We Hear: The Gap Launches U.S. Digital Media Agency Review

Mass-market retailer Gap Inc. or The Gap recently launched a review seeking an agency to handle its U.S. digital media planning and buying duties, according to parties close to the business.

We don’t yet know which agencies are involved, but since the review is being led by a consultancy, it’s fair to say that some of the major players are pitching. The review remains in its early stages.

This development is in keeping with Gap’s ongoing attempts to adjust to a rapidly shifting retail market.

Craig Brommers, formerly of Abercrombie & Fitch and Speedo, became the company’s CMO just over a year ago. Well before his arrival, however, Gap became one of the first big-name clients to publicly eschew the agency of record model by moving work away from Ogilvy toward other shops on its roster around the world.

The client eventually split with Ogilvy entirely, bringing on Wieden+Kennedy as its new creative partner in 2014 before again pivoting to project-based work with agencies like Untitled Worldwide at some point last year. Similarly, Gap does not publicize its media agency relationships.

On a conference call last August, president and CEO Art Peck announced that the company planned to expand its marketing budget in an effort to counter sales trends that have lagged behind sister company Old Navy.

On that note, Gap remains a major account. According to the latest numbers from Kantar Media, the chain spent $178 million on paid media in the U.S. last year and $42 million during the first quarter of 2017. It’s not clear what percentage of that spend is digital.

The company’s most recent OOO promotions have garnered some media attention including a mention from uptown girl Christie Brinkley, who praised Gap for featuring a 63-year old woman in its ads. (That woman is herself.)

Gap’s media relations department has not responded to requests for comment on the review.

Havas New York Wins $6 Million Con Edison Media, Creative Account

New York-based energy giant Consolidated Edison, better known as Con Ed or the company you only call when your power goes out, has named Havas New York as its new agency of record after a competitive review led by Joanne Davis Consulting.

The Gate had been creative AOR for the client.

In proper Havas fashion, the network won both creative and media duties for the company, which serves most residents of New York City and the surrounding area including Westchester, Orange and Rockland counties.

WPP’s Possible, which has been lead digital agency on Con Ed, was not involved in the review and will retain that portion of the business. The announcement also coincidentally arrives on the same day that Con Ed plans to roll out a new website and app designed by Possible.

“We look forward to a new partnership with Havas in serving our customers,” said Con Ed SVP of corporate affairs Frances A. Resheske. “Havas impressed us with their powerful data-fueled creative approach from the very start, not only through their understanding of the Con Edison brand, but how that manifests itself in our customers’ everyday relationship with their energy.”

Recently promoted Havas N.Y. CEO Laura Maness added, “It is our privilege to partner with Con Edison. We believe strongly that the brand should be seen as a critical and celebrated part of New York culture. Con Edison is not just a utility in the city, but an icon of the city that connects us all.”

Con Ed is a privately owned company that functions like a public utility. While it maintains a near-monopoly over the New York-area power grid, it is still a regional business with a relatively modest $6 million marketing budget in 2016, according to Kantar Media. Con Ed spent around $7 million the previous year.

Still, this marks a much-needed win for Havas, which lost one of its legacy clients when Heineken officially moved Dos Equis to Droga5 without a review last month. Moving forward, the new shop’s primary assignment will involve an early 2018 campaign focusing on sustainability efforts and new tools designed to help customers use energy more efficiently.

DDB Chicago Beats Out 180LA, BBH and CP+B to Win Miller Lite

As our readers have predicted for weeks, MillerCoors officially consolidated creative duties on its Miller brands within the DDB network today. Moving forward, DDB Chicago will be global AOR for Miller Lite and Adam&EveDDB will handle Miller Genuine Draft. The decision follows a formal creative review involving several other competitors.

This means the beverage giant has split with 180LA after just over one year; it will also no longer officially work with TBWA sister shop Juniper Park.

Here’s the internal memo from CMO Dave Kroll, who recently returned from medical leave.

Achieving our growth imperative and ensuring that MillerCoors becomes First Choice for Customers and Consumers requires strong performance from our American Light Lagers. We’ve made great progress over the past couple of years, but still have work to do.

