark Simon says.S. Its efforts include developing online communities for clients such as the NAVY and GM’s OnStar.” says Mr. CRM.” Take the breadth of the work CE has done over 11 years as agency of record for the NAVY. Ludwig calls“a North Star for the business. in an early understanding of the importance of democracy and transparency in social media.’s VP-corporate advertising & marketing.” As a key agency for GM since 1919.’ That is our culture. analytics. Being the first to try new approaches on TV— live spots. the negative ads were drowned out by thousands of other videos—and five years later. “This campaign has changed how we think about what we do. Phil Guarascio.” as he likes to refer to agency founders Campbell and Ewald. It drove us to be what we are today. CE has always thought above the line. with several initiatives for Chevrolet. CE Chairman-CEO Bill Ludwig says the agency is “a product of our client needs. Agency founder Henry Ewald actually purchased a Chevy dealership in 1928 to better understand his client. CE began making news in social media back in 2006. “My expectation was that this work would cause those consumers to take another look at KP and consider signing up for our plans. they were the agency of the future—because the breadth of work they performed for Chevrolet was so wide that it really defined what you’d call the whole egg theory. Mr. that is what we drive toward. Postal Service to companies whose products represent serious consumer commitments. Says former CE Chairman Tony Hopp: “If it hadn’t been for our relationship with GM. Chevy and CE were lambasted for allowing the negative ads to be seen online. Campbell Ewald has been a step ahead: Pioneering integrated marketing by launching a custom-publishing unit in the 1930s. Chevy and the agency’s legendary campaigns for the brand defined CE to the world. “In a lot of ways I don’t think they get enough credit for what they have done. who spent his 41-year advertising career at CE.” says Mr.

Ludwig: You and I have been in this business a long time. and we FEBRUARY 21. and we surely do. And I think of Chevrolet. Mr. managing one-to-one communications between a customer and the company. That’s great. and we’ve built our agency based on the needs of our clients.000-plus mothers with children in the NAVY. and this may be the most exciting time in my career. I think we produced some of the most iconic advertising in automotive history. family. we’ve had to wrestle with a lot of complexity—both in the purchase decision process and the complexity between creating that strong emotional bond with a national brand—and then driving it right down to the local markets. Segments of their animated. Just a second ago I was talking about scaling up and scaling down. Mr.CAMPBELL EWALD SPECIAL ADVERTISING SECTION OF ADVERTISING AGE BILL LUDWIG Bill Ludwig was named chairman-CEO of Campbell Ewald just over a year ago and has been leading the creative charge at the agency for more than a decade. buying a car. I remember. The brands that had this deep bond with their consumer really demonstrate how the brand enhanced the quality of life for their target consumer.com . we’ve built a culture around that. the hip agencies didn’t want taglines and they didn’t want to do music. we can scale up or scale down. where Mr. Reflecting on CE’s successes and his vision for the agency going forward. Because of that nimbleness. monitoring and managing a community in a social space—we can handle those projects as well. but you’ve also had these big retail kinds of jobs. New York.com/campbellewald2011/. Do you have any thoughts about that? Mr. But we can also take on clients that need nimbleness. requires a certain nimbleness. 2011 Mike Hughes: When I think of Campbell Ewald. need a smaller group—maybe somebody who wants a CRM program or creating. and because of our breadth of services and our depth of services. Hot Dogs. We’re really handing a megaphone to our fans of brands to have them become advocates on behalf of the brands. Wouldn’t it be fun to reinterpret it for the new millennium? We found ourselves creating tools and methodologies that allowed us to gain great consumer insight. activating sales. Nike is a good example. The rapidity of change in technology right now is just astounding. Hughes: You have a lot of infrastructure to handle things around the country. & QA with interesting. I think it’s healthy to think of yourself as a start-up company. What they do is say. Ludwig opted for an unusual twist on a traditional question-and-answer session: A few weeks ago he sat down in New York for a conversation with Mike Hughes. How do you guys do this? How do you keep doing this? Mr.” But even today. Hughes: You talk about iconic advertising … Campbell Ewald created “See the USA in Your Chevrolet” and “The Heartbeat of America. I’ll always love and care for the brand. Apple Pie and Chevrolet. Hughes: You’ve also been a leader in the digital space. OnStar’s “LiveOn. We can take on a huge client with complex needs and manage them across a breadth of services. or the potential ways that we can leverage consumers and manage that interaction. wide-ranging discussion. calling it our Quality of Life Insight. some things come to mind for me. How do you manage to do both of those things? Mr. sibling The Martin Agency. Because of those clients. What I can learn from kids coming out of school is phenomenal. Advertising that’s both inspired and inspiring.When you have a culture like that. Mr. very fast turnaround.downmagaz. all-American advertising. but I stereotype everybody else’s. Selling cars. so we built the company on that. different things that define an era. I wish Chevy its greatest success and. and she needs to have a deeper conversation with the people out there also wrestling with this issue. Hughes: Every agency today wants to do. where she can talk to 40. It’s the guy who wants to be seen as being like a rock to his friends.” That’s a Quality of Life Insight. because everybody else is trying to do that now. given the product they’ve got today. for example. Why are you still in this business? Mr.And we’re very proud of the work we’ve done over the years with OnStar. And Campbell Ewald was doing these really big things. and more important. How are you feeling about Chevrolet and General Motors these days? Bill Ludwig: General Motors is still a great client of ours. I think they will succeed. I think.adage. Ludwig: We were early pioneers of the social space and realized that most of our clients need to have one-to-one engagement with their customers. I hate it when somebody stereotypes my agency. “Thrive” for Kaiser Permanente.com. So we send her to NAVYForMoms. just do it. During my tenure on Chevrolet.“If you want to be a superstar in whatever you endeavor to do. are posted at brandedcontent. Hughes: Let’s talk about you for a minute. when anyone pulls that fire alarm. Early on we attracted clients that require big purchase decisions—joining the NAVY. Hughes is president. we spring into action—whether it’s to smother a problem or to leap at an opportunity.” and that’s doing great. the guys at work. Ludwig: I keep wanting to do a great jingle again. And the first things I think of when I think of your agency are: big.” “Baseball. We were one of the pioneers of anthropological research in the late ’80s. They never talk about the fact that these air bladders allow you to get a certain vertical lift on your jump shot. And the ways in which consumers interact with brands. Tell me about what you’re doing there. Back in the ’80s. “Come and Get Your Love” for Alltel—these are big campaigns. Package delivery decisions for a small business owner are big.” We ended up branding that process later on. Mr. So we’re consciously behaving that way. And the competitive set has changed. his counterpart at Interpublic Group of Cos. It’s a mom who’s wrestling with the fact that her son has just come in and announced that he wants to enlist in the NAVY. It’s built around our belief that the way to truly deliver business-transforming ideas on behalf of our clients is to create fans of the brand and endorsers of the products that will ignite conversations and experiences that can demonstrate how a brand enhances the quality of life to a targeted consumer. Mr. Ludwig: Retail requires a very. Having spent much of my career on that account. for instance. has changed so radically. The pursuit of this Quality of Life Insight has enabled us to establish a deeper bond with consumers on behalf of our clients’ brands. It should be that your time has come now. broadshouldered.We just launched a new campaign in the fall. which is C4 www. Mr. It was the belief that the brands that truly endeared themselves to the hearts and minds of their consumers were brands that transcended facts and features. Ludwig: We have a unique agency. We have a significant piece of the General Motors’ customer relations business. Because of that. That was a conscious effort that allowed us to strike such a deep emotional chord with “Like a Rock. We have our work cut out for us because I don’t think that consumers are as loyal to brands as they used to be. That’s what branding is about—how can I align the conversation with what we want them to be saying? And how can we create promoters of the brand and reduce the number of detractors out there? Mr. I think we attract clients that have big issues to wrestle with. Nike never talks about air bladders in their shoes. videotaped by Radical Media.

Here’s to the next 100 years of big ideas. CE always delivers strategic. All rights reserved. © 2011 OnStar. impactful campaigns. From the brand-defining launch campaign to the iconic Real Calls radio to our Live On campaign. .Press the OnStar® button. and you’re connected to the help you need. When we call CE. it’s the same thing.

And what impressed me was she’s worked [with] some pretty good agencies. I have not seen this level of dedication or commitment with any other agency I’ve ever worked with. It says: “Other cities get by on their good looks alone. MotorCityCasino.—and to bring the community together and to rally around it. but she said. but thinking in all its forms and all its planning—the tools and methodology. www. Ludwig: I think new business prospects are surprised by our depth of thinking—and that’s not just strategic thinking. I saw the letter. Ludwig: I would like a big beer brand and a pet food. Spin magazine called it“an enigmatic city fueled by broad creativity. illustration. What do you think they would still like about it? Mr. L. We are able to fly the plane at the 40. Hughes: That’s true. Henry had a philosophy that we’ve adapted to CE over time: Everything we do is in the client’s best interest. what would they tell me? Mr. It’s paid off with a true partnership that has reaped profits and helped tell our story to everyone in Detroit and beyond. Hughes: What accounts would CE like to get tomorrow? Mr.com .C. as well. you see it. first. I’m a dog lover. I think we could create a strong emotional bond with dogs as well. All rights reserved. and I think they would appreciate that. Our relationship with CE only goes back to June of last year. techno. Mr. The plaque in our lobby has a great quote by Elmore Leonard.” When you’re living in Detroit day-today. Since that time.“Everything except for the cars and carpets in the dealerships is designed by Campbell Ewald. So that it may be more well directed than it has ever been. I’ll settle for America. It’s a unique city that deserves celebration. It only took us eight months to know why you’ve been around for 100 years. for instance. MotorCity Casino Hotel and MotorCity Casino Hotel design are trademarks of Detroit Entertainment. once we explained it to them. garage rock. intelligence and passion. Ludwig: Detroit is our headquarters. about five years ago I founded the D Show to celebrate the creative class in Detroit—not just advertising. but hip-hop. the rigor that we go through to drive deep consumer insights. photography.” I think Henry especially would appreciate that. Mr.” I think it’s true of Detroit and it’s true of CE. It has been a big success. you’ve continued to impress us with your creativity. ©2011 Detroit Entertainment. Hughes: Detroit has looked at you as a corporate citizen for a long time—tell me about that. Mr. soup to nuts. And I think what we excel at is just that. But that also means that our competitive set has increased tenfold as well. last and always—from advertising to sales activity. But we’re also able to land the plane in the local markets to activate sales and create that one-to-one engagement.com A M I LLI O N M I LE S AWAY. and we have offices in San Antonio and Los Angeles. For example.L.” That is the kind of agency we grew up to be. so I guess Purina. Ludwig: It’s funny because recently we were working on a new business pitch and somebody reached out to one of our clients. etc. No other city in the world has contributed more to music—and not just Motown. and that’s why we feel so passionate about it. who was a copywriter at CE before he was a novelist. because I think we are great at understanding both mainstream America and Gen Y values. If Frank Campbell and Henry Ewald could come back to life and visit the very different CE of today. but the tools and the technology we may be using today may astound them. Mr. Hughes: What are your priorities now going forward for this new century? Mr. but design. So I think he would appreciate the fact that we can manage everything. Mr. So Budweiser. Ludwig: My priority is to make CE the most respected and recognized agency in America. Detroit has to work for a living.L.000-foot level of big branding and create that emotional bond. Ludwig: They had a motto when they started the company: “Advertising Well Directed.CAMPBELL EWALD SPECIAL ADVERTISING SECTION OF ADVERTISING AGE should leverage that. I remember a GM executive one time saying. Hughes: What surprises new business prospects when they come in? Mr. that the ways in which we can engage consumers—have that one-to-one conversation—have enabled us to direct that advertising. but it sure isn’t dull. and I was touched by it. We are passionate about these communities. Mr. And then they’re surprised and impressed by our innovation in all forms of communication. Hughes: If I asked your clients about CE. Mr. The client said that CE makes their clients’ business success their business. R I G H T D O W N T H E S T R E E T. Henry. I’m paraphrasing. I think they’d see. L. So it’s not always a fun business.downmagaz. they would be surprised by a lot of things. was so passionate about understanding that he bought a car dealership so that he could experiment with sales promotions and advertising within the dealership.C.

