Element 79 – someone get the crash cart
April 16, 2008
Since we all love our Chicago-based news lately — one of our readers has mentioned that there is confirmation that Element 79 (rumoured to be merging with DDB any day here) has been notified that they have officially lost the Gatorade & Tropicana accounts.
Management has countered with the argument they still have over $10 million in revenue than they did when they opened their doors six years ago — take that for what you will.
Discuss amongst yourselves — the topic: How fucked are they and how likely is the merger with DDB now? Would DDB Chicago — already rumored to be suffering badly — want to take on another anchor as it fights to regain some stature within the client sphere?
UPDATE:
Well TBWA\Chiat\Day LA and Arnell Group are confirmed as the new agencies for the brands respectively. So it is just a game of musical chairs as Omnicom still retains the overall account. That being said, it is going to be yet another blow to the Chicago ad game as it shifts the accounts to both LA & New York respectively.
April 16, 2008 at 8:44 pm
I don’t know if anyone else is having this problem, but I have been receiving the exact same AgencySpy daily email since April 10th … updates please?
April 16, 2008 at 8:49 pm
Keta:
It has to do with the fact that we are still running two platforms for the same site — and the e-mail is taken from posts at the mediabistro site only.
We’ll be shifting over permanently here to the MB site (and giving up the WP site) here very soon — just waiting for the word to come down.
We’ll keep you updated. Sorry about that!
April 16, 2008 at 11:40 pm
This site seems to be going the way of tmz.com in that it obviously takes great pleasure in the failures of others. “Someone get the crash cart”?! Yes, a cardiac arrest joke (and an overused, unfunny one at that) is just the tonic for some good people who are about to lose their jobs through no fault of their own.
April 17, 2008 at 12:50 am
You also are so, so lacking in factual correctness – Gatorade’s going to TBWA\C\D LA.
Seriously, read and absorb before you type. You do this shit all the time.
April 17, 2008 at 1:00 am
You kids need to chill the fuck out.
Dorothy:
Yes it sucks that people are going to lose their jobs at Element 79. I’m not pissing all over the rank & file when I write these stories — maybe they need to hold their management accountable once in awhile — or figure out how to. That is what sucks about the ad game — the people who actually do the work get fucked over and the suits in the penthouse move on to getting raises & bonuses for no rhyme or reason. Such is life — start a campaign to change it if you feel so strongly about it.
Yikes:
And the update was incorrect – yes. “All the time” is overstating the case by a fucking mile. Sorry I made one error today…the world is apparently going to come to an end now — drama for all!
April 17, 2008 at 2:31 am
supposedly that idiot Brian Williams told the gatorade and tropicana teams today. And the rest of the agency found out when it broke on the internet. obviously, he’s known about this for a while. this leaves 79 with alberto–a shit account that does bad work. celebrity– an account that did good work at Mullen and now does generic crap at 79, supercuts–an account they do lousy work on, harris bank–an account where the work is actually ok at times and well, that’s about it. the only good that can come out of this is that williams can be relieved of his duties and maybe somebody with a brain will come in and try to fix things. that is, unless they combine it with ddb next week.
April 17, 2008 at 2:56 am
Hate to say it, ondownlow, but you’re a dick—especially in this case. Element 79 did not lose this business because of its management. It was mostly a case of PepsiCo management. It’s another example of a new client assuming authority and deciding he wants something different. As always, you’re free to post what you want. But if you really hope to gain respect for your cutting cleverness, you need to establish some credibility. You’re making more than one error per day, sweetie.
April 17, 2008 at 2:56 am
Sorry dude, but it’s pretty consistent. Check your (by your I mean AgencySpy) recent Guy Seese story – he’d “left” Goodby almost a year ago. It’s a recurring trend.
If you’re gonna have snark, at least have your shit straight.
April 17, 2008 at 3:00 am
I’ve come to know this site during the Paul Tilley fiasco. And I will admit to some perverse pleasure in reading about the shortcomings and criticism and pissing and moaning over the comments from those who always know better. So, here goes… my first post.