Miller Lite recently celebrated its 10th straight quarter of share growth. In order to accelerate our momentum, it’s imperative that we have the strongest team possible on board. Starting this week, we are consolidating the Miller Lite creative responsibilities at DDB Chicago. This transition will be seamless as we are keeping the business within the Omnicom family. We are moving some of the best creative talent from our previous agencies 180LA and Juniper Park, into a new team at DDB in order to have a best-in-class creative and planning team. DDB has made great strides on the digital side of the Miller Lite business over the last month, and we feel confident that this expanded team will keep the brand on its positive trajectory.

In addition to consolidating the U.S. Miller Lite creative business, we will also be strengthening our relationship with DDB by moving global creative for Miller Genuine Draft to DDB’s London-based agency Adam & Eve.

In an increasingly competitive industry, it’s crucial that we reward agency partners that share our commitment and vision for the future. We have the right brand purpose, the right brand world and the right creative to bring it all together. Now we have the right team in place to capitalize on the opportunity in front of us.

Thanks,
DK

Spokespeople for DDB deferred to the client, who didn’t go beyond the memo above. 180LA has not yet provided a statement.

According to one reliable source, the Miller Lite review saw DDB Chicago beat out the L.A. offices of 180, BBH and CP+B for the business. It’s currently unclear which agencies, if any, competed against Adam&EveDDB for the other account.

Just over two months ago, MillerCoors moved digital creative duties on the Miller Lite brand from DigitasLBi Chicago to DDB, apparently without a review. Since then, MillerCoors reps have declined on more than one occasion to confirm that they would be consolidating the account with DDB.

The parent company spent $130 million promoting Miller Lite in the U.S. last year and $27 million in Q1 2017.

Frito-Lay Names BBDO as Lead Creative Agency on the Lay’s Brand

Frito-Lay, like Campbell’s Soup before it, has returned to BBDO. According to sources close to the review, BBDO New York beat out four other agencies to win lead creative duties on the Lay’s chips brand.

Competitors included TBWAChiatDay, CP+B, Deep Focus (which had been working on digital brand projects) and R/GA, which joined the pitched from its Austin office.

Neither BBDO nor Frito-Lay/PepsiCo have responded to our queries regarding the brand, which spent $80 million on paid marketing in the U.S. last year, according to Kantar Media.

Lay’s has been through several agency changes since the late Stephen Frankfurt developed the signature “Betcha can’t eat just one” tagline while at Y&R in 1963, and this is not the first or second time it’s been with the BBDO network.

BBDO New York handled the business from 1991 until losing it to fellow Omnicom shop GS&P in 2007. Chicago office Energy BBDO later picked up the Lay’s assignment before the client decided to drop the agency of record model entirely in 2015, effectively rescinding that agency’s remit.

For fun, here is classic footage from a 1966 Lay’s campaign featuring Bert Lahr (best known as The Cowardly Lion) playing both himself and the devil.

We Hear: Mitsubishi in Talks with TBWAChiatDay and Other Agencies After Dropping 180LA

TBWAChiatDay Los Angeles is in the market for a new car, and it might just be a Mitsubishi.

Earlier this year, Nissan surprised quite a few in the agency world by splitting with the Omnicom shop’s West Coast network after more than 30 years. Just over three months later, Mitsubishi—in which the company acquired a 34% stake in late 2016—also dropped 180LA as its creative agency of record.

Now we hear that TBWA hopes to make up for that loss by picking up the smaller account. According to Kantar Media, Mitsubishi spent $95 million on U.S. marketing last year.

The Nissan work didn’t leave Omnicom, it simply moved from TBWA L.A. to Zimmerman (broadcast) and the former agency’s New York team (social and digital). And since Nissan now owns part of Mitsubishi, its leadership is very familiar with the Omnicom roster. Like Pepsi, it seems that they’d prefer to keep things within the family.

