Radio Is the Key to ROI and Reach SOUND Advertisers Need Now SOLUTION

December 4, 2017 Important to Important People

Tito’s Handmade Vodka won a spirited fight for Marketer of the Year, plus nine others that crushed it

MARKETERS OF THE YEAR p. 16

The top 100 spenders are pouring it on— and some of the biggest movers WORLD’S LARGEST are in China

ADVERTISERS p. 9

Don’t believe what you read about magazines—these titles are thriving (and kicking digital butts)

MAGAZINES OF THE YEAR p. 28 NEWSPAPER NEWSPAPER $19.99 U.S./CAN. £12.99 U.K. 30 Sessions 45 Speakers Over 250 Executives

Ad Age’s E.J Schultz interviewing Brad Jakeman

On November 15 and 16, Ad Age Speakers included IBM’s Bob Lord, Ad Age hosted its first Next conference, Burger King’s Fernando Machado, the evolution of our long-running Walmart’s Sumaiya Balbale and Next Digital Conference. P&G’s Marc Pritchard. Visit AdAge.com for 2018 events

Co-presenting sponsors Supporting sponsors

AA013919.indd 1 12/1/17 11:46 AM Creativity Pick Photography by Tktk by Photography

OK GO’S PULP-FRICTION ‘OBSESSION’ VIDEO IS A COLLABORATION WITH PAPER BRAND DOUBLE A

Date 11/27/17 Client OK Go Directors Damian Kulash, Jr., Yusuke Tanaka

Important to Important People 1 Inside This Issue

“I have been Behind the Headlines 3 convinced that it Facebook’s about-face Ford may have a better idea The platform warms up to formerly Automaker reevaluates its agency is the best thing ... banned pre-roll ads with Watch test relationships, including with WPP but it still breaks Carjacking Q&AA Accenture Interactive’s Maserati Steve Stoute puts the CRM in RPM my heart.” heist could signal trouble for shops with new music startup CP&B Chairman Chuck Porter to AdAge.com about the closing of the Miami office that made the agency famous Datacenter 9 President & Publisher Sales Josh Golden World’s Largest Advertisers General Manager, Revenue & Associate Publisher, General Client Partnerships Chinese marketers surge on Ad Age’s Manager, Marketing & Brand Jackie Ramsey Heidi Waldusky comprehensive annual ranking Senior Manager, Client Editors Partnerships Alex McGrath Senior Manager, Client Editor Brian Braiker Partnerships Brent Rupp Executive Editor Nat Ives 11 Senior Manager, Client City Spotlight Deputy Editor Judann Pollack Partnerships Liz Spitaleri Managing Editor Manager, Client Partnerships Roberta Bernstein Getting better all the time Danika Felt Member & Custom Content U.K. ad capital London keeps calm Senior Account Executive, Editor Ann Marie Kerwin and carries on despite Brexit Agency Relations Karla Jordan Datacenter Sales Coordinator Alexis Marrero Director, Data Analytics Bradley Johnson Program Management Creativity 13 Director, Data Management Kevin Brown General Manager, Product Senior Research Editor & Technology Kevin Skaggs Let’s do the time warp Catherine Wolf Director, Program Management Kerri Ross Brands take bizarre cameo roles in Editors at Large China’s historical costume dramas Senior Marketing Programs The Media Guy Manager Emily Chiang Simon Dumenco Marketing Programs Manager Personal Products/Research Eniko Skintej Jack Neff Marketers of the Year 16 Associate Marketing Editorial Beat Sheet Producer Diane Firmalino

Tito’s Handmade Vodka See who else made the grade Digital Content Producer Marketing & Audience Nefertiti Anderson Development Outstanding brand positioning leads Check out the nine runners-up whose Creativity Editor Tito’s to top of category—and our list marketing outshone their rivals Ann-Christine Diaz Senior Audience Asia Editor Angela Doland Development Manager Maria Giatrakis Media Agencies Megan Graham London Editor Emma Hall Marketing Coordinator Emma Jarry Magazines of the Year 28 Retail, Finance Adrianne Pasquarelli Conferences & Events Media Jeanine Poggi Start spreading the news Chicago Bureau Chief Senior Director, Conferences New York magazine leads the pack in E.J. Schultz & Events, Executive Producer our recognition of top titles of 2017 Senior Editor, Events Tina Marchisello Anna Sekula Associate Director, Ad Tech, Ad Fraud, Search Conference & Events George Slefo Nicole Nelson Garett Sloane Opinion 36 Tech, Social Events Producer Agencies, PR Lindsay Stein Danielle Deluca Food Jessica Wohl Advertising Production TV’s hocus-pocus Culture shock Creative Services The tube plays data tricks: Now you The true forces shaping pop culture Prepress/Production Director

Creative Director Simone Pryce see the ratings, now you don’t are outside the ad industry Erik Basil Spooner Director of Video Classic Ad Review Alfred Maskeroni Senior Art Directors In wake of sexual harassment news, Jennifer Chiu, Tam Nguyen Charlie’s ads take on new meaning Video Producer David Hall Digital Content Producer Chen Wu

Crain Communications Inc Chairman Keith E. Crain Founder Vice Chairman Mary Kay Crain G.D. Crain Jr. (1885-1973) President KC Crain Chairman Senior Executive Vice Mrs. G.D. Crain Jr. (1911-1996) President Chris Crain Secretary Lexie Crain Armstrong Editor-in-Chief Emeritus Rance Crain Subscriber services: 877-320-1721, fax 212-210-0465, Chief Financial Officer outside U.S.: 313-446-0450, email: [email protected] Printed in the U.S.A. Robert Recchia

2 Ad Age December 4, 2017 Behind the Headlines Behind the Headlines

FACEBOOK TO LIFT LONGTIME BAN ON PREROLL VIDEO ADS

By Garett Sloane Illustration by Tam Nguyen

Facebook plans to test video ads at the start of Watch shows, exploring what would be a signifi cant shift, according to advertisers familiar with the social network’s strategy. Facebook has long resisted the pre-roll format because of its reputation for annoying viewers who are trying to get to their desired content. For years, CEO Mark Zuckerberg even banned “pre-roll” from Facebook’s advertising vernacular. “We don’t need to do pre-roll because our model is not one where you come to Facebook to watch one piece of content,” Zuckerberg said on it makes sense that Facebook would amount of inventory has always been of advertisers. People also mostly watch a conference call with investors in late pursue a similar strategy as it builds a gap when buying on Facebook. This them with the sound on, unlike the feed. July. “You come to look at a feed.” out its original content experience.” ad product would fi ll that hole.” Facebook has said mid-roll ads But now it seems the time might Watch shows are also di erent In August, Facebook introduced see a 70 percent completion rate, but be right to at least give them a try. than the video that Facebook has Watch with mid-roll ads, which run that’s for all mid-roll, which can run in Facebook this year introduced Face- previously featured most: shorter in the middle of the shows, after videos outside Watch, too. It has not book Watch, a would-be YouTube rival clips that depend on impulse viewers. a viewer presumably gets sucked revealed data specifi c to ad comple- where publishers, TV studios and Watch was designed to draw audi- into the content and is less likely to tion in Watch. Nor has it said how web celebrities create shows and try ences of loyal, returning viewers in a abandon it because of an ad break. But often viewers drop o when they hit to make money through ad sales. The setting more like TV. In that scenario, some publishers and advertisers say commercial breaks. move was part of a broader war among fans of a show might be more open to those ads haven’t been optimal. Show Facebook uses data to determine digital platforms and publishers to watching a commercial before a pro- creators are concerned that mid-roll the media habits of individual users, win at video, where marketers will pay gram starts. It’s a di erent mindset ads risk letting viewers tune out even so it should also be able to tell users more than for other kinds of ads. than racing down the Facebook feed. if they’ve been watching for a while. who accept pre-roll ads from ones Facebook, which declined to Advertisers like the guarantee of “There have been comments from who don’t. It could show pre-roll to comment for this story, is expected to ads being seen at the outset instead of viewers about how annoying the ads some and mid-roll to others, says a begin studying how users respond to hoping viewers reach the break. are,” says one publishing executive, media-agency executive familiar with the new commercial experience in the “A downside of Facebook News who works with Facebook on shows and Facebook’s thinking. coming weeks. Feed inventory is that it can be easily spoke on condition of anonymity. “They “They can get really sophisticated “YouTube already established that scrolled past by users, whereas pre- say they would rather watch pre-roll understanding people,” the executive people will sit through and tolerate roll or mid-roll in Watch guarantees than watch a video and be interrupted.” says. “For those people who watch for pre-roll,” says Steve Ellis, CEO of eyeballs against our clients’ content,” The mid-rolls have delivered some longer amounts of time, they could get WhoSay, a social infl uencer market- says Mark Sytsma, associate director positive results, however, like higher in-stream ads. And people who tend ing company. “It’s proven that they of paid social at Huge. “The ability completion rates than video ads in the not to watch for very long, they would haven’t sent consumers fl eeing, so to purchase a known or guaranteed Facebook feed, according to a number instead see a pre-roll.”

Important to Important People 3 Behind the Headlines Car trouble

If there’s one question ment to Ford, which WPP’s biggest ac- overseen by Kumar WPP FACES expected to be asked of said in a statement counts, and one of its Galhotra, group VP of WPP CEO Martin Sor- that “we are exploring oldest too,” Wieser the Lincoln brand, who rell at the UBS Global options to improve the says. “Generally, older in November added PRESSURE ON Media and Communi- fitness of our market- accounts tend to be global chief market- cations Conference this ing and advertising op- more profitable than ing officer to his title. FORD ACCOUNT week, it’s this: What’s erations. No decisions newer ones, so it may Another change agent up with Ford? have been made.” be disproportionately is Musa Tariq, a former The first sign of Pivotal Research important relative to Apple and Nike market- By Lindsay Stein and E.J. Schultz potential trouble senior analyst Brian its already large size.” er, who was named VP came when WPP, in Wieser says Ford’s WPP, which handles and chief brand officer a regulatory filing statement likely sig- Ford via dedicated at Ford in January. to the London Stock nals the automaker is shop Global Team Blue, In a sign that Ford Exchange, stated that “providing notice that has worked for Ford is willing to shake up Ford “verbally in- it was offering worse continuously since its agency roster, the formed WPP that they terms to WPP than the automaker hired automaker’s luxury are considering their it currently has, but J. Walter Thompson Lincoln brand recent- future internal and giving them first rights in 1943. Today, WPP’s ly hired Wasserman external marketing to figure something scope on the business Media Group-owned model.” The statement out.” That could be bad includes media buying Laundry Service to added that Ford wants news for WPP, which and planning, advertis- assist on a campaign to enter into “a further like all holding compa- ing and PR. for the launch of the agreement with WPP nies, is coming under Ford’s new manage- redesigned 2018 Lin- for a period to be increased pressure ment team is putting coln Navigator SUV. agreed in 2018.” That from clients on fees. spending under the mi- A Lincoln spokesman seems to be code for WPP already lowered croscope. Jim Hackett, confirmed that the Ford wanting to nego- growth expectations to who was named CEO in agency would handle tiate more favorable zero earlier this year, May, is looking to slash social media. WPP’s terms with the agency blaming cutbacks from $14 billion in the next Hudson Rouge—known holding company that major packaged goods five years, including for Lincoln’s Matthew oversees almost all of clients like Procter & material cost reduc- McConaughey ads— its ad business. Gamble and Unilever. tions and engineering will continue to work WPP CEO Martin Sorrell (l.) and Ford CEO Jim Hackett WPP referred com- Ford is “one of savings. Marketing is on Lincoln.