Congratulations Campbell-Ewald on 100 years of success. © 2011 Discovery Communications .

Advertising has moved from a model based on demographics and impressions to one based on behavior and engagement. and producing TV programming such as “The Dinah Shore Show” and “Chevrolet on Broadway” in the 1950s—precursors to today’s branded entertainment. I call it the“human truth.com .” The “Take Time to Be a Dad Today” campaign for the Ad Council came from the human truth that most men want to be good fathers.” it’s about the 100 little ideas that come together to create business-transforming solutions for our clients. it’s about a dialog with the consumer that spans both the physical and virtual environments. beyond convenience. ideas are the great equalizer. What these campaigns all had in common was their ability to make a strong emotional connection with people. beyond any of the functional benefits. It appeals to a deep emotional place that exists in us all. not just those in the creative department. To be that person that everyone counts on to get the job done. 2011 USAA C8 www. the human truth comes from a deep. For USAA. They want a “See the USA. Everyone across the agency can make a contribution. Today as we create work in an environment that combines traditional and digital advertising. Our work for the U. emotionally. people feel lost.downmagaz. At its core will always be a driving passion to uncover the human truth and develop communications that get people engaged with brands—maintaining the simple goals we started with: to do effective work and serve each client well. Their success is evident in the history of creativity and innovation that have been hallmarks of the agency for the past 100 years and continue in our ever-evolving business today. The reality is that the smallest moments can have the biggest impact on a child’s life.S. Chevy trucks embodied that desire. so we encourage dads to simply spend time with their kids. The success of the campaign is based on crafting a completely integrated solution that starts with engagement and ends with activation. The “Thrive” campaign for Kaiser Permanente came from the human truth that when it comes to healthcare. rather. Many at USAA have served. placing the first live TV commercial in 1946.000 premium in 1916 would be equivalent to producing a Super Bowl ad today.” Whether it’s your first day here or you’ve been here 10 years. Among the many CE firsts: creating the first automotive ad with color—the $2. They’re tired of their bodies being treated as profit centers by healthcare providers. I think Frank and Hank would be proud. My motto has always been “The best idea wins. they had two simple goals: Do effective work and serve each client well. what are people really looking for? Beyond price. Mark Simon is chief creative officer of Campbell Ewald. With today’s ever-expanding media landscape. what is it that people really want? “Like a Rock” was about people’s Mark Simon making the emotional Kaiser Permanente partner to help them avoid getting sick in the first place.”Deep down. The consumer’s experience with the brand drives everything. CE’s approach reflects this changing landscape. It’s what we continue to do every day. desire to feel strong and dependable. so their members know that the service representative they’re talking to “gets me. NAVY is a prime example. CE’s ability to create a strong emotional connection between people and our clients’ brands has been articulated through what has been called the Quality of Life Insight—going beyond the facts and features of a product to demonstrate how the brand enhances the quality of life of the target consumer. It’s no longer about one-way communication. know that (sadly) I had nothing to do with any of that work. It’s why at CE we’ve fostered a culture of collaboration and participation—a place where a diversified collective of inspired minds come together to create remarkable work. It transcended what the product did and focused on how it made you feel. it’s not just about the “Big Idea. The creative philosophy and approach at CE has evolved over the last century and will continue to do so as we begin our second 100 years. They want more than someone to care for them when they’re sick. no matter what. Before you accuse me of agency bias. personal understanding of military life.” “Heartbeat of America” and “Like a Rock”—these aren’t merely great campaigns. when Frank Campbell and Henry Ewald set up their six-person agency.” “We Earn Our Wings Every Day. It’s allowing each channel to do what it does best and having them all work in harmony. but the pressure to be“superdad” is overwhelming. they are arguably some of the most iconic work in the history of advertising.CAMPBELL EWALD CONNECTION By Mark Simon In February 1911. FEBRUARY 21.

first addressable TV test with Cablevision.” Ad Council/ Fatherhood (2008) •“A Simpler Way to Ship.” NAVY (2001) •“Thrive. trying out the medium for the Hat Style Council in New York 1946–Positions Chevrolet as the first auto company to regularly sponsor programs on America’s first TV network.” Alltel (2006) •“Take Time to Be a Dad Today. under Campbell-Ewald brand 2000 2000-2010–Diversifies by adding more than 40 new clients. Ewald buys a Chevrolet dealership to gain deeper knowledge of client’s business 1928–Uses color photography to produce first fourcolor ad of a motor car for Buick 1930 1931–Becomes first to use gold ink (Saturday Evening Post) 1934–Helps Chevy make history with Soap Box Derby. NAVY. “Ted” Little is named second chairman 1957–Becomes first to use color in TV commercials 1959–Begins era of “spectacular” TV spots. Liberty and the Pursuit of All Who Threaten It. wins a Gold Effie 2001-2010–Develops memorable campaigns: •“Life. pushing its non-Chevrolet business to 45 percent of billings. in the largest agency merger in the history of the industry 1975–Produces live racing event spots for Goodyear Tire & Rubber Co.” “Olympics” and “Magic Ride” 1960 1961–Helps establish the nation’s first college of advertising program at Northwood Institute in Midland. Mich. 2011 C9 . propels CE to the ranks of top 5 U. including “Family Shopping Trip. including “The Dinah Shore Show. 2006. Chevrolet “Yahoo’s Digital Domination” draws 800 million impressions in one day 2009–Pioneers Integrated Content Development 2010 2010–Bill Ludwig becomes eighth chairman 2010–Becomes first agency to win three Grand Ogilvy awards (2004. first ad with art runs in the Saturday Evening Post in 1921 1920 1922–Wins all GM’s ad business. other automakers adopt the revolutionary technique 1928–Mr. winning four gold awards in five years at the International Advertising Film Festival for Chevrolet work.500-foot Castle Rock in Utah 1964-66–Undertakes significant diversification with more than 35 new clients.S. Adams becomes fourth chairman 1970 1972–Acquired by Interpublic Group of Cos. develops iconic “We Earn Our Wings Every Day” slogan 1984–Paul John becomes fifth chairman 1985–Dick O’Connor becomes sixth chairman 1985–Premieres “The Heartbeat of America. 2010) 2010–Wins trifecta of coveted awards for USPS’ “Simpler Way to Ship”: Grand Ogilvy. agencies 1928–Creates automotive co-op advertising. described as the “greatest amateur racing event in the world” Late 1930s–Distributes “minute movies” for Chevrolet to 4. landing its largest non-GM client 1975–Premieres “Baseball.” U. Media Plan of the Year 2011–The Next CEntury 1975 1911 1981 1916 1985 1991 1928 2000 1951 1959 2007 1962 1964 1964 2010 2010 FEBRUARY 21. including CE Communications.S. DuMont TV 1946–Places first live TV commercial 1948–Introduces “See the USA in Your Chevrolet” 1950 1950s–Begins long legacy of branded entertainment with production of variety shows.” “The Garry Moore Show” and “Pat Boone’s Chevy Showroom” 1953–Henry G. including Forbes magazine.. “breaking media rate cards” 1997–Tony Hopp is named seventh chairman 1998–Restructures to consolidate all areas of agency expertise. an industry pioneer of integrated marketing communications 1990 1991–Begins 13-year run of iconic “Like a Rock” campaign for Chevy Trucks 1993–Establishes consolidated media buying unit for General Motors.” NAVY (2010) 2004–Wins Ad Age’s “most likeable” Super Bowl spot for Chevy “Soap” 2007-2009–Launches industry “firsts” for the NAVY: first click-to-video mobile campaign.S.800 movie theaters nationwide 1940 1941–Becomes one of the first to experiment with TV.SPECIAL ADVERTISING SECTION OF ADVERTISING AGE 100 YEARS OF CE INGENUITY 1910 1911–Frank Campbell and Henry Ewald open shop with two clients: D&C Navigation and Hyatt Roller Bearing 1916–First auto ad to use color: red taillight for Hyatt Roller Bearing 1919–Produces Chevrolet’s first ad campaign—an all-type ad placed in 45 newspapers. among first to use animated banner in mobile 2008–Becomes first in industry to implement thirdparty home page takeover.” winning more than 400 awards in four years 1987–Forms subsidiary CE Communications. Mich. Postal Service (2009) •“LiveOn. 1962–Creates six-minute Chevy spot integrated with a “Bonanza” episode 1963–Wins the Detroit Economic Club’s Gold Door Knob for “opening career doors for women” 1964–Produces famous Chevrolet ad of Impala perched atop 1. Apple Pie and Chevrolet” 1978–Moves from Detroit to Warren.. Effie. for which it coins the slogan “The Capitalist Tool” 1966–Lawrence Nelson is named third chairman 1968–Thomas B. valued at $6 million.” Chevrolet (2004) •“Come and Get Your Love. positioning it for additional growth in the category 2000–Launches OnStar “Batman” campaign. including U. its first government win.” OnStar (2010) •“A Global Force for Good. Hot Dogs. to occupy its own building 1980 1981–Wins Eastern Airlines account.” Kaiser Permanente (2004) •“American Revolution.

In addition to running across various Discovery channels. Incredible ideas have come from it. that has all changed. commander.” Several of CE’s clients discuss how the agency has taken these complex marketing challenges and activated multilayered creative solutions. We’ve changed people here and their pride in this organization. CE has built a presence for the NAVY on a number of key social media sites. as well as farmers’ markets to encourage eating fresh food often not otherwise available nearby. the NAVY. physicians and current members. NAVY Recruiting Command. It helps us connect.” says Debbie Cantu. “and we’ve been doing very well. It also hasn’t hurt that the NAVY has met all its recruiting goals for 10 years running. It’s a roster we are extremely proud of. KP has opened healthcare campuses. it helps build credibility. I know it’s a job. Furthermore. I sense a similar set of values with CE people who work on the NAVY account. As a brand representing integrated care with a focus on prevention. Ms. the site has been extremely popular and won numerous awards since its debut in 2008. an accomplishment that the admiral says isn’t easy:“The talent we seek doesn’t just come walking in the door. MySpace and a website. For this young target audience. and quality doctors. We have to go hunting for it. and the positive perception of the brand has strengthened the relationship members have with the company. many in inner cities. The number of subscribers. They really get the sacrifice and what it takes to serve. it helps us build trust. “This campaign speaks to people in a way that nobody else does in this category. Today. The way CE is so creative draws people in. 2011 C10 www. as well as KP’s own employees. In fact. the nation’s largest not-for-profit healthcare service organization. Flickr.” One of its most successful sites has been NAVYForMoms. we couldn’t have gotten such big rewards.” he says. Rear Adm. president-general manager.” A key part of the work is in social media. uncaring HMO needing to reposition its brand and reverse negative perceptions and declining enrollment. has led CE’s new business charge and says the current client lineup “reflects who we are as an agency—clients with complex challenges and considered purchases. Faller. came to Campbell Ewald in 2004. across multiple platforms. including YouTube. NAVYForMoms. digital accounts for almost 90 percent of NAVY advertising. due in great part to how Kaiser Permanente’s “Thrive” campaign has redirected the public conversation about healthcare. KP was well-positioned to talk about health and wellness. That’s why he believes the U. Kaiser Permanente and its agency faced a big challenge: how to make an emotional connection with consumers and stand out from other insurance providers. Faller. I’ve tried to structure an environment where no idea is a bad idea and we can kick around anything. which was how providers advertised. Sure. KP membership increased.com. they did not respond to messages about “healthcare” as an industry.000 members. which created a series of TV shows about the NAVY that began running in 2009. It helps explain who we are and the opportunity we offer. in profile Kaiser Permanente: From industry to cause Ongoing research has indicated that almost all image attributes of KP have improved for all audiences: companies that offer its health plan and those that don’t. U. Twitter. award-winning creative and distinctive marketing solutions.” says Clark Bunting. ads were created for transit. but for Rear Adm. Let’s take that know-how and apply it to other clients.S. It includes radio shows featuring players talking about healthier eating. now the agency’s chief client officer. it was viewed as just another big.CAMPBELL EWALD PARTNERS “We have helped build an iconic brand that’s sold more cars and trucks than any other in history. CE also created 14 TV spots clearly separate from the Discovery editorial but very much related to the content of the programming. NAVY’s partnership with CE is so successful. The campaign is all about empowering people to be happy and healthy at every stage of life and redefines healthcare not just as an industry. “The values we. having a similar set of values with a business partner is critical.com . “It ended up being a huge success for everyone.”she adds. airports and stair wraps—even tags on broccoli in grocery stores. noting that it took something that was perceived as unapproachable and made it relevant to individuals. Bunting says. who has shepherded the effort from the beginning. “That’s a pretty good metric. fans. all driven by CE’s long-standing business philosophy–to serve clients beyond their expectations. It marked the beginning of a serious effort to expand the agency’s client base beyond its automotive Jim Palmer roots—an effort that has produced a roster of bluechip clients. Cantu credits CE with helping KP “do things that people who had been at Kaiser Permanente a long time never thought could be done. Kaiser Permanente VP-brand marketing & advertising. views and clicks has been impressive. Research revealed that while people were interested in their total health for mind. This became the core of the “Thrive” campaign CE created.” —Nancy Giges For Rear Admiral Craig S. video appeared on YouTube. Facebook.” Mr. such as a sponsorship of the Los Angeles Dodgers featuring much more than signage at the ballpark. convenience and access. CE has helped us get through hard parts. body and spirit. When Kaiser Permanente. This social community lets moms hear about the experiences of peers who have been there. The marketing and advertising campaign is a really big piece of that search for talent. joint community events and healthier food sold in the park through Healthy Plate Carts. NAVY: Building trust via social media With almost 44. and it is so important. talking about co-pays. but it feels like it transcends that. the measure of success is the number of people who join the NAVY every year. An important aspect of the campaign was to make sure the “Thrive” message—“We stand for health”—got through to the target audience. Discovery Channel. Mr. KP also incorporated some fairly uncommon programs. done that. that mix happens to be heavily digital.” he says. This meant that in addition to TV and print.com because it connects with influencers: mothers whose immediate response to a child’s desire to join the NAVY isn’t always enthusiastic. There’s a real connection.S. —Nancy Giges FEBRUARY 21. In a number of cities. but as a cause. Faller explains that the NAVY wants to surround its target with the best possible mix of media. “This was far and away the most integrated program we had ever undertaken in terms of its depth from a content standpoint and its breadth across multiple networks. If it hadn’t been for their courage to tell us how things would play out. Another successful NAVY program was a partnership with Discovery Channel.VOD and NAVY and Discovery properties on the web.” Jim Palmer stood up and made that statement at a Campbell Ewald staff meeting 15 years ago. “Their loyalty has grown over the last seven years.downmagaz. Palmer. have as an organization are courage and commitment.

