Category: Advertising

Andrew Hill

“Secretive hedge fund manager” is one of those adjectival pairings to rank with “flamboyant impresario” and “introverted computer programmer” as a journalistic cliché. So when I read the headline “Hedge funds lobby SEC over secrecy rule” in Monday’s FT, I naturally assumed the hedgies wanted the US regulator to erect even higher walls around them. Not so.

Colleague Sam Jones points out that at least part of the myth of secretive hedge funds is constructed on the regulatory legacy of rule 502(c) of Regulation D. This “arcane piece of Depression-era legislation… defines how the modern hedge fund industry operates”, outlawing general advertising and solicitation by funds but also making them paranoid about talking to any “unqualified outsiders”. The Managed Funds Association, the funds’ US lobby group, has written to the Securities and Exchange Commission seeking its elimination.

Andrew Hill

When advertisers put pressure on news organisations, it’s often a sign press freedom is threatened. From South Africa to Hong Kong, public opinion puts companies or governments that use their commercial clout to protest against editorial policy on the side of the bad guys.

It’s symptomatic of the sorry state of UK news media that in the widening scandal over phone-hacking, the reverse is true.

John Gapper

I’m afraid I don’t believe Alex Bogusky.

Mr Bogusky, arguably the biggest creative name in advertising, has just resigned from MDC Partners, the parent group of Crispin, Porter & Bogusky, the Miami-based agency, saying he has had it with the business.

His Twitter profile now reads:

I worked in advertising for 20+ years. That was fun. Still enjoy culture jamming.

I count his departure as akin to Tom Ford’s resignation from the Gucci Group in 2004 after it was taken over by Pinault-Printemps-Redoute – a case of a world-renowned creative executive departing from the company that he had come to personify.

John Gapper

Opinions vary on whether the new Nike advertisement featuring Tiger Woods is tasteless exploitation of his dead father, Earl Woods, or a masterstroke of counter-intuitive marketing.

Personally, I think the television ad, made by Nike’s long-time agency Wieden + Kennedy, it is a clever piece of emotional brand rebuilding.

The ad, which you can view above, has been produced to coincide with the Masters golf tournament and Woods’ carefully orchestrated return to professional golf following his public humiliation as a result of having affairs with women.

It should thus be taken alongside Woods’ penitent press conference earlier this week in which he said he had been in therapy and was trying to become a better person, and the highly critical comments of Billy Payne, chairman of the Augusta National club where the Masters is played.

John Gapper

pinn

My Thursday column in the FT is on the travails of newspapers.

John Gapper

Accenture has dropped Tiger Woods, along with the posters that I discussed earlier.

(Poster via Bozell)

John Gapper

My FT column this week is on the advertising industry:

Duck Phillips! Thou should’st be living at this hour.

Phillips was the alcoholic account executive in the television series Mad Men who lost out after failing to marginalise his advertising agency’s charismatic copywriters, led by Don Draper. The power of the creatives was ascendant in the 1960s and 1970s, the prime era of the 30-second television advertisement.

Four decades later, the face-off between the people in suits – this time in media planning agencies – and the creatives is back again. Now, it is fuelled by recession rather than growth, and the internet rather than television – and the Madison Avenue creatives have a tougher fight.

It is the kind of turf battle that fascinates insiders but is often tedious to those who are not involved. Yet it says something about the precarious state of the industry.

I witnessed it this week in San Francisco, at the annual gathering of modern-day Mad Men (and Women): the leadership conference of the American Association of Advertising Agencies, or 4As.

It is usually where veteran creatives such as Chuck Porter of Crispin, Porter + Bogusky (creators of the Burger King “subservient chicken” campaign) and Dan Wieden of Wieden + Kennedy (Nike’s “Just Do It”) can swagger. There was not much swaggering this week.

You can read the rest of the column here and comment below.

John Gapper

We are so used to the notion that the US lags behind the rest of the world in mobile phone use that it is a shock to be told it is no longer true.

I am in San Francisco at the leadership conference of the American Association of Advertising Agencies (now formally re-branded as the 4As) and have been hearing some interesting statistics.

They were in a presentation by Cyriac Roeding, an entrepreneur-in-residence at Kleiner Perkins Caulfield & Byers, the venture capital firm, who used to be head of mobile for CBS, the television network.

Mr Roeding pointed out not only that the number of mobile phones in the US has grown rapidly as a proportion of the population but that the Apple iPhone has shifted the balance of mobile software development to Silicon Valley.

There are now 270m mobile phone users in the US, out of a population of 304m, compared with 223m internet users.

More surprisingly, Americans now send 110bn text messages a month, which has grown exponentially from an average of 48bn per month in 2007, 19bn in 2006, 10bn in 2005 and 5bn in 2004. In other words, the number has been doubling each year.

As a result, Americans now send an average of 400 messages a month each, which is four times the number sent by British mobile phone users, who used to be far heavier texters.

“That is an unbelievable catch-up. There is a fundamental shift going on and I believe that this (Silicon Valley) is now the centre of mobile innovation in the world,” said Mr Roeding, who was born in Germany.

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This blog is mainly about business and strategy and how and why people who run companies take the decisions that they do.

Most of the time, John Gapper is in New York and Andrew Hill is in London. We occasionally debate business issues between us, but your comments and criticism are welcome.




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About John and Andrew

John Gapper is an associate editor and the chief business commentator of the FT. He has worked for the FT since 1987, covering labour relations, banking and the media. He is co-author, with Nicholas Denton, of All That Glitters, an account of the collapse of Barings in 1995.

Andrew Hill is an associate editor and the management editor of the FT. He is a former City editor, financial editor, comment and analysis editor, New York bureau chief, foreign news editor and correspondent in Brussels and Milan.

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