Score another one for the consul- This year, for the first time, four The success of the Maserati part- ACCENTURE tants: Fiat Chrysler tapped Accenture consultancies cracked Ad Age’s rank- nership will be judged on how many DRIVES OFF WITH Interactive as global experience ing of the 10 largest agency companies cars are sold, says Roytman. “Our agency of record for Maserati, with a in the world, with Accenture Interac- KPIs are about selling cars to the MASERATI brief spanning eight major markets tive leading the four. right audience.” including the U.S., Japan and Europe. Roytman was behind Accenture’s Accenture Interactive has steered By Emma Hall Though Maserati is not a major acquisition last year of London cre- clear of buying ads. “We don’t want U.S. brand and does not spend much in ative agency Karmarama, which will to be in the commission business,” this country, the move is still signifi- lead the Maserati account. The focus is Roytman says. “It’s not a good model cant for Accenture Interactive, which on being a customer-centric “experi- to get involved in.” along with other consultants is on a ence agency,” meaning one that ad- Asked whether agencies need to be quest to beat traditional agencies at dresses every point where consumers worried about consultants, Roytman their own game. come into contact with Maserati. This says, “We all need to be worried. ...We Anatoly Roytman, managing direc- includes brand and creative work, dig- all need to change. The consultancies tor of Accenture Interactive in Europe, ital advertising, strategy and content need to go beyond the single-project Africa and Latin America, called the production, campaign management, mindset. Clients need a partner to move “a game-changer in the indus- search-engine optimization, analyt- generate growth, and it’s not possible try. We’ve arrived. There was no pitch ics—everything on down to test drives. to do that on a project basis.” because no other agency could offer “We want to engage with our this entire, end-to-end scope. It’s our customers across all channels in more first win using everything we have as meaningful ways,” says Jacob Nyborg, Accenture Interactive.” Maserati’s head of marketing. “Accen- ture Interactive have the capabilities to manage our customer touchpoints holistically so we can deliver great experiences that build consistent, seamless and authentic interactions with our discerning customers.”

4 Ad Age December 4, 2017

P004_AA_20171204.indd 4 12/1/17 7:11 PM It’s one thing to know what she’s watching today. But what about tomorrow? When you have the right data and the right science, you won’t only know what’s next—you’ll get there first.

Learn more about The Science Behind What’s Next™ at nielsen.com.

AA013912.indd 1 11/13/17 10:40 AM Behind the Headlines Questions & Ad Age Q&AA: STEVE STOUTE ON THE LABEL OF THE FUTURE Flush with $70 million in new funding, the former president of Interscope Records discusses his music startup

By Lindsay Stein Illustration by Jérôme Mireault

When Steve Stoute left the music If Translation is an agency about What do people get wrong in the industry to create independent adver- translating culture for brands, what “Music has music industry? tising agency Translation in 2004, he does the UnitedMasters name mean? always been, The legacy labels have been late to says he was determined to take what Charlie Chaplin created United Artists building out digital technology to help he learned from the record business [with Douglas Fairbanks, D.W. Griffith and will always the artists. I think others have done and bring it to the ad world. Now, the and Mary Pickford] to bring artists be, a strong it, like MTV, the iPod, Napster, Garage entrepreneur is squaring the circle together to go against that studio sys- Band, Spotify, Apple. Others have with his new venture, UnitedMasters. tem. At that time, because the studios gateway to built digital technology to amplify the The company, which has received owned the theaters, if you were in a connect with business, but not legacy labels. $70 million in funding from investors Paramount movie, you only played including Google parent company in Paramount theaters and you were a consumer So, enter UnitedMasters? Alphabet, Andreessen Horowitz and signed to a long-term contract. Those in an emotional The idea in its origin came to me 21st Century Fox, will sign and distrib- things had to change, so they created maybe 14 or 15 years ago. When I was ute artists, help them nurture and United Artists as a vehicle for change. hot state.” at Interscope Records, [producer] monetize a fan base and then identify UnitedMasters is an iteration of that. Steve Stoute Jimmy Iovine and I would marvel at brands for them to work with. It’s about artists coming together to the fact that we never knew who our Ad Age sat down with Stoute to change the system. Our purpose is to customer was. We would sell millions find out more about UnitedMasters operationalize independence and give of physical CDs, but never knew who and what it means for both the adver- advertisers a much clearer opportuni- was buying them, which was com- tising and music industries. ty to work with artists. mon. But we said, “Imagine if you Our conversation has been edited. took a CD out and on the back tray we Is this a revolt against the major etched a logo on it, like Nike or Apple, labels? Or are they doomed? and wrote copy on the back and said I don’t think it’s fair that anybody this was brought to you by Nike or by should kill this idea while it’s still in Apple.” It was an idea called CD media the cradle, nor do I think you should and it never got off the ground, but it assume the incumbent is dead. There’s was the notion of targeting an ad with a lot of room between the two places. the physical packaging that’s in the

hands of a music fan. colagene.com Mireaultn, Jérôme

6 Ad Age December 4, 2017 Ads

AA013914.indd 1 11/28/17 2:56 PM Behind the Headlines Questions & Ad Age

And now fans tend to download decisions, real, actionable insights How so? or stream music, so the physical “This is a win for and, ultimately, the ability to use their It’s everything we admire—all of the component is gone. the ad industry. audiences to work with brands. tech platforms taking off, the way we I had to go through the cons of making engage with things, like bringing tech- less money per song on digital, and I want agencies to What’s the endgame for you? nology to the Starbucks experience. that people can buy a song and not the see this and think, Translation and UnitedMasters, which That’s why we’re seeing the industry entire album, and there’s no artwork, is all one company, is my vision and going wide. All those services are so it’s hard to get people to buy into a ‘Yes. We matter.’” my dream, and I think it’s today’s needed, but they’re hard to find in one body of work. Albums and themes of Steve Stoute reality of the convergence between place because it’s expensive. I think albums don’t matter any longer. But storytelling, technology and culture. If Interscope Records and Def Jam would the pros are that we now have the you’re in business for tomorrow, you have been great advertising agencies. power that the digital economy pro- must have that convergence within vides, so we can build CRM systems, your organization to move forward. Why’s that? which allow us to know your customers It’s critical. As an advertising agency, They were always on the cultural front and build ways to communicate and I’m really proud of the stories we’ve lines. They never built the infrastruc- drive affinity with those customers. told and the creative we’ve put into ture to work with a brand at scale, but the world, but I think creative adver- they definitely had the ingredients to Meaning, the music industry can tising agencies and media agencies help move a brand’s initiative forward. better target fans now? need to be able to offer more services. So the fact that I ran record companies When I looked at the music landscape, The advertising industry needs to for years and I built an advertising while it should be the case, it isn’t the keep evolving. agency, and now I’m combining music case. In fact, an album like Beyoncé’s insights, storytelling and data, to me, “Lemonade” can sell five million Is UnitedMasters meant to combat that’s just the next evolution. albums, let’s say, but if she came out these issues? six months later with an album called This is a win for the ad industry. I Where do brands come into this? “Iced Tea,” she’d have to find those want agencies to see this and think, Brands make big investments in music same five million people over again. “Yes. We matter. Yes. We have value.” that are wasteful. Music has always This is about the need for the industry It’s a new innovative way for the been and will always be a strong to innovate with digital technology. industry to move forward. gateway to connect with consumers in an emotional hot state. However, the Play out a scenario of how you What sort of talent are you looking current way in which money is spent propose to do this. for to work on UnitedMasters? to do that is a bunch of wasted spon- We can find an artist, help that artist If you look at the body of employees sorships and poorly invested dollars grow his or her audience and, when right now, it’s data scientists, engi- with no return. they grow that audience, we can build neers, product folks, creatives, story- a CRM system around that audience tellers, design teams and writers, and so they know exactly who their casual then there’s A&R and digital sales. fans and super-engaged fans are. It’s about bringing all those skill sets Once you can identify those fans, you together. The most important thing is can build out the best ways to mone- the convergence of storytelling, cul- tize them. You can sell tickets or sell ture and technology. That’s the world merchandise, but on top of all of that, we live in right now. I believe that when those artists reach a certain scale, we can allow brands to target their audience directly. I look at the artists as mini media companies, like if Beyoncé is ESPN and Lady Gaga is Discovery. You start building out those brands because the artists have just as much reach as the brands, but they don’t have a way to monetize their audience like brands do, and now they will.

What types of artists will you work with? Any particular genre? Some of them can be legacy artists but 90 to 95 percent will be new digital-native artists who are from the internet era and probably never even used a CD player or recorded on tape before. They have learned the digital economy and how to navigate it. We’re looking to distribute those artists who Heavy hitters: (From l.) Jay-Z, New England Patriots owner Robert need distribution services and want Kraft and Steve Stoute attend a it with the benefits of data-driven night of boxing in Las Vegas. Nunez/WireImage Johnny by Photograph

8 Ad Age December 4, 2017 Datacenter

World's 25 Largest Advertisers WORLD’S LARGEST By 2016 total worldwide advertising spending

ADVERTISERS 2017 2016 total worldwide advertising The 31st annual global Rank Marketer Headquarters, category spending report, produced by wAd Age Datacenter 1 Procter & Gamble Co. U.S., personal care $10.5B 2 Samsung Electronics Co. South Korea, technology 9.9B By Bradley Johnson 3 Nestlé Switzerland, food and beverages 9.2B

4 Unilever U.K./Netherlands, personal care 8.6B

The World’s 100 Largest Advertisers 5 L'Oréal France, personal care 8.3B increased ad spending 3.4 percent to 6 6.7B $267 billion in 2016. But if you want to Volkswagen Germany, automotive see the real growth, check out China, 7 Comcast Corp. U.S., entertainment and media 6.1B which boasts four of the world’s big- 8 5.9B gest marketers. Anheuser-Busch InBev Belgium, beer, wine and liquor Advertising and promotional 9 General Motors Co. U.S., automotive 5.3B spending by Alibaba, China’s biggest 10 5.1B online retailer, rocketed 50 percent to Daimler Germany, automotive $1.3 billion, the fastest growth in the 11 Amazon U.S., retail 5.0B top 100. Spending at internet power 12 4.7B Tencent surged 48 percent to $1.4 LVMH Moët Hennessy Louis Vuitton France, apparel billion, good for the second-highest 13 Ford Motor Co. U.S., automotive 4.3B growth. SAIC Motor, China’s largest 14 4.2B domestic auto group, increased ad Toyota Motor Corp. Japan, automotive spending a more modest 4 percent, 15 Coca-Cola Co. U.S., food and beverages 4.0B to $1.6 billion. Yili Group, the coun- 16 3.9B try’s largest dairy marketer, trimmed Fiat Chrysler Automobiles U.K., automotive its outlay, but the quartet’s overall 17 Alphabet (Google) U.S., entertainment and media 3.9B spending grew 20 percent anyway. 18 3.8B Most of the four firms’ global Priceline Group U.S., travel spending was in China, the world’s 19 AT&T U.S., telecommunications 3.8B second-largest ad market. Ad spending 20 3.7B there grew 8.7 percent in 2016 and is American Express Co. U.S., financial services set to rise 7.4 percent this year, to $80.5 21 Mars Inc. U.S., food and beverages 3.5B billion, according to a new forecast by 22 3.4B Publicis Groupe’s Zenith. McDonald's Corp. U.S., restaurants Amazon ranks No. 11 among global 23 Sony Corp. Japan, entertainment and media 3.4B advertisers with spending of $5 bil- 24 3.3B lion, ahead of such marketers as Ford Bayer Germany, personal care Motor, Coca-Cola and McDonald’s. 25 Pfizer U.S., pharmaceuticals 3.2B The ranking includes 10 such $133.5B internet-age companies—Tencent, World’s Largest Advertisers: Top 25 Alibaba and Rakuten also among World’s Largest Advertisers: Top 100 $267.3B them—that last year collectively boosted ad spending by 25.8 percent. Source: Ad Age Datacenter. Total worldwide advertising spending from Ad Age Datacenter estimates and company financial filings. Numbers rounded. Full report Spending for the remaining 90 edged including ranking of top 100, profiles and expanded footnotes: AdAge.com/globalmarketers2017. 1. Procter & Gamble: Year ended June 2017. Estimated spending on up 1.7 percent. Sixty-five of the 100 advertising plus other marketing costs. 2. Samsung: Ad Age revised spending model to capture advertising and sales promotion. Ad Age previously excluded sales promotion from its calculation of Samsung worldwide spending. 3. Nestlé: Ad Age revised spending model to capture estimated “consumer facing” marketing expenses. showed increases. (Not surprisingly, Ad Age previously ranked Nestlé using a model based on a narrower definition of ad spending. 8. Anheuser-Busch InBev: Estimated pro forma spending including internet-centric marketers dominate SABMiller (acquired October 2016). 22. McDonald’s: Estimated worldwide systemwide ad spending including spending from franchisees and company-owned restaurants.