80 percent of people buying GM vehicles equipped with OnStar say OnStar was “an important reason in their purchase decision.” CE will soon roll out the next phase of OnStar marketing.” Mr. but not necessarily wanting to have to use it because that meant there was an accident or your car was stolen. OnStar was a new company.SPECIAL ADVERTISING SECTION OF ADVERTISING AGE OnStar: Driving a brand evolution Campbell Ewald has been the agency partner on the GM OnStar brand since 1997 when the product became available on a number of GM vehicles. Mancuso says the CE partnership has “helped make OnStar the undisputed leader in connected vehicle telematics—and an important element of vehicle purchase consideration. and here.” says Mr.” MotorCity Casino Hotel engaged the agency last June and launched its “A Million Miles Away. positive and optimistic. further elevating awareness and highlighting the positive difference OnStar was making in the lives of our customers. “‘Batman’ catapulted OnStar’s awareness. CE has helped OnStar evolve its brand. Mancuso.” Mr. Since then. We wanted to figure out a way to capture that feeling in our advertising. “We’ve experienced economic hardship for a long time and.” she says. more than others.“Campbell Ewald will continue to help us build our brand as we embark on bringing OnStar to tens of millions of non-OnStar-equipped vehicles on the road today by way of a new OnStar product. “OnStar and Campbell Ewald have been together from our beginning through three phases of great marketing. and even before she got to the second pitch she knew CE’s bet would pay off. which will take the brand beyond new GM vehicles to the wider driving public. In September.” OnStar CMO Sam Mancuso says. —Christine Bunish MotorCity Casino Hotel: Local matters Last year. a strong sense of survival and pride defines us.” Mr. Mancuso says. In fact. start the car and report diagnostics such as fuel level. Mancuso says. “The ‘LiveOn’ campaign maintains that peace of mind but also shows uses of OnStar in everyday circumstances that are bright. senior VP-operations at MotorCity Casino Hotel. the “LiveOn” campaign debuted. a AAA Four Diamond entertainment property and the only locally owned and operated casino in Detroit. The timing couldn’t have been better. making it part of the pop-culture vernacular. as the company added new services while maintaining its core message of safety and security. Holaday says she was surprised when she received a bound book from CE containing two advertising concepts. “Detroit is a very unique market. With the rise of expectations of almost perpetual connectivity. Campbell Ewald gambled on a pitch to Detroit’s MotorCity Casino Hotel—and both the house and the agency came up winners. the campaign showcased OnStar as “an authentic and personal brand.” says Jenny Holaday. using true stories to illustrate OnStar’s Automatic Crash Response and Stolen Vehicle Assistance features.com or 1-877-345-5256 START BUILDING .cbtalentintel. a brand with relatively low awareness. ‘local’ matters. “[MotorCity Casino Hotel owner] Marian Ilitch saw the work that same day and completely agreed. he adds. Mr. I’ve lived in quite a few cities. tire pressure and oil life. portraying OnStar in an expanded light. energetic. OnStar was depicted primarily as a safety and security system providing the peace of mind of know- ing it was there.” CE followed that auspicious debut with the long-running “Real Calls” radio campaign. > www.” Ms. and people didn’t have a great understanding of the technology because it was so new.“The moment I saw the first concept. OnStar has advanced its mission to meet customers’ changing needs.” The “LiveOn” campaign’s message of “safely connecting you in ways you never thought possible” details new customer services such as enhanced navigation with Google Maps and a mobile app for iPhone and Android device users that can unlock a car’s doors. I knew we’d found our campaign. Mancuso says. as a result. Replaying actual calls received by OnStar advisers. She began looking through it. The effort has been lauded as one of the most recognizable and effective radio campaigns of recent times. “It started with the creation of the ‘Batman’ campaign. Right Down the WORK IS NOT A FOUR LETTER WORD Find more candidates who live to work and not the other way around on CareerBuilder. “In the past.

the U.“Our new business is up double digits. for example. other interactive TV measures had proven successful. “Campbell Ewald took us in a totally different direction with a very high-energy brand spot showing the nongaming amenities of escape: our entertainment. which appeal to consumers and business shippers alike for their simplicity and convenience. “We bought 20 billboards and tailored versions of the escape theme to each location. Holaday.” Mr.” Ms.CAMPBELL EWALD SPECIAL ADVERTISING SECTION OF ADVERTISING AGE Street” campaign three months later. “I’ve worked closely with half a dozen agencies in my career. Postal Service was looking for a way to continue the success of its Priority Mail Flat Rate Boxes. USPS was one of the first advertisers to try the new technology.com .” says Mark Bellissimo. The technology from Canoe Ventures.” Mr. CE’s first work for the Ad Council addressed the housing shortage for returning World War II veterans with headlines such as “Share your home with a veteran. “and Campbell Ewald is far and away the best. Office of Family Assistance and National Responsible Fatherhood www.” Mr.” Today. The commercial was tested on two networks.” —Nancy Giges Ad Council: Touching the heart Campbell Ewald has been a partner with the Ad Council since 1946. Holaday says.” The outdoor component quickly captured attention in suburban Detroit.S.downmagaz. “In the case of USPS. “Great strategic ideas.” Since cable companies already know their customers’ home addresses. They understand your strategy and how to convert it into a compelling message that drives business. Bellissimo says. “We wanted to connect to the emotional state of escape. Verklin says the results exceeded all expectations. “We had a really great partner in CE. producing TV and radio spots. hotel. Formed two years ago. ‘Royal Oak to Royal Flush: 6 miles.” —Christine Bunish USPS: Pushing the interactive envelope As it approached the 2010 holiday season. full-service group of strong thinkers and true business partners. the Postal Service wanted to make it convenient for more consumers to try the boxes. It’s brilliant. “This technology takes the best functionality of the Internet but does it within the commercial. AMC and Style. gorgeous creative and a fast turnaround— and all on budget. print.” The effort featured the familiar letter carrier Al providing his simple.” Now. The one in Royal Oak. just four years after the industry’s nonprofit public service agency debuted. viewers could indicate “yes. so we wanted to test the new technology offered by Canoe Ventures. which will soon be in 20 million households.” Ms.. A previous campaign by CE had been very successful in debunking a widely held perception that “shipping is complicated. They’re a very effective. but needed to do so in a local and relevant way. a joint venture of the six largest cable companies in the U. People have been talking about this for years.” he says. allowed USPS to use its existing commercial with an overlay message asking viewers if they would like a free Flat Rate shipping kit delivered to their home. Canoe is making cable TV interconnected and interactive across multiple cable operators using standardized platforms. “We needed to find highly engaging yet useful channels to have the time-pressed target audience learn about and sample Flat Rate Boxes during the holiday period.S.” Ms.” she says. MotorCity’s market share was shrinking prior to the campaign launch but moved to positive territory the very first month. and was deemed a success all around. and we’re at our highest market share in 20 months. says Canoe CEO David Verklin. With just two clicks of their cable remote. the agency works on the “Fatherhood Involvement” campaign for the Department of Health and Human Services’Administration for Children and Families. Holaday says. “and the cost per lead was competitive with other forms of media. spa and fine dining.” says Ms. managing director of Campbell Ewald. tools and technologies. it ships. sage advice: “If it fits. USPS had tried interactive TV before as a way for consumers to request the Flat Rate Box shipping kit. “Engagement and requests for more information exceeded our expectations. Bellissimo says. and CE and USPS did it.. as well as on Cablevision Advanced Platforms. Holaday says.’ It says ‘local’ and it says ‘escape’ is just six miles away. there was no need to enter any additional information. says. Mich. Now another new cable technology was being launched that could make ordering the product even simpler. “Campbell Ewald just got it. outdoor and online ads.

.We’re proud to be part of the dialogue. casalemedia. Your friends and colleagues at Casale Media. Your commitment to excellence is an inspiration to all.com “ “ Congratulations on a century of navigating brands through the power of conversation.

In the early 2000s. the privately held. “All aspects of our advertising and communication reflect that we are proud of the people who have served the country.”Mr. “Take time to be a dad today. member-owned USAA has been serving the financial needs of members of the military. But with the expanded market potential.” One of the commercials features a father beside his grade-school daughter. What started as an organization open only to officers has evolved to welcoming enlisted members. the agency produced the council’s campaign for U.“The values that the company subscribes to are best reflected by our top-line member service representatives who take calls from members. CE has supported other Ad Council initiatives as well. It really is the mission that separates us from anyone else that provides financial services.Adams says.S.” says Peggy Conlon. helping to sell $160 million in savings bonds. veterans and now anyone who has ever served in the U.” CE has produced“a rich body of work. which is work grounded in great consumer research and strategic insights—work that stands the test of time.CAMPBELL EWALD SPECIAL ADVERTISING SECTION OF ADVERTISING AGE Clearinghouse. Get the cure. “It illustrates how important they consider the outreach work they do. banking. Armed Forces and their children. While the choice of media has changed. and that purpose is we are serving the men and women who are serving the country.” Ms.com .S. —Nancy Giges www. which essentially doubled the number of eligible Americans to 60 million. USAA named CE as its agency two years ago with the idea of focusing on direct and e-mail advertising. USAA needed national visibility and the ability to reach an audience that hadn’t previously received its direct messages. Its involvement stretches back more than a decade. They know the social change they can create by putting their best and brightest against these campaigns. After World War II and through the 1950s and 1960s. running through her cheerleading routine.” show scenes in the daily lives of military families and encourage viewers to learn more by calling a toll-free number or going to the USAA website. Savings Bonds. That led to a fully integrated campaign that included TV for the first time. featuring “Polyp Man” recommending. CE produced an award-winning cam- paign about colon cancer detection and prevention for the American Cancer Society. the core message remains the same. Conlon says. Adams says that CE has a good understanding of how to articulate a brand to the external market that is consistent with and reflects the way USAA feels about its brand inside the organization.” Mr. “Get the test. “We are marketing the fact that we have a higher purpose.” says USAA CMO Roger Adams. and is so popular it has its own Facebook page. including a Bronze Lion in the public awareness messages category at the 2009 Cannes Ad Festival. Traditionally relying heavily on word-of-mouth. CE has produced a popular series of TV spots and other ads that carry the tagline. investments and financial and retirement planning designed to meet the unique needs of military families and prides itself on its excellent service in helping keep its members protected financially. and we talk more about them and the fact that we are providing a service to them.” —Julie Liesse USAA: Integrating a message of service For 90 years. president-CEO of the Ad Council. They get it. The spots. he says. Get the polyp. using the tagline. The agency’s experience in the military space with the NAVY account helps with that. That spot has won several awards. USAA offers insurance.“We know what it means to serve.downmagaz. “ ‘Cheerleader’ reflects the strengths of Campbell Ewald. as does the fact that CE is one of the few fully integrated agencies. They have the biggest hearts. Let us serve you.