As one who is a part of E79, let me just say this:
we may not do the most creative work in our industry…
we may not always make our clients bubble with happiness or success…
But, we always walked a very fine line between doing work we tried to take pride in and work that kept clients on our roster.
It’s so unbelievably easy to say we are hacks that gave in and compromised at the drop of the hat.
But believe me when I say, we have had an extremely good run, in keeping both clients and employees happy.
The fact that a new regime at Pepsi has a raging hard on for change for change sake (which honestly has nothing to do with our ability to deliver work (and partnerships) to those clients who actually appreciate solid thinking, at the expense of inflated egos) and doesn’t give a lick about actual performance is beyond the point.
It’s easy to throw stones, and I can’t print the numbers, but if I could, you would see this decision had nothing to do with performance (as Gatorade is stronger than its ever been) and everything to do with an out of control egomaniac who thinks a dog drinking out of a bowl for 30 seconds will do more to sell product than actual insights.
I don’t know what’s going to happen to us, but I do know a lot of good people will leave, hopefully to better situations, and that a group of caring, thoughtful, and yes, talented individuals will have to scramble to feed mouths, pay mortgages, etc, etc, at a time when this fucking country is going to hell in a handbasket. Sure, I hear the “waah, waahs” coming from all the cynics out there, but since this is a sight visited by ad types, you’re all in the same boat. Whether now, or in the near future.
watch your backs. Nobody else will.
April 17, 2008 at 3:03 am
Please spare a minute to think about the employees at Element79, who have worked their asses off on a day-to-day basis, servicing the Gatorade and Tropicana business for the last 6-odd years.
They’ve put their hearts and souls into the marketing business for their Clients.
It has been a tough few months for them, of late.
And now many people are, understandably, concerned about their future employment.
Sucks that it seems the “powers that be” believe an agency cannot have any creative cred unless the agency is based on a coast! Hopefully, this will be a become an anachronism.
For now, Chicago suffers.
April 17, 2008 at 3:23 am
You’re not pissing on the rank and file? Really? Who do you think reads your blog? Do you really think Brian Williams is up in his penthouse worrying about what agencyspy says? No, it’s the people who are trying to get some information about what the fuck just happened to them. Information the agency is mighty stingy with. And so they come here, dazed and confused, only to be greeted by some snarky line about how the agency they’ve poured their hearts into has gone into cardiac arrest. Yeah, that’s hilarious. Why don’t you go crack jokes at the people getting off the shortbus and then explain that you’re not making fun of them. You’re making fun of the driver.
April 17, 2008 at 4:13 am
I bet Brian Williams and other suits don’t read this blog but that don’t mean theyre indifferent any more than rank and file workers are I think theyve poured their blood and sweat into this place just as much as alll the rest of us and care just as much
April 17, 2008 at 5:34 am
Why would DDB want to merge with Element 79? Element 79 was established as a separate unit ala Draftfcb and Rivet. While you can literally walk down the stairs from DDB to Element 79, they are technically independent of each other. Given that Element 79’s few remaining clients include American Family Insurance, while DDB services State Farm, it’s unlikely the two will be sharing P&Ls anytime soon.
April 17, 2008 at 7:15 am
Why are so many of you so harsh to Brian WIlliams? Seems to me he has always put the interest of his employees (including me) first. He is intelligent and talented. Sounds like a lot of sour grapes over his career long success. Maybe if others in our agency were half as good this would not be happening.
April 17, 2008 at 12:30 pm
>You kids need to chill the fuck out.
actually, dearest ondownlow, your work here sucks and that’s sad. superspy makes errors for lack of industry experience but there is effort and given a bit of time I see potential for some serious scoops. you on the other hand rehash what I’ve already read about elsewhere and add commentary. the class clown may be entertaining for a bit but he doesn’t add a lot of actual value.
April 17, 2008 at 1:01 pm
there are some great points being made here. number one, it’s the rank and file who pay the price. brian and little “d” have sweetheart deals and will be fine. it’s just too bad they didn’t try to create smarter work for some of their brands–celebrity and supercuts for example–that could have helped define them perhaps as a more creative shop that could better fend off the advances of chiat etc.
arnell is a total hack. how he even survived after the celine chrysler debacle is beyond me.
if omnivore wants to merge ddb and e79, they would just resign american familiy. it’s a piddling account compared to state farm.
this situation is client driven for sure. but the client just added goodby and chiat to their roster and removed element 79. to most of the world that’s a smart move. not fair perhaps, but smart.