On that point, one source very close to the matter tells us that TBWA’s West Coast executives recently had a meeting or meetings with Francine Harsini, senior director of marketing at Mitsubishi North America. This would not be the first time Harsini has come into contact with TBWA: she formerly served as managing supervisor there before moving in-house with DirecTV and eventually going to the Japan-based car company.

It’s not yet clear whether the two parties will work together. According to our source, Mitsubishi is notoriously hard on its agencies, and several people who worked on the account in the past told us that the client had been sending project work to independent L.A. shop Omelet and using that organization’s lower rates as leverage against 180LA.

Another party tells us that the meetings were part of a formal review involving TBWA, Omelet and other unnamed agencies.

A TBWA spokesperson deferred to the client, whose PR department has not responded to any of our calls or emails about the recent changes in its agency lineup. Omelet also declined to comment on the earlier story about its relationship with Mitsubishi.

More news to come on this account.

Heat Wins Global Creative Duties for John Hancock/Manulife

San Francisco agency Heat, which was acquired by consultancyDeloitte Digital in February of 2016, won creative duties for Canadian financial services company Manulife, which owns and operates John Hancock in the U.S.

“Heat’s creative was by far the strongest,” John Hancock Manulife global chief marketing officer Gretchen Garrigues said in a statement. “They got customer feedback on the creative they were developing [in the pitch] and it was very thoughtful and innovative. They probably benefit from the relationship they have with Deloitte because it helps them add structure to the creative side of the world in terms of research.”

The appointment concludes a global creative review launched in March, which saw John Hancock part ways with Boston agency Hill Holliday, which had handled the creative account since 1985. Hill Holliday’s recent work for John Hancock includes April’s “Retirement Rookie” spot starring former Red Sox slugger David Ortiz and this spot from last October celebrating social progress.

Heat’s first work for the client is expected in early 2018.

Manulife also hired WPP’s m/SIX and Wunderman for global media planning, buying and analytics.

Pepsi Calls on Omnicom Agencies for Closed U.S. Brand Review

PespiCo has launched a closed creative review for its Pepsi brand in the U.S., open only to Omnicom agencies.

“Omnicom has been our longstanding partner because we value the diverse array of agencies and talent they have under one roof,” a Pepsi spokesperson said in a statement. “We continually evaluate the best ways to market our brands, and in the U.S. on brand Pepsi, we are once again looking within Omnicom for custom creative solutions.”

We reached out to Omnicom shops Goodby, Silverstein & Partners, DDB, TBWAChiatDay and BBDO. The latter agency deferred to the client, while the other three agencies have yet to reply.

Omnicom has primarily handled work on the Pepsi brand in the past. In recent years, however, the brand has not restricted itself to Omnicom agencies and has worked with agencies outside the network, including Mekanism. In 2008, PepsiCo shifted lead creative duties from BBDO to TBWAChiatDay for the brand after over 50 year with the former shop. BBDO started working with the brand again in 2015.

Greg Lyons was promoted to chief marketing officer for PepsiCo’s North America Beverage Division at the beginning of the year.

McDonald’s Seeks to Consolidate Local U.S. Creative Accounts

AdAge reports that McDonald’s is launching a review and seeking to consolidate its local U.S. creative accounts.

“Building the modern, progressive company that we aspire to be involves changing the way we conduct business,” McDonald’s spokeswoman Terri Hickey said in a statement provided to AdAge. “In order to accelerate our efforts to engage customers across all platforms to advance our brand vision, we aim to streamline and modernize our local marketing efforts in 2018.”

According to the publication, sources close to the matter have claimed that the review will be handled by Select Resources International and will include both current roster agencies and newcomers, who will begin pitching on July 17. Beyond those details, not much appears to be known about which specific agencies are involved in the review.

According to AdAge, the shift can at least partially be attributed to the fast food giant moving more resources to We Are Unlimited, the dedicated agency Omnicom launched to service the client last November. McDonald’s decided to consolidate with the agency network in August, following a U.S. creative review launched in April.

McDonald’s chief marketing officer Deborah Wahl also announced that she was leaving the company three months ago. She was replaced by Morgan Flatley.