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Congratulations to CE on your 100th anniversary.downmagaz.JUST THIS ONCE. SCREW THE BROCCOLI.com . www.

Up to now. 4. CEO of L’Oréal USA.How do return on that investment. as the company’s first digitalexist and make sure there’s the least that we took the bold move to make sure media agency of record. and so the digital spend didn’t come at the detriment of print.Why ? growth bets will be.is a huge growth engine for the company.. including are launching right now were fine-tuned really push innovation to the next level. but it’s where do we year. What one emerging medium or one trend in marketing is the biggest new thing? We’ve been using in the past and still obviously use celebrity spokespersons as endorsers. going where rivals aren’t or can’t easily in those tougher years. and obviously the challenge is: How do you make sure you manage that community and that channel in the proper way so that you don’t get hijacked? ➜ Learn more about the successful strategies of top industry CMOs. We’ve been able to show a relationship with print that’s just very unique as far as beauty’s concerned.Mr.S. 2011 25 CMO STRATEGY Edited by Jennifer Rooney. Why? How do you measure return on investment in marketing? In looking at things more broadly we started to look at paid. 5. owned and earned and how to assess investment for those specifically. and. turned to an outsider—Marc Speichert.Among those has been a relationchannel of distribution is what made the ship with prolific and popular video blogAre there lessons you learned at company successful. . that you could start selling advertising on. and it’s very authentic in a very approachable way that reaches a whole new set of consumers. That changed. One of the things we’re seeing is that you can kind of transform that model. Frederic Roze. where the company still believes it this building. l’oréal has never had CMOs at the country level or globally until last year. and so is L’Oréal. opinion and perspective on marketing strategy for marketing leaders delivered to your inbox each week. We’ve definitely increased our spending in print. Join and enable the conversation. Make it a priority. Over the years L’Oréal has been pretty strong in print media. One of the things we’re doing is to partner with some of the publishers and embrace some of the new things. an area where you think you can break the next decade. Consumercentricity is a must.com Want more CMO Strategy? Subscribe now for a roundup of key analysis.S.Speichert said. Winning the content battle is key. 2. This is a 23-yearold Vietnamese-American blogger who’s talking about how she is using the product.. a billion new consumers by 2015).and end oflast decade weren’t as strong align innovation to where the big part of that is more spending on digital. L’Oréal is already few developed countries that has a really big share to spending more—with its measuredcontribute toward the billion consumers. But it also needs L’Oréal. I read an intriguing article on adding two new dimensions to it. as you would expect. jrooney@adage. reliance on magazine advertising. Within the past year L’Oréal on a global basis and here in North America has created this chief marketing officer role. so a lot of the products that we The vision was really twofold. L’Oréal’s divisions included consumer products.because you know it’s one of the very can be much bigger. Consumers wield power over your brands like never before. launching last Colgate that seem particularly going to change. n tr tra which we’ve done ’ ’v successfully with Lancome with Michelle Phan. Define your content model. One is to improve bang for the buck. The good thing for us was Atlanta. She’s getting on average between 2 and 2. Speichert’s mission is to find synergies among those divisions and help develop common strategies to realize L’Oréal global Chairman-CEO Jean-Paul Agon’s vision of adding a billion new consumers by the end of the decade. Digital is a multidimensional revolution. so you are able to identify share of L’Oréal’s new consumers over channel to the other. amount of overlap between the brands we’re not going to step down from Such moves aren’t coming at the and initiatives we’re doing. L’Oréal Paris’ own exclusive applicable here? create synergies that make sense? Destination Beauty channel on YouTube. There’s also the opportunity to think One of the things that I learned was to In an interview with Ad Age. Mr. In that capacity you facilitated by his recent decision to name need to look at it universally. To that end. insight. and a professional division with Matrix and Redken in addition to such retailers as Kiehl’s and The Body Shop. have similar ambitions (in its case.com “We use celebrity endor er u endorsers. contributes at least its they move from one department or one perspective. Having the brands set up within a follow. One difference with The U. Sign up at AdAge. Maybe the third one is relationship building. 2011 is finally the year of mobile. L’Oréal: It’s counting on a lot more of which makes it very exciting for everybody here in those consumers to come from the U. because consumers take over the media property and don’t necessarily do with it what you would like them to do. Make sure you listen before you talk.” through even though you might have less money to spend. So we continued to expense of L’Oréal’s traditionally heavy aggressively spend media specifically. some hair care. And he’s using his herreally new for L’Oréal..Is that going to continue or will you move money to digital? It’s definitely going to continue to be a key medium for us.5 million views per [Lancome] video. We very itage at Colgate—a traditionally frugal you see your role here? aggressively continue to spend on R&D spender—to look for opportunities to as well. which we’ve done very successfully with Lancome with Michelle Phan. and who really kind of engaging and creating a kind of community. It’s bringing [[together] a whole bunch of different beauty bloggers who create how-to videos and give you tips on makeup. Your role spans divisions and is We’re now seeing a very nice kind of Speichert said. THE CMO INTERVIEW 5 TIPS 1. We are one of the very first to embrace what some of the publishers have done with the iPad. Mr. which they called “sold” and “hijacked.To fill the post.. a career Colgate-Palmolive Co. leading the way for the Paris-based beauty marketer. with the mass HERT L’Oréal Paris and MARC SPEIC Maybelline-Garnier units. Competitors such as Procter & Gamble Co.including heading personal care for Colgate’s crucial Latin America region.” Sold meaning you created a media property that becomes so powerful . with the U. a luxury division anchored by Lancome.com/cmostrategy SPEICHERT LOOKS FOR ‘BIG GROWTH BETS’ AS FIRST CMO L’Oréal’s top marketer is working to find common strategies for various units as company seeks a billion new consumers ■ BY JACK NEFF jneff@adage.. media spending through the first 10 months of 2010 on pace to top $1 billion Though last year was good for I’ve been spending quite a bit of time on for the first time ever. which for me is kind of ideal. and that is not ger Michelle Phan. about it from a market-research scrutinize every dollar spent. It’s the new way of leveraging an endorser. And then the hijacked one. which is sort of the flipside.a couple years toward the preparing for the future and trying to to spend smarter.executive with experience in France. Go to AdAge.S. Greece and Mexico. to look at those synergies where they the industry. Destination Beauty is a beauty channel that we created on YouTube. The other Speichert outlined how he sees his new perspective [to create a] view of our was to really look for those white-space role and how he’s going about making consumers and our shoppers in how opportunities from a media sure the U. the world’s biggest. of course. Embrace it or perish.S.Advertising Age | February 21. You need 2008 and 2009 were tough markets in Publicis Groupe’s Moxie Interactive. That’s an example of where we are creating a media platform.com/ cmostrategy . Mr.. You can Y Yo stransform that model. an active-cosmetics division including La Roche-Posay. Colgate is a very relationship-driven company. investment. 3.

reasoning. 14).S. If you work at a mainline advertising agency or major marketing organization. usage and shopping. but we now have sophisticated direct. Don’t take anything for granted. looking at the world through the eyes of our personal experiences is a fairly common error in human judgment. The good news is that we have many more tools at our disposal than Mr. WHA WHAT YOU SAY A AY HOW DOES THE LATEST HARLEY SPOT COMPARE WITH THE WORK PRODUCED BY FULL-SERVICE AGENCIES? Last week. This can be fatally misleading. Marketer and agency both need a mix of veterans who know the past and of new talent who challenge the future. –HAROLD SOGARD Remind me to make mak sur sure I check to see if a s pr fe professional made my f Harley. Rife with new business opportunities and communications platforms? Definitely. f r fo dbra nbrand than a br It’s easy for a CMO to fire the old agency. Harley-Davidson introduced its first work from crowdsourcing agency Victors & Spoils. including Unilever. –GREG HOY % The majority of Ad Age readers weren’t impressed. bike –PAMELA WOLF This adds more pro f moroproo pr that the work from m fr fro cr i ourc crowdsourcing is just as g n our good as that from most m fr fro full-service agencies. new agency agenc It’s tempting to have a fling with the hot loya loyal only to the y l agency of the moment. –ANDREW CARTY As someone who isn’t a rider. but don’t forget. Yes. California and Texas. 2011 | Advertising Age VIEWPOINT EDITORIAL Edited by Ken Wheaton. “married with children. not some y “passionate amateur eur” eur.com . With this ad. More often than not. a lot. the work will suffer. a little.com/centurymarks for story and timeline. 711 Third Ave. The winning idea came from a Kentuckian. In fact. too. we hope to inspire the development of unique marketing platforms directed at discrete groups of consumers to supplement mainline marketing efforts. Procter & Gamble. but we’re not where we should be!).” because aggregations under these banners necessarily sand off likely profitable differences between audiences. DraftFCB.” (My favorite bias is the self-serving bias: “Perceiving oneself responsible for desirable outcomes but not responsible for undesirable ones. chances are that she bears a declining resemblance to your wife as well. 4. kwheaton@adage. some marketers and brands passionate for f fo lead decade after decade. New York. communication that seeks to reflect any given brand’s “typical” user is in danger of getting it wrong. In marketing and advertising. That’s intriguing. Ogilvy’s time. ➜ Matt Herrmann is chief strategy officer at McCann West. The agency partners in these relationships are true leaders. sentient being who doesn’t deserve condescending copy. family-size packaging is maybe misguided in a world of shrinking households. innovation. White. 5. Census Bureau’s American Community Report showed very different picture. Those five shops ranked among the nation’s 10 largest agencies both in Ad Age’s most recent tally and (under earlier names) in An agency that agenc our first agency ranking in 1944. Our clients were. product development that trends towards larger. For instance.26 February 21. the “oneperson household. In fact. eBer hey. Easy? No. The list includes BBDO. FIVE TIPS TO KEEP THE AGENCY-CLIENT FLAMES BURNING OPINION MATT HERRMANN MCCANN WEST It’s time to toss out Ogilvy’s adage about the consumer being your wife Apologies to David Ogilvy. Please limit letters to 250 words Marketers must change or die. grow and adapt for the relationship to last—and for each to remain relevant. Now turn on network TV and take a similar inventory. Next time you’re in a meeting. not mirrors for their consumers. JWT. take a look around and make an inventory of your peers. ve good at all. corporate strategy and marketing. they make up a small component of a larger truth. as a “passionate amateur. Cognitive bias such as this has spawned an entire subgenre of psychology devoted to studying and categorizing these mostly subconscious “patterns of deviation. s d n i m re e ex exactly why I shouldn’t ride—a bike lacksany bik lacks t protection at all. . NY 10017. Marketers and agencies share responsibility for maintaining the relationship. Ogilvy a little more credit and/or blame than he deserves for this.” 62 I saw the ad and actually w wa wanted a Harley fo the Harle rfor fir first time ev . the Evolving American Household Project. Keep it fresh. but while the consumer still isn’t a moron. he might have inadvertently created another problem—the presumption that we advertisers and marketers share more than we actually do with our audience. Whit Hiler. If the agency is always on edge. We can no longer default to common but perhaps lazy formulations of the “mass consumer” or “general audience.downmagaz. our effectiveness depends many times on our abilities to act as a proxy for someone who might be interested in our brands and products. not very s y. let’s compare that to the truth on the ground in America. Brands with clear. Complex? Incredibly. We’re helping our clients navigate this new world of multiple conversations. Viewpoint. you’ll notice that the majority of those seated at the table are probably married. they can seriously undermine our professional determinations as marketers. the first step should be to change the people. and that our experience is a valid proxy for our consumers. ever v rer. f –GABRIEL REICHMAN www.” only 17% of the population in 1970. the most typical family featured in advertising. But in 2008. you’ll see a world that reflects what you saw around the table. Great brands should live forever. After all. rider this ad reminds me . Agencies must change or die. ex w y ff wa ff. most of the time. non-Hispanic families are a minority in the two largest states. Odds are the CMO will be gone in a few years. knows the w ws In an industry that lives for new and mark marketer and is improved. In our Relationship Issue (Feb. Victors & Spoils’ chief creative officer. 28%.com or to Advertising Age. I r b e m re remember the cages e g ca mor more than the bike.) We were struck by the caliber of marketers on the list. 2. at only 22% of households. If there’s a problem.com Do you have something to say? Send letters and corrections to viewpoint@adage.”) But while these common lapses in judgment might be fairly harmless in the everyday review of events or even helpful in explaining why America might choose Bristol’s awkward moves over Brandy’s clearly superior technique. digital and experiential arsenals to engage in multithreaded. Harley. (Go to AdAge. Ford and General Electric. While Ogilvy’s famous exhortation reminded a generation of advertisers that the household consumer is a thinking. And shifting household size has implications beyond communication. Ad Age analyzed client/agency marriages that have lasted nearly or longer than a century. McCann Erickson and Saatchi & Saatchi. Some agencies the bra may dbrand nbr lead decade after decade by taking be better for the ownership of whatever is new. Now. Maybe great relationships can. The largest household group. For instance. all too often our thinking is biased toward our personal sociocultural status and experience. which is dedicated to enabling brand marketers to keep pace with this critically important and rapidly evolving arena for brand perception. but don’t stop there. lessons to be learned from successful longterm client/agency relationships: 1. GE succeeds as a corporation because it is always in the process of reinventing itself. but the ex e ecution is wa off. We’re truly moving into an era where successful brands will act as magnets. We’ll see what the 2010 Census will yield. is actually the “married with no children” home. And get ready for an even bigger wake up call with the new Census findings this year. yet it has not reviewed its account since hiring BBDO in 1920. 3. But there’s a larger truth in the evolving landscape of the American household. described by Evan Fry. But there are new CMO. salient internal values and a sense of purpose will continue to attract consumers.. But hey. Surprised? We were. Which is to say. not the agency. And while we might think that our instincts are very good. There will always be a need for brands to stand for larger. Ogilvy did when he was writing print copy for his wife. cultural truths in broadcast media. the U. your wife/husband/son/daughter might be a great target for your brand.” is actually the third-mostcommon household. respect and understanding lead to better work. ve y what do I know? I’m just w? a consumer onsumer onsumer. Clearly. n o i t One of the first lessons f firs we learn in l e communication 101 is ommunic ommunica don’t leave the viewer v ve with a negative image in negativ association with your y r u yo dbr nbra . Trust. brand. Each of those companies is a case study in how to succeed over the long haul through leadership in management. hyper-relevant conversations with different types of consumers. I’m probably giving Mr. have children and are white or sometimes Asian (we’ve certainly made strides here since Mr. Ultimately. But that does not mean marketers must change agencies. o y. . Marketer and agency must change. pr pro –TOM CUNNINGHAM The concept definitely had/has potential. especially the senior ones calling the shots. Get their input. we’re launching a process. A longstanding agency that knows the marketer and is passionate for the brand may be better for the brand long term than a new agency loyal only to the new CMO. became 27% of the population by 2007 and is still growing.

