The Price Isn’t Right For GSD&M

Tribble points us to a new scandal for the downtrodden GSD&M. Seems the agency is getting sued. The Austin Statesman, spends quite a bit of time following the turmoils of the shop and from their pages, it seems:

“The lawsuit stems from a national advertising campaign that depicts a man waiting to check in for a flight who is asked by attendants to spin a wheel for a prize: a seat on a large plane. A song similar to the theme from “The Price Is Right” plays.”

The client, Southwest Airlines, is also named in the suit. The onus is on , owners of the show, to prove that consumers will be confused by the and say, head to the airline’s website rather than that of the iconic game show. You might think this is an impossibility. However, consumers can be daft. Totally daft.

Agencies and brands are always getting sued. With their army of lawyers, you’d think they could secure this kind of stuff out of the gate. For example – take the Addams Family themed spots created by BBDO for Mars’ brand M&M. The agency and brand cleared only some of the rights with the “Addam’s Family Foundation,” failing to clear incidentals on the usage rights for likeness of the characters portrayed in the print and TV spots. Mars is now being sued, though BBDO stays in the clear. Ryan Bowling, a spokesperson for Mars, said that it was the company’s policy not to comment on pending litigation. C’est la vie.

The Fine Print On GSD&M’s Air Force Win

Everyone is talking about GSD&M landing the renewal of the Air Force contract, which is good for the shop considering they’ve been doing nothing, but pro bono work. Good for GSD&M. Sort of… The original Air Force contract was $350 million over seven years, or $50 million per year. The new contract is estimated at $372 million over TEN years, or around $37 million per year. How is it that GSD&M can turn gold into straw? By winning, they’ve also kind of lost with a longer contract with less in estimated annual billings.

Don’t you kind of feel bad for Idea City? Especially with that name, you might think they’d be able to get a clue. Staffers who still remain at GSD&M, Agency Spy loves you. We’re wishing you the best in face of a your executive leadership. Gotta wonder whether Mark Taylor is starting to feel like he bit off more than he can chew.

From the press release:

“U.S. Air Force Selects GSD&M Idea City for 10-Year
Advertising Contract

~ $372 million estimated award value will fuel
marketing for Air Force recruiting ~

AUSTIN, Texas — April 3, 2008 — After a hard-fought competition and nearly a year since beginning the
process of vying to extend their seven-year relationship, GSD&M Idea City has been selected by the
Air Force for an unprecedented 10-year contract to handle national advertising, media and event marketing
duties for their recruiting efforts. The estimated value of the contract is $372 million.

The agency began competing in June 2007 for the contract after government contracting rules mandated a
re-competition for the business. The agency’s original seven-year contract with the Air Force was valued at
$350 million. ”

Greg Verdino Chimes In On That Whole GSD&M Virtual World Thing

Just a second ago, we mentioned that GSD&M has partnered with Metaversatility to begin taking survey and acquiring data in virtual worlds. See it here. We decided to take our own suggestion and ask Greg Verdino, CEO of crayon, what he thought about this new journey for Idea City.

“Strange indeed.

Virtual ethnography isn’t a terrible idea – there are other companies walking down the same path and I think it’s a path worth walking — but I’m not clear on what any of this has to do with GSD&M. I know they’ve done some work in Second Life but they hardly seem to be at the epicenter of the virtual worlds movement. In theory, I’d think Metaversatility could have done this on their own – no?

Plus, I wonder if ‘lack of data’ isn’t a red herring. I’ve never had a client tell me that they won’t experiment with virtual worlds due to lack of data; lots of them shy away due to lack of scale, especially with worlds like Second Life and There.com. The real virtual world action seems to have shifted to youth-oriented worlds like Webkinz and Club Penguin and into worlds that seem to be more marketer-friendly like virtualMTV or inherently brand-focused like Virtual Magic Kingdom.”

Full disclosure: GSD&M was a crayon client – but hasn’t been for a while now.

GSD&M? Where The Crack At?

