Deutsch/LA won a faceoff with Goodby, Silverstein & Partners, San Francisco, for the Volkswagen of America creative account. U.S. ad spending on the account, not including online, totaled $200 million in 2008, per Nielsen.
Overall, marketers have pared back media spending during the first eight months of 2009 about 12% over the same period during 2008, per Nielsen Co. So which marketers are spending into the downturn? Quickservice chains, looking to capitalize on cash-strapped consumers trading down from pricier dining options, are spending more across the board. The cable and satellite market also is trending up.
While a flurry of account review activity appears to signal a recovery in the ad sector, agencies are reporting that marketers are looking to save on fees. Last week, JWT exited the review for the $140 million UPS account, reportedly over concerns about cost-cutting. Agency consultant Dick Roth said, "Big corporations want more for less and are putting pressure on agencies to cut services or cut fees to win their business."
New research shows the impact of the economic downturn on the luxury market. Some 77% of respondents with a yearly average income of $415,000 rank luxury as less of a priority, and 58% are earmarking more of their budgets for essentials, according to Luxury Institute's State of the Luxury Industry 2009 Survey. Meanwhile, a recent tracking study from the American Affluence Research Center found 9% of respondents were not planning to buy any holiday gifts, and respondents with holiday shopping lists planned to cut their gift budgets by 5% on average.
With space in traditional media outlets shrinking -- along with the rolls of gainfully employed reporters and editors -- public relations professions are increasingly looking past so-called earned media to pitch directly to consumers, according to this article. Marketers are looking to online video -- especially dedicated YouTube channels -- to bypass media outlets and get their messages out.
PepsiCo division Frito-Lay is consolidating its creative accounts, with Tostitos going to Goodby, Silverstein & Partners and Lays going to Juniper Park, Toronto. Both accounts had been handled by Omnicom Group agency Element 79, Chicago.