MORROW Exec VP-operations KATHY HENRY Corp. At Slate. e-mail: customerservice@adage.com mcarmichael@adage. but if there were more page views in it …” Meanwhile. Can You Spare a Dime?” (“We’re asking you to give a little back to the unpaid writers who built the Huffington Post. director. what took everybody so long? Back in October 2007. Ali Ali.A. Visiting HuffPo is. marketers can set an example of how governments can interact with citizens. Chicago AD AGE INSIGHTS CMO STRATEGY Ann Marie Kerwin Editor Jennifer Rooney Editor EDITORS AT LARGE Bob Garfield Columnist Jack Neff Personal products/research.S.. Advertising is “fundamental to economic development and sustaining a harmonious society.com emazen@adage.com dklein@crain. Founder (1885-1973) RANCE CRAIN President GLORIA SCOBY Senior VP-grp. took you long enough! I have to say it’s been a bit surreal for me to watch the recent pile-on regarding AOL’s $315 million acquisition of The Huffington Post and hiring of Arianna Huffington as editor in chief.com gpalmer@adage.S. custom programs kegolf@adage.com dboniface@adage.com mlearmonth@adage. a government official is your employee who gets his salary from your money. bought MySpace for $580 million.com matt_creamer@gmail. custom programs rskews@adage.com ADVERTISING PRODUCTION Michael Corsi Pre-press/production director Kate Nelson Production manager Meilyn A. (Click on this! Click on that! Girls Girls Girls!) As I type this.” the L.com tiezzi@creativity-online. a Nation of Serfs.com bbulik@adage..com jpollack@adage. Fowler and the other industrious HuffPo bloggers sure aren’t gonna get yachting vacations in Tahiti out of the deal. to think for themselves. For advertising to flourish.com akerwin@adage.com sdumenco@adage. But that audience.” Meanwhile.com mcmorrison@adage. West Coast reisenhardt@adage. the Google marketing executive who set up the Facebook page that helped shape and coordinate the Egyptian uprising. Chicago Matt Carmichael Dir.com PRINTED IN THE U. Account Manager.com amcgrath@adage.”) Geez. “Now our nightmare is over. Chicago Irina Slutsky Digital. circulation director G. and you have your rights.) Why.” In June 2008. wrote Tim Rutten at the L. They’re not stupid. With the protests. PA Michael Bush Agencies Emma Hall Editor.com MARKETING & EVENTS Angela Carola Director Candace Hanson Marketing & events coordinator acarola@adage.” And I wondered “how quickly all those bloggers who have been dutifully tilling the fields will suddenly run screaming from Arianna’s media plantation. Skews Associate editor. (Feeling like a broken record. I noted that unpaid HuffPo blogger Mayhill Fowler—who famously recorded Barack Obama’s ruminations about “bitter” working-class voters—had gotten the OK to post from Arianna herself. In June of that year I wrote a column titled “Trashy Parasitism as a Get-Rich-Quick Scheme? Hi. and mfg.com Subscriber services: 1 (888) 288-5900. CREATIVITY & TECHNOLOGY Pete Roper Sr. Castillo Assistant to publisher ONLINE PRODUCT DEVELOPMENT Rahmin Pavlovic General manager of online Kevin Meltzer Senior applications samauri Paris Bogdanos Videocoordinator AUDIENCE DEVELOPMENT John LaMarca Director. HuffPo. And the advertising business knows something about dreams. digital Alex McGrath Sr. those who fail to learn the lessons of internet history can get jobs at AOL.” in which I deconstructed the site’s cynical SEOfriendly aggregation/theft. fast food.” He also accomplished what advertisers often fail to do.com proper@adage. and I knew that if you build a brand. The New York Times’ David Carr. … No child labor. Los Angeles Nat Ives Media editor Michael Learmonth Digital editor Edmund Lee Digital Maureen Morrison Agencies.D.com cmoran@adage. He refined what he wanted to get across to the protestors to a simple message: “This is your country. media David Boniface New York sales manager Ellen Mazen Sr. 2011 MOST READ STORIES ON ADAGE. if you actually come to the site for some of its “serious” aggregated content. CRAIN JR.com mcorsi@adage.com klynch@adage. I wrote that “HuffPo sure seems willfully ignorant of American labor history. trashy MySpace was “hot.com KEITH E. simply. it needs to be created and consumed by people free to embrace and celebrate their sense of humor. fax (212) 210-0465.com kross@adage. Farhad Manjoo examined its “sketchy” SEO-humping practices.com jchiu@adage. you get to feel dirty and used (and complicit) in a whole different way. Los Angeles Kevin Brown Director of data management. and advertisers. of information projects.com jghedine@adage. intelligence and tolerance—all the aspects of a free people.” My reaction: “Ha! When the Huffington Post eventually sells. “picture a galley rowed by slaves and commanded by pirates.: 1-313-446-1665.com knelson@adage. As it turns out.com 27 2. DAVID KAMIS VP-prod. the people governing need to embrace and celebrate that their citizens combine the same characteristics.” a top official declared last fall. Note that China considers advertising as a key component of “sustaining a harmonious society.com kpatel@adage. audience development Andrea Richardson Sr.” Mr. Back then.com lwentz@adage. the head of agency Elephant Cairo. PAUL DALPIAZ Chief information officer MRS.com bgarfield@adage.com mcastillo@adage. ultimately grew tired of all that was gaudy.com ehall@adage.com jgoransson@adage. Now it is time to dream.” That’s a reality to be embraced by governments under siege and why advertisers need to play a key role in opening up the dialogue.” drawing a huge audience. CRAIN Secretary WILLIAM A. “This is a social-network revolution that started on Twitter and Facebook. though.com tpardee@adage. POLL). jlamarca@adage. some angry HuffPo bloggers have started a Facebook group called “Hey Arianna.com WEB Greg Palmer Web graphics editor Charlie Moran Web producer/editor OPINION SIMON DUMENCO THE MEDIA GUY COPY Anna Baskin Copy/People & Players editor Zharmer Hardimon Copy editor Welcome aboard the anti-HuffPo bandwagon.com kbrown@adage.O. I think HuffPo has just pushed its luck one too many times not only with its anti-journalistic practices.com jrooney@adage.com Richard K.com kwheaton@adage. mfg. Schultz Alcoholic beverages/food.com jwhelan@adage. Chicago Keri Lynch Research editor. Remember 2005? That’s when Rupert Murdoch’s News Corp. He likened the mind-set of the Egyptian consumer to the Egyptian citizen: Neither gets the respect he deserves. “Vacationing on a yacht in Tahiti.com eschultz@adage. Advertising is a form of free speech. I wryly suggested that HuffPo could increase its valuation by offshoring its actually-paid staff positions to Third World child labor. I was struck by the comments of the Egyptian adman we quoted in a recent issue.com rpavlovic@adage. I dropped my HuffPobashing after awhile. “Huffington gave her assent. Chairman emeritus (1911-1996) . told our Laurel Wentz that too often clients reject his idea for a campaign because they say Egyptians won’t get it. San Francisco Brian Steinberg TV editor Laurel Wentz Global editor Natalie Zmuda Retail.com pbogdanos@adage. nonalcoholic beverages 717-848-6950 212-850-7614 44-794-123-7761 323-522-6256 212-210-0146 212-850-0283 212-210-0219 312 649-5348 212-210-0770 212-210-0204 312-397-7582 917-804-6481 212-210-0169 212-210-0175 212-210-0419 212-210-0793 212-210-0403 212-210-0474 212-210-0795 212-210-0431 617-714-3745 212-210-0753 212-850-7613 212-210-0131 212-210-0108 CREATIVITY ART Teressa Iezzi Editor Ann-Christine Diaz Managing editor Jesper Goransson Art director Jennifer Chiu Deputy art director Thomas Pardee Editorial/production coordinator Advertising Age. Popular Science Accepts Apple’s Terms. gaudy. Chicago Rupal Parekh Agency editor Kunur Patel Agencies E.com nzmuda@adage. ADAMS Grp. SEE THE MOST EFFECTIVE MAGAZINE AD CAMPAIGNS OF 2010 ➜ Read it at AdAge. HuffPo is hyping “stories” including “All The Details On Irina’s Bikini” and “ Justin Bieber Leaves His Fly Down at the Grammys (PHOTOS. HuffPo launched in 2005.com cwolf@adage.” Mr. Ali was also hopeful that advertisers would view digital advertising more seriously. rcrain@adage.Advertising Age | February 21.com bsteinberg@adage.com arichardson@adage.732-9001 DATACENTER Bradley Johnson Dir. circ.com adiaz@creativity-online. of data analytics. Advertising and branding not only helped foment the revolution but can play a part in bringing more openness and even stability to countries trying to establish a new order.com 212-210-0243 212-210-0458 212-210-0761 212-210-0783 312-649-5294 310-860 -6420 312-649-5272 312-649-7846 312-649-5413 312-280-3104 212-210-0183 212-210-0797 301-340-2804 513. publisher ROBERT C.” In January 2009. sales executive AGENCY Jim Whelan Director. KLEIN Publishing/editorial director ALLISON P.. CRAIN Chairman MARY KAY CRAIN Treasurer MERRILEE P. And for democracy to flourish.com ageorgiadis@adage.” he said. a fact that every brand manager is now aware of. WPP to Roll Up Digital Agencies Into New Unit 3. yet. Batavia.COM 1.com zhardimon@adage. agency relations SALES MARKETING CUSTOM Kerri Ross Director.com dteicher@adage.com nives@adage. Times reported. China. irreverence. to do new things. and for governments to put their faith in advertising is to put their faith in their citizenry to accept new ideas. Facebook Advertisers: Fanatics or Lunatics? That Is the Question 5. are so many people suddenly agreeing with me? Beyond the fact that money ($315 million) changes everything. London Andrew Hampp Cable TV/outdoor/radio. People want desperately to make their own choices so they don’t need to rely on government. Wael Ghonim.com rparekh@adage.D.com sdougherty@adage. That’s where advertising and the aspirational desires of people everywhere intersect.com ahampp@adage.A.com aarden@adage. ➜ Rance Crain is the editor in chief of RANCE CRAIN Editor in chief DAVID S.” So what role can marketing and advertising play in generating a more realistic and enlightened position among governments about the capacity of their citizens to handle more liberties? By giving consumers more credit for understanding the world around them. Ghonim told the Times. cynical. outside U. And that’s why advertisers shouldn’t be timid about prodding governments to give their citizens more freedom of choice. in a column titled “At Media Companies.” bemoaned the downward pressure HuffPo has put on the value of content and content-makers.A. publisher JACKIE GHEDINE Associate publisher HOW TO CONTACT EDITORIAL ONT ONTA Abbey Klaassen Editor Judann Pollack Executive editor Ken Wheaton Managing editor Sheila Dougherty Assistant managing editor Aris Georgiadis Assistant managing editor aklaassen@adage. CRAIN JR. but with its audience. in 2011. Starts Selling iPad Subscriptions rcrain@crain.com bgibson@adage.com bjohnson @adage. Dumenco at sdumenco@adage. ➜ Email Ad Age media columnist Simon EVENTS MEDIA David Teicher Social media &eventcontentmanager ADVERTISING & SPONSORSHIP SALES Rob Eisenhardt Sr. and they have a voice now. Sales Marketing Emily Chiang Sales Marketing Manager Karen Egolf Editorial director. VP-tech.com OPINION RANCE CRAIN EDITOR IN CHIEF Marketing.J. has come to the conclusion that advertising can play a major role in its success. York. told The New York Times: “I worked in marketing. you can get people to trust the brand.com 212-210-0139 212-210-0164 310-426-2484 212-210-0280 212-210-0456 212-210-0173 212-210-0158 212-210-0160 212-210-0246 847-577-9032 312-280-3136 212-210-0407 212-210-0159 212-210-0214 212-210-0230 212-210-0248 212-210-0166 212-210-0401 212-210-0149 212-210-0235 DIGITAL. director. G. OH Simon Dumenco Media guy Matt Creamer THE BEAT SHEET Beth Snyder Bulik Consumer electronics/tech.com echiange@adage. and then click through to the original source.com jneff@adage. cynical and trashy. for one. an icky experience—like visiting pre-Disney Times Square. To grasp HuffPo’s M.com kmeltzer@adage. audience development mgr. account executive Becky Gibson Sr.com chanson@adage.com abaskin@adage. Times. The Chinese government is incorporating advertising as a “pillar” of the country’s economy in its latest five-year plan. ARDEN Vice president. Chicago Catherine Wolf Research editor.com mbush@adage. advertising can play a role in revolutionary movements The advertising industry has a big stake in what’s happening in Egypt and other repressive societies.com elee@adage. Apple’s Steve Jobs Finally Makes iPad Subscription Offer to Wary Publishers 4. “consumers have proved to be intelligent.com islutsky@adage.