April 17, 2008 at 2:19 pm
I liked those Gatorade spots with Keith Jackson. And I think most work sucks.
April 17, 2008 at 2:44 pm
Brian Williams cares about one thing…Brian freak’n Williams. When FCB lost Gatorade he sent an agencywide email that said how FCB will be fine and we are a great group of folks and how together we would build FCB backup…blah blah blah. About 2 days later we read in the DAM newspaper that Brian Williams was following the business to Element.
Later FCB went after him for inside trading…CEO’s aren’t appointed over night but deals with Gatorade at golf outings are!
Brian Williams care about the rank and file….LMAO excuse me while I try not to roll on the dam floor.
If he seems like he’s a man of the working class…that just means you don’t know good game or pure evil when you see it.
Someone show Dorothy what’s behind the dam curtain…smart’n up.
April 17, 2008 at 3:20 pm
I’m not sure which is more sad: this news, how it was reported or the bitchy-bitch anonymous replies.
There are some really talented people over at E79 and, as a whole, Chicago deserves a better face than what has been painted for us.
I’m sure there are more politics involved here more than anything. We’re talking about advertising, right? The speculative merger may have required the client dump-off (client conflicts, lost revenue = lost value = easier to get fed approval, etc.) Omnicom may have mandated the shift — their work has went from Omnicom to other Omnicoms (Goodby, Chiat/Day, Arnell), so there is obviously some faith left within their system.
There’s more here than meets the eye. Let’s just hope there are good intentions involved and few, at most, will lose their jobs.
Also, not every agency in Chicago is headed south. We are very quietly flourishing… and hiring.
April 17, 2008 at 4:57 pm
ondownlow has definitely added Perez-like bitchiness to this site and is a bit too sensitive for someone who shows such little sensitivity to those of us in the industry who work hard, get good ideas neutered by bonus-hungry clients and who have little control over the big decisions made in big agencies. I thought most of the Gatorade work was pretty strong (minus the Tiger spacesuit thing – see bonus hungry client reference) and Element 79 always been a feared competitor in new biz. Good agency/bad luck streak is my explanation. I wish them well…
April 17, 2008 at 6:29 pm
Fuck Brian Willaims and Fuck his ex-FCB employees!! They are god damn traitors. He flew the Quaker jet into the side of the FCB building and made off with the entire Quaker account leaving the agency reeling and finally having to merge into the Lithuanian Tanker named DRAFTFCB. Williams used his brother-in-law, CEO of Quaker/COO of Pepsi to pave the way for this grand theft. He never did nothin on Quaker @ FCB except steal it and leave the agency in complete FUBAR. He got his pay day, no selling Street Wise for him. Make him head of DDB Chicago and watch that too become a nail salon/tanning parlor. Another perfect example of what the fuck is so terribly wrong with this business in Chicago. BAD LEADERSHIP….junior pirates who loot and piliage or members of the “Stupids” promoted because they were cheap’n cheerful. Dats alls omn gonnas says bouts dats. Hell good ol’ Dorthy Tilman should takes da reins…say bi bi tos Brian.
April 17, 2008 at 6:49 pm
Seems like some of you should have learned a lesson from the Tilley situation. So much hatred directed towards people who don’t deserve it. What are you trying to accomplish besides venting.
April 17, 2008 at 7:16 pm
is rev. al sharpton is in danger of becoming the kate moss of this blog?
anyone else get that obscure ad blog reference? no? never mind.
i always thought e79’s problem was its DNA. it was created to house a lucrative account within the omnicom group. and that’s all.
not exactly an inspiring entrepreneurial founding story is it? good luck building a unique culture based on that.
April 17, 2008 at 9:37 pm
the bad news is, they lost over 50% of their billings. the good news is, they can now get rid of brian williams.
