International : Interpublic's Turnaround Effort Suffers Pair of Major Blows

No. 3 Holding Company Had Been on Upswing Before Losing GM, J&J Accounts

e4m by exchange4media Staff
Published: Jun 27, 2007 5:20 PM  | 3 min read
International : Interpublic's Turnaround Effort Suffers Pair of Major Blows

NEW YORK (AdAge.com) -- The Interpublic Group of Cos.' long-running turnaround effort may be hitting yet another snag, as the third-largest holding company runs into trouble with two of its largest clients, General Motors Corp. and Johnson & Johnson.

GM, its largest client, yesterday moved about $384 million in billings out of Interpublic agencies, McCann Erickson and Lowe, to Publicis Groupe's Leo Burnett. Last week, Johnson & Johnson fired McCann, Interpublic's largest agency, on several brands that collectively spend about $92 million on measured media per year. Interpublic brass is awaiting decisions on J&J's global media-agency review, expected early in July.

Layoffs loom
All in all, the exiting GM business is worth about $25 million in revenue, a loss that will likely trigger "not insignificant layoffs" at McCann, Detroit, and Lowe, New York, and the J&J brands represent $10 million to $12 million in revenue, according to executives familiar with the company. The developments mean that Interpublic Chairman-CEO Michael Roth must address whether the company can meet its current turnaround goals at the time of its next quarterly results, expected the first week of August.

The bad news follows several months of relative calm for Interpublic. Since it last restated financials, the company had avoided major client losses and even began to turn in some promising financial results, winning it upgrades from Lehman Bros., J.P. Morgan Chase and Bank of America.

Once again, however, some clouds appear to be gathering. Lowe Worldwide's loss of GMC, the automaker's truck division, may be the most troubling development. Over the past few years, in which Lowe has struggled with management and client turnover, GMC was a big-spending, reliable base to support the agency network's U.S. operations. The office continues to handle Nokia's N-series multimedia devices, J&J's baby products, Got Milk, XM Satellite Radio, Unilever brands Degree and Snuggle and some smaller clients, according to a spokesperson.

It's unclear whether and how the GMC loss will force Interpublic's hand on the agency. Interpublic has said in various public statements that despite problems, Lowe is a necessary part of Interpublic's offerings because it provides a strong creative solution to the more business-results orientations of McCann and DraftFCB.

Lowe's momentum stalled
"This is really going to be difficult for Lowe when you lose an anchor piece of business like that," said a consultant who manages agency reviews. "One of the things clients are always looking for is momentum, and new business is one of the criteria that a client uses to determine that. Lowe has done a good job to some degree stopping the exodus. When you look at something like that that's a critical mass of business, it's troubling."

Just last month, during a conference call about Interpublic's first-quarter results, Mr. Roth said that Lowe had made progress. "I think it's stable," Mr. Roth told analysts. "Whenever you have a turnaround like IPG is in, there are certain components that are part of that turnaround story and clearly, Lowe is one of them. And I think the investment we made in Lowe is starting to pay out in terms of the stability and the offerings that they have and we watch it very carefully."

On the J&J front, Interpublic media shops Universal McCann and Initiative are defending large chunks of the consumer-goods giant's business against fellow incumbent OMD, owned by Omnicom Group. Unlike GM's 2005 media review, which Interpublic lost to Publicis' Starcom MediaVest Group, this review is not an all-or-nothing situation, because J&J is making market-by-market decisions.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
Test

With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
test

Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
Test

e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
test

Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

test

test

e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
khugfu

KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)

For more updates, be socially connected with us on
Instagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp

Tags e4m