Ogilvy Inherits the Motorola Business from Droga5

Yesterday we posted on Droga5 resigning the Motorola account after 4 years, and today the client has confirmed that Ogilvy will now have the portion of the business previously handled by that agency.

From a Lenovo/Motorola spokesperson: “Lenovo works with a roster of agencies and does not declare an agency of record for various aspects of the business. We can confirm that Ogilvy is currently working on Motorola.”

As per our headline, Ogilvy has effectively inherited the phone portion of parent company Lenovo’s business from Droga5.

This is not particularly surprising given that Lenovo picked Ogilvy and its sister agencies (including OgilvyOne, OgilvyInteractive, Mindshare and Ogilvy PR) in a 2005 review to work on its “Think” line of products. The only major change in that relationship was a 2013 review which sent the North American media portion of the business to Digitas (it had been with Neo@Ogilvy).

Ogilvy has also worked on Motorola in the past, winning a 2000 global review that served as a consolidation of the company’s various business units. At the time, the deal was worth $175 million. (The digital portion of the account later went to FCBi in 2005.)

There would appear to be no such consolidation this time as the client tells us that “The Motorola work is being handled through our existing roster of agencies and there will be no review.”

Those agencies currently include DigitasLBi and VML in addition to Ogilvy.

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.

Droga5 Won Pizza Hut. What, You’re Surprised?

Back in March we reported that Deutsch had been forced to defend its Pizza Hut account after less than 18 months.

The client’s parent company Yum! Brands declined to respond to any of our emails beyond telling us that they had sent our inquiries to the chain’s PR team. Wow, they must be so busy!!

Anyway, a couple of our readers called this one as an OBVIOUS win for Droga5, and so it has come to pass. As the company’s statement for the AdAge exclusive puts it, “After earnest discussions with the team at Deutsch, we have mutually agreed to part ways due to creative differences.”

The client launched a review that was the subject of our earlier post and picked Droga over an unspecified number of other (unnamed) agencies. Quite a few people saw this one coming, especially after the chain plucked David Timm away from KFC to become its chief marketing officer.

For context, Droga will be Pizza Hut’s fifth agency of record in just over six years. Since BBDO agreed not to defend the business after 20 years in 2009, the Yum brand has already plowed through The Martin Agency (3+ years), mcgarrybowen (approximately 6 months) and Deutsch (about 18 months).

A Deutsch spokesperson declined to comment on the news, but we hear that the decision to part ways was truly mutual and that the agency helped the client through the review process after agreeing to end the relationship.

Splenda Appoints JWT Canada as Its North American Creative AOR

Artificial sweetener brand Splenda appointed JWT Canada as its creative agency of record for North America, AdAge reports. J3 remains the brand’s media agency, with Publicis Health Media and BSTRO handling digital and LaForce & Stevens responsible for PR.

The agency will lead the account out of its Toronto office, beginning June 1. BBDO had previously handled creative AOR duties for the brand in North America, after beating out JWT, Mother and DDB in a 2007 review to win what was then a $35 million accountHeartland Food Products Group purchased the Splenda brand from Johnson & Johnson last summer. 

Splenda global VP of marketing Kim Holdsworth said the brand had an “immediate connection” with the agency, which stood out via its willingness to “challenge brands to push themselves.”

The appointment marks the first time (to our knowledge) that a JWT office in North America has won a creative review since JWT’s chief communications officer Erin Johnson filed a discrimination lawsuit against former JWT global chairman and CEO Gustavo Martinez. JWT New York was awarded creative duties for Nestlé-owned ice cream brand Häagen-Dazs back in March before launching its first work for the brand last month, and Holdsworth told AdAge the brand had “no concerns” over the discrimination lawsuit. 

JWT Toronto CCO Ryan Spelliscy claimed the agency’s goal for the brand is to “put sugar out of business” before admitting that this is a bit of a tall order.

JWT’s first work for the brand, a new product launch, is expected some time in the fourth quarter. It will roll out in the U.S. before expanding to Canada.