GSD&M has a project coming out of the gate. No, no. Don’t be silly. It’s a not a paid campaign! Although, the shop has partnered with developer Metaversatility to create a research program across virtual worlds, providing clients with consumer, product and experiential insight and knowledge.

Blink. Blink. Nope. That text is still there. GSD&M is getting into the virtual reality game. Insert joke about them having a hard time in reality here.

Idea City and Metaversatility have collaborated to “fill a gaping hole in the growing marketing channels that are 2-and 3-D virtual worlds” with this thing called the IdeaBot system, which “automatically screens and surveys market research panelists in various virtual worlds, including Second Life, allowing for a large and diverse selection of responses. Most importantly though, the IdeaBots allow for the research to happen in-world, instead of, like with other virtual worlds research offerings, being kicked out to the internet to complete an on-line survey.”

“As exciting as virtual worlds are, we know that deep knowledge and insight are needed to ensure that they are effective channels for our clients and their business objectives. We are excited to provide our clients with a unique service offering, combining world class research, marketing and in-world build capabilities,” said Rene Huey-Lipton, Director of Marketplace Planning at GSD&M Idea City.

Hey, Greed, Sex, Drugs and Money? Puff, puff, pass okay? You guys don’t seem to be learning any lessons. Virtual worlds are amazing enclaves, but if the business has learned anything about them it’s that they are places of escape and imagination where consumers don’t necessarily want to be bombarded with real world antics like um, surveys. You are interrupting the experience. That’s an even older lesson. Brands dabbling in virtual worlds need to do so with so much authenticity that they’re bullet proof. Do you guys think that querying Second Lifers or those in Gaia is bulletproof?

You know what… go ask Greg Verdino of Crayon. He’ll tell you all about it.

GSD&M Sponsors Something Pretty Cool

GSD&M is sponsoring barcampAustin. A barcamp is an international network of user generated conferences — open, participatory workshop-events, whose content is provided by participants, according to Wikipedia. This is one of those open environments where people learn, share, talk, chat and gather new ideas. Check out the video above to get a peak of last year’s action.

This year the event will feature technology demos and discussions, live music, and even arts and crafts. Kudos to GSD&M for hosting! If you happen to be in Austin, go. The event is on March 7th and 8th. Stimulate the ol’ synapses.

GSD&M Adds More New Blood To The Body

GSD&M recently hired Mark Taylor away from Crispin Porter. Now, the agency has added David Hennagin from Bernsten-Rein to be in charge of the agency’s direct marketing efforts. This will directly pertain to Greed, Sex’s current clients AT&T and Southwest Airlines.

Hennagin also pulled stints at DDB and TBWA. He replaces Jim Warren who is now a Transactional Marketing Executive, Direct to Consumer with an emphasis on Brand and Direct Integration (whew!) according to LinkedIn.

You know what we think? This isn’t going to be enough of a shock to the Idea City body. They need more new, inspiring VPs, a total refresh in the creative department (Taylor may help towards that end), a shuffling of the management and processes… Hmm… what else? Oh, Greed, Sex has got to do something about the morale of their current employees. It’s beyond low. It’s subterranean.

[source]

Addendum: Told You So: Idea City Steals A New Creative From Crispin

We just received two great comments about our recent post about Mark Taylor joining GSD&M that we had to create a separate entry. Enjoy and discuss.

“Was he actually a CD at Crispin, or an ACD? There seems to be some discrepency. Either way, he’s got the chops, but does he have the stomach? It remains to be seen how he’ll be accpted by the 8 Group Creative Directors who’ve been at GSD&M an average of 10 years. They’re all guys, all older than Taylor and mostly none-too-happy to be passed over, plus they all took paycuts recently to help pay for the new guy.

And then there’s the prospect of Roy’s return to the agency. If Hillary doesn’t get the nomination, Roy will be back and looking to re-engage.