For the smallest. Flickinger said. became the linchpin corporate supportUnder the hands-off management Walmart didn’t send representatives to er of First Lady Michelle Obama’s fight style of former Time Inc. Griffin. While don’t ask the special interests or the and Mr.downmagaz. he had time to gradually get to know the players while hiring and promoting others. supercenter approvals in Chicago and Illustrated and Money. about management style or results.. Walmarts in the country.000 0-50.500qualifies.a newly crethe city’s consumers already cross over played a pivotal role in shifting support ated position. it’s become a where it wouldn’t need a zone change publisher. the shock. Rothenberg.” that read: r re mer CEO. WALMART BY THE NOS.’s business was looking up by the time Mr. Warner to lead the business transforThe retailer also is preparing a series from old ones. CEO Bill Simon.S. Census Bureau dent-digital at Time Inc.000 101-150 go of Kirk MacDonald. the retailacclaim of Time Warner’s senior mansent ads. The discrepancy appears to boil down to two things: conflicting expectations of what he was brought in to do and the way in which he went about doing it in a place with a deeply entrenched culture and powerful veterans. principal in the conwalked away from last decade. Griffin held a variety of posts during two separate stints in the 1990s and the 2000s. How Walmart looks across the country. Griffin said in a statenot to fight o urban areas. into the pubSchmitz. extending a direct relationship with customers.1 P Inc. and culling credit-card data from Commercial Workers Union. naming Ms. Griffin for six years and Walmart on promising to use union labor on new. and Time Warner. Bewkes. . Lee Scott urban stores might operate. worked for Mr.ing successes in the past year getting shuffling publishers at Time. where exciting new hires are brought in and start making moves that companies aren’t ready for—or don’t intend for them to make. Richmond. in an leave behind a first rate team and wish cit re city residents a challenge. a common issue in adland. athr m athro o bathroom. residents per Walmart store. and hiring Randall to Mr.” a Meredith ➜ Read more supercenter in Chicago last year. But was he imperious? “That isn’t the management style I knew. But Mr.. So battle launched largely this year. Source: Walmart Stores 2010 10-K. “He was demanding and very clear and focused on what he wanted. thanks largely to or killers of jobs and wealth. He was skilled at applying new thinking to traditional models and HAWAII HAWAII his arrival at Time Inc.com . He doesn’t show a lot of emotion.” the employee said. New York City.George CMO. the they decide Consider that the United Food and radio focusing on employee testimonihanding him many duties that had wher yo where you als. Griffin was certainly billed as someone capable of changing up Time Inc.Time Warner deserts” lacking affordable fresh prodecide where you shop?” said it would conduct a full search and In that hearing.. at The U. and I know that he was trying to change the culture at Time Inc.2 P Walmart spokesman Steven were starting to pay off. 2011 | Advertising Age GRIFFIN FROM P.though it has plenty of City would need nearly 100 of them. is “the most powerful employee said on Facebook. who had been presidentWhile Walmart has been engaged in the 2008 Iowa caucuses. 2 editorial post. last month. employee said last week. The Walmart-Obama combo. the title of chairman in January. least not for f fo Walmart per 83. priority to find growth where new or other new permits. ment issued Friday. such as a massive national coverage anchored by pendently—and insiders note they mailer to city residents that read: “You an early break in The New York Times. as a whole has one square-foot Walmart on Campus pharousted. now chairman. certainly would easily fit into New York or other industry.the retailer’s point man in New lisher role at Time.” WALMART www. New York.one that the company’s for. In his few months at Time Inc. he made changes without building much constituency for them.’s first chief digital opponents regarding its health benefits do whatever they could to defeat Mr. did get support from building trade build stores in New York and other Meanwhile.. “JG too AdAge. looks different. where many places for years anyway.000 + 50. Mr. as Time Inc. Obama from Hillary Clinton in to shop. but most equally terse statement on Friday afterreports have it seeking developments others. who spent just five months in the job and added the title of Time Inc. He gives much credit in Martha Nelson from editor of the style use the into New York last year to prepare for a swaying public opinion in these and and entertainment group to the compa. questioned certain 200 + 51-100 personnel moves. Griffin succeeded Ann Moore as u“You don’t “Y “Yo Mr. he successfully led the company’s move toward consultative-based selling and. market sector. Caine to exec VP-chief revenue officer.28 February 21.. Griffin. Mr. Va. Griffin’s departure is disappointing. Walmart duce dovetailed well with its efforts to wouldn’t rule anyone in or out. brought in by Mr. officer Howard Averill. In announcing the hire last fall.. and expanding a footprint in marketing services—will continue. chairman in January. on TV and turnabout. Mr. Mr...apparent effort to replicate how small them all the best of success. Griffin could be described by some as distant during his time at JEFF BEWKES: When it wasn’t working.It’s the worst nightmare for the superalso had worked at Time Inc. Scott urged managers to Bureau. such level of Walmart density. he made a change—quickly. l the political politic politica For one thing.001-100. Mr. has been other options on its home turf. while CEO of the Interactive Advertising the usual battle of dueling studies with Walmart’s Mr.000 151-200 son. Flickinger. Griffin issued an been taking share from Walmart and might seek to build stores. CEO in September and added ask the time around under CEO Mike Duke sulting firm Strategic Resource Group. Griffin will be replaced on an Three years later. the day after he was Cit City Hall. Some have called it a classic example of “change agent” complex. where mation of Time Inc.” this executive added.” Yet Mr. Huey. Mr. a 3. “This continued at Time Inc. Meredith. My exit was clearly not as a mailer to supply the store. such as a “I was recruited and hired by Time Walmart stores won’t cannibalize sales 100. according to people who have known and worked with him for years. Bewkes said Mr. noon.000 people (not count. and actually some things we were doing were pretty smart.S. At Des Moines-based Meredith. officer. His special and Walmart U. “He brought in all these consultants who were telling us how everything we were doing was stupid.” That’s not exactly asking for a kick in the pants.”in a considerable in Chief John Huey.macy/convenience store it opened in with the consistent and documented permission.“but why do you bring in someone from the outside if that’s not what you want him to do?” That’s a matter up for debate as well.” said an industry executive who has worked with Mr. But at Meredith.’s magazines. I Just getting one. said one person who buys print media. based on my clear W r a m l Wa Walmart has the closest Walmart stores are on Long of tests of small-store formats that record of success and results in the chosen so far f o fa Island and in New Jersey. City Hall. Walmart last month Maurice Edelson and Mr. Mr. Griffin arrived and its strateNUMBER OF WALMART STORES: W N POPULAT O POPULATION PER WALMART STORE: I POPULA WA gy—which includes reversing a decline Texas and Florida have the most New York and California have the most in circulation revenue and margin. Restivo acknowledged the some in the industry were floating Mr. a Time Inc. This Time Inc. Mr. So why should they mitment to locating stores in “food as a potential replacement. the bathroom. the marketing cam. ” shop?” shop shop? suburban stores showing how many of implacable foe of Walmart expansion. General Counsel For one. the three were said to have It was a program that generated broadly excoriated by politicians and gained power and operated fairly indeactivists.000-square-foot Brooklyn site.S. that helped it win permission to build a “Frankly don’t get it.” Mr. Griffin would “further advance our lead position in the industry and accelerate the expansion and innovation of our titles on all platforms. It’s other urban locales to Walmart’s woony’s No. using the direct relationships Meredith had with readers and its expertise in women. was seen as ALASKA ALASKA “exciting and appealing. political insiders for permission to use messages regarding Walmart’s comRothenberg. Instead. it sent ads. Marketers such as Church & Restivo. declined to comment on where it For his part. But many people who I know who’ve worked for him over the past five years loved him. It ing Sam’s Clubs). at least not for permission. saying he about Walmart secured that support by pairing America may have ever seen. New York er is using an outside delivery service to agement. behind Editor been running ads from the Martin ing of “Team Obama. Dwight have noted dollar stores have York.. food retailers and wholesmart. promoting Paul why should Agency.” CONTRIBUTING: ANN MARIE KERWIN Restivo said Walmart has been doing in salers and [unions]..001-200. I’ve heard he’s tough.000 outside Time Inc. worked closely with Mr. elevating permission to Walmart began moving PR executives San Diego. the retailinterim bases by three executives maner has changed its game significantly in the efforts of Walmart Stores Exec VPaging as a committee. investing in social-media and digital agencies. launched a marketing-services business.” Yet this per150. according to the corporate parent.com store construction—something Mr. To reach the same Fayetteville. ting the news and sports group in two. wasn’t known as particularly alienating in his prior post running Meredith Corp. Moore. where Mr. CEO Ann a hearing last month where it was against childhood obesity. Griffin.. she had made several hard changes that FROM P. of course. an been handled by Stephanie George. defending his short tenure at the Amid such pressures.. Sports insider fo insiders for paign has been far more extensive. the industry absorbed unions as the retailer repeats a strategy urban areas.” “Jack doesn’t suffer fools gladly. and in December moving Kim Kelleher from publisher of Sports Illustrated. along with others both inside and 0-50 200. for example letting 100. former presiData for District of Columbia was not available.it’s chosen so far not to fight Flickinger said. making content available on all digital platforms.followhowever. Time Warner maintains that Time Inc. and whether its stores are net creators Obama. sees every indication Walmart’s new changes at the company included splitinterests or r re strategy will work in New York.001-150. however.Ark. Chief Financial Corporate Affairs Leslie Dach. U.