Important to Important People 9

P009_P010_AA_20171204.indd 9 12/1/17 3:57 PM Datacenter

Ad Age’s separate tally of the world’s World's Largest Advertisers by category Seventeen of the World’s 100 Largest Advertisers are in automotive—16 automakers and tire maker Bridgestone—with 2016 total fastest-growing ad spenders.) worldwide ad spending of $51 billion. Spending by personal care and household products marketers was close behind at $48 billion. The World’s Largest Advertisers ranking is based on Ad Age Datacenter 2016 total estimates and company disclosures. worldwide Number of advertising Share of top 100's It captures total ad spending, an all-in Category marketers spending spending assessment including everything from Automotive 17 $50.8B 19.0% TV and in-store advertising to social media and mobile. Personal care and household products 13 48.2B 18.0 25.5B 9.5 Still No. 1 Entertainment and media 10 Procter & Gamble kept the top spot by Retail 14 23.9B 8.9 spending an estimated $10.5 billion on Food and beverages 7 23.2B 8.7 advertising and other marketing ac- tivities. South Korea’s Samsung Elec- Technology 6 17.8B 6.7 tronics took second with $9.9 billion Telecommunications 7 15.1B 5.7 in 2016 spending. Swiss food marketer Nestlé came in No. 3 with $9.2 billion in Beer, wine and liquor 6 14.8B 5.5 estimated “consumer facing” market- Financial services 6 13.6B 5.1 ing spending. Ad Age revised spending models for this report to incorporate Apparel 4 11.6B 4.3 Samsung’s massive promotion budget Pharmaceuticals 6 10.6B 4.0 and a broader definition of Nestlé consumer marketing spending. Travel 2 6.5B 2.4 Auto was the biggest category Restaurants 2 5.6B 2.1 among the World’s Largest Advertis- ers, with 17 marketers spending $51 World’s Largest Advertisers: Top 100 100 $267.3B 100.0% billion. Personal care and household products was close behind with 13 Source: Ad Age Datacenter. Total worldwide advertising spending from Ad Age Datacenter estimates and company financial filings. marketers spending $48 billion. Numbers rounded. Full report including ranking of top 100, profiles and expanded footnotes: AdAge.com/globalmarketers2017. The top 100 includes 46 based in North America (45 in the U.S. plus the telecom firm América Móvil in Mexico), 31 in Europe and 23 in Asia. Fastest-growing spenders Nine of the 10 fastest-growing ad spenders among the World’s 100 Largest Advertisers are internet-centric plays, World’s Largest Advertisers com- led by China’s Alibaba. The one exception is Schwarz Gruppe, a brick-and-mortar retailer based in Germany. plements Ad Age’s Leading National Advertisers report (AdAge.com/ 2016 total lna2017); 80 of the 200 biggest U.S. worldwide advertising % change spenders made the ranking of the top Rank Marketer Headquarters Category spending vs. 2015 100 global spenders. 1 Alibaba Group Holding China Retail $1.3B 50% Eleven of the World’s Largest Entertainment Advertisers had no significant U.S. 2 Tencent Holdings China 1.4B 48 measured-media spending in 2016: and media automakers PSA Group and Renault 3 Rakuten Japan Retail 1.1B 34 (France) and SAIC (China); retail- 4 Amazon U.S. Retail 5.0B 32 ers Aeon (Japan), Alibaba (China), Carrefour (France) and Rewe Group 5 Expedia U.S. Travel 2.7B 29 (Germany); telecoms Telefónica 6 Priceline Group U.S. Travel 3.8B 25 (Spain) and Vodafone Group (U.K.); and China’s Tencent and Yili. Entertainment 7 Alphabet (Google) U.S. 3.9B 21 and media 8 Schwarz Gruppe Germany Retail 1.4B 21 Entertainment 9 Netflix U.S. 1.0B 20 Go online to and media see the world 10 eBay U.S. Retail 1.2B 20

The complete World’s Largest Advertisers Source: Ad Age Datacenter. Total worldwide advertising spending from Ad Age Datacenter estimates and company financial filings. 2017 ranking and database are available Numbers rounded. Full report including ranking of top 100, profiles and expanded footnotes: AdAge.com/globalmarketers2017. exclusively online to Ad Age Datacenter subscribers at AdAge.com/globalmarketers2017.

Online content includes: • World’s Largest Advertisers: Ad Age’s exclu- Methodology: Spending for World’s Largest Datacenter directors: Kevin Brown, Bradley © Copyright 2017 Crain Communications Inc. sive ranking of the 100 biggest spenders. Advertisers from Ad Age Datacenter estimates Johnson. Senior research editor: Catherine Wolf. The data and information presented is the • Global marketers database: Profiles, ad and company disclosures. Figures capture Research assistants: Briana Boston, Melanie property of Crain and others and is protected total worldwide advertising spending, an all-in Falina, Andrew Fricke, Danielle Gregory, Gabrielle by copyright and other intellectual property spending, executives and key global agencies assessment that includes everything from TV and Rosas. Ad Age Asia editor: Angela Doland. laws. For personal, noncommercial use only, for World’s Largest Advertisers. in-store advertising to social media and mobile. which must be in accordance with Ad Age’s • Biggest advertisers in 95 countries: Rank- Ad Age translated currencies to U.S. dollars at Terms and Conditions at AdAge.com/terms. ings based on measured-media spending. average exchange rates. Measured media for Archiving, reproduction, redistribution top advertisers by country from media tracking or other uses are prohibited. For licensing Subscribe: services; links to tracking services available at arrangements, please contact lpicariello@ AdAge.com/getdatacenter AdAge.com/globalmarketers2017. crain.com.

10 Ad Age December 4, 2017

P009_P010_AA_20171204.indd 10 12/1/17 3:44 PM City Spotlight London City Spotlight

LONDON From Brexit to Brixton, everything you need to know about the U.K.’s ad capital

By Emma Hall Illustrations by Hyesu Lee

The Thames River winds its The upcoming nuptials of Prince way through growing London. Harry to the biracial, divorced Amer- ican actress Meghan Markle is an apt analogy for London: Rooted in tradi- tion, it’s anything but traditional. doors to non-U.K. workers once it has middle-class employees . Mother for access to data analytics. Mean- The city’s hip bona fi des were left the EU has resulted in resumes, London’s Mackay is leading initiatives while, there’s less work for indies born in the swinging ’60s, when a cold calls, chocolate and alcohol being there to up diversity, such as o ering from the bigger clients. Over the last youth-driven revolution introduced sent from Europeans eager to move to entry-level jobs that pay well enough year, for example, Procter & Gamble miniskirts and the Rolling Stones to London while they still can. to appeal to applicants who don’t have and Unilever have cut their agency the world. Today the U.K. capital con- Alain Groenendaal, who moved parents able to bankroll them. rosters in half . tinues to be a vital cultural force; add from New York to London this year Media companies face the big- to that it being wedged between the when he became president and CEO Start-ups swallowed up gest challenges. A wave of London American and Asian time zones, and of Grey Europe, says he fi nds the city London’s ad world faces other chal- media execs left their posts this past it’s no wonder big U.S. tech companies more mixed, and the multiculturalism lenges. Indie agencies could become a October, which became known in are setting up shop there. Google, more layered, than in New York. Look thing of the past, as exemplifi ed by the the industry as “Shocktober.” Paul Apple and Facebook have all recently no further than British Vogue for selling o of thriving companies Lucky Frampton, outgoing CEO of Havas invested in statement-making London proof: Its December issue—the debut Generals and 101 to TBWA and Mullen- Media Group U.K., Tracy De Groose, headquarters, many of them housed in of Vogue’s fi rst black, male editor, Lowe, respectively. Laurence Green, Dentsu Aegis Network U.K. CEO, and the Kings Cross neighborhood. Edward Enninful—features a parade a founder of 101 , says it’s di cult to Pippa Glucklich, U.K. CEO of Starcom, It’s not hard to convince people of multicultural U.K. creative talent, be a standalone in this low-growth, all resigned without jobs to go to. to work here: There are more good and the British-Ghanaian model and low-pricing era, particularly when The cause is the root-to-branch restaurants than ever, and from activist Adwoa Aboah on its cover. big regional and global work is harder disruption triggered by digital tech- trendy Dalston (think Brooklyn) to to come by. The barriers to entry are nology and the transformation of the swanky Mayfair (think Park Avenue), Diverse—but not so much higher than ever, infl ated by the need supply chain . Media agencies seem there’s a place for everyone . Plus, This diversity, however, is not that to have been hit even harder than ad there’s history. Anomaly’s o ce, for apparent in the ad industry. While agencies by the brutal pressure to example, is situated near one of the many of the city’s ad legends started deliver fi nancial results, which, com- Black Death plague pits. their careers in the mailroom—includ- bined with the scrutiny around trans- And while the U.K. voted for ing Iraqi immigrant Charles Saatchi, parency, has provoked this exodus of Brexit, Londoners voted overwhelm- founder of Saatchi & Saatchi, and talent. Brexit also hasn’t helped, par- ingly to stay in the European Union. Peter Mead, founder of Abbott Mead ticularly when global network chiefs The city’s Muslim mayor, Sadiq Khan, Vickers (now part of BBDO)—college fail to understand its local impact. is determined to remain an active graduate recruitment has now be- Frampton’s resignation to sta player in the global community. Katie come pretty much the only way to get said, “Our industry is undergoing tec- Mackay, a partner at Mother London, a foot in the door. This has resulted in tonic changes and it feels like the time

London: iStock London: says Britain threatening to close its an entry-level group of mostly white, for me to try something di erent.”

Important to Important People 11

P011_012_AA_20171204.indd 11 12/1/17 10:57 AM City Spotlight London

Google: 6 Pancras Sq., Kings Cross Construction begins in 2018 on Google’s new U.K. headquarters, which will have room for 7,000 employees. Perks include a roof meadow and butchery lessons.

Havas: 3 Pancras Sq., Kings Cross Opened earlier this year, Havas Village brings the group’s 26 U.K. agencies under one roof, with 1,700 people across 10 floors.

Street art: 83 Rivington St. Street art—including some by Banksy—adorn the walls behind the Cargo club.

Facebook: 1 Rathbone Sq. Facebook moves from Kings Cross to this former Royal Mail site.

Apple: Battersea Power Station The company plans to open its new London headquarters here in 2021. The art deco masterpiece has stood derelict on the banks of the Thames for 33 years.

God’s Own Junkyard: 82A Shernhall St. This little piece of Vegas has neon signs from artist Chris Bracey.

Anomaly: 25 Charterhouse Sq. Anomaly’s state-of-the-art office was formerly part of the Charterhouse buildings, which stands near the site of a Black Death plague pit, where 15,000 bodies are buried.

Publicis Media: 63 Turnmill St. Publicis Media’s impressive new office is on the site of London’s most famous 1990s dance club, Turnmills.

Saatchi & Saatchi: 40 Chancery Lane The agency moved to Lon- don’s legal district last year in a building with enough space to rehouse Saatchi’s famous pub, The Pregnant Man.

Ministry of Stories: 159 Hoxton St. Hoxton Street Monster Supplies’ website advertises Banshee Balls and Cubed Ear- wax for sale, but it’s actually a front for the Ministry of Stories, a creative writing and mentoring charity.