April 18, 2008 at 1:59 am
This agency has never supported creative. dennis detests strong creatives. He and his disciples have ignored any creative who’s tried to do anything here. top creatives at all levels had their books sent back. freelancers come here and leave shocked. bob, if you’re reading this, its not about changes at pepsi. what a flimsy excuse. Its about lack of change here. leaders connect with new clients. it started when we lost aquafina. the panic, the disdain for new ideas. Don’t reward the people who made this happen. make the captains go down with their husk of a ship.
April 18, 2008 at 3:32 am
having worked on a pepsico-owned brand before, i can attest that the clients are completely batshit crazy. i guarantee the decision to move went down in one of two ways.
- option 1: vp-marketing decided that he/she really liked the apple spots and that gatorade should do more work like apple (if strategy or insane testing restraints or budget or red tape were not an issue, of course). so they moved all the business to the same agency. pepsico is an organization full of very well educated marketers, but they are notorious for taking their own disfunction out on their agencies and making changes just to make changes. it’s insane. after all, that’s how the shift from bbdo to goodby happened for the doritos brand.
- option 2: vp-marketing worked with someone at chiat in a former life and that someone was able to coax the business out of them. hell, that’s what happened when tostitos shifted from gsd&m to e79. a bigwig at frito used to work on quaker and “LOVED the work e79 did.” really, said bigwig thought that e79 would be easier to control than gsd&m. maybe they weren’t so easily-controlled after all. good for you, e79.
my comments above may sound simple, but that’s how pepsico marketers roll. they’re so smart and so dumb at the same time.
April 18, 2008 at 4:25 am
sad day for chicago. element’s work was pretty mediocre, but they kept all the below-line work in town. which was surprising, cause some of those agencies are well below mediocre.
i worked for one of the partner agencies. if element had any talented planners who could have really brought BIG IDEAS to the table, they may still have the account.
but all they could ever really do is take the client on extravagent day trips around rio and cannes when they had shoots or were nominated for awards.
they lived to serve the whims of one client who made all the decisions. they never even approached crossing her or pushing any new ideas themselves.
this should be a lesson for us all. ‘there came a pharoah who knew not Joseph…’
April 18, 2008 at 5:02 am
Oh whatever been there. You agency people act like you’re curing cancer. They’re making ads for sugar water, and having fun with it. What “big ideas” could possibly of lead to any other outcome? Gatorade just followed the trend of new president needs a new agency. Mediocre work my ass. The work was fine, Chiat will do the same thing for years to come until gatorade gets another new president.
April 18, 2008 at 2:02 pm
Some of the gatorade work was good, but mostly due to flashy production, not great ideas. I thought the ones where gatorate was sweating out of athletes pores was really provocative.
April 18, 2008 at 2:48 pm
if little “d” gets the ddb job there is no justice in the world. he is a mediocre creative talent at best. he would have been a great insurance salesman however.
April 18, 2008 at 3:20 pm
Element 79 eyeing DDB merger?
ADVERTISING | Loss of Gatorade eliminates potential Busch account conflict
LEWIS LAZARE llazare@suntimes.com
In the wake of Element 79/Chicago’s devastating loss of both the Gatorade and Tropicana accounts Wednesday, sources close to developments say the severely wounded agency could once again be eyeing a merger with the slumping DDB/Chicago, which is looking for a new top creative leader and new clients.
This column already noted that the merger of both Element 79 and Downtown Partners/Chicago with DDB had been floated several weeks ago as a potential way to give DDB a quick boost. Most of the back office functions of both Element 79 and Downtown Partners already are handled by DDB. With Gatorade now out of the picture at Element 79, a major potential conflict with DDB’s huge chunk of Anheuser-Busch business has been eliminated. Downtown Partners might very well carry on as a separate entity for now. DP’s largish Northwestern Mutual account, a prestigious piece of business, poses a conflict with DDB’s long-standing State Farm account, which has been on shaky ground in recent months. DDB’s new campaign for State Farm, which is believed to have saved the business for the agency at least for now, has not been winning high marks from savvy creatives who’ve seen the work.
