72andSunny Lays Off Two Percent of L.A. Office

72andSunny has confirmed tips we’ve been receiving regarding a round of layoffs at its Los Angeles office. According to the agency’s statement, the L.A. office will be the only one impacted and the cuts don’t appear to be connected with any account changes but rather allow the agency “to continue to focus on…overall, long term health as a robust, modern agency moving forward.”

Here’s the statement from 72andSunny:

“Today we are parting ways with 2% of the staff in our LA office. No other office will be affected and we don’t foresee any additional adjustments. This is something that we take very seriously and saying goodbye to friends and family is extremely hard. We are deeply committed to everyone here at 72andSunny and this adjustment allows us to continue to focus on our overall, long term health as a robust, modern agency moving forward.”

Fetch Opens L.A. Office with Ruairi McGuckin as Managing Partner

Dentsu Aegis Network’s “global mobile-first agency” Fetch is opening a new office in Los Angeles, led by Ruairi McGuckin as managing partner, West Coast.

The expansion follows recent business growth for the agency’s New York and San Francisco offices, including the additions of Travelocity, GSN Games and Yelp to its client roster. McGuckin will be responsible for overseeing accounts for the Los Angeles based client roster, including the recent addition of Hulu, while reporting directly to executive vice president, U.S. managing director Guillaume Lelait

“LA is a natural progression for Fetch. We have several clients in this market and it offers a wealth of access to talent and technology innovation – a critical component to continuing to grow our US presence,” said Lelait. “Our expansion into LA also speaks [to] our move towards delivering mobile-first strategies to the growing entertainment economy coming out of that region and we believe Ruairi’s experience will allow us to tap into this and many other facets of the market to further enhance overall North American offering.”

McGuckin arrives at Fetch from Criteo, where he has served as head of account strategy, mobile since October of 2013, following under a year as director of marketing, customer acquisition with Kabam. Before that he spent two and half years with Fox Mobile Group as vice president, digital marketing and a year with SGN Games as vice president, marketing.

“Fetch’s expertise is strategically aligned with the challenges and opportunities mobile advertisers face in today’s increasingly fragmented marketplace,” said McGuckin. “LA is ripe with brands who take a mobile-first approach, but may need help figuring out the best place to invest time and resources. I am thrilled to be leading Fetch’s brand expansion into this market and look forward to where we are headed as an industry.”

Additionally, Fetch announced a series of senior hires, including U.S. executive creative director Octavio Maron, account director Natalie Robinson and head of programmatic Joshua Niederriter

Maron will be responsible for the “overall direction, strength, profile, output, and distinction of the agency’s creative brand.” He joins Fetch from Pontomobi (part of Dentsu Aegis Network Brazil), where he has served as CCO since July of 2013. Before that he spent four years as executive creative director with AG2 Publicis Modem.

Robinson will serve as the regional lead for Hotels.com North America, AOL and upcoming new business wins. She  joins the agency from Essence, where she has served as an associate account director in New York since last April, following around a year and a half as a senior account manager in London. Prior to that she spent a year and a half as a digital account manager with Neo@Ogilvy.

Niederriter arrives at Fetch from AKQA, where he has served as associate director, media technology since July of 2014, following stints as a campaign manager and technical supervisor with the agency.

 

Erin Johnson’s Legal Team Files Memorandum in Opposition to Motion for Dismissal

Several weeks ago, the legal teams of JWT, WPP and former CEO/chairman Gustavo Martinez each filed a motion to dismiss Erin Johnson‘s lawsuit against Martinez. Unsurprisingly, Johnson’s lawyers responded today by filing a memorandum in opposition to Martinez’s motion to dismiss the complaint, contending that JWT and WPP’s response to Johnson’s complaints show that “if you complain of discrimination, you will be attacked publicly, be branded as a liar and ostracized.”

The 23-page memorandum attempts to refute the various arguments made in the aforementioned motion to dismiss the case. Among the arguments in that motion for dismissal, Martinez’s lawyers contended that a text sent by Johnson to Martinez ten days before her legal team let WPP and JWT know that they would be filing a suit was evidence that Martinez’s behavior did not create a hostile work environment. In the message, Johnson told Martinez she had turned down a job offer, choosing instead to stay loyal to him and JWT. Johnson’s lawyers reject the “snippets of a text” as invalidating her argument that Martinez created a hostile work environment.

There is no question that “going along to get along” is common in these cases,” they wrote in the memorandum. “Plaintiffs decision not to quit in reaction to a dispute with a more than decade-long employer is neither unusual, nor relevant to this motion.”