media consolidation. “The 4A’s has been very clear about the fact that it’s unreasonable and unfair for any client to expect ownership with no compensation for the agencies. Mr.” Marketers from Hilton Hotels to AutoZone to Kraft Foods have in recent years demanded that agencies relinquish rights to their ideas.And to me the more telling part of ‘Super Size Me’ was the fact that he saw challenges to his health so quickly. the door stays open. The group is asking Sears to allow the agencies to retain ownership of materials. but they aren’t fooling anyone. Sears needs to be free to use those independently developed ideas without any agency believing it is specifically its idea.” said Jeffrey Hayzlett. Spurlock’s respect is Original Mane ‘n Tail.ADAGE.’” he says. chairman of Buyology. Mr. Learn how these mandated changes will affect your business in the immediate future. and that because it’s common for similar ideas to be presented by different agencies. Mr. I know the issue.But the wording in this case is so broad that it is outside the norm. Spurlock has given him. P. Ad Age will explore the most important legislation and regulatory issues the industry now faces. marketing to kids and increasing taxes on food and beverages.” he decides. Spurlock’s premise and getting some exposure in the process. “Not only does it undermine other agencies in the long run. Merrell shoes. BRANDEDCONTENT. BONUS DISTRIBUTION TO: FOR MORE INFORMATION ON ADVERTISING. which is tucked into the marketer’s nondisclosure agreement. The outcome of these cases may forever alter the way advertising is able to function.Advertising Age | February 21. As it begins its second century. These integrations are so crass. agencies have been compensated with a nominal amount of cash—say. even if they’re not hired. Sheetz convenience stores. Seventh Generation home products.ADAGE. a guy wearing a sandwich board in Times Square assures him. only to receive what one agency exec called a “non-response” from Sears via SRI. Read the full salute to Campbell Ewald and see videos of their most famous work and interviews with Bill Ludwig and Mike Hughes. the sponsors of “The Greatest Movie Ever Sold” include JetBlue. tices. They all come off pretty well. There’s not much that can be done about any of this anyway.J. They sully TV shows. CALL: The reason is simple: Sears is demanding that participants relinquish ownership of materials and ideas they present during the review—even if they don’t win the business.3 P he primarily maps where and how marketing is marching these days. which comes off as creepily as ever. to the industry and to agency employees. He’s joking around. “Is neuromarketing evil?” he asks Martin Lindstrom. The 4A’s.’” It’s so vexing that the 4A’s took the unusual step of sending a letter to the consultancy on the review. take a nice long walk and locate some places without advertising. Ford Motor Company BUY YOUR COPY TODAY: ADVERTISING & MARKETING REGULATION GUIDE SEARS F P M O R P.” Sears and SRI did not comment. From privacy to consumer targeting.Who doesn’t like them? Maybe all a consumer can do. “We decided to participate not only because we admire Morgan’s work as a filmmaker.) As the movie progresses. so the movie eventually includes a funny commercial for it. “If agencies are going give their ideas away. is go outside. in its guidelines for best prac- both people and horses that he finds while prospecting store aisles for potential sponsors. Amy’s Kitchen food.said R.” “Super Size Me” probably did bring a little bit more awareness to some of the negative effects of fast food. Supreme Court.‘It’s all ours whether we hire you or not. REGULATION GUIDE. Select Resources International.” in which Mr. Once you open the door to being “brand friendly. $25. offers sample agency-search agreements that include provisions specifically crafted to protect marketers from scenarios like the ones Sears mentioned. regarding the provision. Spurlock seems to decide that advertising’s effect on consumers is less disturbing than its effect on the people who participate in it.a senior analyst at Morningstar who covers McDonald’s.S.” said Karen Frank.” he said. Campbell Ewald has been ahead of the curve in seeking solutions for its clients' business needs — but quietly and without fanfare. executive director at The American Public Health Association. It’s a little unsettling.“You gotta love a product that says ‘Instructions for Human Use’ and then ‘Instructions for Animal Use. such as a clause that gives agencies ownership of materials while also protecting marketers should multiple agencies generate similar ideas. Mini Cooper.That was pretty shocking. North American THE NEXT CENTURY For 100 years. One of the final moments of the documentary shows Ralph Nader giggling as he opens a box of Merrell shoes that Mr. but he’s also doing a pretty good impression of a guy who likes free shoes. The marketer’s two major beefs are that it will be providing agencies with information about Sears and the retailer does not want any shop to use ideas formed on that information for other clients. But there’s nothing shocking in the current film. Executives at the brand prove to be good sports when he cold-calls them. “No one’s been hiding it. People probably already catch and understand most product placement. Mr. So he slides into a functional MRI machine to report on neuromarketing. Lawsuits in the advertising and marketing industries are now reaching as high as the U. “Payola!” Mr. CE continues to push the boundaries of what an "advertising agency" is. North American CEO at Deutsch. Thayers Natural Remedies. though. Sears. Several agency execs said that those concerns are not only common. the one attached to the Sears review stands out because of its scope. which sells Ban.S. While such provisions have popped up over the years. 2011 29 PROMOTION PRODUCT PLACEMENT FROM P.” said Linda Sawyer. Here is a client saying to agencies. Spurlock seems to conclude. The cultural effects of “Super Size Me.” said Georges Benjamin.” —Bill Ford. Hyatt Hotels & Resorts. I’ve seen the movie several times. but Mr. I still find it very informative. “If agencies continue to agree to these NDA’s. because it shows that agency is operating from a position of weakness. Spurlock isn’t selling out. That demand is so unpalatable that agencies are opting out—and Sears stands to lose out. which laid out concerns raised by Sears. and companies to higher levels of creativity. but not exactly breaking news. That says that the client respects and values the intellectual property agencies create. “Advertising as a concept is manipulation. “From time to time clients will suggest that they want the rights to use ideas. drew a lot of energy from the movie’s shock value. playing along with Mr.Hottovy. “From the days that movies started. He and his son demonstrate this on screen by playing in a stream.” said Tim Finneran. will not be the last—as long as there are agencies out there that will sign what many consider egregious agreements. (The audience also learns that The Original Mane ‘n Tail did not pay for its appearance in the film—a disclosure it required in its contract. a line of hair products for CMO at Interpublic’s McCann Erickson.they emerge as the most transparent brand integrators in the history of the form.000—but even that is hard for shops to stomach. that they can’t possible deceive any consumers. MovieTickets. Merrell shoes.” Mr. cracking up as he reads a bottle. But agency execs who spoke on condition of anonymity said they attempted to revise the draconian nondisclosure agreement. exec VP-agency management services at the 4A’s.it certainly doesn’t put any pressure on clients to behave otherwise. Lindstrom answers. Spurlock doesn’t seem convinced. He’s wearing. and former chairman of the large-agency new-business committee of the 4A’s. “I’m an overweight guy. Disciplined Dreaming lays out a road map that guides individuals.com. for example. “Having said that. The only participating brand that has to struggle for Mr. “I have not seen language this broad. And because so much of it is negotiated on camera. In some reviews. “And ultimately I think it probably had an impact on making McDonald’s be a leader when it comes to healthier alternatives. when someone was smoking a cigarette we knew that someone placed that cigarette there. but also as a way to show that we don’t take ourselves or the industry so seriously that we can’t have fun. Nader yells happily. the Aruba Tourism Authority and Ban deodorant.” CONTRIBUTING: NATALIE ZMUDA HOT RIGHT NOW DISCIPLINED DREAMING.000 or $50. better ideas and breakthrough thinking. Chairman.COM/ CAMPBELL EWALD FOR MORE ON THE ABOVE — AND OTHER BREAKING NEWS — VISIT THE HOT RIGHT NOW SECTION AT: MEDIAKIT.” said Mitch Caplan.1 Regulation and legislation have always been important topics to marketers but there has never been more concern on the table than there is now.” In addition to POM Wonderful. Y&R.VP for U. Mr. Spurlock’s steady diet of McDonald’s quickly hurt his health. but easily remedied with a simple provision in the nondisclosure agreement. AND THE NEXT CENTURY DISCIPLINED DREAMING: A PROVEN SYSTEM TO DRIVE BREAKTHROUGH CREATIVITY A NEW BOOK BY JOSH LINKNER “The most important resource any business has is the creative thinking of its people. nor did its creative agency of record. teams. The head of one agency that rebuffed the NDA agreement said that with compensation “at least I’m getting a client who respects the process.skin-care marketing at Kao Brands. it sends the wrong message to the marketplace. of course. it undermines any agency willing to sign an NDA with an ownership-of-property clause. with clips from NBC’s “Chuck” and the CW’s “90210” in which characters name products to the point of embarrassment. as it can cost multiples of that to prepare for a review. Spurlock says. the former Kodak CMO who’s now an industry consultant. of course. Spurlock also shows us examples of overpowering product placement.COM . unless an enterprising agency can convince it to waive the requirement specifically for them.