Sources say the revived merger game plan would put Element 79’s top creative Dennis Ryan, whose resume includes a stint at DDB early in his career, into the top creative role at his old agency DDB. And John Noble, now head of production at Element 79, would fill the same slot at DDB currently occupied by Diane Jackson, who was known to be especially close to former DDB top creative Paul Tilley, who committed suicide in February. In fact, more than a few observers were stunned when Jackson opted to return to her production post at DDB after Tilley’s funeral. “I thought she might have left the country,” said one source, only half-jokingly.
April 18, 2008 at 7:24 pm
Gatorade’s partner agencies haven’t had any “Big Ideas” either. ‘Been There’ needs to take a look in the mirror. If Element 79 didn’t come up with any big ideas, what were you doing to solve this? It looks to me like Element took the fall, but if you really think the work is bad, the PR, promotions, and other media firms didn’t do great work either…so watch out, you may be next. Sounds like you’re just bitter you didn’t get to go on a fancy trip (and I don’t know why you’re blaming planners for this… isn’t it account people who take client on boondoggles?).
Here’s the reality: Element 79 lost the business because the new CEO of Pepsi does not like them, a dislike which goes back many years. It’s not about the work or Brian Williams or Dennis Ryan or creatives or planners or account people. This was a vendetta fulfilled. Such is the business.
April 18, 2008 at 7:37 pm
As some kid trying to find an opportunity in agency production in the city (and who feels bad that Chicago lost more key accounts), I can’t say I agree with the inclusion of certain parts of Lazare’s article. He seems to be getting personal at the end there and I’m not sure if that matters. I don’t know so much about the biz, but that’s just my opinion.
April 18, 2008 at 9:19 pm
ddb already comes off as an agency from 15 or 20 years ago, the last thing they need is more of that–which denis ryan and john noble would give them in spades. both agencies need a creative enema of sorts. including the bud group and their stale frat-boy humor.
April 19, 2008 at 4:07 pm
The fact is, E79 and a lot of Chicago agencies are dinosaurs, living in a day and age that doesn’t exist anymore. Their client beg for change and they deliver more of the same. Big, expensive TV spots. Sure, there are client changes (there are everywhere, everyday), but this will continue to happen until the end of time. Chicago is a TV town. Big, expensive TV. I personally see the entire town as a giant pit of tar and no matter how much moving around they do, they will all eventually get stuck and become fossils. Word of advice to anyone working in the Chicago ad community; Wake up! Your time is almost over if you continue to try and sell big TV spots to clients who don’t want them and targets that don’t watch them you will find yourself working at McDonalds.
ps. Whining is so pathetic. It only shows how sad this industry has become.
April 19, 2008 at 5:38 pm
Agreed, brian ryan.
DDB has been desperately seeking a Messiah to lift them into the 21st century. Ryan does not symbolize that, despite his reputation of being a decent leader. Inserting him into DDB might stabilize things on certain levels (e.g., clients like State Farm might dig him), but it wouldn’t be the forward-thinking move DDB lusts after.
Agreed, Mats.
Lazare is an asshole at times. Lost in all the hate directed towards blogs during the Tilley incident is the fact that Lazare published a column questioning Tilley’s standings with the DDB brass. That column received far more attention in the Chicago ad community—as well as in the hallways of DDB—than anything posted online. Lazare’s references in this latest column are equally “tabloidesque.”
April 19, 2008 at 7:44 pm
there is no easy fix at either ddb or e79. both are thin when it comes to real talent. christ, neither can create a decent print ad let alone lead clients into the 21st century. omnicom has a real mess on its hands with these two. both should have started to change when times were going well, but instead they basically stayed pat. this is a leadership problem boys and girls.
April 19, 2008 at 8:53 pm
I’ve been told DDB and Leo Burnett were once fierce rivals in Chicago. And for that matter so was JWT. Now not so much. I’m excited to see which newer agencies can fill the void. I believe there are several that are capable and some are showing signs already. Alas, E79 is not one of them.
