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30 November 2008
Agency loses its fizz
TBWA wins Pepsi-Cola account after nearly 50 years with BBDO as the drinks-maker rebrands and invests
By KIRSTIE HEPBURN/Correspondent
US Advertising giant BBDO Worldwide has lost the Pepsi-Cola ac- touch-points and to reinvigorate Pepsi’s legacy of leading-
count in North America to two other firms within the Omnicom edge advertising.
Group. The company had held the account—worth about $162 “This is fully complementary with our ongoing relation-
million in 2007—for almost half a century ship with Arnell, which has created the new Pepsi identity
TBWA/Chiat/Day, which already handles PepsiCo’s Gato- and packaging and is responsible for the ongoing design
rade account, takes over the parent product, which has suf- and brand identity development.”
fered a decline in sales and market share in the last few years. BBDO keeps the Pepsi Max, Mountain Dew, Amp Ener-
Arnell Group, which created Pepsi’s new logo and handles gy and the North American Coffee Partnership accounts;
the conglomerate’s SoBe brand, takes on brand identity and the North American switch does not affect BBDO’s non-
packaging innovation for the world’s number two cola drink. US work.
PepsiCo North America Beverages CMO Dave Burwick PepsiCo’s senior management announced last month that
says in a statement: “We decided to appoint TBWA/Chiat/Day it would pour $1.2 billion into new initiatives over three years,
to refresh Pepsi’s communication across multiple consumer including a revamp of its merchandising and packaging.
Big hurdle for the Olympics
blinded by giant
Sponsorship problems prompt search for car manufacturer deal
VIENNA The International Olympic The 2005-08 cycle generated nearly
Committee (IOC) has suffered a blow $900 million in revenues and the IOC
following a number of companies says it needs just one more sponsor
withdrawing sponsorship. Ten days next year to break the overall $1 bil-
ago Johnson & Johnson cancelled lion mark.
its £53 million ($82 million) global Current global sponsors for 2009-
deal after less than three years. The 13 are Acer, Atos Origin, GE, McDon-
pharma giant joins Kodak, computer ald’s, Omega, and Visa. Panasonic
company Lenovo and insurance firm and Samsung are on board until
Manulife in the growing list of com- 2016, while Coca-Cola has commit-
panies that have withdrawn or failed ted until 2020.
to renew deals. Meanwhile, supermarket chain
The IOC has been hit badly by the Sainsbury’s is reported as being
credit crunch and is now searching in talks with the UK Government
for a global car manufacturer deal— about helping make up a £79m fund-
at a time when the Big Three firms are deal—Peugeot in France and Fiat in ing shortfall for athletes hoping to
seeking a bailout by the US Govern- Italy for example. Yet the IOC claims compete at the London 2012 Olym-
ment; FIFA partner Hyundai is re- it is “hopeful” of surpassing $1 billion pic Games. The gap comes after the
ported to have rejected a deal. in sponsorship revenues for the next Treasury failed to raise any money
Insiders point to a number of long- four-year cycle, which includes the from commercial partners, in spite of
standing national relationships as 2010 Vancouver Winter Games and £300m from the National Lottery and
being a barrier to the IOC securing a 2012 London Olympics (pictured) . £200m from its own coffers.
Great wall of censorship crumbles
CHINA The Chinese government has relaxed its notori-
ously tight hold on media by allowing reports on civil
ITALY Residents have reacted furiously to the com-
unrest to be broadcast in the hope it can help mitigate
mercialisation of cultural landmarks such as St
the protests.
Mark’s Square in Venice, which have fallen to the
There was unusually detailed coverage of the 30,000-per-
power of the advertising dollar. A larger-than-life
son public riot in Weng’an, Guizhou this summer as well as
Lancia automobile has been positioned in front of
recent reports on protests in Gansu and Chongqing, and a
the Palazzo Ducale, while a giant Rolex hangs over
mass petition presented by 400 people outside government
the Biblioteca Nazionale Marciana and a jeans advert
offices in Beijing.
swathes the front of the Ca’ Rezzonico palazzo by the
Reuters quoted an academic source as saying, “The
Grand Canal.
Chinese government has started to loosen its control on
Officials claim the adverts are the only way of rais-
negative information. They are trying to control the news
ing enough money to undergo restorations, following
by publicising the news. The central government has per-
cuts in the country’s culture budget over the last three
mitted local authorities to publicise negative news them-
years. One of the hoardings in St Mark’s Square alone
selves, with no need to report to upper governments
will rake in a reported €3.6 million ($4.6 million).
any more.”
Party officials have recognised that the rapid spread
Renata Codello, the central government’s heritage
Previous attempts to loosen media binds had been less
of information on the internet has beaten the censors on
administrator in Venice, said her budget was down
successful. Widespread coverage of the May earthquake in
many occasions, leaving it near-impossible to delete com-
by a quarter, and claimed they had no alternative.
Sichuan tailed away after a week when some issues were
ments quickly enough.
Last month, she told the Association of Private Com-
deemed off limits.
The official Xinhua news agency reported that the
mittees for Venice, “I have turned down masses of
A blackout on negative news during the Olympics in
country’s ‘propaganda chief’, Li Changchun, had urged
proposals, including one with the entire Italian foot-
August meant a delay in reporting that melamine had con-
China’s media to report “more original, timely and popu-
ball team dressed only in their shorts.”
taminated infants’ milk—an incident that killed at least
lar stories” and to enhance the country’s domestic and
four babies and hospitalised thousands.
international influence.
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