Among the agencies working on regional McDonald’s accounts are Zimmerman Advertising, Doner, H&L Partners, Stern and Bernstein-Rein, whose recent work for the client includes a campaign centered around a promotion tied to the Kansas City Royals and a March campaign promoting the Filet-O-Fish.

Dick’s Sporting Goods Names Former Dunkin’ Donuts Digital Chief Scott Hudler as Its New CMO

Retailer Dick’s Sporting Goods, which is currently the largest such chain in the U.S. and trails only Walmart in overall market share, has named a new chief marketing officer.

Scott Hudler joins the Pittsburgh-based company exactly two months after its former CMO Lauren Hobart became president.

Before making the jump, he spent more than a decade in marketing at Dunkin’ Brands, the Dunkin’ Donuts chain’s parent company. Hudler began in brand marketing and eventually moved into the SVP, chief digital officer role last year. He previously held several positions at Mars including brand manager for Snickers.

Hudler now reports to Hobart, herself a veteran of PepsiCo’s North American carbonated drinks division.

You won’t be surprised to learn that the announcement focuses on Hudler’s digital experience as Dick’s—and every other retail company—moves to adjust to the new reality of online sales. During his tenure, Dunkin’ emphasized mobile and digital assets like a loyalty program and order-ahead platform.

Dick’s currently operates more than 800 physical stores and an ecommerce platform. In terms of sales, it is well ahead of nearest competitor Academy Sports + Outdoors, which picked FCB Chicago as its first creative AOR after a review last January.

The big question for this blog, of course, is what will happen to Dick’s current agency roster. Anomaly has been creative AOR on the brand since 2012, with Huge handling social and MKTG INC on events and experiential work.

According to the latest numbers from Kantar Media, Dick’s spent around $90 million on marketing in the U.S. last year.

We Hear: Allstate Adds 72andSunny to Its Creative Agency Roster

Insurance giant Allstate has quietly begun working with 72andSunny on unspecified creative projects, according to a party with knowledge of the matter.

The precise nature of the purported relationship and the projects in question is unclear at this time, as is the effect they might have on longtime agency of record Leo Burnett Chicago.

Allstate, which is the largest publicly held insurance company in the U.S. and trails only State Farm in annual revenues, has been working with Leo Burnett for 60 years. The agency first turned a manager’s impromptu slogan “You’re in good hands” into a TV spot back in 1957—and the rest, as they say, is advertising history.

Today a spokesperson for Allstate said that Leo Burnett remains the company’s creative agency of record while noting that it regularly works with other shops. When asked to elaborate, the spox declined to name any additional agencies or confirm whether 72andSunny is currently on its roster.

Leo Burnett deferred to the client, and a 72andSunny representative declined to comment.

Allstate has recently made some significant changes to both its marketing team and its ad campaigns. Approximately one year ago, Gannon Jones, who was formerly head of marketing at MillerCoors, became SVP of product marketing. Jones had left the beer giant in late 2015 immediately after 72andSunny won a creative review for AOR duties on its Coors Light brand—and according to reports (and tweets) released at the time, he played a key role in choosing the MDC Partners agency.

Weeks before Jones joined Allstate last June, the company pivoted away from its “Mayhem” campaign, which started running in 2004, in favor of an effort centered on cameos from celebrities like Leslie Jones and Adam DeVine. That work also tweaked the classic tagline to “It’s good to be in good hands.”

Mayhem quickly returned, however, and has appeared in many ads over the past year including the latest, uploaded immediately before we posted this story.

Allstate is a huge account. Kantar Media’s latest numbers have the company spending $343 million on marketing in 2016 and more than $87 million during the first quarter of this year.

BETC Wins Creative Duties on Citroën, Launches Dedicated Agency

French automotive brand Citroën sent its global creative account to Havas network’s BETC, which subsequently launched a dedicated agency called Traction.

The integrated Traction agency will be dedicated to servicing the Citroën client globally, led by BETC Paris presidents Bertille Toledano and Stephane Xiberras.