Children’s Mercy Kansas City Names Doner as AOR

childrens mercyChildren’s Mercy Kansas City, a 354-bed not-for-profit pediatric hospital, appointed the Detroit offices of Doner as its agency of record following a review.

Doner will be tasked with overseeing integrated advertising, as well as working with media partner Assembly on media buying and planning duties, including digital and social. 

“Doner brought all the right qualities to the table – smarts, creativity and relevant experience – while going above and beyond to support our mission to transform children’s lives and redefine pediatric medicine,” said Children’s Mercy CMO Laurie Ellison. “Moreover, they presented us with progressive solutions and moving ideas that will help us resonate in the markets we serve.”

“Children’s Mercy has spent more than a century putting kids first, and they remain on the front lines of defining the future of pediatric care,” said Doner co-CEO and president David DeMuth. “We were incredibly inspired by their passion for health, wellness and creating an environment specially designed for children and their families, and we look forward to working together to continue to advance their mission.”

Doner’s first work for the client is expected to launch sometime later this year.

Chase Sends Its Social Business to VaynerMedia

JPMorgan Chase confirmed today that it has chosen VaynerMedia to handle its social media business.

A client spokesperson told us that the banking giant has added Vayner to its agency roster but declined to elaborate on whether a review preceded the win or whether Vayner is now officially its social media agency of record.

This news marks the latest shift for a company that now works with Droga5 on its creative campaigns.

Chase sent its digital work to Publicis‘ Razorfish and Rosetta in a 2013 review that saw four holding companies battle for the business. mcgarrybowen had been the client’s agency of record since 2004 and also handled much of its digital business even after the Publicis decision, but that changed last summer when the company sent most of its creative work to Droga5 without a review. At the time, mcgarrybowen retained the corporate portion of the account while Saatchi & Saatchi handled payments (read: credit cards) and campaigns related to Chase’s partnership with Apple Music.

Chase then ended its relationships with those two shops, most recently sending the payment work to Droga in February before that agency’s first full campaign debuted last month. None of these changes involved RFPs or formal reviews.

The current status of Publicis’ ROAR, which was formed to handle Chase digital work and later planned to partner with Saatchi on that part of the account, is unclear as is the size of the business won by Vayner.

It’s also worth noting that Chase–which generally prefers not to publicly discuss its agency partnerships–has never, to our knowledge, officially named a social media AOR. And while the client spokesperson did not clarify when the company had begun working with Vayner, this Cinco de Mayo Snapchat promo does feel a bit familiar.

When current CMO Kristin Lemkau took the reins in January 2014, she told American Banker that the company planned a “digital, Twitter push” to combat recent negative headlines. Last year, a NetBase study found Chase to be the “most-talked-about banking brand” on social.

VaynerMedia representatives have not yet responded to our requests for comment.

Diageo Brazil Names CP+B Brazil AOR For its Smirnoff, Johnnie Walker and Ypióca Brands

Diageo Brazil appointed São Paulo-based CP+B Brazil as agency of record in Brazil for its Smirnoff, Johnnie Walker and Ypióca brands–the latter of which is a popular Brazilian cachaça, or sugar cane spirit. The appointment comes following a review, with CP+B Brazil CCOs André Kassu and Marcos Medeiros and COO Vinicius Reis leading the new accounts. 

“This is a very special victory for us because it’s the result of a unique Diageo process that evaluated agencies for their history, teams, values and purposes. It’s especially exciting as we are a relatively new agency and it speaks to the value of our people and our commitment to the work,” said Reis, referencing the fact that the office has only been opened two years. “We’re honored to have the opportunity to continue to grow the legacy of these iconic brands.”

Kassu and Medeiros have led CP+B Brazil since the São Paulo office opened in February of 2014. Since opening, the agency has launched campaigns spanning 30 countries and doubled its number of employees multiple times (according to the press release).

This news concerns Diageo’s advertising within Brazil. No word on whether the win had anything to do with the fact that all involved parties happen to be Brazilian.

WPP Drops Out of McDonald’s Review Amid Claims of Unusual Financial Demands

WPP has declined to move forward in the McDonald’s creative review, leaving Omnicom (DDB) and Publicis (Leo Burnett) as the two remaining competitors for its business.

