BBDO

Our original item about BBDO Detroit closing provoked a deluge of comments, debates and slagging as we expected. But one of the more intriguing comments to stick out from the maelstrom came from someone appropriately calling themselves "read this..." who touched on the severance issue affecting the agency's soon-to-be former employees. The commenter, who is either directly familiar with the issue or has been boning up on his/her employment law says:

"...Few current employees will be receiving ANY severance pay at the end of the contract. Hiding behind the rules of WARN, the Worker Adjustment and Retraining Notification Act, BBDO is cruelly denying any severance to employees with less than 13 years of full service. They can legally do this because they have notified employees of the intent to close the agency 11 weeks ahead of the closure, instead of the 8 week minimum required by the law. Had they waited three more weeks, a larger percentage of employees would've received a severance. This sleight of hand was promoted as 'a moral obligation to give our people as much notice as possible to plan for their futures.'

"Of course, BBDO is not legally precluded from offering additional severance to all the current employees who have worked above and beyond the call of duty during the last 12 months, including all who took an unpaid furlough. They've just chosen not to reward those people for their sacrifices and loyalty. That an agency the size of BBDO and a network the size of Omnicom can so callously leave their 'valued employees' without as much as a week's severance says more about the leadership than any quotes from the PR flacks ever could."

We checked the WARN fact sheet and here's what it says with respect to mass layoffs:

"A covered employer must give notice if there is to be a mass layoff which does not result from a plant closing, but which will result in an employment loss at the employment site during any 30-day period for 500 or more employees, or for 50-499 employees if they make up at least 33% of the employer's active workforce. Again, this does not count employees who have worked less than 6 months in the last 12 months or employees who work an average of less than 20 hours a week for that employer. These latter groups, however, are entitled to notice."

Anyhow, PR has responded with the following statement regarding severance:

"We are closing the BBDO Detroit office and have made the decision to give our people as much notice as we can so that they can plan for their futures. We are going to find jobs for as many of them as we can within BBDO Worldwide and Omnicom agencies. We are providing outplacement counseling, and we will be flexible so that they can attend interviews. By doing it in this way, no one will receive less money than if they had been laid off without this notice. In fact, 263 people will receive more money, and everyone will also receive two extra months of healthcare for themselves and their families that they would not otherwise have had."

More: "BBDO, Chrysler to Call it a Day in 2010?"

We've received word that after four years helping lead BBDO West, Peter Sherman is returning to the agency's New York office to take on a yet-to-be-announced senior management role. In his place, we're being told that Brent Smart, MD of the network's New Zealand operation Colenso BBDO, will take over BBDO West as EVP/MD. Both fellas will assume their new posts effective early January.

More: "BBDO, Chrysler to Call it a Day in 2010?"

Tillman is an English Bulldog. He is a proficient skateboarder, maybe the last thing you'd expect to see a roundish canine accomplish. He's now also the star of an Armstrong floors ad, courtesy of BBDO New York.

Interestingly, Tillman's Web address goes by "gottillman.com" — which, yes, BBDO does have. We contacted the dog's manager, and yes, it's Tillman. Not to be confused with Tyson, the more Google prominent skateboarding English Bulldog. Thank peaches that's settled.

Gawker via Silicon Alley Insider

After six years, Energy BBDO and Beam Global Spirits have parted ways just as the agency released its "Guys Never Change" TV effort (above) for the Jim Beam brand. While the Chicago Sun-Times says Energy BBDO beat out the likes of Droga5 and Goodby in a Beam review a year ago, the booze brand was "prone to testing the relationship between client and agency."

Apparently, the agency isn't likely to suffer much according to the trade, having not budgeted much or any income from Beam for 2010 so massive layoffs aren't expected.

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That's what AdAge is reporting (and we've been hearing for a while) as the automaker is apparently bidding farewell to the agency after their contract expires at the end of January. While Chrysler isn't commenting on the matter due to a "quiet period" until November 4th, BBDO is denying the report, stating instead that the agency has been "negotiating with Chrysler on a new contract" since it exited Chapter 11 proceedings and "is cutting back the broad scope of services BBDO provides, including dealer training, call centers, point-of-sale materials and database management."

