Last week Starbucks got dumped by their main agency of record- Wieden + Kennedy. Today, some details started to come through to unveil reasons behind the split. It seems that Starbucks was such a pain in the ass, WK just said no more.
At first glance, you might think how could you drop a brand like Starbucks? Well, if you look into what is going on recently, it kind of makes sense. Starbucks doesn’t have a large advertising budget, let alone for what they were using WK for ( Starbucks spent 37.6 million in media spending in 2007). Couple that with the struggles Starbucks has been facing, including laying off hundreds of employees and closing some 600 stores. And the topper, as it seems, was the increasing frustration of working with CEO Howard Schultz and his apparent unappreciation for advertising.
The article from Ad Age best sums this whole situation up:
Executives with knowledge of the situation said Starbucks was simply a very frustrating client for Wieden, an agency that other marketers have described as unusually honest in its communication with clients. Other agencies that have worked with Starbucks have felt frustration with the marketer too. Rich Silverstein, co-founder of Omnicom Group’s Goodby, Silverstein & Partners, which did two stints representing Starbucks, said much of the fault lies with the mercurial Mr. Schultz. “He does not appreciate advertising,” he said. “Any agency that comes in has one foot out the door already.”
Will be very intersting to see where Starbuck’s marketing goes from here, and who steps up to become their next agency of record.
Turns out, I have internet access here in Arkansas which I really didn’t expect. I’m in a somewhat remote area of the Ozarks on Bull Shoals Lake. Its been freaking hot so far- mid 90’s yesterday and today, so I’m making use of my time inside enjoying the AC.
Going along with the vacationing/leisurely theme, Ad Age today had a delightful article about agencies with bars at their offices. Personally, I think its a pretty sweet deal if you happen to work there. In creative settings, I could imagine a few after-work drinks actually stimulating some great dialouge between co-workers, and who knows maybe the next great campaign could come from it. If not, who cares- you are creating value for your staffers and allowing them to connect outside of the work environment. I wouldn’t choose an agency specifically if they had a bar or not, but it would probably tip the scales on similarly matched shops.
On a mission to kill off the dinosaurs, Strawberry Frog prides itself on being more creative and flexible than most in advertising. A post on their blog Viva La Revolucion highlights recent social media efforts for Toyota’s Scion brand. The post does a nice job of spelling out simple strategies when using social media and offers concrete examples Strawberry Frog implemented for Scion. The post begins pointing out reasons social media fails;
To date, social-media marketing is usually a failed concept because brands engage in practices that are alienating to users, and do not provide useful services to them. Social-media marketing also tends to fall between the cracks because it is so new and it is not funded properly.
Several examples follow. Here’s my favorite;
Create social-media content; don’t advertise on it. If you’re not providing content, ensure that you are providing a useful service. Social media helps people manage their social lives. It enables them to do something they are already interested in. It gives them the tools to allow for this. Social media provides a service—information, connection points, etc.
Yesterday, Publicis announced VivaKi, a new unit that will integrate the digital and media agencies within the holding company. Essentially, they are creating a more streamlined, efficient operation that will benefit employee collaboration and client relationships. Another key benefit of lumping the agencies is an improved media negotiating position. Read the Ad Age article that dives a little deeper into the venture.
The logo is totally great. It marries the traditional Publicis lion head logo with bright colors that are today’s calling card for life, energy and ‘We’re cool!’.
I don’t really follow the Cannes awards, but it sure looks to be a damn good time. Check out some of the best in advertising let loose after undoubtedly a busy year. Photos by Sam Faulkner of Advertising Age.
What sets an ad agency apart from its competitors? The creative? Sure. The talent? Maybe. For me, it goes beyond advertising all together. Check out what Wieden Kennedy did for their founders day at their Portland office.
Its no wonder they have such stellar clients including Starbucks, Coca Cola and Target.