“To have the opportunity to take the creative lead of such an incredible automobile brand, that has produced legendary creative campaigns, is an honour and a great responsibility,” Xiberras, whose title for Traction will be executive creative director, said in a statement published by LBB.

Arnaud Belloni, Worldwide Chief Marketing of Citroe?n, says:”I grew up with the imagery of Citroe?n iconic communication items, with the chevrons, the aircraft carriers, and the ‘revolutionaryr men.’ We want to use the spirit of its past as inspiration to foster its revival and bring the brand back to modern values,” added Citroe?n’s head of marketing Arnaud Belloni.

The Citroe?n account has been with the Havas Network for around thirty years, most recently residing with Les Gaulois. In 2014, the agency highlighted a dog’s stretching routine and channelled 70s car chase scenes in a pair of spots.

Traction will officially open its doors on October 1, with a location on “the third floor of Les Magasins ge?ne?raux in Pantin,” accoding to LBB.

Stein Mart Selects Nashville-Based BOHAN as Agency of Record

Jacksonville, Florida-based national retain chain Stein Mart appointed Nashville-based independent agency BOHAN as its creative and strategic agency of record.

In the role, the agency will be tasked with handling a full range of services including creative, brand strategy and social content development. BOHAN’s first work for the client is expected in the company’s third quarter.

In the past, Stein Mart has worked with agencies including Orlando’s Fry Hammond Barr and Arnold New York, according to the Nashville Post.

“BOHAN’s creative roots run deep in the retail sector, and the opportunity to work with a client of Stein Mart’s caliber is certainly one that we’re excited about,” BOHAN president and chief executive officer Shari Day said in a statement.

“BOHAN is a good fit culturally for our organization, and their retail expertise uniquely positions them to understand the Stein Mart brand,” added Stein Mart CEO Hunt Hawkins, who was officially appointed to that position earlier this year after serving as interim CEO Since last September, when former CEO Dawn Robertson resigned. “BOHAN has shared interesting insights not only on the dynamic retail industry but also on our customers. We look forward to their creative direction as we move forward.”

According to MediaPost, Stein Mart spent $59.6 million on advertising last year, up from $57.5 million in 2015. Like a lot of retailers, the chain has struggled with sluggish sales recently.

Campbell Sends Its Chunky Soup Brand Back to BBDO After 20 Years with Y&R

The Campbell Soup company has shifted creative responsibilities for its Chunky brand from BBDO to Y&R without a review. The latter shop had handled the account for just over 20 years.

Sports Business Daily first broke the news this morning, noting that the parent company had “quietly moved” the business. BBDO deferred to the client for comment.

“BBDO has been a valuable agency partner to Campbell for many years and has done great work with the Campbell’s ‘Made for Real Real Life’ campaign and the launch of our new brand, Well Yes!,” a client spokesperson said. “We recently made the decision to transition the Campbell’s Chunky soup business to BBDO to create breakthrough work that resonates with our consumer, leverages the equity of the NFL and inspires fearless creative thinking.”

The Campbell representative also praised Y&R’s “excellent work,” noting that the client will continue to work with them “in other parts of the business” like cookies and crackers brand Pepperidge Farm and adding, “We want to thank them for their longstanding support and contribution to our Chunky business for many years.”

“Campbell’s has made a strategic marketing decision to bring all their soup brands together and BBDO will be overseeing all aspects of their future initiatives,” wrote a Y&R spokesperson. “Y&R created a unique, meaningful and enduring position for the Chunky brand, beginning in 1996 with ‘The soup that fills you up right.’ That campaign was articulated through a powerful NFL partnership and included both actors and real-life moms of NFL players which resulted in tripling the size of their business. Our most recent campaign “Everyman All-Star League” also helped drive double-digit growth for the brand.”

The statement continued, “We are proud of everything we have done with Chunky’s over the years and wish Campbell’s continued success with their all their soup brands. We look forward to continuing to work with Campbell’s Pepperidge Farm brand to further grow their global baked snacks business.”