When asked, a BBDO spokesperson wouldn't comment any further than what AdAge reported but tipsters on the 'Spy line have been sounding the death knell for the agency's Detroit office ever since Chrysler started looking elsewhere to dole out its Q4 projects. According to AdAge, though, losing Chrysler after 65 years would be more of a psychological blow to BBDO than a financial one since as of March, the automaker accounted for less than 1% of revenue of Omnicom as a whole. Guess we'll know more when Fiat/Chrysler CEO Sergio Marchionne breaks his silence in a few weeks.

More: "Chrysler Picks Richards Group for Dodge Ram Work"

BBDO issued a statement regarding the Pizza Hut review, stating that they've chosen not to participate.

"After careful consideration, BBDO has decided not to participate in the U.S.Pizza Hut review.

"For more than two decades, BBDO has partnered with Pizza Hut to help create some of the most famous and effective advertising in the category. From the record-setting successes of the Big New Yorker and Stuffed Crust Pizza, to last year's launch of Tuscani Pastas, we are proud of helping to make Pizza Hut what it is today — the leading brand in its category.

"We wish them the best of luck in their future efforts."

This makes three reviews for the pizza+ company — the last was in 2006 and previously 2001. With the launch of their Tuscani brand last year things seemed better, but the market disruption didn't help (anyone). We aren't sure how "The Hut" played in, but many of you were totally against the modified moniker. AdWeek has more on the participating agencies, which apparently include Saatchi & Saatchi, The Martin Agency, McCann Erickson, Merkley + Partners and Kirshenbaum Bond Senecal + Partners.

More: "Pizza to Remain Part of 'The Hut'"

Mars is reorganizing their business for 2010, which means the following:

— BBDO gets the $30 million (value according to AdAge) Snickers account back from TBWA.

— BBDO takes on Mars Bar/Milky Way.

— Nitro gets Dove from TBWA.

— TBWA gets Whiskas in Latin America from BBDO.

From the release:

The agency assignment shifts between Mars current roster of agencies will begin in 2010. BBDO will assume global accountability for the MARS(R) and SNICKERS(R) brands while maintaining their current responsibilities for M&M'S(R), CESAR(R) and SHEBA(R).

Similarly, TBWA will retain its current role on PEDIGREE(R) while assuming global responsibilities for WHISKAS(R). As the final piece of the 2010 realignment, global creative work for DOVE(R) will shift to SapientNitro.

Wrigley gum and confections brands are already aligned on a global basis across BBDO, DDB and TBWA.

This isn't the first bit of Mars related good news for BBDO. Earlier this year the BBDO West won Nutro and Greenies (both pet brands). BBDO NY was also named digital agency of the year record on M&Ms.

Overall this means good things for BBDO, obviously. But we'd really like to speak with TBWA about this. Then again, that would require someone from the agency to, you know, respond to our many emails. It's going to be a cold winter.

Note: A commenter notes that TBWA NY has to be pretty slim without Snickers. Your move, TBWA PR.

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Ronald Ng has been at BBDO/Proximity Malasia since 2004. Today, BBDO announced he'll join the ranks of the US crew as EVP ECD of the New York shop. There, Ng will work with Bill Bruce, NY office Chairman and CCO and David Lubars, Chairman CCO of BBDO North America, starting in December.

More: "BBDO Elevates Troy Ruhanen to Deputy Chairman North America"

Well, it's still not really worthwhile. Energy BBDO has the Illinois Lottery and they just sent over this new ad, Cashalanche, which is part of a new campaign reminding people that they shouldn't just wait until the lotto reaches $100 million to play.

"Most people don't play the lottery for less than $100 million. They think it's a waste. That somehow, lesser sums like $12 million, or even $27 million, aren't worth the price of a ticket. That's because they've never seen $12 million dollars before."

Nor will they, odds are.

Though it's no mystery that your chances of winning the lottery are near the "never going to happen" end of the spectrum, what few know is that the larger the take, the worse the odds get. Why? More people are playing! And that's presumably where Energy is coming from.

But the bottom line is that the lottery, as a product, is complete bullshit; and Americans buy it every day. It's one of those kinds of clients that James Othmer talks about in his book Adland; one that makes you consider your personal ethics and your paycheck all at once. Like cigarette companies or political candidates.

More: "Energy BBDO Picks up Noel Haan"

Right up front you should know AdAge's Rupal Parekh had a version of this story up first, but that isn't to say we didn't know about it. In brief, BBDO may have lost a Chrysler project. What we happen to know that our fine trade-colleagues don't (or wouldn't publish) is where the "project" is headed. The answer may surprise you, because an Omnicom agency is not likely to win the business. And well, BBDO in particular shouldn't mind that (despite the total kick in the balls they're suffering right now, publicly). Where to begin...