Saatchi Gallery: Duke of York’s Headquarters, King’s Road Charles Saatchi’s contempo- incarnation of Annabel’s, said an urban farm way below the Ogilvy & Mather: Sea Adam & Eve DDB: 12 Bishops Traitors’ Gate: 35 Tower Hill rary art museum moved to its to be the only nightclub the busy streets of South London. Containers, 18 Upper Ground Bridge Rd. Many have entered the Tower current premises in 2008. Queen has ever visited. After 17 years stranded in Adam & Eve DDB remained of London through the Trai- Mother London: Canary Wharf, Southwark in an old postal sorting house, tors’ Gate, never to return. WPP: 27 Farm St. The Beatles’ last hurrah: 10 Redchurch St. was a welcome change for escaping the soulless South- WPP, the world’s largest 3 Savile Row Mother London occupies Ogilvy & Mather when it wark HQ. The Ned: 27 Poultry communications group, The site of the Beatles’ last three floors of the famous moved there last year. The Ned boasts nine restau- has its headquarters in a live concert, performed on eight-story Tea Building in Unilever: Unilever House, rants and a branch of private 200-year-old townhouse on a the roof of their recording Shoreditch. Omnicom: Bankside, New Bridge Street members’ club Soho House. residential street in the posh company, Apple, in 1969. Southwark Street Unilever’s HQ is on a site Mayfair district. Bowie!: 6 Tunstall Rd., Brixton Omnicom’s campus site on acquired by founder Lord Le- Sherlock Holmes Museum: Growing Underground: 1a Site of a graffiti portrait of Da- the Thames counts AMV verhulme in 1920. Post-Brex- 221B Baker St. Annabel’s: 46 Berkeley Sq. Carpenter’s Pl. vid Bowie as Ziggy Stardust, BBDO, TBWA and Proximity it, the Anglo-Dutch company Arthur Conan Doyle’s fiction- Just around the corner from This World War II bomb which became a destination among the agencies working has been considering just one al sleuth’s home was created

WPP is the new $75 million shelter has been turned into after his death. in the former bank building. HQ, in Rotterdam. for this museum. Lee Hyesu by Illustration

12 Ad Age December 4, 2017

P011_012_AA_20171204.indd 12 12/1/17 10:57 AM Creativity

“Princess Agents,” a Chinese drama break from warring to feast on haggis piece to the series. The idea is to catch SNEAKY ADS set in a long-ago dynasty, is about a and Stove Top stuffing. Or if “Downton people off guard and make them laugh. young slave woman who becomes a Abbey” paused for a commercial, only sword-wielding military general. It to show the household staff spritzing Branding the Song dynasty Modern brands features, among other period de- the castle curtains with Febreze. It’s all because of costume dramas. travel to ancient tails, elaborate costumes: silky robes, It may sound bizarre, but this kind “We have a lot of dramas that are braided hairdos and plenty of armor. of thing happens often on China’s really popular in China that are set times in China’s But viewers who streamed the show streaming sites, where the tactic is in ancient times, but it’s really hard streaming TV online this summer encountered a widespread in everything from period for fashion brands and other modern startling, anachronistic scene: the dramas to reality TV. People call it brands to do product placement,” series series’ sweaty warriors cracking open “native video advertising” or “creative says Jialu Yuan, general manager of a chest filled with icy Coca-Cola. mid-roll.” It’s a clever way of serving drama marketing at iQiyi. By Angela Doland Chinese online video platforms brand content to people who aren’t After all, you can’t have characters are a hotbed of advertising experi- expecting to see ads in the middle of from the Song dynasty using a smart- mentation, pushing limits of how and their shows. These ads are interruptive, phone app or drinking juice from where brands typically appear. The just like an old-fashioned commercial, plastic bottles...or can you? results are often surprising. Imagine but the hope is that people will enjoy Last year, clients, producers and

Characters from a distant era grab a if the 18th-century Scottish clans of them if they feature characters from iQiyi worked together on an idea. Coke in ‘Princess Agents.’ the Starz drama “Outlander” took a the show and seem like a companion What if, for each episode of a costume

Important to Important People 13

P013_P014_AA_20171204.indd 13 12/1/17 11:38 AM Creativity Department of anachronisms

for subscriptions. It also means viewers might have higher expectations for any brand messages that do appear. “We have to make it interesting content so people are happy to see it,” says iQiyi’s Yuan. The ads are meant to feel like a standalone comedy skit inside the episode, or as Yuan describes it, “a little play inside the main show.” On some shows, iQiyi even runs a little old-style theater curtain before the native video ads to announce that a commercial is coming, so people understand that what they’re about to see isn’t part of the storyline. Though the trend started on period dramas, it has spread to other content, too. One iQiyi show, hip-hop singing contest “The Rap of China,” interrupted the onstage action for a skit about McDonald’s, a sponsor of the show. Funny enough, the McDon- ald’s skit was in the historic past, and

(Clockwise from l.) A character in the rappers were clad in silk period ‘Princess Agents,’ set long ago, holds up costumes instead of the gold chains a modern-day Coke bottle; and Pepsi and and sweatshirts they usually wear. Lay’s get ads in ‘Mystic Nine.’

Internet slang Coca-Cola has done other ads as well, drama, you could include a stand- ate business director of OMD China. including a campaign to promote bot- alone scene where a brand or product “If you’re watching ‘Game of Thrones’ What if “Game tles and cans featuring internet slant. appeared in an o eat, anachronistic you wouldn’t want to see a shampoo of Thrones” Producers “send scripts to us and way that would get viewers talking? ad pop up which is totally not rele- we discuss with the clients,” says The series’ production teams could vant.” But what if “Game of Thrones” characters get Sonny Xu, Isobar media planning prepare and shoot the commercials characters get together to relax and together to director for the Coca-Cola brand and themselves, instead of creative agen- crack open a modern-day beer? Peo- Fanta, who worked on the ads. “Then cies. Show producers already have the ple might fi nd that funny, he says. relax and crack there are several rounds of revision to actors, costumes and sets. open a modern- get the scripts confi rmed.” iQiyi, which is backed by Chinese Driven by the model In addition to a big campaign internet giant Baidu, adopted the tactic China’s powerful online video sites day beer? for the packaging, with creative by fi rst and developed it into a commercial have a di erent business model McCann Worldgroup that featured product when it broadcast the 1930s than, say, Netfl ix or HBO. In the U.S., singer-actor Lu Han, Coke put native tomb-raiding adventure tale “The content has gravitated to subscrip- video ads in both “Princess Agents” Mystic Nine” last year. The fi rst batch tion-based platforms that o er few or and another costume drama that of advertisers ranged from iQianjin, a no advertising opportunities, present- aired online. peer-to-peer lending app, to PepsiCo, ing a conundrum for brands. Another Coke scene in “Princess which showed characters chowing But in China, online video content Agents,” whose rights iQiyi bought down on Lay’s and gulping Pepsi. is packed with brand messages, from from satellite channel Hunan TV: The other major services, Alibaba product placement to brand logos that When a bodyguard pines for another Group’s Youku Tudou and Tencent fl ash and spin on the screen. That’s character, someone suggests she con- Holdings’ video platform, have em- because Chinese platforms o er most fess her feelings with a bottle marked braced the tactic too. At iQiyi, the cost content free; they had to start that “521”—a declaration of love in Chinese for embedding one such commercial way to lure people away from wildly internet slang. in an episode ranges from $150,000 popular pirated programming. “Chinese people are very shy to to $530,000, depending on projected The platforms also o er VIP sub- confess anything, and this product viewership, Yuan says. scriptions, where for a few dollars a lets you do that,” says Annie Zhang, A commercial, perhaps 30 or 45 month viewers can subscribe to unlock the Isobar business director leading seconds long, might appear once or extra content and skip interruptive ads. the sparkling beverage category for twice but isn’t repeated endlessly, as But even the people who pay extra Coca-Cola. ads usually are, so it stays novel and to avoid commercials see these new The juxtaposition of the modern seems like part of the content. native video ads. There’s no way to pop-culture references and period dra- “People have gotten very resistant skip them—they’re embedded in the ma feels fresh and unusual for now. But to a hard sell—they think this way show. That lets video platforms make this kind of thing probably won’t work is more entertaining, and it’s a new more money, and it allows brands to forever, Zhang says: “When it gets old, way of seeing the characters from a reach everyone, including consumers we will try something new.”

show,” says Alessandro Pang, associ- with enough spending power to pay iQiyi

14 Ad Age December 4, 2017

P013_P014_AA_20171204.indd 14 12/1/17 10:52 AM People Announcing the Chloe Gottlieb Chief Creative Oficer, Creativity Awards RGA, US Work jury chairs. Anselmo Ramos Chief Creative Oficer and Founder, DAVID

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AA013920.indd 1 11/30/17 5:46 PM Marketers of the Year

Ad Age’s Marketers of ily on word-of-mouth and scrappy TITO’S marketing like its “Vodka for Dog the Year list recognizes People,” a philanthropic effort that HANDMADE has included events like Yappy Hours companies that, with and Puppy Pawties to raise money for insightful and inventive VODKA organizations like no-kill shelters. It has, however, spent signficantly strategies, have Marketer of the Year on print and outdoor advertising. “We conquered categories, are kind of old-school,” Portwood says, By E.J. Schultz noting that the brand remains loyal to forged fresh paths and magazine ads. Recently, the company resonated with consumers Nicole Portwood still remembers a has run ads in titles as varied as Rolling phone call she made several years ago Stone and Popular Mechanics. regardless of budget. This to lobby a music festival to accept the Tito’s handles creative in-house, year’s big winner, Tito’s vodka brand as a sponsor. “I got the while relying on KSM South for media cold shoulder,” says Tito’s VP of brand buying and Praytell for PR. While Handmade Vodka, floated marketing. “I can’t tell you how many other brands obsess about millenni- to the top of the spirits people hung up on me because they als, Tito’s avoids specific targeting, didn’t have any idea who we were.” operating under the philosophy that category—and this list— They do now. Tito’s, founded in “if you have a liver, we deliver.” because of a once-derided 1997 under the then-ridiculous propo- That’s among the many “Titoisms” sition of a Texas-distilled “handmade offered up by brand founder Bert brand legend that no one vodka,” this year became the top-sell- “Tito” Beveridge, whose folksy ap- is laughing about today ing spirits variety in U.S. stores, sur- proach underpins pretty much every- passing more established players like thing the brand does. “He is what he Illustration by Gabriela Zurda Jack Daniel’s Black Label and Smirnoff is: a Texas cowboy on a billboard with Red Label. Once only available in a dog sitting on cases of Tito’s,” Emily Texas, Tito’s is now sold everywhere Pennington, editor of Wine & Spirits from United Airlines flights to big Daily, recently wrote. “Is there a little restaurant chains like McCormick & myth-making going on? Of course, but Schmick’s, which recently featured a he’s always made decisions based on “Mexitini” cocktail made from Tito’s his own likes and dislikes regardless and triple sec. At U.S. retail stores, of what his competitors were doing.” sales surged 40.8 percent to $198 The brand’s founding story, out- million in the 52 weeks ending Nov. 5, lined in detail on its website, is as im- according to IRI data cited by Wine & portant as any marketing campaign it Spirits Daily. In bars and restaurants, could run. Beveridge, who has degrees Tito’s now commands an impressive in geology and geophysics, worked in 7.1 percent share of the fragmented the oil and gas industry and then got vodka market, up from 1 percent in into the mortgage business. In the 2011, according to Technomic. early 1990s, he began making flavored The brand’s growth, while remark- vodka for friends as Christmas pres- able, is not the only reason Tito’s is ents before realizing the real oppor- Ad Age’s 2017 Marketer of the Year. tunity was in pure, smooth vodka. So Its path to the top is an example of the he studied photos of old moonshiners, new marketing battlefield in which built his own still and “kept messing upstart brands are successfully taking with it until I got to where everybody on giant consumer packaged-goods liked my vodka better than the other conglomerates, often by eschewing stuff,” he writes on the brand’s site. big-spending ad techniques. Tito’s has He built a distillery after running up not run a single TV ad in its 20-year a debt of $88,000 on 19 credit cards. Tito’s sparked a revolution in spirits with its ‘handmade’ vodka. history. Instead, it has relied heav- A breakthrough came in 2001, when