Regarding the text in question, the memorandum adds, “Discovery will show the full texts, emails, and the like among many relevant individuals and a jury can decide the significance of this text at that time, with a full record.”

The document also objects to the notion that there weren’t enough instances of offending behavior on Martinez’s part to constitute a case against him. “Corporate defendants list six such incidents [of offensive comments by Martinez],” the document states. “That behavior, without more, could state a claim for a hostile environment. In addition, however, defendants ignore that those allegations are far from describing isolated incidents, but instead are examples of sexist, humiliating and threatening behavior that was typical of Martinez.”

Johnson’s legal team also alleges, contrary to Martinez’s claims, that “despite Johnson’s repeatedly following ‘her employer’s well-established discrimination prevention policies,’ the discrimination continued, escalated and provoked retaliation and defendants’ ridicule.” (In the motion for dismissal, Martinez’s team claimed to find it “‘fascinating’ that Johnson did not use “her employer’s well-established discrimination prevention policies.”)

The memorandum also addresses the claims made by Martinez’s legal team that Martinez’s behavior didn’t amount to sexual harassment which created a hostile work environment by stating his comments, including retaliatory remarks made when Johnson objected to his previous behavior by stating “The sex-based nature of Martinez’s offensive comments and conduct frequently was explicit.”

“For example, when Johnson told Martinez that his comments about rape were not acceptable in the workplace, he responded by telling her that ‘American women are too sensitive,’” the document goes on. “Shortly thereafter, he grabbed Johnson around the neck with his arm, telling her to come to him so that he could rape her in the bathroom.” 

Additionally, Johnson’s lawyers address the claim that “all of the ‘complained of adverse actions occurred in 2015’ before plaintiffs first protected activity in February 2016.”

“Of course, just because Martinez says something does not make it so,” the document states, alleging that there were “multiple instances of protected activity in both 2015 and 2016, and many examples of adverse actions thereafter.”

For more on the most recent filing in the case, see Adweek’s coverage, which includes the document in full.

Ogilvy Veterans Launch ‘Something Different’ in Brooklyn

Former Ogilvy & Mather executive creative director Tommy Henvey and executive producer Patti McConnell launched Something Different, a creative marketing boutique in Brooklyn that “will leverage a lean and flexible business structure to provide brands with the thing that agencies do well—produce great creative—while avoiding pitfalls that cause work to bog down and cost too much.”

The pair plan to avoid overstaffing and attendant layers of bureaucracy with an agency model that assembles creative, production and planning teams on an assignment basis to work directly and intimately with clients. In that respect it somewhat resembles recent project-based entities like San Francisco’s Partners in Crime while maintaining the same sort of small permanent staff as Erich & Kallman and Joan, the new shop launched by Jamie Robinson and Lisa Clunie

“We’ll bring in the right people at the right time,” Henvey explained. “If we need a planner, we’ll pull in a great planner. If we need a designer, we’ll hire a designer who has the right head for what the project needs.”

Before launching Something Else, Henvey spent around eight years as an executive creative director with Ogilvy & Mather, working with clients such as  Time Warner Cable, Kraft, NASCAR and Citizens Bank. He previously served as an ECD with mcgarrybowen and a GCD at Y&R after nine years in BBDO’s creative department.

McConnell joined Ogilvy & Mather in 2001 and served in a variety of executive producer and senior partner positions, most recently as senior partner/executive producer for North America. She also held the partner/executive producer title at JWT New York and worked as an executive producer at BBDO.

“Clients are looking for a different way to get things done, that’s why there are a billion new places popping up, trying to figure out the best way to do it. We figured a billion and one might be the magic number,” Henvey said. “The process of making things today can be tedious. Our plan is to make it smoother, more efficient and more fun.”

“Clients want to sit across the table from people they like and feel comfortable collaborating with,” added McConnell. “They want to work with people who allow them to have a voice in their advertising and branding, and who respect their voice.”

Pending ANA Report Claims That Agencies and Media Partners Make All the Best Kickback Deals

Several people who rightly chose to remain anonymous talked to The Wall Street Journal about the Association of National Advertisers’ eight-month probe of the relationships between ad agencies and their media partners. The piece just went live, and it is a mess.

Seems that quite a few agencies receive “rebates” or kickbacks from certain unnamed media companies as long as they spend a given amount to place ads in those publications. According to the sources mentioned above, “The group found that the practice was widespread within the sample it studied.”

