Hyundai Push Not for Classical-Music Purists

Carmaker 'Remixes' Beethoven, Other Composers to Promote Sales Event

By Jean Halliday

Published: July 19, 2007

DETROIT (AdAge.com) -- Beethoven would be rolling over in his grave if he could hear his Symphony No. 5 "remixed" for Hyundai Motor America's latest sale.

The 'Duh' effort is based on 'the idea that it's a no-brainer to pick a Hyundai,' says Jeff Goodby.

That's because Hyundai's version of the song, along with seven other classics, contains a single lyric: "Duh."

TV, newspapers, bumper stickers
Hyundai's "Big Duh Sales Event" breaks today on national and spot broadcast TV, newspapers, bumper stickers and online in work from Goodby, Silverstein & Partners, San Francisco. "It's based on the idea that it's a no-brainer to pick a Hyundai," said Jeff Goodby, co-chairman and chief creative office of the Omnicom Group shop.

Chris Perry, senior national manager-marketing communications at the automaker, said the blitz is "friendly, approachable and pokes fun at traditional car-sales-event advertising."

The remixed songs can be seen on TheBigDuhSale.com. The site promises prospects who test-drive a Hyundai will get a free CD of all eight remixed "Duh" songs. The automaker said consumers will also be able to create their own "Duh" songs online.

The sales event runs through Sept. 4 and offers "bonus cash" on existing rebates, Hyundai said. Sonata buyers will get an extra $500 on top of a $2,000 cash rebate. The sale marks the first rebates on the new seven-passenger Veracruz, which was launched earlier this year at a base suggested retail price of $26,995.

Prices climbing
A Hyundai dealer, who asked not to be named, lamented that the brand's sticker prices have been creeping up in recent years, making it more difficult to go up against rival Toyota.

Data from J.D. Power's PIN unit shows Hyundai's average sticker prices are closing the gap with Toyota. Hyundai's average asking price (including customer rebates) rose from $16,939 per vehicle in 2005 to $19,505 this year through July 15. In the same period, the gap between Hyundai and Toyota's stickers shrunk from $7,185 to $4,603, PIN found.

Hyundai said it had sold 236,595 vehicles in the U.S. through June, flat compared with the first half of 2006. The automaker spent $104 million in U.S. measured media in the first quarter and $533 million last year, according to TNS Media Intelligence.

Link to AdAge Article

OMG Forms Global Digital Unit

by Gavin O'Malley, Thursday, Jul 19, 2007 6:00 AM ET

OMNICOM MEDIA GROUP SAID IT is rolling its digital expertise into one unit, OMG Digital, which will oversee $2 billion in worldwide media spending. Sean Finnegan has been appointed CEO of the new group, reporting to Daryl Simm, chairman and CEO of Omnicom Media Group. Finnegan previously led digital media at OMD USA. OMG stressed, however, that the current digital units at both of its media/planning agencies--OMD Digital and PHDiq--will continue to provide digital media services to their respective clients. Challenging the agency world's self-seeking image, Finnegan said that OMG Digital is all about sharing and cooperation. "OMG Digital opens the door for clients to tap into the trends and insights gleaned across Omnicom's entire network," he explained. OMG Digital plans to coordinate digital media buying scale globally to give Omnicom clients greater negotiating leverage. Also, Omnicom Media Group has already begun developing a proprietary media intelligence platform to track consumers' interaction with digital advertising in order to provide better behavioral and targeting insights. The new OMG Digital structure will extend beyond North America, with managing directors in Asia Pacific, EMEA and Latin America. The unit also includes NEXT, Omnicom Media Group's media futures practice. The restructuring raises the profile of Jeff Minsky, director of NEXT, who will now be expected to extend his digital expertise and guidance to clients on a global level. Link to MediaPost Article

Overture Films Partners With PHD

Nascent Movie Company May Spend Up to $100 Million Next Year

By Brooke Capps

Published: July 18, 2007

NEW YORK (AdAge.com) -- Overture Films has made Omnicom Group's PHD its first media communications partner, according to the studio. The 6-month-old motion-picture company is expected to spend $80 million to $100 million in media in the coming year, according to people familiar with the account.