Will Taylor stay longer than he did at Fallon? The betting pool is already active. “

And then this one:

“Your coverage of “Idea City” misses the big news around the company: while clients leave, new business falters, and valuable employees defect, the so-called “leadership committee” of long time sycophants has been consumed by internal squabbles. It’s increasingly clear that the agency’s much-vaunted “power of purpose” isn’t winning in the real world. But our fearless leaders are tying themselves in knots trying to fit this shopworn idea into the mundane day-to-day work of the agency. When are they going to realize that the agency’s branding approach has never actually been implemented because it doesn’t actually work and that it’s time to get real? The whole place is getting tired of waiting for intelligent leadership that has some clue about what we do and how advertising really works. Instead all we’re getting is insanely complex new work processes that are designed to make sure all the tired old ideas are dutifully respected. Despite the new CIO, an exodus of talent is imminent.”

Told You So: Idea City Steals A New Creative From Crispin

We said that Greed, Sex was looking to poach from Crispin and now, it’s happened. GSD&M Idea City has recruited Mark Taylor after a six-month search to find a creative leader for the agency. Taylor was creative director over at Crispin and is responsible for the recreation of the Burger King, King..

Okay, Greed, Sex has to be losing its mind with joy. How much did they have to fork over to Taylor? Better question, how much you want to bet that Taylor damn well knew that he was never going to eclipse the media flame that is Alex Bogusky and bounced while the gettin’ was good? Well, now Mark only has to contend with media whore and owner, Roy Spence for the spotlight.

Good luck and congrats to Taylor.

Greed, Sex Is (Still) Firing Staffers And Hiring A “CIO”

We all know that Greed, Sex, Drugs & Money has had a rough year. They recently laid off 200 bodies and voluntary departures are still happening. Many folks are bailing from the digital creative staff with a few headed for the Dell/WPP Project Davinci agency. High level staffers are also gone either as part of the lay-offs or a kindly offer to “please vacate.” This includes Barbara Rogers (VP, Director of Media Services) and Diana Howell (VP, Account Director). Director of Direct Response, Jim Warren’s, Linkedin has him leaving the agency just last month.

As folks bail or are let go, GSD&M is looking to revamp the agency. The shop is searching for a “Chief Idea Officer.” WE HEAR THAT… Guy Seese from Goodby turned it down already. Seriously… do you want to work beneath Roy Spence? WE ALSO HEAR THAT… Greed, Sex is looking to poach from Crispin.

We requested a comment from GSD&M, but you know… it’s a holiday. We’ll post their response as soon as they get back in touch. In the mean time, we’ve collected some of the best comments regarding GSD&M to be posted on Agency Spy for your enjoyment.

1. In response to a post tracking the agency’s movements over the past month:

Adgal1997 said: “You missed the part about GSD&M’s top wage earners being told recently that they’ll all be taking a 15% pay cut this year.”

2. In response to a post about the agency laying off 200 staffers:

underappreciated_youth said: “The agency lost HUGE clients and how do they handle it? By laying off of all their lowest paid, hard working young people. They laid off all 3 junior creatives (I was one of them), junior designers, people making 30 grand and under, and mid-level positions and not the dinosaurs who don’t understand simple things like the significance of the web and can’t win a new business pitch to save their lives (well our lives) and bring in quarter mils each. And it’s not just because I’m personally affected that I’m upset, but it’s advertising common sense that when an agency goes stale, it needs a talent transfusion of new, young blood. This was an opportunity to trim the fat from the agency and what they did was trim the raw, lean muscle. Who are the hack GCDs going to steal ideas from and take credit for now?? And how are they going to lay out my retail newspaper ads without a rudimentary knowledge of such advanced programs as InDesign CS3?”

3. In a response to a post about the agency losing a large chunk of the AT&T business:

Simpla City said: “GSD&M’s creative has been lacking lately, which is, methinks, the reason for the losses. Roy Spence is cornspicuously absent these days. He doesn’t do anything but show his face at political gatherings and put together material for a book, kinda like Pat Fallon. Anyone see a trend here? But most people in the Austin area know that GSD&M has been resting on its laurels for quite a long while. The Idea City folks had better put aside some of that hubris (they do take themselves pretty seriously down there) and actually do some work. You’re not (and never were in the first place) on Madison Avenue, GSD&M, so take your lumps.”