That sample was approximately 150 people interviewed by the investigative firm K2 Intelligence.

The ANA declined to discuss the report with the WSJ prior to its release, and a spokesperson for the 4A’s told us today: “We cannot at this time comment on anonymous sources… we have not seen the study , have always preached full transparency to our members and will act accordingly when the details are released.”

For context, this sort of scheme is common and essentially accepted in Europe and Latin America…or so we hear. Some of the specific behaviors aren’t necessarily in violation of existing contracts–they’re just completely lacking in transparency. And it’s not just digital, either.

As for the reasoning behind the trend, unnamed “ad executives and marketers” blamed the “enormous pricing pressure that marketers have placed on their agencies,” a la the ongoing McDonald’s creative review.

Despite the fact that this sort of thing is accepted throughout most of the world and that the legal implications of the behaviors documented in the forthcoming report are not clear, spokespeople for Havas, Dentsu, Omnicom, IPG and WPP’s GroupM gave some variation of “we do not participate in kickbacks” statements to the WSJ. Publicis Groupe declined to do so.

Unfortunately, the report ultimately will not name names or organizations. For that reason, it’s not at all clear whether it will lead to “jail time,” as sources told Business Insider last month. But at the very least, this sort of development is all but guaranteed to damage relationships between agencies and clients who may believe that the former are driven primarily by their own self-interests.

Get ready for some audits.

Mondelez Wants All of Its Agencies to Collaborate with BuzzFeed Now

Yesterday you almost certainly learned that one of the world’s biggest advertisers had announced a definitive move away from that thing we call “traditional advertising.”

Unlike Sprint, Mondelez didn’t hire a PR veteran to launch its own in-house studio and take work away from its agencies of record. It will turn instead to media companies–namely, BuzzFeed and Fox to date–to help produce more non-ad stuff in the way of apps, games and sponsored content.

So what does that mean for the company’s many agency partners? They’ll be collaborating with the BuzzFeed team.

Today we spoke to the client’s global head of content and media monetization Laura Henderson and BuzzFeed’s global CRO Lee Brown.

Regarding the new model, Henderson said:

“This new approach will see us forming new models to build muscle memory and allow us to future-proof against the changing landscape. We are pushing our agency partners; creative and media, to think differently about how we develop content that engages our consumers, and ultimately how we rethink the advertising model to create more value for everyone.”

In other words, agency partners will be spending less time on their own ads. Brown said, “”Our global partnership with Mondelez fits into two major buckets: branded content as well as the co-creation of unbranded content.” The example cited was this February Facebook video explaining how to use Triscuits to make cheddar and sour cream bites. It won’t win anything at Cannes this month, but it got more than 23 million views…which is more than any recent case study we’ve seen.

“The goal is for our agencies to collaborate in new ways with these partners,” said Henderson.

You may remember that Mondelez ended its relationship with Mother New York back in January after the agency had run creative on its Sour Patch Kids brand for several years. A rep told us, “We do not have plans for new TV at this time so they don’t currently have an assignment with us for this year.”

Seems like they were already moving toward the new model. Expect to hear this refrain more often in the coming months and years.

Anomaly Will Open an L.A. Office to Handle Beats by Dre

Two weeks ago, we reported that MDC Partners’ Anomaly had won the global Beats by Dre creative review.

Today AdAge published a piece announcing the same development. Interestingly, this story does not include any sort of official confirmation as Anomaly, Beats and R/GA representatives declined to comment just as they did for our earlier coverage.

The most interesting part of the piece is the revelation that Anomaly will open an L.A. office to handle the Beats work and “several” other, unnamed clients. CEO and co-founder Carl Johnson will run the new operation.

R/GA was not involved in the review and sources close to the matter told us that Anomaly’s win will not affect its relationship with the client, but the development is notable in that both that agency and Anomaly have now opened offices specifically to handle the work related to this account. (R/GA L.A. and London led creative on previous campaigns.)

As reported in earlier coverage, marketing VP Jason White (formerly with W+K) led this search for a new agency partner to help the premium headphone brand expand overseas. CMO Omar Johnson will also reportedly play a larger role in the brand’s creative efforts moving forward.

The big question now is what sort of work Anomaly will be producing and how the account will be divided between R/GA and the MDC shop, especially in terms of international and domestic campaigns. AdAge’s sources claim that Anomaly could be working on everything from TV spots to experiential executions.

R/GA and MDC Partners again declined to comment for this post. The Beats organization never responded to our earlier emails.

