February 9, 2004 | Age |S-2 AdAgeSPECIALREPORT MEDIA AGENCY : Big ideas, big picture time for snack-filled tea breaks. So MindShare Global Media Agency of decided every soul in Britain should stop and take a break—and preferably unwrap a the Year builds on huge KitKat—at precisely 3 p.m. on March 21, 2003. To rally an entire nation behind “Britain’s global Gillette account Biggest Break,” MindShare marshaled most of the U.K. media and an army of WPP By NORMANDY MADDEN companies. U.K. newspapers and magazines and LAUREL WENTZ wrote about leisure time and ran eight-page inserts about taking breaks. There were in- o take over Gillette Co.’s hard-won store promotions, viral e-mails and a text $600 million global media account in messaging campaign on cell phones. early 2003, MindShare crafted a 90-day MindShare media buyers negotiated the Ttransition plan so complex and detailed simultaneous airing of a TV spot on every that it took an entire day just to present it to channel, and convinced a talk radio station to the marketer. stop talking and play music. During those initial three months, “The most exciting thing is that 6.5 million MindShare fully staffed the account with 100 people stopped and had a KitKat,” says Jon people, including country teams in 70 offices Lambert, KitKat marketing manager at Nestle and hubs on four continents, and negotiated Rowntree. “That’s 14% of the population. and placed media for the entire year. Two things made it a success—the creative “It’s the biggest thing globally we’ve idea and getting people to hear it. MindShare swallowed in one chunk,” says Nick Emery, put together a plan that was fantastic in range MindShare’s chief strategy and planning and creativity. It had to feel big.” officer worldwide. “But we’re used to working In fact, Mr. Lambert and MindShare are this way for clients. We’ve already done it for already planning to do it all again on March 12. Ford, Unilever, Kimberly-Clark. We build KitKat is a cozy brand, but MindShare can teams that are right for the client.” be cool, too. Playing on Wieden & Kennedy’s To MindShare CEO Dominic Proctor, the “Freestyle” spots for Nike fusing music and victory was all the more remarkable because basketball, MindShare partnered with MTV MindShare held the Gillette account nowhere last year to make a documentary on the origins in the world, and in a seemingly endless of freestyle, and drew 30,000 kids to compete to review had to defeat two incumbents, MINDSHARE be the U.K.’s top freestylers. MTV made short Omnicom Group’s OMD and Universal films of the best, and 200,000 viewers voted McCann, part of Interpublic Group of Cos. GROSS WINS: $1.54 billion online and by text message for their favorites. GROSS LOSSES: $316 million “Nike doesn’t need more brand $1.5 BIL IN NEW BUSINESS NET WINS: $1.22 billion awareness,” says Malcolm Russell, After the $600 million Gillette win, WPP MAJOR WINS: MindShare’s London-based business director. Group-owned MindShare picked up $1.5 “The media strategy was about creating Nextel Communications U.S. billion in new business in 2003, and lost just experiences our audience could get involved Burger King U.S. over $300 million. About one-third of those in. The business MindShare will be in for Yahoo! U.S. new billings came from two big U.S. wins: the Nike is not so much media as creating Unilever Thailand $160 million Nextel Communications and programming.” President Foods China $340 million Burger King Corp. accounts. ACCOUNTS: From top, Heineken, KitKat and Nike. Marc Goldstein, president-CEO of Abbey National U.K. TURN MARKET ON ITS EAR MindShare , says his agency Motorola China Joe Pollard, Nike’s global media, digital and will retain BK’s . The fast-feeder MAJOR LOSSES: content director , says: “We’re a fairly fired WPP’s Y&R Advertising last month and demanding client in the sense that we’re “The business for Unilever Japan, planning only moved creative and media planning to Crispin always asking MindShare, ‘What’s new, Boots U.K. Porter & Bogusky, Miami. what’s different, how are we turning the Nike is not so much Parmalat Italy A surprising one-quarter of new billings market on its ear from a media standpoint?’ ” OfficeMax USA came from China, where MindShare has a MindShare, the executive says, does a good media as creating Siemens China/Italy/Singapore phenomenal track record and leadership job digging for appropriate creative ideas in position in the world’s fastest-growing media programming” Cadbury Schweppes /Italy/Greece vastly different markets, from the less- market. Another source of growth is a steadily Source: MindShare and Advertising Age developed Czech Republic to soccer-mad Italy. increasing share of Unilever’s business MindShare can even be a little nerdy. Who around the world. MindShare is the winner of mostly at the expense of Interpublic’s In addition to being the world’s second- else would buy two seats on various European 15 of Unilever’s last 17 country reviews. Initiative Media. Besides winning Unilever largest advertiser after Procter & Gamble Co., flights for Austrian pensions company AMF, Meticulous and tenacious, blessed with a pitches in major markets like the U.S., Unilever’s Communications Channel and plop an AMF financial adviser in one of stable management team that has been in Germany, Italy, India and China, the Planning system gives media a central role in them? Passengers were then offered the place since the company’s opening day seven MindShare network had the depth and crafting communications strategy, including chance to occupy the empty seat and get free years ago, MindShare is Advertising Age’s breadth to pick up Algeria, Turkey, Vietnam influencing creative. financial advice throughout the flight. Global Media Agency of the Year. More than and Bangladesh. In the last battle—at “MindShare truly operates at a global, “He would sit there and pitch while the any of its rivals, MindShare in 2003 won a Unilever, there is always a media review regional or national level–they’ve managed to passenger was stuck for 2 hours,” wide range of new business, orchestrated going on somewhere in the world— structure themselves to clients’ needs, and MindShare’s Mr. Emery says. global client relationships and developed MindShare won Thailand, where Unilever is that’s unusual,” says Alan Rutherford, Mr. Proctor, who was also the company’s innovative media strategies. The previous the biggest advertiser. Unilever’s global media director.”They’re first employee, attributes MindShare’s year’s winner was Omnicom’s OMD. MindShare lost a few big ones, too. Last probably ahead of the creative agencies.” success to its stability. With Unilever, for instance, MindShare year Unilever’s $90 million media planning MindShare thinks big. In the U.K., the 50- “We have the same management team as has doubled its share of that marketer’s media business in Japan went to Initiative, following year-old “Have a break, have a KitKat” when we started, and stability at the top of business over the past five years to an the $40 million South Africa account two positioning of Nestle Rowntree’s KitKat brand the company is an incredible advantage,” he estimated 52% of Unilever’s global billings, years earlier. became less relevant as busier Brits had less See MINDSHARE on Page S-4 February 9, 2004 | Advertising Age |S-4 AdAgeSPECIALREPORT MEDIAAGENCY

to lose control over media buying. parent for MindShare and the leading global media network in MindShare is the dominant player So Mr. Proctor set up MindShare Mediaedge:cia. its 2003 Vitality ranking, based on in China with one-third of the MindShare offices across Europe and first. Mr. Proctor spends half his time factors including business won and market for media agency networks, From Page S-2 By then WPP Group CEO in New York, where his striking lost. MindShare and its two closest according to RECMA figures. says. Furthermore, “We’re not led had made his desire resemblance to “The Sopranos’ “ competitors in size, Publicis “China is one of our top three or by one client or one continent. to see MindShare operate in the leading character has earned him a Groupe’s Starcom MediaVest and four markets around the world in its There are no geographic black U.S. very clear, and the company MindShare I.D. badge with the OMD, all have global billings of contribution to the business,’’ says holes that need fixing.” opened in New York in 2000. Mr. name “Tony Soprano” under his about $18 billion. According to Mark Patterson, MindShare’s Hong That’s partly because Proctor, an avuncular globetrotter own photo. RECMA, MindShare has about a Kong-based CEO, North Asia. MindShare was initially blocked who ran the world outside the U.S. 12% share of the U.S. market In 2003, MindShare picked up from the U.S. market, where as MindShare’s chief operating 12% SHARE OF U.S. MARKET among media agencies; a 9% share $200 million in billings in China WPP’s & Mather officer, became CEO last year when RECMA, a Paris-based company of the European market, which is from international clients such as Worldwide and J.Walter Irwin Gotlieb moved up to CEO of that tracks media agency networks, still led by Aegis Group’s Carat; and GlaxoSmithKline, Wyeth Thompson agencies were reluctant GroupM, WPP’s media services will name MindShare this month as 18% of the Asian market. In fact, Laboratories, Frito-Lay and Bristol- Myers Squibb Co. Another $110 million in new business came from local clients like President Food Group, a major Chinese instant noodle marketer; China