Unnamed sources told AdAge of the change today, though neither WPP nor McDonald’s would directly confirm the news.

We hear that the client’s unusual financial demands and calls for a rapid turnaround on the pitch may have played a role in WPP’s decision to bow out of the review.

Sources with knowledge of the matter say that the client told competing agencies to complete their respective pitches within 60 days in order to meet a June 30 deadline. McDonald’s has also allegedly developed a financial deal that led involved parties to “balk.”

Specifically, we hear that the agreement would prohibit the company’s agencies from turning a profit on base compensation as laid out in the resulting contract. This means the shops working on the business would effectively operate at a loss according to the details of the agreement, not counting other fees that may or may not be tied to performance. One source calls these particulars “ridiculous” while another states that only a legacy client would be able to make such demands.

The review is being run by Flock, a consultancy launched in 2013 by former Aegis EMEA media chief Simon Francis. It would appear that McDonald’s is re-examining all of its relationships with its various agencies in the interest reducing its overall marketing spend.

This latest development almost certainly means that the two agencies currently handling the McDonald’s creative will be competing against one another…just as they allegedly did last year when McDonald’s picked Leo Burnett over DDB to promote its All Day Breakfast offering. To our knowledge, the latter agency has not publicly released any McDonald’s work since then.

The review arrives just as the chain’s focus on All Day Breakfast offerings led to what Bloomberg described as “a scramble among its rivals to find new ways to combine eggs, potatoes and meat for a tasty breakfast.” Related campaigns helped the chain to bounce back from “its worst sales slump in more than a decade.”

WPP deferred to the client for comment. We have reached out to McDonald’s and both of its current agencies of record, and we will update this post if/when they respond.

Perhaps most importantly, CMO Deborah Wahl tells AdAge that “I’m Lovin’ It” will remain the company’s tagline.

Deutsch Wins Creative AOR Duties for Pandora

Streaming service Pandora has chosen Deutsch as its new creative agency of record after a review. The business will be run out of the network’s Los Angeles offices.

The account had been with fellow IPG shop twofifteenmccann, which did not pitch to retain the business.

The client’s VP of brand and product marketing Melissa Waters writes:

“Deutsch truly understands Pandora and has deep ties to the music industry, which will help propel us forward. As we execute our strategy and launch new products in the marketplace, we need a partner with strong digital-first thinking and a category disruption mindset. Deutsch clearly demonstrates a world-class understanding of the millennial mindset and how to articulate a compelling brand position in a competitive category.”

Pandora CMO Simon Fleming-Wood launched the review before stepping down earlier this month after spending more than four years as the company’s first-ever chief marketer. twofifteenmccann’s final work for the client, titled “The Next Song Matters,” launched last month to what we’re told was a “good response.”

Fleming-Wood’s departure followed several other executive-level changes. The company also announced that co-founder Tim Westergren would replace Brian McAndrews (formerly with Microsoft, Disney, etc.) as CEO, that Sara Clemens would be promoted from chief strategy officer to chief operating officer and that CFO Mike Herring would also assume the role of president.

Beyond McCann, the company has also worked with other agencies like Paul Charney’s Funworks, which made its recent “ish” campaign starring various comedy influencers.

In a statement, Deutsch chief digital officer Winston Binch called Pandora “a dream client,” writing, “the marketing team wants to take a digital-first approach and is incredibly ambitious and forward-thinking.”

Deutsch Los Angeles president Kim Getty added, “We’re thrilled to be their business partner and help take the brand to the next level, especially as Pandora launches new products that connect artists and listeners in a true and pure way.”

The client’s yearly spending numbers were not available at the time this post went live.

MasterCard Consolidates Digital, Social Media Work with McCann XBC

MasterCard has further solidified its relationship with McCann Worldgroup by consolidating the digital and social media portions of its marketing business with the dedicated IPG shop McCann XBC.