16 Ad Age December 4, 2017

18 Marketers ofthe Year 2017 VP ofbrand marketing and NicolePortwood, Beveridge ‘Tito’ (l.) Bert implicating a top executive, Samsung scandalmachines andabribery ies catching fire, exploding washing numerous reports phonebatter- of plagued withproblems. Following metaphor for Samsung itself. achieving theimpossibleof could bea splendor, butalsobecause its message brilliant notonly for its humorous Creativityof earlierthisyear, andis Cannes LionsInternational Festival the spotwon three gold awards at the “Rocket Man.” clouds to thestrains Elton of John’s reality,virtual soaringthrough the was ableto simulate flight through ered aSamsung GearVRheadsetand earthbound. That is, untilhediscov- toral musclesandtiny wings kept him wanted sobadly to fly, butweak pec- The adishard to forget: Anostrich By Adrianne Pasquarelli SAMSUNG Just over ayear ago, Samsung was Created Burnett by Leo Chicago, brands, they wanted to know thestories behind and Captain Morgan, butit’s gaining Smirno, Jack Daniel’s, Crown Royal in only onevariety, isstillbehind bundled together, Tito’s, whichcomes rieties marketed by its rival spirits are sweet-tasting blends. alltheva- When later oversaturated, themarket with even asotherbrands flooded, and stayed away from flavored varieties consistency.of For instance, Tito’s ing onthelatest hottrend infavor and Absolut,hasavoided jump- premium competitors like Grey Goose pot stills.” It’s priced cheaperthan as beingmadein“old-fashioned made Vodka andit’s stillpromoted tity: Its formal nameis Tito’s Hand- Spirits Competition. Tito’s took doublegold at theWorld Last year,Last itopened Samsung 837, a with its retail experimentation. innovation. It’s alsogained ground rebuild Samsung into ashowcase for Samsung's QLEDtelevision, helped and arecent colorful promotion of the “DoWhat You Can’t” tagline, year from No. 7. brands, landingat No. 6earlierthis on Interbrand’s ranking top of global revenue. Samsung hasalsomoved up profit andpostinga30percent risein generating $12.9 billioninoperating company reported record earnings, pected to bereleased early next year. anticipating thenext iterations, ex- successful, andconsumers are eagerly and GalaxyNote 8phones, have been recent new products, theGalaxyS8 managed to restore its reputation. Its a third-party auditor—Samsung has dreds researchers of andemployed process—the brand enlisted hun- and overhauling its product testing crisis. Yet after issuing anapology ad, became theposter childfor abrand in “As peoplebegan to lookfor American-made Tito’s hascultivated acraft iden- Ads like theflying ostrichunder In October, theSouthKorean tech the brands they were aligningwith.” Nicole Portwood, Tito’sNicole bigger thanabottom line,” saidPio way to engage withconsumers. with, butpurchased elsewhere) asa merchandise (whichcan beplayed the brand experience, rather than the tan’s Meatpacking Districtthat sells 55,000-square-foot store inManhat- advertising/labeling. “All butonehas times by plaintis allegingfalse been challenged incourt multiple made” and“potstills” claimshave gone unchallenged. Tito’s “hand- brands they were aligningwith.” wanted to know thestories behindthe look for American-made brands, they image,” shesays. “As peoplebegan to people started valuing substance over service andbling,” but”suddenly sion. Itusedto beallabout“bottle reces-in thewake the2008-09 of the consumer moodthat took hold years ago, traced thebrand’s riseto KSL before taking the Tito’s jobeight Goose atmediaagency now-defunct fast, according to IRIdata. “To inspire through purposeis Tito’s climbto thetop hasnot Portwood, whoworked onGrey from Leo Burnettfrom Chicago Leo Samsung’s ostrichspot truly arrived.truly couldn’t get its calls answered, had rival showed that Tito’s, whichonce the attention from abig-spending after “fake rivals. crafty” anything, If ad starring Chrissy Teigen that went shotatnot-so-veiled Tito’s witha TV your ship.” ple willlookfor ways to drillholesin says. you’re “When succeeding, peo- validity to thoseclaims,” Portwood been dismissed, sothere’s notalotof horrendous times.” the good, thebadandabsolutely you have that, it’llseeyou through about Samsung’s reinvention. “When vertisers conference, where hespoke October Association National of Ad- integratedof brand marketing, at the Schunker, seniorVPandglobalhead Earlier thisyear, Smirno took a December 4,2017 Ad Age

Tito’s photograph courtesy of Tito’s Handmade Vodka; Ostrich photograph courtesy of Samsung via YouTube Q&A SPONSOR CONTENT

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AA013918.indd 1 11/28/17 12:31 PM Marketers of the Year 2017

NINTENDO PANERA

By George Slefo By Jessica Wohl

The protagonist of one of marketing’s Panera Bread’s annual marketing biggest comeback stories of 2017 is an budget hovers around $100 million, Italian plumber with a mustache. yet the brand outshines the giants Nintendo and its iconic charac- with a simple proposition: When you ter, Super Mario, leveled up with the eat at Panera, you know exactly what release of its $299 Switch, a crossover you’re getting. between home-gaming console and The company’s “clean” food cru- portable gaming device. It was a bold sade to remove artifi cial fl avors and move for Nintendo, which had a fl op preservatives, along with its move to in 2010 with its last console, the Wii U, post calories and added sugar infor- which su ered, among other reasons, mation directly on cups, has resonated because its games couldn’t be played with consumers. Privately held Panera on the go. says it notched same-store sales gains Switch is signifi cantly di erent of more than 6 percent year-over-year from recent o erings from rivals during the fi rst nine months of 2017, a Microsoft and Sony, which are making coup during a time when many com- video-game systems that are more petitors are struggling. powerful but not portable. Panera’s approach of serving Nintendo’s risk was rewarded. For reasonably priced food in what some its fi scal second quarter ended Oct. company executives call the “crave- 30, Nintendo reported revenue at $1.9 able wellness space,” along with its billion, a massive turnaround from digitally savvy ordering technology the $57 million loss in profi t reported and increasing use of delivery, also for the fi rst half of the last fi scal year. attracted a suitor in JAB Holding Overall, Nintendo told analysts it Company, which acquired Panera in expects to make a cool billion in profi t July for $7.2 billion. by year’s end. Its estimate was driven “Transparency and clean foods is by Switch, continuing demand for a message that consumers are looking Pokémon Go and the introduction of for,” says Morningstar analyst R.J. SNES Classic, a tiny gaming console Hottovy, noting that Panera is a leader that comes preloaded with iconic in such messaging. games more than two decades old. Panera’s “100% of our food is 100% Nintendo fueled demand for clean” push began in January, appear- Switch with its fi rst Super Bowl spot ing in a TV spot, on billboards, on sta in February, from Leo Burnett and T-shirts and in social posts. production company Interrogate, that “Now we’re actually marketing featured its “Legend of Zelda: Breath to e ect change versus marketing of the Wild” game with a soundtrack for marketing’s sake,” says Chris of Imagine Dragons’ “Believer.” Hollander, senior VP of marketing at At the time, Nintendo said it had Panera, which works with Anomaly hoped to sell 2 million units on the on its advertising. “That’s when it March 3 launch date, but the company gets exciting.” now estimates it will sell 14 million Along with its push to tell people units by year’s end. just how much added sugar is found Nintendo, with the help Finding a Switch when it was of Super Mario, bet in fountain drinks, Panera used the released proved di cult, driving big on a portable video opportunity to suggest patrons try hopefuls to camp outside retail stores. game console. some of its new, lower-sugar beverag- And it’s still in demand: Switch was es. (The sugar-in-drinks e ort is even among the top fi ve bestselling prod- more interesting when one recalls ucts every day from Nov. 22 through Hollander spent more than a decade Cyber Monday, according to recently in marketing roles at Pepsi before released data from Adobe. joining Panera in 2010.) The Switch—which a Quartz re- Some e orts didn’t hit. A video viewer wrote was “one of the best, and plea from soon-to-step-down CEO Ron most addictive, new pieces of tech- Shaich, asking the top three burger nology I’ve used in a long time”—isn’t Finding a Switch when it was chains’ CEOs to serve better kids’ alone in contributing to Nintendo’s released proved di cult, meals, didn’t spark as much conver- very good year. SNES Classic also fl ew sation as Hollander hoped. Even so, o store shelves and prompted short- causing hopefuls to camp Panera wants to move from more tra- ages. The SNES Classic, which retails outside retail stores. ditional creative executions to being for about $80, is currently selling for more nimble, reactive and opportunis- double that on eBay as Nintendo and tic, all while keeping costs in check.

Super Mario continue their odyssey. Next up, it’s putting more empha- Images Chesnot/Getty Loccisano, Michael photographs: Nintendo

Important to Important People 23 Marketers of the Year 2017

sis on delivery and forging deeper connections with millions of diners through personalized o ers that include marketing salads or sandwich- es, not both, depending on what one typically orders, or enticing a patron who only buys co ee to pair it with a new breakfast sandwich. There’s also plenty of restaurant remodeling to do as Panera tries to maintain and grow its relevancy in the crowded fast-casual dining market it helped create. And it’s still too early to say how Panera will approach marketing at Au Bon Pain, which it’s in the process of acquiring. “I’ll be shocked if Panera in two years looks like Panera today,” says Hollander.

The company released nine character HULU posters the day after “Handmaid’s Tale” premiered in April with messag- By Jeanine Poggi es like “The future is a f---ing night- mare,” “This is not ordinary” and Hulu emerged from the shadow of “Your body is no longer your own.” Netfl ix and Amazon this year thanks Hulu aptly ingrained itself and to the dystopian drama “The Hand- "The Handmaid’s Tale” into the maid’s Tale.” The adaptation of the women’s movement. It partnered with Margaret Atwood novel of the same The Wing, a New York social club for name is the fi rst Hulu original series women; created a capsule collection to garner critical acclaim and become inspired by the series with fashion de- part of the cultural zeitgeist—with sign collective Vaquera; and curated the help of some smart marketing and an art installation on the High Line in good timing. New York where hundreds of books With its fi rst-ever Super Bowl containing messages of hope and ad, a creepy IRL stunt and bold print resistance lined the nearly one-and-a- campaign, Hulu went all-in promot- half-mile stretch. ing the series set in a future universe And in a true sign of resonance, where women have been enslaved and “Handmaid’s Tale” was spoofed by forced to become handmaids to help “Saturday Night Live” and quoted in a stem a population crisis. It didn’t hurt speech given by Hillary Clinton. that the theme of women’s oppres- It all culminated in September, sion, which underlies the series, has with Hulu taking home eight Emmy become a real-life bogeyman given the Awards for the series, including the Elisabeth Moss in ‘The Handmaid’s Tale’ post-election threat of women’s rights top prize for best drama—the fi rst being curtailed. streaming service to win the honor. Hulu capitalized on that fact, em- Hulu’s success this year extends bedding actresses dressed as hand- beyond “Handmaid’s Tale.” In the last maids on high-tra c city streets and six months, it has also launched a live at festivals like South by Southwest. TV service, created a $5 streaming Clad in red robes and white bon- bundle for students in conjunction nets, the handmaids silently walked with Spotify, and added thousands of through crowds, turning heads and new episodes of content from the likes sparking social media conversations. of Fox and NBC Universal. All told, the The unsettling stunt was mim- company will spend $2.5 billion on icked by other women, who dressed content in 2017. like handmaids at protests across the While Hulu doesn’t release ratings, country and carried signs like “Make the company says average daily sign- Margaret Atwood Fiction Again,” ups nearly doubled during the fi rst playing o President Trump’s slogan. few months after “The Handmaid’s Hulu’s print and outdoor cam- Tale" debuted. paigns gave o a similarly creepy vibe. “Handmaid’s Tale” image courtesy of Hulu via YouTube Hulu of courtesy image Tale” “Handmaid’s