Mobile, the world’s largest mobile phone service provider; and the Yanjing Group, which controls about 90% of Beijing’s beer market. MindShare Beijing’s most prestigious new account in mainland China last year was the $40 million Motorola business, won in a pitch against incumbent Universal McCann and Starcom. I have the power to send you Janet Fitzpatrick, Motorola VP- director-global marketing, says she was impressed by MindShare’s back to the drawing board. buying and negotiating power, and -Greenfield Online panelist creative channel usage. China is the world’s largest and fastest-growing mobile phone market, with demanding, style-conscious consumers. High-quality research begins with high-quality “In our sector, China is extraordinarily competitive, with respondents – which is why more and more hundreds of local brands marketers demand that Greenfield Online competing,” Ms. Fitzpatrick says. field their research projects. When you use “Our share of voice declined, so our Greenfield Online for your research data dollars have to work harder.” needs, you get instant access to our robust CHINA PUSH panel of more than 1.7 million members that can In MindShare, Motorola found the help you keep your marketing strategies on “spread, tools, distribution, infrastructure” the company was track. Our panel has been pre-recruited and looking for, she says, as well as is made up of 100% opt-in members, resulting drilling deeply into mainland China, in higher response rates and better quality where MindShare has about 400 data for you. Power your research with our staffers. All but four are Chinese. Last year, the network opened three experience, our technology and our people. more offices in China, in Fuzhou, Greenfield Online has partnered with some of Chongqing and Shenzhen, alongside existing ones in Beijing, the largest and most well-respected research Shanghai and Guangzhou. firms in the industry, including the following China will become “really and more: GfK Custom Research Inc., Taylor dominant” over the next 20 years, Mr. Proctor says. “Our view is that Nelson Sofres, ORC International, Directions the overall balance of worldwide For Decisions Inc., M/A/R/C Research, MORPACE activity is shifting toward China, International, Inc., Wirthlin Worldwide, MRSI, India and other developing Harman Atchison Group, Directive Analytics, markets. [China’s ad market] will double in five years in terms of Rothstein-Tauber, Inc. media billings, as well as media Ask that your research provider use Greenfield sophistication and availability of different channels.” Online for your next project – or contact us MindShare executives boast directly at 1.866.899.1017. that they have never lost one of their multinational clients. That may be true so far, but American Express Co., now in review, would be the first if AmEx chooses Carat or Interpublic’s Initiative Media, the other two contenders. Mr. I Wilton, CT I San Francisco, CA I Beaconsfield, Bucks, UK Goldstein says a decision is due at See MINDSHARE on Page S-19 February 9, 2004 | Advertising Age |S-19 AdAgeSPECIALREPORT MEDIA AGENCY

to move to EDI,” says Maribeth Papuga, senior VP-local broadcast, MediaVest, New York, a division of Publicis Groupe’s Starcom MediaVest Group. “Before a total electronic Radio faces big media test loop is born that will make it as easy for agencies to buy radio as it is in other media, Pressure to catch up with the existing systems must be overhauled.” RADIO-AGENCY BRIDGE other media starts with For instance, a bridge must be created between the computerized traffic systems used by the updated invoicing system radio stations and the agencies’ order-and- invoicing software that would allow media By KATE FITZGERALD buyers to observe the status of a radio station ad order on the Web in real time, she says. edia executives long have short- “A type of ‘middleware’ is needed to let shrifted radio when it comes to existing legacy systems talk to one another, parceling out media buys. And it’s no and the costs of developing such a thing are Mwonder. The radio industry’s unimaginable right now by any of the antiquated systems for taking advertising players,” says Ms. Papuga. orders and sending invoices to agencies are The TV industry has not resolved all its stunting its growth and wasting an estimated LOOKING FOR CHANGE: Kathy Crawford of MindShare (l.) and Mary Bennett of Radio Advertising Bureau. EDI order-and-invoice issues either, but radio 8% to 9% in revenue annually, according to lags too far behind it in automation, says Ms. radio industry executives. Crawford. But that may change this year, if major finally see some major progress with EDI, but and ABC Radio, plus many small operators. “I applaud the rep firms for the initiative radio