Campbell Ewald Cut 10 Percent of Its Total Workforce This Month

Two weeks after we posted on Campbell Ewald downsizing in its Detroit office, another round of layoffs hit the network this week.

An agency spokesperson clarified that C-E’s New York and Los Angeles offices were not affected but acknowledged that, “As earlier noted there have been layoffs this month in the Detroit and San Antonio offices. These layoffs represent about 10% of the total Campbell Ewald workforce.”

The downsizing move is directly tied to the loss of multiple accounts including–to our knowledge–USAA, U.S. Navy, Edward Jones and Henry Ford Health Center. Three of those four losses came about specifically because of the “Ghetto Day” email controversy while Y&R recently began working on the U.S. Navy business last month after a review and nearly a year’s worth of legal challenges.

We hear that the total let go in Detroit this week was in the mid-two digit range and that the creative department was particularly affected. Campbell Ewald currently lists 500-1000 employees, which indicates that the number let go over the last month totals somewhere between 50 and 100 based on the statement above. The agency named a new CEO and CCO last month.

MullenLowe has not responded to multiple email queries regarding the launch of its San Antonio office, which was created to take over the USAA account from C-E. We continue to hear that a small number of staffers who worked on that business at Campbell Ewald are now on the account at MullenLowe.

It’s unclear whether the Campbell Ewald San Antonio operation will stay open moving forward as it was a dedicated office serving USAA.

Dallas’ Greenlight Celebrates Its 10th Anniversary with Some Almost-Nudity

What did your agency do for its 10th anniversary? Do you even remember it clearly?

You probably don’t. But employees of Dallas-based Greenlight (which has Gold’s Gym, La Quinta Inn & Suites and other clients) will, because the agency is documenting the date in a video series that will live forever and ever on YouTube, amen.

The little mini-profiles have been debuting today at a one-per hour clip as part of a project called “10 for 10”: 12 10-second videos celebrating 10 years, released by the hour throughout the day.

We don’t know a whole lot about the agency, but the first effort shows us that they do sometimes rely on the most traditional forms of communication.

The next entry is probably why you clicked on this post.

That was not as provocative as you’d hoped, but the agency seems to have a sense of humor about it. They also love spit takes.

The most impressive entry to us so far is this one, which involves an inhuman amount of Big League Chew. Remember that stuff from when you were 8 or so?

Here’s one in which light bulbs ponder fate as they plummet toward their kind-of deaths.

We do hope, for Greenlight’s employees’ sakes, that they don’t really have to work in corners posing as cubicles.

All in good fun.

The press release tells us this project is better than a press release, which is true. “Agency Celebrates Its 10th Anniversary” is about as exciting as “Agency Recognized By Local Organization” if we’re talking potential headlines.

VCCP and MUH-TAY-ZIK | HOF-FER Form a Creative Partnership

London-based VCCP signed a “don’t call it M&A” deal with San Francisco’s MUH-TAY-ZIK | HOF-FER in order for the two agencies to form an international creative partnership, Adweek reports.

The newly formed network will include VCCP’s London, Berlin, Madrid, Sydney and Prague offices and MUH-TAY-ZIK | HOF-FER’s San Francisco headquarters, with plans for MUH-TAY-ZIK | HOF-FER to open a New York office in the coming months. In the long term, the agencies hope to collectively expand to expand to markets in South America and Asia. 

While VCCP has been looking for a creative partner on this side of the Atlantic for some time, MUH-TAY-ZIK | HOF-FER has dismissed offers from holding companies to form such partnerships in the past.

“We never gave it much thought. It wasn’t something we needed or were looking for,” MUH-TAY-ZIK | HOF-FER executive creative director John Matejczyk told Adweek. 

But VCCP, he said, is “ambitious in the same way that we are. They’re trying to help clients, look for business opportunities, and look for creative ways to figure out solutions. We thought we could go further together. It feels like the start of something cool.”

“We wanted to find a partner in the U.S. who had the same focus on creative work, the same challenger mentality. We spent two years looking for that agency, and when I met these guys, I thought, I wasted two years of my life,” said VCCP CEO Adrian Coleman. “It’s the coming together of two agencies that can help grow each other.”

“From a client perspective, on a global level, it’s giving the market an alternative from typical holding companies,” he added.

None of the details regarding the financial structure of this deal have been made public, so feel free to be confused.

We Hear: DigitasLBi And SapientNitro Boston Will Soon Share an Office Building

This week we hear that Publicis Groupe’s DigitasLBi and SapientNitro or Publicis.Sapient will soon share a space in Boston.