One Month With GSD&M

We just got a press release for GSD&M, so we decided to take a step back and look at what has been going on with the agency over the past month – a better perspective – considering the agency had a very rough 2007. In reverse chronoglical order via Google and various news wires:

Feb. 12, 2008 – GSD&M launches a new, pro-bono campaign to inform young Americans how easy it is to make the switch to energy-efficient lighting. The campaign, Unscrew America, encompasses TV, print, online media, viral videos and a website. Get more info here.

Feb. 8, 2008- Tom Purves, president of BMW of North America, steps down from his role just as the company is preparing a new marketing campaign for its new 1-series, called “Year of the 1” via GSD&M, Austin. Get more info here.

Feb. 5, 2008 – The Texas Parks and Wildlife Department have taken the apparent downward trend in outdoor activity seriously and partnered with the advertising agency GSD&M to create the “Life’s Better Outside” campaign to motivate urban Texans to spend more time outdoors with their children. This is another pro-bono job that follows up on their 2007 campaign called “Outdoor Family.” Get more info here.

Feb. 4, 2008 – Kohler is conducting a global media review. Creative is handled by Omnicom’s GSD&M Idea City, but is not in play. GSD&M does have its own media division, but will pitch for the business. Hmm… why not? Get more info here.

Feb. 4, 2008 – A new company called Score! Worldwide, which will provide clients with brand strategy, creative services, marketing and event planning, comes into existence. The partners behind the business are James Welsh, owner of James Welsh Creative, and Bryan Pettigrew, owner of Affinity Sports Marketing. James, once worked at GSD&M. It fits with the company’s image as a resource for talented ad folks. It’s like Crispin, but down South.

Jan. 23, 2008 – MasterCard announces it will air a brief drama during the first break on Sunday’s SAG Awards on the Turner networks. The spot called “The Auction” will run on both TNT and TBS. Leading up to the awards show, TNT and MasterCard will try to build anticipation for “The Auction” via on-air promos, a presence on TNT.tv and on TNT’s VOD offering. GSD&M’s Idea City handles MasterCard’s media account and spearheaded the deal. Get more info here.

Jan. 20, 2008 – Hillary Rodham Clinton reached out to long time friend at GSD&M, Roy Spence. “I’m more actively engaged on a daily basis for a while to make sure that Hillary’s heart gets communicated,” said Mr. Spence, whose friendship with the Clintons goes back three decades. Get more info here.

Jan. 20, 2008 – GSD&M takes on yet another pro-bono campaign. This time for Mike Dewey, who is offering $1 billion to the first person to find a cure for Breast Cancer. Get more info here.

Jan. 17, 2008 – GSD&M Idea City Chairman-CEO, Roy Spence, started his Walk Across America campaign last fall, with the plan to walk 22 miles a day, one month each year, over the next several years. AdAge covered the demise of his blog that chronicled his off-again-on-again journey. Get more info here.

Jan. 17, 2008 – More Roy Spence political news. “The voters will decide whether it happens, but Austinites Mark McKinnon and Roy Spence — longtime friends and mutual admirers — could be en route to a head-to-head battle of strategy and communications in the 2008 presidential race.” Get more info here.

Jan. 16, 2008 – GSD&M wins part of the AT&T business. Get more info here.

________

Seems like it was a heavy PR month for GSD&M with pro-bono work and the verbose, media hungry Roy Spence taking most of the bylines. TOTALS:

Account Wins: 1 (AT&T)

Pro-bono campaigns launched: 3 (Unscrew America, Wildlife, Breast Cancer)

Client mentions: 3 (BMW, Mastercard, Kohler)

Spin-off agencies mentions: 1

Mentions of the politically movin’ and shakin’ Spence: 3