rep companies including Katz Media and radio still lags far behind other media “The majority of radio stations will be they’re taking, but there are so many more Interep succeed in pushing through new industries in automation,” says Kathy doing electronic invoicing by the end of this radio stations than TV stations, and the electronic data interchange pilot programs Crawford, president of local broadcast at year, which is part one of the total EDI complexities of moving to a new technology designed to automate most radio ad invoicing MindShare, New York. solution, where eventually ads will be are enormous for a good part of the industry,” for the first time. ordered, verified, invoiced and tracked Ms. Crawford says. Katz last month conducted its first major BIG CHALLENGE electronically in real time,” says Mr. Prager. Yet the pressure for radio to catch up with test of electronic invoicing with WPP Group’s David Prager, Katz Media VP-chief But major media buying agencies, other media is intensifying, says Mary MindShare Worldwide, with the aim of setting information officer, says the radio industry is including some of those involved in the Bennett, exec VP-marketing for the Radio new standards for invoices sent to all major poised for a great leap forward this year that current EDI tests, are skeptical about how far Advertising Bureau, New York. agencies, eliminating human error and costly will ultimately help its bottom line. The biggest electronic invoicing will spread this year. “EDI must become a top priority for every paperwork. Interep is conducting similar tests challenge is the sheer number and diversity of “Progress has been made, but things still radio station manager for radio to maximize with its own systems and agencies. radio stations, which are owned by a few large bog down in smaller markets where stations its power and get its full share of revenues,” “Given the success of our test, we will groups like Clear Channel Communications have not yet made the technology investment she says. I

company introduced MindWare and P&G.“When you work with these programs . MindWare consists of planning with individual retailers, there’s a measure of MindShare and modeling tools that help planners Conflict confidentiality in the program until it From Page S-4 analyze data and make budget allocation, From Page S-12 becomes public,” he says. “There’s a tension the end of February. And MindShare has media selection and other decisions. housed on different floors and staff between wanting to consolidate things to failed to win some big pitches, like the $350 MindFlow is media reporting software that members do not share information. become more efficient and recognizing there’s million U.S. Coca-Cola Co. media business lets clients access data about their media “Conflicts have become almost a non-issue a need for different kinds of agency structures that went to Starcom MediaVest in planning and buying around the world. On for many clients because of our internal to keep things apart. We haven’t cracked the December. the research front, MindShare also launched firewalls, and the fact that our information code on this.” “Curiously, given how terrific 2003 was, 3D with 72,000 interviews with consumers in technology people make sure client Of greater concern to agency advisers is our big challenge now is to reinvent the more than 20 countries about media choice information is secure,” says a Starcom the fact that the search to avoid conflicts may company again,” Mr. Proctor says. “The and usage. spokeswoman. be costing agencies access to the best possible model we drew up [seven years ago] would “Clients need fact-based research into P&G has explored consolidating its roster advertising resources, says Mr. Roth. need to change every three or four years to their business, more client-centric,” Mr. of shops, which number about 60 globally, “The right match might involve a conflict, reflect changes in the market, so there is a Proctor says. “By that I mean developing but one factor that has prevented the and in their eagerness to avoid conflicts, need now to redirect the company for the next absolutely bespoke teams around each client company from doing so yet is a new kind of clients may be limited to choosing only four or five years.” rather than around each country, so the conflict that emerges in manufacturer-retailer among certain agencies and they may not get He particularly wants to develop more overall MindShare is made up of mini- co-marketing programs, says Qaisar Shareef, the best one for the job,” he says. I innovative research tools. In 2003, the MindShares.” I director of global shopper marketing at CONTRIBUTING: JACK NEFF, JEAN HALLIDAY

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