According to the Sports Business Daily report, BBDO’s work will closely follow the mothers and sons theme established by Y&R. The new campaign, set to break in August right before the new NFL season—will consist of a series of spots starring Dallas Cowboys quarterback Dak Prescott, Pittsburgh Steelers wide receiver Antonio Brown, Carolina Panthers linebacker Luke Kuechly and, presumably, their mothers.

Campbell is one of BBDO’s legacy clients as the agency has worked with the company in some form since the early 20th century, developing its iconic “M’m! M’m! Good” tagline.

Y&R picked up Chunky in a “suprise” 1996 move; the account had been with now-defunct Backer Spielvogel Bates or BSB. The larger Campbell company has made some other changes to its agency lineup in recent years, most notably sending prepared foods brands Prego, SpaghettiOs, Pace and Ready Meals to Anomaly in early 2016 (there had been no incumbent on these accounts).

Surprisingly, the spending totals for Chunky are significantly lower now than when Y&R won the business more than 20 years ago. At the time, AdAge estimates put the brand’s yearly budget at approximately $20 million. Now, Kantar Media’s latest numbers have Chunky spending just under $7 million on measured media in 2015 and $8.3 million in 2016.

MEC remains Campbell’s media agency of record.

Cadbury Selects VCCP as Global Creative Lead

Confectionary brand Cadbury has selected VCCP as its lead global creative agency, after the conclusion a review launched in March following the departure of the brand’s top marketer, Matthew Williams, last July.

VCCP London will be tasked with handling the full Cadbury portfolio of brands in the U.K. and Ireland, and serve as global lead for Cadbury Dairy Milk, The Drum reports.

“Cadbury is a brand every agency would love to see on their client list,” VCCP founder and group CEO Adrian Coleman said in a statement. “We are thrilled to be working with them and have big ambitions to develop some brave, standout work globally.”

Cadbury’s creative account was formerly handled by Publicis agencies Fallon and Saatchi & Saatchi. Fallon London’s work for the brand included the famous 2007 spot starring a drumming gorilla which was recently parodied by McCann Manchester for Aldi. More recently, Fallon attempted to bring back the brand’s Milk Tray Man character after over a dozen years.

The account win follows VCCP forming an international creative partnership with San Francisco’s MUH-TAY-ZIK | HOF-FER last May in a deal designed to offer “an alternative from typical holding companies.” VCCP also launched its first campaign for Canon last month after winning integrated creative duties and beginning to work with the client in January.

AB-InBev Drops FCB, Launches a Creative Review for Its Lime-A-Rita Line

The Cannes Lions is almost over for yet another year, and you’ve probably been following the action. (What do you mean, you haven’t been following the action??)

Back in the real world, we do have some news today: AB-InBev has split with FCB and launched a creative review for its Lime-A-Rita brand.

This afternoon, Adweek broke the news that the company has issued an RFP. From a spokesperson:

“We are proud of the work that was created from our collaboration with FCB Chicago and Lime-A-Rita, which has produced a number of memorable ads since 2015. As the brand evolves, we continually look to refresh our perspective and evaluate our agency structure.”

FCB’s Chicago office had been working on the account since at least 2015, and last February helped the parent company launch the not-beer line’s biggest campaign ever with a little help from the 15-year-old Nelly jam “Hot in Herre.”

A second promo wave arrived in March, which brought a new array of flavors and the multi-spot “Margarita Moment” campaign. This effort was notable for catering more directly to women in their ’20s (who make up 65 percent of the brand’s consumer base) and involving “female-led marketing and creative teams” on both the agency and client sides. The ads were directed by Tricia Brock of Hey Wonderful, who has also helmed episodes of Girls and The Big Bang Theory, among other shows.

AB-InBev did not elaborate on the reasons for the review, but it’s worth noting that the brand provided a rare sales bounce for the beverage giant back in 2014 as its beers lost market share. Those sales dropped off in late 2015, and the new marketing efforts do not appear to have helped the brand recover.

It’s not clear at this time which agencies have been invited to the pitch. FCB representatives have not responded to requests for comment.

According to Kantar Media, AB-InBev spent around $15 million promotion Lime-A-Rita last year but shelled out less than half a million in the first quarter of 2017.