One source with direct knowledge of the matter tells us that the rumor is “absolutely true.” The location of this future shared space is unclear, though another source says that the DigitasLBi Boston team will be moving into SapientNitro’s office, which is less than a mile away.

The reasons behind the move are also unclear at the moment. The larger DigitasLBi organization has parted ways with several high-ranking members of various departments in recent months including GCD Kenny Rennard, chief media officer Baba Shetty, SVP/creative Greg Kaplan, Chicago-based GCD Bill Matznick, president Norman de Greve and EVP/ECD Rob Rizzo.

This reads like a standard round of agency revolving door, though we hear that other creatives have left DigitasLBi Boston and none of the executives mentioned have been replaced to date with the exception of Rizzo (Doug Schiff now leads creative across the agency’s Boston and Detroit offices).

A Digitas spokesperson declined to comment for this post.

Agency Vets Jaime Robinson and Lisa Clunie Launch a New Shop Called Joan

Former Wieden + Kennedy ECD Jamie Robinson has partnered with Lisa Clunie of lifestyle site Refinery29 to launch a creative agency in New York.

The new shop is called Joan, and it officially opens today with General Mills as its first client.

According to the release, Joan will offer clients “big brand thinking and high end creative with a modern understanding of culture, distribution and content creation.”

This is familiar territory for Clunie, who is herself an agency veteran. Last March, she stepped down as senior partner and director of creative management at Ogilvy, allowing CCO Steve Simpson to joke about “assaults upon her optimism” in the internal memo. She spent just over a year as COO at Refinery29, which is often cited as a new media success story earning an outsize share of coverage for its approach to that thing we call “sponsored content.”

“This is an exciting yet challenging time for brands to connect with their audiences. Speed and agility are key ingredients, but brands need more,” said Clunie in a statement. “Jaime and I are excited to combine audience development, distribution planning and content strategy with big, game changing brand ideas. Our process of co-developing content with clients, testing and learning will make working with us more effective and frankly, more fun.”

This is indeed a challenging market, but W+K’s Mark Fitzloff thinks Joan will be OK. The pair have already begun working on unspecified yogurt, snack and meal-focused projects for General Mills–and the client’s chief creative officer Michael Fanuele called them “what the industry has been waiting for,” adding, “They’re ten tons of talent in a nine ton bag of joy.”

joan creative

Regarding the inspiration behind this new agency’s name, Robinson said:

“Our name was inspired by all of the Joans throughout history who have brought big changes to the world–from reshaping rock and roll, transforming comedy, putting a new face on protests in the 60’s and, of course, the Joan who triumphed on the French battlefield. Lisa and I want to commit all of our positive energy to creating a different kind of client relationship–one of listening, understanding, collaborating and making the best work possible, together.”

Joan will also focus on select causes, establishing a Foundation of Diversity that will dedicate a portion of total profits to select groups and providing each employee with an unspecified financial stake in the company. (The release calls that approach “the smartest way to deeply connect people with the work and its outcomes.”)

Prior to joining Ogilvy in 2011, Clunie held various accounts and management positions at Fallon, BBH and Saatchi & Saatchi New York, where she was managing director.

Robinson left W+K last October after approximately eight months along with fellow ECD David Kolbusz, who now leads Droga5 London. She previously spent six years in the creative department of San Francisco’s Pereira & O’Dell.

Campbell Ewald Detroit Downsizes After USAA Moves to MullenLowe San Antonio

In what looks like the last chapter of the fallout over the “Ghetto Day” email controversy, the Detroit offices of Campbell Ewald went through a round of downsizing earlier this month and last month.

The move was directly related to the losses of U.S. Navy and USAA, which cancelled its contract with Campbell Ewald right before parent company IPG fired C-E chief executive officerJim Palmer. At the time, USAA told us that it would be “searching for a new agency that aligns with USAA’s culture and core values.”

That agency was MullenLowe, which opened a new San Antonio office to handle the business.

The official statement from a Campbell Ewald spokesperson:

“As part of a restructuring, we have had to lay off some of our staff. Though we worked to minimize layoffs we sadly could not forestall all. While headcount at the Los Angeles and New York offices has grown, the USAA dedicated office in San Antonio was obviously affected and the loss of the Navy account has contributed to some layoffs in Detroit.”

The Navy loss occurred almost exactly one year ago when the account went to Y&R, but the winning agency only recently began working on the business due to an ongoing series of appeals filed by Campbell Ewald lawyers. Last month Y&R announced plans to open a 50-person office in Memphis to handle the account after the dispute was resolved by the court system.