24 Ad Age December 4, 2017 the news,” says David Rubin, head of THE NEW YORK audience and brand. “We need to not only tell people what we’re o ering is TIMES really great, but that it’s better than something they can get for free.” By Megan Graham The paper supplements the digital and print products with virtual “We recognize that people can dis- reality o erings, newsletters and a agree on how best to tell a disagree- free Daily podcast that gives listen- able story.” ers a 20-minute look into the day’s That’s The New York Times Na- biggest stories. The podcast averages tional Editor Marc Lacey responding 750,000 listens a day and serves ads to social media blowback claiming both for the Times and other brands. that a Times story last month normal- The New York Times also ized a Nazi sympathizer. But public launched its fi rst major brand cam- reaction to the profi le, negative as it paign in over a decade with “The was, did prove one thing: People care Truth Is Hard.” The campaign, by about The New York Times and what Droga5 New York, kicked o in Feb- it has to say. ruary with a simple, powerful video That includes President Trump. that displayed a barrage of confl ict- One of his favorite insults of 2017 has ing statements, completing with the been to lash out at the “failing New message: "The truth is hard/the truth York Times,” which might be the best is hard to know/the truth is more marketing the company could ever important than ever." The campaign ask for. included digital, social, print and out- Times CEO Mark Thompson of-home ads with similar messaging. famously called Trump “rocket fuel” “In the moment, the response for the paper, which hit an all-time was really unbelievable,” Rubin record in the fi rst quarter of this year says. “We had over 25 million [video] for digital subscriptions. Today, the views, the lion’s share of which were Times has nearly 2.5 million digital organic,” in its fi rst 10 days. The subscribers and another million print campaign continued with a series of subscribers. The paper also saw year- videos directed by Darren Aronofsky over-year growth of 59 percent in dig- on stories by Times journalists on ital subscriptions for the third quarter topics including war, terrorism and of 2017. “We’ve had some monumen- economic hardship. tal growth over the last few quarters,” The campaign launched on a The New York Times’ fi rst says Clay Fisher, the publication’s Thursday. On Friday, journalists from major brand campaign in senior VP of consumer revenue. the Times and other outlets were over a decade centered In its visible battle against “fake barred by then-White House press around one simple line: ‘The Truth Is Hard.’ news” and through blockbuster secretary Sean Spicer from attending investigative reporting on subjects a press briefi ng. On Sunday morning, including Harvey Weinstein and the demonstrators were outside the New New York subway system, the outlet York Times building. has converted its readership into an “We woke up to a demonstration in ardent support system who routinely front of our building, with a bunch of take to Twitter to encourage their supporters protesting for the right to followers to subscribe. free speech,” Rubin says. “The fundamental journey we’re on Many were holding the cam- is we’re trying to get people to pay for paign’s print ad.

“We need to not only tell people that what we’re o ering is really great, but that it’s better than something they can get for free.” David Rubin, The New York Times “Handmaid’s Tale” image courtesy of Hulu via YouTube Hulu of courtesy image Tale” “Handmaid’s

Important to Important People 25 Marketers of the Year 2017

‘IT’

By Megan Graham

Missing children posters and red balloons tied to sewer grates were just the beginning of the massive marketing e ort behind “It,” the movie released in September based on Stephen King’s 1986 horror novel. The fi lm has so far earned $692 million in global ticket sales, which reportedly makes it the highest-gross- ing horror fi lm of all time. Variety reported that it set the record for the most-watched trailer in a single day, generating 197 million views globally within 24 hours of its release. “It’s fair to say we broke the internet, and then we had to keep trying to break it,” says Blair Rich, president of worldwide marketing for Warner Bros. Pictures. The fi lm “wasn’t really about the murderous clown, it’s really about the universal fear of the loss of largest retail spender in the U.S., innocence,” says Rich, which allowed AMAZON according to Ad Age’s Datacenter. Yet Warner to “break free of the tropes of internal teams are small enough that horror movies.” By Adrianne Pasquarelli they can be fed with just two pizzas Experiential was a large part of the at gatherings, Lindsay says. “It’s im- campaign. The company had a school In Amazon’s holiday ad this year, portant to stay small even while big is bus drive around the country, for ex- hundreds of brown boxes—to the tune an important theme in our company,” ample, with a VR experience that took of Supertramp’s “Give a Little Bit”— he notes. Marketing fans to the Derry, New Hampshire, sing their way to gifting destinations, The brand works with a host of “is not just sewers where they came face-to-face braving conveyor belts, mopeds and agencies for various platforms, in- with Pennywise the clown. freight jets to deliver joy to consum- cluding Above ¶ Beyond, which creat- shouting about At Hollywood and Vine in Los An- ers. The campaign, says Amazon, ed a campaign for its Music Unlimited what we want geles, the studio built a replica of the which was created with London-based o ering, and Crispin Porter & Bogusky eerie Neibolt house from the fi lm for Lucky Generals, was prompted by Los Angeles, which worked on its NFL to say about fans to tour. More than 35,000 visitors customers themselves. streaming service. the brand. The went through, waiting on average fi ve “A big focus of our marketing Lindsay uses his own experienc- hours on weekends, Rich says. e ort is to look for insights that help es to help inform the Seattle-based challenge is Fan interactivity also included shape that customer experience,” says brand’s strategy as well. Every making sure “It”-inspired art that the studio dis- Neil Lindsay, VP of worldwide mar- evening he asks Alexa to call his played in pop-up and museum exhibits. keting at Amazon and a self-described father in his native Australia. Such it’s relevant.” “We really used the fans as e ec- Supertramp fan. “When people stories helped create Amazon’s “Alexa Neil Lindsay, Amazon tively as a megaphone,” Rich says. receive an Amazon box, it prompts a Moments” campaign for the Echo late “When you allow fans to be the most smile—that’s true for me and we hear last year. passionate and have the most owner- it all the time.” Most campaigns, like “Alexa ship, it really pays o . That kind of big Amazon has reason to smile. The Moments” and the singing boxes, are voice starts to multiply 23-year-old brand just reported a 34 well-received by the public, but Ama- and it became very percent revenue increase to $43.7 bil- zon did su er a brand blemish earlier contagious.” lion in its third quarter over last year. this year when allegations surfaced In 2016, unstoppable Amazon gener- accusing Amazon Studios head Roy ated $136 billion in annual revenue, Price of sexual harassment. Price, and it’s gaining even more dominance lauded for award winners like “Trans- across categories, as evidenced by its parent,” resigned shortly thereafter. $13.7 billion purchase of Whole Foods. Lindsay says Amazon’s marketing While Lindsay says the brand is will always tie back to e ectiveness. “proudly lean” when it comes to its “Marketing only matters to marketing budget, the company is customers to the extent it helps them ramping up its spending as it contin- fi nd that next product or service,” ues its expansion into video, music, says Lindsay. “It’s not just shouting food and devices. Last year, Amazon about what we want to say about the spent $2.6 billion, a 30 percent spike brand. The challenge is making sure

over 2015, on advertising, and is the it’s relevant.” via YouTube Amazon Top Halo by photograph Top Halo

26 Ad Age December 4, 2017 There was a time when an endorse- It’s that data-fueled pop wizardry New York was just one of many ways SPOTIFY ment from the president of the United that has helped Spotify, the Stock- Spotify uses a massive wealth of user States came with some gravitas. So, holm-headquartered company that data as fodder for its ad campaigns. By Megan Graham this past January, when former pres- landed in the U.S. in 2011, climb to Another campaign late last year ident Barack Obama—who famously 60 million paid subscribers and 140 crunched listener data for out-of- organized Spotify playlists on themes million active users this summer. home displays with messages like like summer and workouts—quipped (Privately held Spotify typically only “Dear 3,749 people who streamed that he was still waiting for his job at reports subscriber numbers in 10 'It's the End of the World as We Know the music streaming service, the com- million increments, so July is its most It' the day of the Brexit vote, hang in pany kept the bit going. Spotify posted recent public subscriber tally.) The there." a job listing for the title of “President service lets listeners play more than “The brand has a lot of permis- of Playlists,” requiring a candidate 30 million songs for $9.99 a month sion to sort of comment on culture with a Nobel Peace Prize and “expe- (ad-free) or for free with commercials. and what’s going on,” Farbman says. rience in programming playlists at a Apple Music, which launched in 2015, “There was a role for the brand to cre- federal level.” had around 27 million paid subscrib- ate levity during otherwise concern- “We were able to capture this kind ers in June of this year. Jay-Z rival ing times. It’s soothing to know you’re of cultural moment, where people Tidal was believed to have about a part of something and that others were both celebrating and mourning million paid subscribers last year. have the same kind of attitudes and the change that was about to happen The appeal isn’t hard to under- feelings as you. But it’s lighthearted, to this country,” says Spotify CMO stand. Name a mood, and Spotify too. Certainly this past year the world Seth Farbman, referring to the elec- has a playlist for it. One out-of-home has needed a little levity to go along tion of Donald Trump. “We started o campaign in February poked fun with all the seriousness.” the year by both reﬂ ecting on where at the utter randomness of users’ we’d been and also kind of setting playlist titles, whether they’re “root the stage for where we might go as a canal songs” or “sorry I lost your cat.” culture, as a country in particular.” The campaign by Wieden & Kennedy

tively guilt-free indulgence for those name for itself initially with word- fl avors and dairy-free varieties. HALO TOP willing to shell out a little more than of-mouth, is gearing up for a fi ght by Now, it’s looking into more main- they would for Ben & Jerry’s, as it introducing more paid advertising. stream approaches to attract new By Jessica Wohl sells at an average premium price of That e ort began with buzzy video buyers. The company, for instance, just under $5 per pint. ads with an angel-versus-devil theme opened its fi rst scoop shop at Califor- Let’s get one thing out of the way: Time named Halo Top one of the on YouTube and elsewhere. Then nia’s Westfi eld Topanga mall. It doesn’t taste like Ben & Jerry’s, 25 best inventions of the year (we’ll came a longer-form spot—seeming- In grocery stores, Halo Top’s Häagen-Dazs or many other premium overlook that it was actually invent- ly straight out of a Stanley Kubrick exponential growth rate has slowed, ice creams. But Halo Top, powered ed in 2012). fi lm—in which a woman was force-fed but the numbers remain staggering. by consistent social media outreach, While it’s still the nation’s ice cream by a robot. Halo Top Found- Sales soared about 2,500 percent in word-of-mouth and giveaways, has top-selling pint, Halo Top recently er and CEO Justin Woolverton said 2016 and increased 1,656 percent in had a stellar year, and even became slipped to fi fth place overall. Its run- his brand had “never done anything the 52 weeks ended Nov. 5, to nearly the bestselling ice cream brand in the away success prompted the deep- this o -the-wall before.” Additional $298.6 million, according to IRI, a U.S. for the four weeks ended Sept. 10. er-pocketed ice cream giants like proof that the concept was a bit out Chicago-based market research fi rm. High-protein Halo Top carries a frac- Breyers and grocer Kroger to bring there included a smaller competitor, Meanwhile, the overall industry grew tion of leading brands’ calories and out their own high-protein brands. Enlightened, responding with a spoof. at a 3.2 percent clip and six of the oth-

Amazon via YouTube Amazon Top Halo by photograph Top Halo fat, and has established itself as a rela- But Halo Top, which made a Halo Top recently introduced new er top 10 brands posted declines.

