Omnicom Brass - Boy do they get paid at the ad agency
April 17, 2010
Jim Edwards at B|Net outlined just how the Omnicom Brass handled the recession. While tossing thousands on the street, they had some of the following:
The total perquisites and other personal benefits include: for Mr. Wren, personal use of aircraft hours ($105,364), an auto allowance and a medical allowance; for Mr. Weisenburger, personal use of aircraft hours ($77,125), an auto allowance and a health club membership; for Mr. Harrison, employer premium payments for health and disability insurance ($66,627); for Mr. Robertson, an auto allowance ($25,447), club membership, personal financial planning services and entertainment expenses; and for Mr. Simm, a car lease ($22,302), an auto allowance and parking.
Such complete garbage, the advertising agency canned roughly 5000 people over the past 360 days, people were begging on the street for a public option for health insurance when Mr. Weisenburger enjoyed a $66,627 health insurance policy (Wonder what his feelings are about the public option).
Meanwhile the vast majority of the 5000 Omnicom employees that were fired over the past year are still looking for a job.
Enjoy the new reality.
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Marketwatch : WPP, Interpublic, Publicis, Omnicom to fight Google
October 19, 2009
Evidently Ad Agency 2,3,4,5 are trying to gang up on the largest ad agency on earth, IE: Google. They are all backing the Yahoo/Microsoft tie up. Nevermind that both Yahoo and Microsoft combined don’t even pass the teens in terms of percentage of market share. Regardless, lack of innovation x6 (WPP, Interpublic, Publicis, Omnicom, Yahoo and Microsoft) isn’t going to make an innovative alliance. Their clients will demand that they are on Google, and regardless of what they are planning they are going to have to bend to their clients will, and generally speaking that means no one is going to want to allocate the majority of their budget to a search engine that only shows up because people don’t know how to change their default search engine in IE.
SAN FRANCISCO (MarketWatch) - A U.S. advertising agency group that includes WPP Plc, Interpublic Group, Publicis Groupe and Omnicom Group Inc. said Monday that it supports the planned Internet search and advertising tie-up between Microsoft Corp. and Yahoo Inc. Full Story on Marketwatch
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Omnicom : We save $116,000 for each person we fire
September 8, 2009
Jim Edwards at B|Net outlined a report that showed that Omnicom saves $116,000 a year for each person the ad agency fires.
And even after firing thousands of people, the revenue is falling faster than staff and operating costs. Meaning that the chances are layoffs will continue and even expand as the business continues to collapse in the current environment.
This is exactly how management views their creative department and the employees of the advertising agency. You cost them $116,000 a year, are you making more than $116,000 a year for them? Could they get someone in the door at $50,000 and do your job? Could they get someone in the door at $100,000 and do the job? Could they fire you and just offload parts of your job to a few people and just save the $116,000?
That is what it’s coming down to, and if you think otherwise you are seriously mistaken. You cost them money, and they are looking to cut costs meaning you are directly in the line of fire.
Amazing stuff, it’s never been this bad, and it’s expected to get somewhat worse before it becomes better. The current projections have unemployment reaching 10% to 12% according to the U-3 and nearly 25% according to the U-6. That’s the great depression level people. Even now a debate rages over the standard the government uses to measure unemployment.
Well at least most of us don’t live in Detroit, where the unemployment rate is now exceeding 30%
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Omnicom BBDO launches ANOTHER 9/11 Ad Campaign
September 8, 2009
These idiots don’t get it. Advertising Agency Omnicom (this time their BBDO arm) has launched another 9/11 themed campaign. Last time Omnicom launched a 9/11 campaign (yea that was last week) it ended in disaster.
Evidently this one is running from the Moscow Times , it’s an English paper based in Russia.
This is complete madness, this is the second 9/11 themed in a week from Ad Agency Omnicom. Hat tip to the Gothamist for catching this one.
It’s completely amazing that the same holding company can push out two horrific ads like this in the same number of weeks. There needs to be something done about this, please forward this post along.. retweet it… do something… because exploiting the 3000 Americans that died that day for a Advertising Agency campaign isn’t even remotely right.
We guess that Omnicom is in business to profit from terror attacks.
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GM notifies ad agencies they’re out of business
May 15, 2009
GM has notified GM notifies 1,100 dealers they’re out of business. This will run havoc throughout the advertising agency world as many smaller and mid sized agencies depend on the dealerships for direct mailings, billboards, flyers… etc etc.. … just overall advertising for each local market.
These dealers are now facing a complete shut down, and because of this many will most likely fail if they cannot substitute it with a Honda, Toyota, Kia or whatever. In other words, the chances are not just the dealers will go under, but a whole bunch of advertising agencies as well.
The auto industry spends massive amounts of money on Advertising, for example, in the Chrysler bankruptcy document they listed BBDO / Omnicom Group as their second largest creditor. This is high and above any other firms that helped with R&D, car parts, etc etc..