Arm of Liberty Media
Overture Films, a division of Liberty Media Corp., plans to develop, produce, acquire and distribute movies worldwide. In its first half-year of operation, it has signed on to distribute upcoming films such as "Mad Money," starring Diane Keaton, Katie Holmes and Queen Latifah; "Traitor," with Don Cheadle; and "Righteous Kill" starring Robert DeNiro and Al Pacino. The studio will start shooting "Last Chance Harvey," starring Dustin Hoffman and Emma Thompson, in London this fall.

"We strive to be on the cutting edge of developing new methods to reach movie audiences," Peter Adee, president-world theatrical marketing, distribution and new media, Overture Films, said in a statement.

"Our goal is to offer our filmmakers a fresh approach to marketing and media. In PHD, we have found an innovative partner with a strong strategic sense," said Elana Sulzer, senior VP-media at Overture.

PHD is already well known for its work with other entertainment companies such as HBO and Discovery Networks.

Link to AdAge Article

AT&T Makes BBDO Its Lead Agency

GSD&M Retains Ad Duties, but Now Reports to Omnicom Sibling

By Alice Z. Cuneo

Published: July 09, 2007

SAN FRANCISCO (Adage.com) -- AT&T, the nation's second-largest advertiser, has shifted lead agency responsibilities for its estimated $3.345 billion account to Omnicom Group's BBDO, New York, the agency for what was Cingular Wireless, now AT&T's mobility unit, executives familiar with the situation said.

GSD&M had been the lead agency for AT&T, while sibling BBDO was the agency for Cingular, which is now the telecom's mobility unit.

GSD&M, Rogers Townsend
GSD&M, Austin, Texas, which had been lead consumer and branding agency for AT&T and Southwestern Bell before it, remains on the AT&T roster with the same duties for consumer-products advertising. However, while both Omnicom shops reported equally to AT&T marketing executives in the past, GSD&M will now report to BBDO, the executives said. Agencies such as Rodgers Townsend, St. Louis, continue with their assignments for other pieces of the AT&T business.

An AT&T spokeswoman skirted questions about the change in status in an e-mail statement. "AT&T continues to work with its current roster of key advertising agencies who collaborate on planning and execution for AT&T. That has not changed." She added: "All of AT&T's key advertising agencies work together in a collaborative and integrated fashion and will continue on that path.

"Beyond that, our policy is not to discuss specifics about our business-to-business relationships. All key agencies will remain on our roster."

Directive from new CEO
When asked for comment, the Omnicom siblings referred calls to AT&T. Executives said AT&T took the action in accordance with recent directives from new AT&T CEO Randall Stephenson, who in his first major keynote address at NXTcomm in Chicago last month, clearly centered the company around wireless and mobility to bring in, retain and sell new services to customers. The wireless decision, he said, is the most important network decision a household makes.

AT&T has undergone a series of branding efforts starting in December 2005, when it put $500 million behind a GSD&M campaign tagged "Your world. Delivered," which announced the elimination of the SBC brand and the inauguration of the new AT&T. More recently, when AT&T purchased BellSouth, GSD&M, along with Rodgers Townsend, was responsible for introducing the AT&T brand in BellSouth markets, and renaming Cingular Wireless as AT&T.

The marketer's overall spending outlay, $3.345 billion, is based on Advertising Age estimates that include measured and unmeasured spending on advertising for AT&T, BellSouth and Cingular Wireless. AT&T and Cingular spending along was $2.3 billion, according to Ad Age data.

As part of its merger with BellSouth, AT&T told Wall Street 20% of its savings from its acquisition of BellSouth and its total ownership of Cingular Wireless would come from advertising and marketing savings.

Link to AdAge Article