VOR
April 20, 2008 at 12:23 am
Ivy-
Wow, you really have no idea what you’re talking about. You sound like that guy in the direct TV commercial “We go viral, we get online and we blog it out” The easiest, most cop out ideas in advertising now is to just say get on the net. Now I am not saying that the internet is not an effective advertising tool, but TV advertising will also be around. The real problem stems from market over saturation. Gatorade used to be the only sports beverage in the game so their market share was always huge. Now there are a million different beverages that a consumer can buy, and gatorade is less dominant than before. So rather than just understanding the reality of it, they figure its their advertising must be the reason so they try to fix it with that. But really, gatorade will never dominate like they once did (especially if they keep diluting their own brand). So Chiat will do good work, like element did, but gatorade’s market share will stay the same, or continue to drop. Then gatorade will find a new president, and he’ll find his own west coast agency that will “get on the net, go viral, and blog it out”
April 20, 2008 at 2:54 pm
What is this “internet” you speak of?
April 20, 2008 at 9:11 pm
the so-called leadership of e79 (although they are more fool’s gold these days then the real thing, so they may want to contemplate a name change) had over a year to prepare for this. yet they continued to produce middle of the road fair for most of their clients. they also were in a number of pitches which they flat-tired in. folks, look at their website, it is to say the least a bit dorky. full of bad graphics and equally bad writing. look at the bio photos–these guys look like they belong in a time capsule for 80’s advertising. like most agencies in chicago, they need new blood on all both of the ball. if omnicom has any sense they will use the current situation to rid the place of its dead weight.
April 20, 2008 at 10:40 pm
Guys…
Wow… The Reverend Al Sharpton is my kind of guy… He should get his arse over to AdScam more often… Those are the kind of comments my readers lust for… The more piss & vinegar, the better.
On the other hand, gottogo needs to leave the Paul Tilley thing alone… As everyone with half a fucking brain knows, particularly if they are part of the Chicago ad scene… Agency Spy and AdScam had fuck all to do with his death! So get over it you wanker.
Finally, Lewis Lazare’s ending about… “Diane Jackson, who was known to be especially close to former DDB top creative Paul Tilley” … And… “I thought she might have left the country,” said one source, only half-jokingly. Was quite brutal… But funny. Ole Lewis is my kinda guy.
Cheers/George
April 21, 2008 at 12:00 am
George – are you and lewis implying diane Jackson was romantically involved with Tilley? is she the mystery woman who was at the hotel? the plot thickens.
April 21, 2008 at 1:09 am
I laughed so hard at that Diane Jackson comment. He said out loud what everyone was thinking. We could only be so lucky to have her leave the country.
April 21, 2008 at 1:13 am
I laughed so hard at the Diane Jackson comment. He said out loud what everyone was thinking. We should only be so lucky to have her leave the country.
April 21, 2008 at 2:12 am
ok, missed the joke whats so funny about diane jackson?
April 21, 2008 at 3:02 am
LL is a bitter old queen who works for a dying tabloid. If he’s “your kinda guy” GP what does that make you? A) A sleazy muckraker with a penchant for anal intrigue.
VOR
April 21, 2008 at 7:37 pm
Wella wella wella…who bees dis George Parker feller?
Iz axed my personnal assistant, the proud the loud Ms. Dorthia Tilman, yep one in da same. She don’t know nothin….sos what else is news. I’m gonna make the Williams guy my new bitch. Hes goona be lookin for somethin to do soon. Maybes he can brings dat completely worfless shit stain whos so fuck’n stupid he done rides his motor bike in the da dead of winter…Jerome Conner…aka “Jerry the jerk-off. Nows ms. Tilman knows of him. Stupid is as stupid does. Dats all for now, but maybe Iz take a peeke poo @ Adscam. It likes da name already! Bye bye & gods bless.
April 22, 2008 at 5:45 am
hurd williams is going to be pres of combined ddb/e79, ryan chief creative. hurd conni nelson is leaving cause new business so lame.
April 22, 2008 at 3:28 pm
williams will leave. ryan may stay, but he won’t be leading a combined anything. doesn’t have the creative juice to fix what’s wrong with ddb.
April 22, 2008 at 7:24 pm
whered yu hear williams will leave I hurd hes defenitely staying pride yu know and omnic loves him
April 23, 2008 at 5:18 am
Just heard a ton of staff quit Element 79 today including Marty Sherrod and John Fraser and Connie Nelson. Don’t know where they’re going tho.