Important to Important People 27 Magazines of the Year

Battle-hardened during the rise of digital media, our latest crop of magazine honorees are showing the way forward—and not just for “old” media

By Simon Dumenco and the Ad Age Editorial Sta

When we started working on the a fraction of its previous presumed of titles (in alphabetical order) that percent mark in terms of the revenue annual Ad Age Magazines of the Year value; and Verizon laid o more than round out our honorees, we present generated by digital—but perhaps package in the fall, there were six 500 employees of Yahoo and AOL. to you modern media brands that just as remarkably, Bon Appétit won large magazine publishers: American And so a curious reversal is hap- are cross-platform, experimental, major print ad business from digital Media Inc., Condé Nast, Hearst, Mere- pening: The once seemingly invincible nimble and, perhaps most notably, marketers including Google (a special dith, Rodale and Time Inc. digital darlings are scrambling to disciplined. Memo to digital natives: issue called Food Without Borders was Soon—once Hearst ﬁ nalizes its rethink their businesses and diversify Maybe take some notes. backed by an ad takeover for Google’s acquisition of Rodale, and Meredith their revenue (native-advertising Pixel 2 smartphone launch) and Apple swallows Time Inc.—there will be four. champion BuzzFeed, the sworn enemy Bon Appétit (a big backer of the magazine’s annual You’ve probably heard publishing of display advertising, quietly decided Condé Nast’s Bon Appétit held print travel issue). types say something like, “It’s been over the summer to start taking mon- advertising steady this year while a challenging year.” That’s for public ey for, yes, banner ads). expanding digital operations under Country Living consumption. Private translation: Sound familiar? Traditional pub- Editor-in-Chief Adam Rapoport, also Print ad pages are up (8 percent year- “It’s been absolutely brutal.” Beyond lishers have been rethinking/reinvent- the editorial director of pioneering over-year) at Hearst’s Country Living, the headline-making consolidation, ing/diversifying for years now. foodie site Epicurious.com, now in its which under Editor-in-Chief Rachel the biggest players have all cut (some- And get this: Every honoree on 22nd year. Bonappetit.com debuted a Hardage Barrett excels at practical times slashed) budgets, and various our Magazines of the Year list still clean, mobile-friendly redesign in Oc- service packages, e.g., “The No-Re- independents—e.g., Wenner Media, produces print editions that make tober, and under Craig Kostelic, chief grets Guide to Decorating.” But the which o oaded Us Weekly and Men’s money—in many cases a lot of mon- business o cer of Condé’s Lifestyle monthly has also found a way to work Journal to AMI and, as of this writing, ey—while they’ve been building out Collection, Bon App’s millennial audi- its folksy, no-nonsense appeal online, is still looking for a buyer for Rolling their increasingly impressive digital ence is up 13 percent year-over-year, positioning itself under Associate Stone—began a slow fade to black. businesses. Honestly, good old-fash- with big boosts from new sub-brands Publisher Michelle Balaz as “a scenic But what made 2017 particularly ioned “reader revenue”—money from Basically (“25 Kitchen Upgrades for route o the information highway” transformative is that more than subscriptions and newsstand sales— Under $25”) and Healthyish (“11 with an aggressive video strategy traditional publishers were under has a refreshing ring to it circa 2017. Healthy Recipes That Are Perfect for including the August introduction of a siege. Digital natives also faced sti (Eat your hearts out, digital natives.) Cooking in College Dorms”). In 2017, hit Facebook Watch show, “Life With headwinds. BuzzFeed, after missing Starting with New York magazine, the Food Innovation Group, which Pets.” This year, more than 100,000 revenue projections, announced it was the Magazine of the Year (see page includes Bon App, Epicurious and their attendees came to Country Living Fair cutting 100 sta ers; Mashable sold for 34), followed by the diverse range online siblings, surged past the 50 events in cities from Nashville to Co-

28 Ad Age December 4, 2017

P028_034_AA_20171204.indd 28 12/1/17 3:38 PM MASTER From #ImSoMartha to The New Yorker Poetry Bot, these brands shine on social platforms. But their execution and resolve go beyond gimmicks.

lumbus, Ohio. And the annual “Coun- cupcakes) that are designed to connect nearly 10 million monthly unique vis- HGTV Magazine try From Coast to Coast” reader issue with readers who may or may not be itors, up 40 percent year-over-year) HGTV Magazine, Hearst’s other ma- (“50 States, One State of Mind”) came regular viewers of FN shows. Ad pages in partnership with Chief Business Of- jor co-venture with Scripps Networks to life in March with a new Country under VP, Publisher and Chief Revenue fi cer Kim Kelleher and VP of Revenue Interactive (alongside Food Network Living-branded spring cruise on Hol- O cer Vicki Wellington have held David Stuckey, but for taking some Magazine), ticked up 1 percent in ad land America, which set sail for the steady, with a big assist from the mag- really interesting editorial risks. pages this year under the leadership Caribbean from Fort Lauderdale. The azine’s in-house creative team, which Cases in point: The full-throated of VP, Publisher and Chief Revenue magazine’s editors and special guests, produced more than 100 custom-con- political stance of the Colin Kaeper- O cer Dan Fuchs, in the midst of a including country music star Holly tent and other bespoke executions nick “Citizen of the Year” cover. down year for the shelter-book cate- Williams and fl ea-market experts this year for advertisers from endemic The commentary of Keith Olber- gory. Though the magazine regularly Amie and Jolie Sikes (aka the Junk food-mag categories, including Land mann, whose GQ web series “The features stars of the cable network Gypsies), served up a week’s worth of O’Lakes and KitchenAid, as well as Resistance” o ers some of the most HGTV, who are known for big-budget countryfi ed cuisine, crafting sessions broader brands such as Kohl’s and furious—yet clear-eyed—deconstruc- renovations—“Property Brothers” and entertainment for Country Living Sherwin-Williams. And FNM continues tions of the Trump era. (The show is Drew and Jonathan Scott, for in- obsessives in one of the most ambi- to have a great newsstand business— so intense it may well have worn him stance—Editor-in-Chief Sara Peter- tious and unexpected magazine brand single-copy sales averaged more than out; Olbermann now says he’s “retir- son has positioned the print product extensions we saw all year. a quarter million in the second half of ing” from political commentary.) And to focus on home makeovers and 2017—helping it to over-deliver on its the hiring of Ben Schreckinger from quick design fi xes with price points Food Network Magazine 1.7 million rate base. Politico to be GQ’s D.C. correspondent, more likely to be in the hundreds or In its ninth year, Food Network where he’s developing a video series tens of dollars (e.g., “Dream House Magazine feels like much more than GQ with an emphasis on breaking news on a Tight Budget,” “More Style for just a fanzine for the beloved cable Fashion magazines had a rough 2017, and investigative journalism. Less! 125 Totally Doable Ideas”). That channel (the magazine is a co-venture with print ad revenue down pretty Meanwhile, the brand has contin- said, loyal readers are willing to pay a between Hearst and HGTV owner much across the board—and Condé ued to show o its enduring pop-cul- premium for HGTV mag—the average Scripps Networks Interactive). Under Nast’s GQ was no exception. But we’re tural power by enlisting the likes sub price for 10 issues a year rose to Editor-in-Chief Maile Carpenter, the honoring the iconic glossy, in its 14th of Harrison Ford and Dwayne “The $21.50 in 2017—and it’s one of the top monthly focuses on entirely accessible, year under Editor-in-Chief Jim Nel- Rock” Johnson to star in original digi- 10 monthlies at the newsstand. if gorgeously photographed, meals son, for not only revving up its digital tal shorts, helping drive video views to and treats (hello, peaches-and-cream business (e.g., GQ.com now averages a record 65 million in October.

Important to Important People 29

P028_034_AA_20171204.indd 29 12/1/17 3:23 PM MASTER Magazines of the Year

Launch of the Year: The Pioneer Woman Magazine

Hearst proceeded cautiously with summer’s pilot of The Pioneer Woman Magazine, printing just 150,000 copies, sold primarily at Walmart. The fall issue expanded to 20 retailers; next year the magazine o cially goes quarterly, with a 400,000 rate base. Subscriptions are now available, but TPWM is on track to rank in the top 10 of all magazines on the newsstand in 2018. The appeal here is, of course, Ree Drummond, the lifestyle entrepreneur whose wildly popular Pioneer Woman blog led to a hit The Magnolia Journal Gaines, but it also has the Martha Prevention and the late Organic Gar- cooking show on the Food Net- The Magnolia Journal, Meredith’s Stewart. The doyen of domesticity’s dening (which lives on as the Rodale work. Oklahoma-based Editorial Director Drummond works with new quarterly magazine led by Edi- namesake glossy gave up its indie Organic Life website), somehow New York-based Editor-in-Chief tor-in-Chief Joanna Gaines—one half status in 2015 (Meredith assumed turned what could have been prosaic Maile Carpenter to produce a of HGTV’s “Fixer Upper” team (her operational and editorial control in wellness/fi tness titles into expertly deeply nostalgic package with stories such as “An Owner’s husband Chip, we probably don’t need December of that year), and now, executed, pop-culturally savvy global Guide to Backyard Chickens.” to tell you, is the other half)—started after nearly two years under new publishing powerhouses. Brands seeking ad adjacencies to with a fall 2016 test issue that sold out management, print ad pages are Men’s Health, now in its 30th year, its folksy fare range from Tyson to L’Oréal Paris; VP, Publisher 400,000 issues at the newsstand. Sub- bouncing back (up 4 percent through has 35 international editions; Wom- and Chief Revenue O cer Vicki scriptions became available with the November versus the same period in en’s Health, which began in 2005, Wellington has already tripled second issue, which served a rate base 2016) and digital and video revenue has 13. Both titles remain formidable Hearst’s ad revenue projections. Incidentally, the brand’s of 800,000. And the spring 2018 issue is up, too. Editor-in-Chief Elizabeth lifestyle books—and, notably, Men’s secret sauce is Drummond’s will lift the rate base to 1.2 million. Graves and Design Director Jaspal Health essentially vanquished its decidedly modern social media For fans of “Fixer Upper”—which Riyait unveiled a major redesign of longtime (wannabe) direct compe- presence, including 4.5 million Facebook fans . The backyard is winding down in its current form the print product with the October tition when AMI announced earlier chickens—and everyone else— on HGTV, but is set for at least one issue, including custom-created this year that it was axing the Men’s seem ne with the irony. planned spin-o —this elegant quar- MSL-exclusive typefaces (as always, Fitness print edition. terly is the perfect print expression no detail is too small for Martha). VP Under newish Editor-in-Chief of the show’s home renovation/decor and Publisher Daren Mazzucca has Matt Bean—2017 will be his fi rst aesthetic, as well as a collectible entry been diversifying the marketer mix, full year—Men’s Health debuted a point into the Gaineses’ burgeoning with print ad growth particularly in thoughtful redesign/rethink in print Magnolia lifestyle brand. Under VP the toiletries-and-cosmetics cate- while rapidly building out its digital and Publisher Mark Josephson, The gory (thanks in part to L’Oréal and platforms, particularly video. (Video Magnolia Journal has an unusually P&G) as well as the home category views grew 74 percent to 8.3 million, disciplined revenue strategy: Its (KitchenAid, Rowenta and Serta and MH Films, devoted to episodic model limits ads to 25 pages per issue, came on board). And in its 27th year, longform content, launched in April.) so ad revenue gains have come from the magazine just feels more fun, At Women’s Health, Editor-in-Chief a rising ad insertion cost as the rate particularly in its social media; wit- Amy Keller Laird has been putting an base has increased. And subscription ness its wry tone vis-à-vis Martha increased emphasis on mental health pricing is $20 for four issues or $30 herself, starting with the #ImSoMar- (e.g., Women’s Health’s May story on for eight issues. It’s never discounted, tha hashtag on Instagram. “smiling depression,” wherein women giving The Magnolia Journal one of put on false fronts to hide symp- the most enviable consumer revenue Men’s Health and Women’s Health toms, complete with a participatory streams in publishing. Men’s Health and Women’s Health #HowIReallyFelt element on social are, quite simply, why Hearst decid- media). The magazine also pulled Martha Stewart Living ed to acquire Rodale this fall. Fami- o a Global Naked Issue (about body Meredith may have the next Mar- ly-owned Rodale, once known more acceptance) with Sofi a Vergara as its tha Stewart in the form of Joanna for rather earnest titles including cover star across its various multi-

30 Ad Age December 4, 2017

P028_034_AA_20171204.indd 30 12/1/17 3:23 PM Measure what matters to make cross-platform audiences and advertising more valuable.