It’s unclear at this time exactly how many staffers were let go, though we hear that the layoffs began in April and continued through last week. We also hear that a few members of the team that handled USAA for Campbell Ewald have moved to MullenLowe to work on the business; according to our sources, the total number is in the single digits.

Very little information about MullenLowe San Antonio exists online, though the group’s website does currently include a blank listing under the URL “lowe-campbell-ewald-san-antonio.

The news follows the April promotions of Kevin Wertz to replace Palmer as CEO and Jo Shoesmith to replace outgoing chief creative officer Mark Simon as Campbell Ewald’s first-ever female CCO. In an internal memo, Wertz called the promotions “a new chapter in Campbell Ewald’s history.”

We reached out to MullenLowe for more information on USAA and the San Antonio office but have yet to receive a response.

JWT Will Move Beyond the Gustavo Martinez Scandal With a ‘Diversity and Inclusion Council’

As soon as Tamara Ingram became JWT’s new global chairman/CEO following the March resignation of Gustavo Martinez, she let the world know that “diversity and inclusion will be at the top of my agenda … [because] companies don’t value women enough.”

According to AdAge’s sources, she already made good on that promise by planning a Diversity and Inclusion Council.

AdAge’s report includes several interesting details:

  • Ingram announced the Council in an internal video
  • The agency has partnered with consulting firm inQUEST to act as an objective third party reviewing its efforts on this front
  • Ingram will also launch a “talk to me” hotline for employees who feel threatened or uncomfortable about “certain issues”

Perhaps most surprisingly, JWT chief talent officer Laura Agostini–who played a central role in the Erin Johnson lawsuit and allegedly declined to act on Johnson’s repeated complaints about Martinez’s behavior–will retain her position.

JWT also hired former Y&R chief talent officer Celia Berk to fill the newly-created role of chief employee engagement officer while simultaneously acting as group talent partner within the larger WPP organization. Her LinkedIn profile describes the new gigs as such:

As Chief Employee Experience Officer, reports to the CEO and focuses on ensuring the work lives of JWT employees are as rewarding as possible.

As Group Talent Partner, reports to WPP’s Chief Client Team Officer and works with the company’s 45 global account teams to advance WPP’s strategic focus on “horizontality.”

According to the AdAge story (and yes, they definitely scooped us on this), Ingram released an internal video in which she essentially repeated the same points in the U.K. appearance linked atop this post regarding the importance of “represent[ing] all people,” including every member of JWT’s own staff.

An agency spokesperson referred us to WPP’s PR firm Finsbury, which has not provided any comment at the time of this post. It would certainly seem like someone within the agency spoke to AdAge, but there’s no official statement or rollout yet.

Expect to hear more next week.

Droga5 Resigns the Motorola Account After 4 Years

Droga5 has resigned from the Motorola account, ending its relationship with the client after approximately 4 years together.

The agency won the business in 2012 and has created a range of work since then including this campaign starring elaborate set design and another effort promoting the client’s smart watch by mocking the entire “wearables” movement. (This is standard operating procedure for Droga5, of course.)

The decision was made last month. Droga5 will not be producing any additional campaigns for Motorola, and the two parties are currently winding down their relationship by completing some final production work.

From an agency spokesperson:

“Droga5 New York has resigned the Motorola account. The company has undergone many structural changes since Droga5 was first appointed and the agency felt it was no longer an appropriate fit. We wish them every success in their future.”

The agency’s PR department declined to elaborate on the reasons behind the move or to provide comment beyond this quote.

However, we hear from multiple sources that the key precipitating event was Lenovo’s 2014 acquisition of Motorola Mobility from Google, which had purchased the company’s phone business in 2012 around the same time Droga5 won the account. That unit operates independently of what is now known as Motorola Solutions, and the parent company announced in January that it would be “phasing out” the brand name entirely. By 2017, Motorola Solutions will become Moto while Motorola Mobility will be merged into Lenovo’s existing phone business…so the Moto X and other products will soon bear the Lenovo name.

According to tipsters, the single deciding factor in the split was the recent departure of Motorola’s chief marketing officer Adrienne Hayes, who formerly ran the division’s communications for Google. The company has yet to announce the fact that she left or to name her replacement, but we hear that a top marketer from Lenovo stepped in to assume her role last month. We also hear that a campaign created by Droga5 and set to launch this summer was shelved due to this executive turnover.