No matter how this story plays out it's important to remember a lesson from journalist/author Chuck Klosterman, who notes that the angle of a news story depends wholly on whoever calls the writer back first. That said, let us remind you (and ourselves) that internal politics, personal relationships and the drama of separation will draw this story in every direction. And the truth is likely to exist only in the boardroom where decisions about this project are made. What we've put together for you is a snapshot of what we've learned over the last year, and some basic thoughts about what it all means.

99 Problems, and an Agency
Chrysler has a number of problems: the company is dealing with bankruptcy, Cash for Clunkers is over, recent advertising has been less than memorable and the brand has all but lost touch. Harsh? The only car that's worth looking at is the Challenger, a rejuvenated muscle-car-era vehicle that does nothing for that whole environmental sustainability thing the kids are in to. And let's not forget Peter Arnell's golf cart idea was like, well on its way before the bankruptcy.

From what we've heard, BBDO's pitch for the Q4 creative-only project was more of the same. One source mentioned something about a certain animated character doing a dance, but that's less than a fair assessment. From what we hear they didn't come up with anything to write home about.

The Good Times
And that brings us to the reason that BBDO might be upset by their client's attitude. The agency has cut staff, weathered $58 million in late bills, required employees of the Detroit office take two-week unpaid vacations. And that's just the stuff they've done as a result of Chrysler's woes.

Let's not forget that Atmosphere was absorbed by Proximity, BBDO Atlanta cut staff by 10% due to reduced client needs, and Starbucks. Don't even get us started there.

Change is Usually for the Better
The message to take away is that anytime you have a major corporation vying for a big change, as Fiat undoubtedly is, the agency would have to part water to keep the account. Now is the time for Fiat to reposition the Chrysler brand (name an agency that doesn't need the work). Let's not forget the consumers, who are in need of communications solutions that make sense.

In addition to those factors, there's one point that BBDO could and should take action on: the automaker's disloyalty. BBDO would do well to fire Chrysler and cut their losses. Aside from saving face that would allow them to focus on winning an account that needs an agency like BBDO. Enter Volkswagen.

Clean Slate
VW and Crispin parted ways. All we know for sure is that CP+B doesn't do the review thing, which leaves one of the hottest foreign car brands for the taking. Though BBDO has VW in Brazil, their relationship with Chrysler bars them from taking the US business. That aside, it's fair to say that if BBDO somehow won the VW account their reputation would get a shot in the arm, temporarily. And it might be a good fit for VW, too.

Client Needs
Volkswagen wants to do a big end-of-the-year push, we've heard. They have a few new cars to introduce and need an agency with the reach to get their products in front of drivers. As the "Apple" of the car world (our interpretation), the brand doesn't really have to work hard to make sales, just say enough to prick the ears of cash-holding consumers. This year, BBDO won the Network of the Year award at Cannes for the third year in a row. And despite how anyone reading this may perceive the importance of that fact, it's a strong selling point for a client who wants that kind of service.

VW's advertising background leads us to believe any creative team would salivate at a chance to pitch. BBDO should get some teams together (note: and don't make it an internal competition) and go for it.

The Likely Outcome
Hopefully, BBDO is thinking about maintaining a little dignity, but more likely key players are vying to save the Chrysler business while creatives and planners frantically look to reinvent their approach, feeling like whatever they do will be futile. And that brings us to the competition, whoever that is, and the pitch that wins the project. Independent of all the information we've presented you with, it's unimportant (We've heard Fiat has a habit of handing off projects to agencies outside their roster as any smart company does). But when put in front of what you've read here, any lost business looks like another scoop of dirt on the coffin for BBDO.

This isn't to say BBDO has lost the project or that they're definitely going to lose the account. But looking back over the last few months it is acceptable to question the relationship's strength. For the sake of the thousands of you in other agencies who are facing the same or similar realities, we hope to see BBDO rebound in a way respective of their history and the people who fill desks, every day.

In a few days we'll be able to tell you more about the agency we hear is leading in the pitch for Chrysler. It won't be groundbreaking news, but you will want to pay attention. Any time there's a shift in big business, the rest of the industry does well to pay attention. If nothing else, it makes for a good Sunday read.

More: "BBDO Elevates Troy Ruhanen to Deputy Chairman North America"