is broadening its pitch.6% of the market with premium revenue of $30. Buffet told him that year. 2011 | Advertising Age THE NUMBERS How the nation’s top insurers stack up in awareness. the 76 million people born between 1977 and 1992 increasingly entering the insurance market.56% 4. of course. which was recently forced to retract what was supposed to be a funny press release linking accident rates to zodiac signs. Some 48% of millennials TED WA W : D R WARD: Geico’s chief marketing officer still remembers Warren Buffet’s exact words when he handed him a blank check for marketing the insurer. Bloomberg Businessweek. And because there isn’t much seasonality in the business. “I wrote it down. a little green lizard that was first conceived on the back of a napkin and debuted in ads in 2000. after all.2 P accounts are now coveted. Net income in the property/casualty insurance industry reached $26.31% 0. Secondly. Buffet told him and other managers of the thenupstart car-insurance company. most powerful network of global business executives.6% 4. Our 2. Power and Associates which include some direct marketing expenses. Geico Chief Marketing Officer Ted Ward can recite wordfor-word what Mr. Leveraging the innovation and scale of Bloomberg technology. Power.30 February 21. To this day. googly eyes and. which usually happens twice a year.downmagaz. according to J. this transition is reaching a tipping point.4 billion a year earlier. compared with 28% of baby boomers. And the way to get on that list is to advertise—all the time.” Still.” Mr. What we found is that no one plans to apply the brakes anytime soon. Other insurers are touting added benefits like emergency roadside service and car replacement. or renew their existing agreement.6% 1.96% 8. a senior director at J. At first “companies like Progressive and Geico were shaking things up. “It seems very much to work. turn to the web first. “The one thing I don’t want you to have stand in your way is money. while smaller players such as Liberty Mutual and American Family Insurance are seeking attention with very un-Geico-like serious messages. Powerand Associates. from “Mayhem” to State Farm’s “magic jingle” to Nationwide’s “Greatest Spokesperson. move. Behind it all is an important market dynamic: the shift from the traditional insurance agent to do-it-yourself rate shopping hyped by companies like Geico and Progressive that taught millennials. Bloomberg is the trusted O A O M provider of unparalleled news and analysis for the world’s largest. Just ask Allstate. But that still means more than 20 million people are in the market each year. according to J. “There’s enormous overlap between the companies that advertise a lot and the companies that are growing faster.24% 5. and Bloomberg Markets®.” said Pam El. insurers believe the way to stand out is to spend more. Years in the making. cavemen.” It was a marketer’s dream. according to J. Insurance Information Institute INSURANCE FROM P.” .5 billion in 2009. But “now traditional [agent-model] companies cannot ignore this direct competition.” said Meyer Shields. Today there are about 187 million insured privately owned vehicles on the road. Bloomberg Radio. the Bloomberg media portfolio spans a full range of channels. and Allstate are fending off pesky challengers Geico and Progressive. In many ways you can trace the ad evolution back to one man—Warren Buffet.” The old stalwarts are still finding their way in this new world.D. Power. They have to compete on their terms. to seek quotes online.D. which has 18. data. according to Insurance Information Institute.com ACROSS ALL MEDIA PLATFORMS.99%* 2.7 billion in the first nine months of 2010. delivering award-winning intelligence. *includes 21st Century Sources: J. at ad agencies. insurers must steal share from each other to grow. facing page).” Mr. Yet the average shopper can name just four insurance brands off the top of their head. Experts say most people only ponder policies when they have an accident. Turnover is relatively low from year to year— 11% of consumers switch their policies while an additional 20% shop but don’t switch. propelling the insurer to yearly market-share gains and forcing competitors to step up their game. which last year began running a discount message that sounded a bit like Geico’s.24% AD SPENDING Dollars in millions $418 $827 $514 $388 Ad spending includes all insurance lines for 2009. buy a new car.D. How can they afford such exorbitant ad outlays? Firstly.“And our job is to capture the hearts and minds [of potential customers].” State Farm.” That moment would launch an onslaught of advertising the likes of which the car-insurance industry had never seen before—filled with pigs. analytics. Ad Age talked with top marketers and ad agency execs representing 10 leading insurers. “You’re creating brand personality campaigns. news. experts said. some marketers are learning that humor has its limits— this is insurance.D. not beer or soda pop.” said Jeremy Bowler. an insurance analyst with Stifel Nicolaus.Then “I went down and told my folks to start working on plans to become more aggressive and figure out a way to hold him to his word. experimenting with different messages and even running multiple campaigns at once. Bloomberg TV.29% 18. That’s what I’ve got. com. VP-marketing at category leader State Farm. Ward recalled in a recent interview. Everything is working. as it happens. But is the spending sustainable? And how are insurers differentiating themselves in the crowded market? There are no fewer than 11 major TV campaigns on air. Bloomberg Mobile. a former account director at DDB who worked on State Farm for several years. forcing companies that once marketed through agents to make their appeal directly to the consumer. If anything. prompting this clarification: “Astrological signs have absolutely no role in how we base coverage and set rates. Shields said. sion with plenty of profits to help spread their ad messages. because it’s a mature category. State Farm. and are industry-reported figures cited by J. who in 1996 made Geico a subsidiary of his Berkshire Hathaway.D. What creative doesn’t want to be a part of that?” said Dave Schneider.” The goal is to grab the attention of consumers who would rather not think about insurance.“You’ve got a great business model. running the risk of consumer confusion (see sidebar.25% $223 $223 $116 $78 $45 $101 $245 MARKET SHARE 2010 (first three quarters) 9.300 news and multimedia professionals in 152 bureaus across 72 countries cover the world. even cool. but many of the traditional carriers essentially wrote them off. Geico’s gambit of injecting humor into the sleepy and conservative category worked. compared with $16. including Bloomberg. companies have emerged from the receswww. from where it happens. Power & Associates’ 2010 Insurance Shopping Study.D. “I see no reason to think [advertising] is going to slow down. market share and ad spending BRAND AWARENESS Allstate Geico State Farm Progressive American Family Liberty Mutual Nationwide Farmers Travelers Esurance USAA 5% 6% 24% 11% 53% 11% 18% 27% 26% 45% 59% 72% 65% 55% 71% UNAIDED 74% 73% 80% AIDED 23% 24% 17% 49% 7. and distribution. Power. Some customers took it seriously.91% 4. thousands of customers are shopping every single day. “We have no indication of a slowdown from a competitive standpoint and we know that we’re not going to slow down until we get the job done.” Mr. hoping to convince young people they still need agents. Insurer after insurer is now hitting the airwaves with character-driven campaigns.

based just outside Washington. “We needed something that was a little bit more entertaining. The insurer would rather avoid such over-the-top appeals. Allstate continues to lose market share. Nationwide’s agency is indie shop McKinney. is touting emergency roadside service in an ad where a young woman runs into car trouble only to be bailed out by a friendly tow-truck driver The insurer and agency of . seeks to get younger consumers to realize the importance of the company’s 18. up from the $174 million it spent in all of 2009. If you look at our quotes and our new business. Analysts pin some of the blame on rate increases in some big states to improve profitability.. senior VPconsumer marketing for the insurer.21%. Esurance. the category’s biggest ad spender. including homeowners and life—partly an appeal to millennials.” an actor who plays a customerservice agent who reminds consumers they can talk to “people when you want them. AMERICAN FAMILY INSURANCE American Family Insurance. record Ogilvy & Mather Chicago.” said Jennifer Hanley. That approach. according to Kantar Media.” PresidentCEO Thomas Wilson said on a recent earnings call. according to Kantar . about what it spent in 2009. the insurer’s director-advertising. leather-jacketwearing man lurks in places— such as a mattress store— where he sneaks up on customers. The ads tested well. which showcased real customers. Wis. he reminds you that you should shop. shattered and then magically put back together as somber piano music plays. PROGRESSIVE Progressive. we wanted to more appropriately direct our messaging.7% in 1999 to 7.” said Lisa Cochrane. and its share is growing more this year to 8. And the insurer is still running ads with longtime pitchman Dennis Haysbert. “Flo helps when you shop. Liberty Mutual... Mayhem even has a cousin—a character named “Mala Suerte” (bad luck) aimed at Hispanic consumers. Meanwhile. indie shop RPA.” said CMO John Swigart. who will need more products as they age. Geico spent $535 million on measured media on its autoinsurance business. which commands less than 1% of the market. GEICO Geico. which Ms. according to Kantar Media. senior VP-marketing for the insurer. Allstate spent $202 million in measured media in the first 11 months of 2010 on auto. up from $178 million for full year 2009.” said Pam El. up from $291 million in full-year 2009. is positioning insurance as a commodity-like product where price trumps all. Mayhem “has become the villain to [the] Dennis Haysbert hero. The animated pinkhaired “Erin Esurance” has been sidelined in favor of “The Saver. but “in the living room it just wasn’t cutting through. are prepping a new TV campaign set for debut in the spring that will be more “breakthrough. Ohio-based Nationwide Insurance has also introduced a character.C. N.” said Greg Gordon. The new effort. measured media spending on auto through November was $364 million. In ads. through November of 2010 spent an astounding $80. down from $54 million in all of 2009.J. Calif. The “magic jingle” campaign. cubicle-filled headquarters building in the city of Bloomington. “This campaign will evolve to a bigger message to cover all the needs a customer may have. some insurers think the way to break through is to get serious. The “We Are Farmers” campaign.” And it’s working: From 1999 to 2009. $7 million on measured media on auto in the first 11 months of 2010. Still.C. Geico more than doubled its market share to 8. Progressive’s new character. LIBERTY MUTUAL With so many light-hearted campaigns running.Advertising Age | February 21. Much of the credit goes to Flo. “The internetshopping population had moved very mass market . called the Messenger. which has 3. chief marketing officer for Progressive. according to Kantar. it’s way up. in person and by phone but still assigns every customer an agent. according to the Insurance Information Institute. You can find it on their “State Farm Nation” Facebook page.” said Chief Marketing Officer Kevin Kelso. in a nutshell.9 million on measured media on auto. She is the star of the “Superstore” campaign. which is meant to turn insurance into something “you can touch and feel.” said Telisa Yancy. 2011 31 THE FACTS AND FIGURES BEHIND THE FACES —E. where a car is rear-ended.) Ads feature agents who magically appear when summoned by young drivers and apartment dwellers who need insurance help.000 agents. While Flo is designed to close the deal with consumers who are already in the market. VPintegrated-marketing communications. “It’s working. originally written in 1971 by Barry Manilow. which could have a spillover effect into auto for those who bundle insurance.” Mr. Charney said. The company. SHULTZ What’s behind the latest car-insurance ads and what might be coming next? Here’s a cheat sheet: STATE FARM Here’s all you need to know about where State Farm is headed: The 89-year-old insurer founded by a retired farmer recently had rock band Weezer cut a version of its iconic “Like a Good Neighbor” jingle. But don’t look for any cartoonish characters.” who in one ad stars alongside zookeeper Jack Hanna and three parrots. where State Farm marketers plot their next ad moves in a massive. based in suburban Chicago. is meant to get more people thinking about insurance. ALLSTATE Allstate. launched late last year. who offers a trusted voice. two hours south of Chicago. FARMERS Los Angles-based Farmers is seeking attention by going back to school. For 2010. Yancy called “the white ocean with a lot of activity and a lot of blood in the water According to estimates . The spokesperson is “an icon that represents Nationwide and being an advocate for the consumer … showing how we can help them in their everyday life. NATIONWIDE INSURANCE Columbus. whose measured media spending on auto has jumped from $35 million in 2009 to nearly $50 million through November 2010. by agency-ofrecord Arnold Worldwide. San Francisco. . the mustachioed. launched in September bySanta Monica. of Boston. VP-marketing. is set in a fictional university.29% through third quarter. is watching its competitors closely but “we think our approach … will eventually win out. pitching them on discounts. jumping from 4. Boston. runs multiple campaigns by Martin Agency—with the gecko as the centerpiece to keep people’s attention as it spreads a very simple message that “15 minutes can save you 15% or more. has made similar market gains. will put less of a focus on discounts and more on the company’s multiple insurance lines. according to the Insurance Information Institute.” Measured media spending on auto in 2010’s first 11 months was $47 million.300 agents and 5. the company plans to revamp a separate TV campaign launched about a year ago by DraftFCB that instructs users to visit a special website to check for discounts of up to 40%. In the first 11 months of 2010. is moving full-speed ahead on its “Mayhem” campaign.. Durham. modeled after the real-life University of Farmers employee-training program. a pitchman called the “The World’s Greatest Spokesperson in the World. based in a Cleveland suburb.6% in third quarter 2010. ESURANCE San Francisco-based Esurance launched in 1999 during the dotcom boom as an online play and is now working to broaden its message.” The campaign is by Duncan/Channon. The effort replaces the touchy-feely “True Stories” campaign by Farmers’ former agency Richards Group. The insurer spent $49 million in measured media on auto in the first 11 months of 2011. such as one ad showing a jet ski caught in a tree. especially in homeowners. . according to Kantar. according to Kantar. touts carreplacement coverage in an ad by Hill Holliday. The insurer spent $300 million on its auto business in the 11 months of 2010. compared with $52. launched last year by New York-based Translation.” from Kantar the insurer spent .. A character named “Professor Burke” guides agents though over-the-top scenarios meant to sell the insurers multiple insurance lines.” said CMO Ted Ward. These are among the ideas springing from the Illinois heartland. of Madison. to be led by roster agency DDB.” said Jeff Charney.200 storefronts. D. Boston. It dropped to 9. Consumers “want more than a chuckle when they see an ad. including one spot with LeBron James that debuted Saturday. outpacing 2009’s total of $477 million and double what it spent in 2006.96% in third quarter 2010.9 million for full year 2009. (The company sells policies online. according to estimates from Kantar Media.

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