At this time, Motorola Mobility has not responded to our messages regarding Hayes’ departure and Droga5’s decision to end the relationship. Given recent changes in the company’s structure, no numbers regarding the value of the account are available at this time.

One would presume that a creative agency review will follow.

Heat Hires Havas CSO Tim Maleeny and Expands to New York

San Francisco agency Heat is adding an office in New York, its first expansion since being acquired by Deloitte Digital in late February.

For now the New York outpost, which launches in June, will be run out of the agency’s San Francisco headquarters; a permanent location for the New York office will be announced later this year. To lead the new office, the agency is bringing on industry veteran Tim Maleeny as general manager and chief strategy officer and tasking him with injecting the agency’s culture into the Manhattan ad world.

Maleeny joins the agency from Havas New York, where he has served as managing partner and CSO for the past three years. Prior to joining Havas, he spent over three and a half years at Ogilvy & Mather as head of strategic planning. Before that he spent eight years as director of strategy for Puclicis & Hal Riney, following four as senior vice president, group account director with Hal Riney & Partners, during which time he worked with Heat’s principals, John Elder, Steve Stone and Mike Barrett.

“We have to bring our culture to New York as best we can but use a truly New York City-centric approach,” Barrett, who serves as Heat’s managing director, told Adweek. “I think the difference is the San Francisco ad environment feels like a more collaborative partnership which I think New York clients will like.”

“With West Coast agencies, it’s about creative first and it’s very idea driven. New York is more process oriented,” added Maleeny. 

“You could argue the last thing this industry needs is another new ad agency,” he said. “What it is yearning for is a new kind of agency.”

“As we go into New York, it’s not just Heat—it’s Heat plus Deloitte Digital,” added Elder,who serves as president of Heat.

We Hear: Ongoing Wave of Executive Departures at The Barbarian Group

Multiple sources tell us that a series of high-ranking Barbarian Group employees are in the process of negotiating their pending departures from the Cheil Worldwide agency.

The details of the ongoing exodus have yet to be revealed, but we hear that the leaders of several departments will be among those who leave prior to a restructuring announcement scheduled for later this week/month.

The tips began coming in on Friday and listed the heads of a few departments among those who plan to resign. The only departure that can be confirmed at this time is that of chief strategy officer Ian Daly, who we hear was dismissed several weeks ago for reasons related to his specific position. (He was hired by now-former CEO Sophie Kelly last summer along with head of operations Darren Himebrook after leading strategy at TBWAMedia Arts Lab.)

Daly’s move was, of course, overshadowed by that of chairman and agency co-founder Benjamin Palmer, who we hear was strongly encouraged to step down by Cheil executives before he announced his plans to leave in March.

That news came approximately three months after Cheil replaced Kelly with Peter Kim, who assumed the role of CEO after serving as chief digital officer at holding company headquarters in Seoul. As we hear it, a perceived tension between agency and holding company has characterized the period following Kelly’s December departure. (Cheil became a majority shareholder of the agency in 2011.)

A Barbarian Group spokesperson declined to comment for this post, but we believe that we will have more information on the organizational shift by the end of this week.

Based on what we’ve heard, it’s safe to say that the agency emerging from this latest round of changes will not look quite like the one we’ve known up to this point.

CP+B Vets Cronin, Steinhour Launch Markham & Stein in Miami

Former CP+B executives Jeff Steinhour and Markham Cronin launched a full-service agency in Miami called Markham & Stein.

The pair, who have over 50 years of industry experience between them, spent 10 years together at CP+B, with Cronin handling creative and Steinhour accounts, before Markham left for West Wayne in 2000. Following a stint there and at Carmichael Lynch as a creative director, and two years as CCO at BrightHouse, he decided to launch Markham Unlimited in 2005.

“I was spending 20 percent of my time doing the valuable part of my job for clients and the other 80 percent actually running the agency,” Markham told Adweek. “So when the opportunity came to talk to Jeff about maybe doing this, there was no question it was something we should try and do together.”

Steinhour was one of CP+B’s four founding partners along with Chuck Porter, Sam Crispin and Alex Bogusky; until recently, he served as partner, vice chairman and managing director of the agency’s Miami office. He says Markham & Stein is “A new kind of shop … that brings the strategic and creative power of a big agency in a more nimble and tenacious package,” adding that “Clients are looking for groundbreaking branding solutions that once upon a time required a large agency.”