Coca-Cola Begins Organizational Shift with Hundreds of Layoffs

Back in April, Coca-Cola announced it would cut some 1,200 jobs as part of an organizational redesign aimed at cutting costs.

Today sources reached out to us claiming that the company has already started implementing such changes, beginning with hundreds of layoffs across offices. We reached out to Coca-Cola for a response and a representative referred us to the below statement, which the company originally made in April.

In February, we shared with our people that we are in the process of designing a new operating model to support our growth strategy as we transform our business into a true total beverage company. In late April, we shared that our work to implement a new lean corporate center will result in approximately 1,200 job reductions beginning in the second half of 2017 and carrying into 2018. These changes, while difficult, will help us create a faster, leaner and more agile corporate organization that is focused on doing fewer things better with a clear focus on serving our operating units around the world while also maintaining appropriate corporate governance for the company.

As has long been our culture at Coca-Cola, we do not take decisions about job impacts lightly and will treat our people with dignity, fairness and respect throughout this process. We are committed to moving quickly to build an organization that is agile and positioned for faster growth.

It’s unclear which departments were targeted or how this may impact the company’s marketing going forward. But the April announcement included confirmation that Coke sales dropped 11 percent from the previous year, with profits down 20 percent.

So it’s safe to say the company will move to cut operating expenses across the board, including its marketing efforts.

According to a report in yesterday’s Atlanta Journal-Constitution, Coca-Cola laid off more than 420 people in its Atlanta headquarters and two other area offices. That total included “59 people with corporate positions.”

Former COO James Quincey took over the chief executive officer role in May after moving to shake up the senior leadership team and name the company’s first chief growth officer.

Frontier Communications Launches an Agency Review for Its ~$50 Million Ad Business

Telecom provider Frontier Communications has issued an RFP seeking a creative agency of record. New York search consultancy Roth Ryan Hayes will manage the review.

Catapult Marketing of Stamford, Connecticut is incumbent on the business, and we’re told they will defend. We do not currently have any additional information regarding the agencies invited to participate in the review.

According to the press release, “The review will seek to identify a best-in-class agency to deliver innovative brand strategies, breakthrough creative and digital capabilities, and performance marketing expertise for Frontier.”

Catapult and Frontier have been working together since 2012, and the agency created the brand mascot Frank the Buffalo. Here’s a brief case study regarding the relationship that the agency released last year.

…and here’s a recent broadcast spot.

The company specializes in providing broadband, telephone and other communications services to primarily rural areas in 29 states.

Frontier, which recently moved to expand its service area by acquiring assets owned by other telecom businesses like Verizon, announced earlier this week that John Maduri, a three-decade veteran of the industry, would become its new EVP of consumer sales, marketing and product.

Kantar Media lists Frontier’s paid media spend at $37.1 million and $25.6 million for 2015 and 2016, respectively.

A spokesperson for the consultancy, however, estimates the client’s annual marketing budget to be greater than $50 million moving forward.

Mcgarrybowen Wins American Express Global Brand Work Away from Ogilvy Without a Review

Today American Express confirmed that it has moved its global brand work from Ogilvy to Mcgarrybowen without a review.

A client spokesperson provided the following statement to Adweek:

“Mcgarrybowen will be working with us on developing a new global brand platform that will bring together all of our brand and product-related work under one umbrella. The new platform will capture the innovative work that is underway throughout our company and reflect the diversity of our business here in the U.S. and internationally.”

More specifically, Mcgarrybowen will handle the global creative brand campaigns as well as U.S. executions while Ogilvy will continue working on international executions and keep “some of their current [unspecified] U.S. work.”

The size of these respective assignments in terms of revenue is not clear, but American Express spent more than $500 million on paid media in the U.S. last year, according to Kantar Media.

Both Ogilvy and Mcgarrybowen deferred to the client, which didn’t elaborate on the reasons for the shift or the work to come. But American Express made some big changes to its marketing team last year as longtime CMO John Hayes departed after helping to launch its new global marketing operations group. The company does not currently list a CMO, but VP of marketing operations Mike McCormack currently leads the aforementioned group with Elizabeth Rutledge serving as EVP, global advertising and media and reporting directly to CEO Kenneth I. Chenault.