A client spokesperson writes, “MasterCard regularly reviews and assesses industry resources, as part of responsible vendor and agency management,” adding, “At this time, we can confirm that our digital and social marketing activities in the U.S. have been consolidated under the integrated McCann XBC team.”

This means that the client will no longer work with R/GA or VaynerMedia, which previously handled its digital and social work, respectively. The client did not address whether it held a formal review, and our sources did not mention one. McCann representatives deferred to the client.

The larger McCann organization launched XBC or “ExtraBoldCondensed” in 2012 to collaborate with other IPG agencies on the MasterCard business. At the time of the launch, the McCann organization brought former chief creative officer Joyce King Thomas back to serve as president, and she was later promoted to chairman in July 2014 as Devika Bulchandani succeeded her in that role. Bulchandani, who was formerly EVP of global strategy at McCann, also holds the title of managing director of its New York office.

Tipsters tell us that the agency/client relationship between Bulchandani, Joyce and MasterCard CMO Raja Rajamannar helped facilitate this round of consolidation. In recent months, Rajamannar has joined many other clients in predicting that his company’s investment in digital marketing would soon “significantly outpace” its traditional spend, making the win all the more significant for the McCann network.

R/GA first began working with MasterCard back in 2009, when it replaced MRM//McCann in the U.S. after a review. Vayner has handled social for several years, recently winning a Shorty Award for its work on the “Priceless Reunions” project.

MasterCard’s last major agency shift came in February 2014, when it moved its then-$250 million global media account from UM to Carat.

Spending totals for the digital and social portions of the business are not available at this time.

Macy’s Drops JWT for BBH, Figliulo & Partners

As we first reported nearly a month ago, JWT has lost its status as lead creative agency on Macy’s holiday campaigns.

The client, which was typically tight-lipped in responding to our queries in April, confirmed to AdAge that it had in fact issued an RFP late last year–meaning that its decision to seek other agencies predated the lawsuit filed against now-former CEO Gustavo Martinez.

The news does coincide with the departure of Martine Reardon, who is stepping down as the chain’s CMO after five years. Today she gave AdAge a statement:

“F&P and BBH have delivered some exciting and creative concepts that will further cement the magic of our fashion and entertainment brand with consumers.”

The client provided a bit more information to AdAge about how the holidays are its most important time of the year retail-wise, but you already knew that.

Reardon did not clarify which agency will create which portions of the account, but based on their past work it would seem that BBH will be handling the TV campaigns.

The news marks a pretty big win for Figliulo, which has been recovering from its 2014 Sprint loss in recent months by picking up Virgin Atlantic, Seaborn Cruise Line, AC Hotels and, most recently, Pete and Gerry’s Organics.

Cramer-Krasselt Wins Creative for Pacifico, Casa Noble Tequila

MillerCoors Opens Review for Blue Moon, Closes Leinenkugel’s

Here's What 22 Famous Logos Would Look Like If They Swapped Colors With Competitors

We already know what makes a successful logo—remember, simplicity is key. But what about its color scheme? 

A Brazilian graphic designer, Paula Rúpolo, recently experimented with 22 major brand logos, swapping the colors of a brand’s logo with that of its competitors. The results are mesmerizing and, surprisingly, viscerally unsettling. 

“There’s something unbelievably awkward and uncomfortable about seeing globally-familiar brand logos wearing someone else’s clothes,” as Rúpolo puts it.

For brands like Dunkin Donuts and Sprite, where the design is minimal and the brand relies on color to make its logo pop, the outcome is especially off-putting. For others, like Amazon, where there’s very little color to begin with, the swap totally overwhelms the design. 

If anything, the experiment shows how ingrained the colors of major brand logos are in our perception of their designs—and the importance of balancing the two elements. 

Check out the rest below. 

Via Design Taxi

P&G Consolidates Creative for Secret with W+K

BBDO New York Wins Insurance Giant Humana

Best Buy Selects Grey NY to Handle Two Upcoming Campaigns

J. Walter Thompson Wins Global Creative Duties for KPMG

Jack in the Box Splits with Secret Weapon After 20 Years

Chase Ends Its Relationship with mcgarrybowen