Spectacular fireworks people, this is going to get ugly.
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HP fires Publicis moves $1B advertising account to Omnicom
February 23, 2009
Hewlett-Packard Co. moved its advertising contract to Omnicom Media Group, a deal worth $1 billion — in essence firing Publicis as their Advertising Agency of Record.
The Advertising Account, one of the most sizable in the industry is wrecking havoc among staffers at Publicis firms “We’re gonna get fired” was the tip we received (trust us we got hit up at least 20 times with people in the industry).
A wealth transfer of this size most likely lead to layoffs. However from what we have heard… Omnicom isn’t expecting to hire as many people as Publicis is expected to fire.
Story is developing… what we do know however is that HP isn’t demanding an Enfatico type relationship…
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Omnicom thrown on creditwatch list
February 13, 2009
Omnicom has been forced to resort to a revolving credit line to pay off $727.0 million in convertible debt coming due in July. “They’d prefer not to,” said Friedman, but frozen credit markets mean companies must use whatever financing they have available. Forbes is reporting, it’s pretty much suspected this is the reason Omnicom has been thrown on the creditwatch list as reported by Media Bistro… literally the company is virtually facing a biofreeze of its access to credit.
This is the scary part of the Forbes article:
Omnicom executives predicted that car sales have fallen to levels so low they have to rebound sometime soon, said Friedman. If they do bounce back, Omnicom will benefit from its relationships with automakers.
There’s too many instances of the word “IF” in that report. Meaning their future is tied to the car industry so IF the bailout works, IF car sales rebound asap and IF consumers start spending on autos, and IF the automakers decide to spend on Advertising rather than payroll and R&D for electric cars.
Don’t think this problem is limited to just Omnicom. HAVAS, Publicis, WPP group plc and virtually every other advertising agency holding company needs to brace for impact, it’s going to get ugly… there is NO way the recent ad agency layoffs are enough in light of the massive reduction in client spending. The chances are they are going to have to lay off more people… much more people.
No shoes, no shirt, no credit?
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Largest Ad Agency on Earth Google posts profit
January 22, 2009
The World’s Largest Ad Agency, Google has preformed better than analysts anticipated. the AP is reporting. Google made $382 million, or $1.21 per share, in the three months ending in December. We will continue to post the financial and comparisons of their advertising agency peers as compared to them during the recession. If you like the term “largest ad agency on earth” or not… the fact is they are.
Over 2009 and beyond, we will continue to match their performance vs their competitors such as WPP group plc, Publicis, Omnicom and others.
The New Holding Company HQ in Ireland at current growth rates
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Omnicom to fire 3,500 people
December 17, 2008
It literally hit the fan. Omnicom is to fire 3,500 people according to Adage .. and it’s gonna get worse. All the major holding companies are in a downward spiral that will entail economic hardship for thousands of individuals. Their clients are flocking away from them and decreasing spending at record levels… great depression levels.
Chrysler Agency BBDO Believed to Be Most Vulnerable and for good reason this news is on the heels of Chrysler announcing a blanket idling of all their plants what is also breaking at the same time..
In this case things are degrading at such a fantastic pace we are not sure if the companies will go out of business prior to notifying their advertising agencies that they are out of business.
Ad Age is also reporting that Chrysler is believed to owe the holding company some $80 million.
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BBDO New York Named Brand Agency of Record for Starbucks
November 24, 2008
NEW YORK, Nov 24, 2008 / — BBDO New York has been named agency of record for the Starbucks brand. BBDO succeeds Wieden & Kennedy. The decision was made following a competitive review.
“Already, we have seen an indication of the kind of fresh thinking, new energy and strong sense of partnership BBDO brings to the brand,” said Terry Davenport, SVP and Chief Marketing Officer at Starbucks. “The recent Election Day coffee offer was BBDO’s idea and it helped generate enormous attention for the brand, drive traffic to our stores, and remind everyone that the connection between Starbucks and its customers is bigger than coffee.”
Added David Lubars, Chairman and Chief Creative Officer, BBDO North America, “Starbucks is a soulful brand with great people. Our job is to make sure consumer perception matches the brand reality. Starbucks has amazing, extraordinary stories to tell. We can’t wait to help them achieve something historical.”
BBDO’s first brand work is expected to debut next year.
BBDO’s mantra is “The Work. The Work. The Work.” Sixteen thousand people in 287 offices in 79 countries work job by job, client by client, to create and deliver the world’s most compelling commercial content. In 2008, BBDO was named winner of The Gunn Report as the world’s most awarded agency network for an unprecedented third year in a row — and by the widest margin in the history of the report. It was also named “Network of the Year” at Cannes for the second consecutive year. To top it off, BBDO was ranked #1 in The Won Report as the most awarded global agency network across every marketing communications discipline. BBDO Worldwide is part of Omnicom Group, Inc.
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