According to one party who worked with Mcgarrybowen in the past, agency leadership has been known for developing relationships with C-level client leaders before effectively “swooping in” and winning accounts away from competitors—in many cases without a review.

Gordon Bowen, who co-founded the agency and currently serves as chairman, also worked with American Express while he was a creative leader at Ogilvy. The agency’s site credits him with developing both the “Membership has its privileges” campaign and “Chase Freedom,” which it describes as “the most successful credit card launch in history.”

Despite the fact that Ogilvy remains on the AmEx roster, this shift marks a significant loss for the agency, which has been working with the credit card company since 1962.

This isn’t the first time the client has moved work away from Ogilvy: back in 1991, TBWA won what The New York Times described as “the most prestigious part of that account” promoting the green charge card.

That Stuart Elliott article provides a couple of serious blasts from the past. First, TBWA was then called “Chiat/Day/Mojo Inc.” And then there are these two paragraphs:

Ogilvy New York’s top executives had labored mightily to keep their hold on the green card account, for which they created stylish print advertisements featuring striking photographs of celebrities like Ella Fitzgerald, Tom Seaver, Hume Cronyn and Jessica Tandy.

Ogilvy New York was so concerned that even after Gordon Bowen, its executive creative director, decided to depart for McCann-Erickson New York, he remained through the summer to complete work on the account.

We hear this week’s news came as a surprise to everyone but American Express—and, of course, Mcgarrybowen. The agency has already begun production on its first brand work, which will debut early next year.

We Hear: AKQA D.C. Wins Review for PlayStation’s Digital Creative Business

Sony PlayStation has named the D.C. office of AKQA as its newest digital agency, following a review.

An agency spokesperson declined to comment on the account today, but the source who confirmed the news said the assignment encompasses web design, game trailers, digital video, UX and more.

The review is rumored to have included Deloitte’s Heat and three other agencies, in addition to AKQA. The client, which is notoriously press-shy, purportedly structured the review process so that competitors wouldn’t know who they were pitching against. AKQA’s D.C. office already counted gaming companies Bethesda Softworks and Ubisoft among its client roster, and that category-relevant experience most likely factored into the win.

BBH New York has handled creative duties for PlayStation since being named lead creative agency February of 2013, following a review which included finalists Anomaly, 180LA and then-incumbent Deutsch.

It’s unclear whether the new assignment will have any impact on the scope of BBH New York’s work. The gaming giant has also worked with Johannes Leonardo and VB&P to promote the PlayStation Vue.

BBDO, CP+B, TBWA, R/GA and Deep Focus Are All Pitching for Lay’s

PepsiCo’s Frito-Lay’s has launched a creative review for its flagship Lay’s brand, Adweek reports.

BBDO, CP+B, TBWAChiatDay New York, R/GA and Deep Focus are all participating in the review, while Droga5 purportedly declined an RFP invitation because they are 2 cool 4 chips.

According to Kantar Media, Frito-Lay’s spent $80 million on measured media promoting the Lay’s brand domestically last year.

Lay’s parted ways with former AOR EnergyBBDO back in May of 2015, with a brand spokesperson telling the Chicago Business Journal at the time, “Our approach across our entire portfolio of brands is to lean into different combinations of agency partners based on the needs and priorities of our brands at the time. Energy BBDO is not currently engaged for the Lay’s brand.”

Energy BBDO’s work for Lay’s included a 2014 spot featuring the Mr. and Mrs. Potato Head characters. More recently, Lay’s has relied on its annual “Do Us a Flavor” competition in which winning user-submitted flavor ideas are produced for a limited time, which ran for the fourth time this year.

Both Frito-Lay and PepsiCo have yet to comment on the review, as have the agencies mentioned. But multiple sources confirmed that all five shops are involved.

The big question: what will the winner do, and how could it possibly be better than “Do Yourself a Flavor?”