International boat engine maker Mercury Marine became the agency’s first official client, but Steinhour and Cronin have been working together on clients such as Markham Unlimited’s H & H Jewels, Coconut Grove Business Development District and Oriental Bank for several months. (The new agency inherited Cronin’s clients and his 21 employees.) The first work for Mercury Marine, for which M&S won global AOR duties after a review involving at least five other agencies, will launch in the fall. 

“As we’ve grown, we talk to bigger and bigger clients which are talking to smaller and smaller agencies,” Cronin told Adweek. “The old model of dumping every piece of marketing activity into a big agency is at its end: We’re seeing more project-based work and work split into separate disciplines. This benefits a shop of our size as the nimbleness and lack of overhead gets us talking to national and global clients.”

Regarding the formation of this new entity, Steinhour added: “After I decided to leave CP+B last fall, Mark called me and said, ‘I could use your help with a couple of pitches. That went well, one thing led to another … and we said, maybe it’s time to do something more formal. We formed a new LLC and called all of his clients, none of who had any issues. It felt pretty natural.”

The duo chose to launch the agency in Miami, Cronin says, because “It’s one of the most vibrant, thriving cities in the U.S. with heavy South American and Latin American influences. Both of us have lived in Miami for the past 25 years, and selfishly I believe that [the city] deserves a handful of good agencies.”

The agency also has a couple of clients based in Puerto Rico, with a small number of employees based in the U.S. territory focusing on those accounts.

DDB Chicago’s Moms Try to Figure Out Advertising for Mother’s Day

As you all know, Mother’s Day is less than 48 hours away, and we’ve seen a few related stunts from various shops. There was MullenLowe’s “get people to enjoy it when babies cry on a plane” work for JetBlue, Humanaut’s rude card project, and StrawberryFrog’s “come work for us, moms” effort.

Mother probably got the most attention for playing on its own name with an outdoor campaign and a pitch that involved sending us an apple, two cookies and a hand-written note that is probably the nicest piece of writing we’ve received from an agency PR team in quite a while. (Just kidding, we love all of you guys.)

Mother

DDB wasn’t having any of that. The agency kept things simple and nostalgic with a Bring Your Mom to Work Day in its Chicago office this week.

“There’s a Barton in there somewhere, I think,” LOL.

See, that was fun. We especially liked the Q&A and the fake sleeve tattoos.

An agency spokesperson tells us that DDB hadn’t planned to promote this video or push it out to media, but someone wanted us to see it because we’ve been getting related tips all day. Here’s the teaser as well.

CREDITS

Chief Creative Officer: John Maxham
Chief Production Officer: Diane Jackson
Group Creative Director: Travis Parr
Creative Director: Candace Keene
Director/Editor: Dan Svoboda
Videographer: Jake Bailey, Nathan Iseminger
Studio Manager: Yvette Doud
Audio Engineer: Bobby Lord
Photographer: Noel Gonzalez
Art Director/Intern: Jenna Candusso
Art Director/Intern: Rosa Chu
Copywriter/Intern: Corey Leifker
Copywriter/Intern: Vincent Marocco

Former Diversity Director Felicia Geiger Told Campaign That Deutsch Is ‘No Longer Going to Invest in Diversity’

On Monday, we wrote about Deutsch parting ways with senior vice president, director of diversity Felicia Geiger and eliminating the position altogether. 

We’re not generally ones to “beat a dead horse,” but we missed Campaign’s recent conversation with Geiger, who said: “I was told that the agency was no longer going to invest in diversity. They wanted to put their efforts behind other initiatives, such as technology.”

After news of Geiger’s dismissal became public, Deutsch positioned the decision as a strategic move to shift responsibility for diversity efforts away from a single executive.

Before leaving the agency, Geiger told Campaign that she suggested the agency fill one of its recently vacated CCO roles with a diversity candidate: “I had suggested this would be a great way to infuse diversity at the most senior levels, and that suggestion was not taken up.”

Those positions were filled at the end of last month by creative veterans Dan Kelleher and Jason Bagley

Geiger’s job at one point included a budget “well over six figures,” which included investments in programs such as the Multicultural Advertising Intern Program and nonprofit TORCH, which exposes New York high schoolers to a range of career opportunities, but that budget was slashed considerably around 2014. She was told in January that the agency’s diversity budget, and in all likelihood her position, would be eliminated.

“I said I would like to keep this confidential, because as the agency cheerleader, people would flip if they found out,” she said. “And we agreed that we would keep this under wraps,” she added.

This week’s reaction shows she wasn’t exactly wrong about people flipping out.