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AA013913.indd 1 11/28/17 10:33 AM Magazines of the Year

lingual editions. Given that Hearst rkercartoons on Instagram alone), up cated feuds and all-around nastiness. reach, drawing an average of 6.2 mil- is also expert at launching and 24 percent year-over-year. At every People’s bestselling issues still lion unique monthly visitors in 2017, supporting international versions turn, the signature sensibility shines top half-a-million single-copy sales, up 11 percent from 2016. of its magazine brands, it’s hard to through (see The New Yorker Poetry and total reader revenue continues to Pulitzer Prize–winning news- imagine a better next home for the Bot on Twitter and Facebook Messen- make an outsize contribution to the paper veteran William Falk has been two magazines than Hearst Tower. ger, now sending you a poem every bottom line on a 3.4 million rate base. editor-in-chief of the print edition day). And under Chief Business O cer Under Group President Karen Kovacs, since launch, consistently assembling The New Yorker Chris Mitchell, year-over-year digital print revenue has held steady (paging a smartly balanced, fair-minded take In 2017, The New Yorker’s journal- revenue has increased 17 percent, dipped just 2 percent—a huge win on U.S. and international news. Ben ism has been stronger and more video revenue 40 percent, consumer for a weekly in 2017) as web monthly Frumin has been editor-in-chief of infl uential than ever. Think Ryan revenue 9 percent—and overall reve- uniques grew 5 percent to 36 million. TheWeek.com since 2012, somehow Lizza’s report on his rather stunning nue 12 percent. And the brand relaunched the People/ o ering big-picture clarity on the late-night conversation with short- Entertainment Weekly Network (PEN) otherwise insu erable, bewildering lived White House communications People as PeopleTV, racking up more than 100 news cycle. And the return of John director Anthony Scaramucci, and The once high-fl ying business of ce- million video views 2017 to date. Guehl (who started at The Week in Ronan Farrow’s relentless Harvey lebrity weeklies has been crashing to 2007, decamped to Condé Nast for Weinstein coverage, which argu- earth—witness the spring fi re sale of The Week three years, returned in 2013 and has ably outdid The New York Times’ Wenner Media’s Us Weekly to AMI— The Week, which was introduced in been VP and publisher since 2015) has Weinstein reporting, even though but People remains a bright spot not 2001 by the late Felix Dennis (closely supercharged the bottom line. Print the Times was fi rst out of the gate. only for the category, but for Time Inc. following the template of the original ad pages are up 17 percent this year to David Remnick is closing in on two and the entire magazine industry. Of U.K. edition, which started in 1995), is date— both Morgan Stanley and decades as editor-in-chief of the course, the 43-year-old brand is more a slim weekly magazine that con- Emirates did sole-advertiser issue venerable Condé Nast weekly (he than a celebrity title—it’s always been cisely summarizes and analyzes the takeovers this year—and digital reve- took the helm in 1998) and along just as much a purveyor of newsy news. Its 550,000 rate base is entirely nue is up 7 percent. the way he’s proved himself to be human-interest stories—but People’s unpadded (no “verifi ed” or other a most nimble multimedia master- generally gracious, fact-based cov- giveaway circ) and it has no news- mind. Time and time again in 2017, erage of movie, TV and social-media stand presence (reader revenue comes stories that broke on newyorker. stars under Editorial Director Jess from paid subs, which average $50 per com drove the national news cycle, Cagle makes it an ever-more-refresh- year). As such, it’s something of a cult and the brand grew its followers ing read in a celebutainment “news” favorite among the time-crunched across social to more than 17 million ecosystem increasingly focused on business-minded jet set—although its (including 1.1 million for @newyo- rumors, fi ctional pregnancies, fabri- website has quietly gained impressive

32 Ad Age December 4, 2017

P028_034_AA_20171204.indd 32 12/1/17 3:23 PM YOU INSPIRE MILLIONS TO ACHIEVE DAILY & DREAM BIG

Congratulations to Martha Stewart Living and The Magnolia Journal on being named to Ad Age’s Magazines of the Year.

AA013921.indd 1 11/29/17 3:01 PM Meredith Ad Age MOTY 120417 FP.indd 1 11/29/17 2:51 PM Magazines of the Year

Adam Moss is Ad Age’s Publisher Avi Zimak, Editor of the Year, and digital ad revenue is NEW YORK the title he’s edited on track to rise dou- since 2004, New York ble digits by year end. Magazine, is the Maga- The fl agship NYMag. MAGAZINE zine of the Year. com website, and its Actually, it feels sort sub-brands including IS AD AGE’S of strange to call Moss Grub Street and Vulture, just an editor. The word draw a monthly audi- seems rather old-fash- ence of unique visitors MAGAZINE ioned and constrain- that has grown to 20.6 ing for someone who million—up nearly 25 OF THE YEAR presides over a growing percent year-over-year. content empire that en- E-commerce revenue is compasses print, digital, on track for double-digit AND ADAM events, e-commerce and growth too. The Vulture other revenue streams. Festival, born in New MOSS IS Yes, in 2017, New York four years ago, ex- York, the print product, panded to Los Angeles feels as vital as ever. in November and drew EDITOR OF And the Oct. 16 50th-an- A-list participants in- er high-profi le hires, Let’s talk about how niversary issue, along cluding Kerry Washing- including Olivia Nuzzi your job has trans- THE YEAR with a just-published ton, Issa Rae and James as Washington corre- formed in the time that retrospective book, Franco. And New York spondent and Fritzie you’ve been at the mag- “Highbrow, Lowbrow, Media continues to form Andrade as director of azine. How much editing Brilliant, Despicable: adventurous content video—underscores do you actually do? 50 Years of New York,” alliances with brands the extent to which Oh my God. [laughter] serve as vivid remind- such as Louis Vuitton, New York Magazine is a Uh, well, what consti- ers of how essential which backed Vulture’s white-hot media shop. tutes editing is now the glossy has been not “How to Navigate an Of course, the maga- completely di erent only to its hometown, Art Fair With Jerry zine, founded in 1968 by than it used to be. It but to American social, Saltz,” and FreshDirect, Milton Glaser and Clay used to be you actually cultural, political and sponsor of “Bittman’s Felker, has historically worked hard on a given media history. Kitchen,” starring food been home to a dazzling story. I seldom have But New York Media, writer and cookbook array of reporters and time to do that any- as the magazine’s par- author Mark Bittman, writers, including Tom more. A lot of it is sort ent company is known, who joined Grub Street Wolfe, Jimmy Breslin of managing the whole now has a revenue as a columnist in June. and Nora Ephron. But shebang and ... having base that is 64 percent Bittman’s addition such is Moss’ personal hugely talented, capable digital—and under CEO to the team—along stature that the chance people do most of the Pamela Wasserstein and with this year’s oth- to work in his orbit is its actual editing. own talent magnet. We’ll note here that If you were to start a Brooklyn-born, 60-year- magazine from scratch old Moss, who also had today, (a) Would you? celebrated stints at oth- and (b) What would er publications includ- it be? ing The New York Times Oh man, I don’t know . Magazine, Esquire and a Uh, you know, I’m in short-lived but infl uen- a privileged position tial start-up in the late where I can basically ’80s called 7 Days, is play out my idiotic pretty much the oppo- ideas on the magazine site of what you might that I do edit. ... The expect of a media-world internet has exploded legend. He’s gracious, the potential audience unassuming and quick for your material. So it to laugh. still feels like an alive You can experience and powerful medium, his lack of traditional and the medium itself media-grandee bluster is morphing, so it’s via the latest edition of creatively challenging Ad Lib, the weekly pod- and interesting. I think cast hosted by Ad Age this is a great time for Editor Brian Braiker. magazines. Here, a small sampling Hear the full podcast

of their conversation: interview at adage.com. Media York New Dupeux/Courtesy Axel by Photograph Moss:

34 Ad Age December 4, 2017

P028_034_AA_20171204.indd 34 12/1/17 3:23 PM HONORED TO BE ONE OF AdAge’s Magazines of the Ye a r

Share in our success in 2018 For advertising opportunities contact [email protected]

AA013932.indd 1 11/29/17 12:19 PM Opinion

Welcome to the TV industry’s latest thing. Even with its investments in keting outcomes in ways that will soon bit of magic … prestidigitalization. It’s new technology, it has not adequately render Nielsen and other “research” TV’S CRY a new twist on the old sleight-of-mea- adapted to behavioral changes in companies (and departments) obso- surement trick. Here’s how it works. media consumption—at least not lete. If a message finds its target, and FOR HELP You buy TV the old-fashioned way in a way that favors TV. According phones home about it, and an outcome because, well, that’s how you buy TV. to Nielsen, in 2016 (the last fully is determined, there’s nothing else to The ratings suck. You want to pay less reported year) its revenues within the know. Marketers have never wanted Replacing because you’re getting less. TV says, Watch segment (the TV ratings biz) to buy a GRP or a CPM. They want to traditional ratings “You’re not getting less. Look at our increased 5.7 percent to $2.9 billion. drive velocity or brand awareness or newly crafted, data-driven metrics. Audience Measurement of Video and create purchase intent or some other with bespoke data We’re delivering premium audiences Text revenues increased 7.5 percent metric of their own choosing. They’re won’t cut it across omni-channel touchpoints and primarily due to its ongoing invest- not governed by how well they buy generating better return-on-ad-spends ments and continued client adoption ads. They’re governed by revenue, and By Shelly Palmer than ever!” If you can brush the buzz- of its Total Audience Measurement everyone is under extreme pressure to words off your shoulder, you respond, system. Nielsen has a de facto monop- perform. Not to put too fine a point on “Yeah, but Nielsen says the ratings are oly on ratings, and business is up, so it it—in case you were not paying atten- down.” And TV triumphantly con- is not under any significant evolution- tion—today, every company is a tech cludes, “Nielsen sucks! Here’s how we ary pressure to do anything more than company. Try to get through a meeting prestidigitally measure your success.” it is already doing. without using the word “data.” It is almost impossible. Artisanal solutions don’t scale The prestidigital smoke screen As it turns out, TV is right. They But Nielsen is making TV look bad com- The art form versus the platform do have newly crafted, data-driven pared to its data-rich rivals. “If only we TV, the art form, is in its platinum age. metrics, and they can deliver premi- were measured right,” laments the TV But the future present of video pack- um audiences across omni-channel business, “you’d see. TV is awesome.” aging and distribution is on-demand touchpoints, and Nielsen does suck. Put another way, if we could manipulate and digital. TV the platform simply (Sorry Nielsen, I love you guys, I really a new metric the way we manipulate cannot survive under its current busi- do. I’ll defend you in a moment.) Nielsen, we could continue to charge ness model. It must evolve. At an unusual cross-industry you ungodly sums without having to Last week, Amazon introduced meeting last week to discuss TV’s deliver attributable business outcomes. an array of broadcast-quality media problems and ostensibly start fixing Of course, the pressure on TV ad services that enable anyone with an them, NBC Universal sales chief Linda sales is not Nielsen’s fault (although Amazon Web Services account to Yaccarino said the company will try every crisis needs a villain). The process, store and make money from to wean itself off a single currency. blame can be placed squarely on video. You want to see real magic? “Ab- That means Nielsen. The problem is changes in consumer behavior. While racadabra! You’re a broadcast-quality, that every TV sales group has devised this has been prophesized for years, omni-channel television network!” hand-crafted, unscalable, data-driven and everyone has agreed in theory This is a level of competition the tradi- metrics to justify your ad dollars. In that television viewers were evolving tional TV business has not anticipated. some cases, metrics can even vary their behaviors, no one could agree on Disney blew a zillion dollars acquiring between different divisions of the the timing. This is not a linear exer- the part of BAMTech it did not already same network. There is no common cise; the pace of technological change own—just to get into the streaming currency that encompasses indus- is exponential and the industry is now business with an established technolo- try-accepted messaging units and the getting an up-close-and-personal gy and workflow. Give me 10 engineers delivery of quality audiences. view of what an empowered consumer and 10 weeks, and a credit card to open Even if such a currency could be is (and is not) willing to put up with. your AWS account, and I’ll build you agreed upon, it would be obviously 100 percent of that capability (and biased toward a desired outcome. It A new currency won’t solve the more) for a fraction of what Disney would not have practical value. Look problem spent. The pace of technological over there … let’s blame Nielsen! Mass marketing and its component change is exponential. Believe it, own Shelly Palmer is CEO of The parts are facing an existential crisis. it, leverage it. As for TV? It’s not time Palmer Group, a strategic advisory and business Nielsen for better or for worse With enough data, machine learning for prestidigitalization, it’s time to development practice It’s easy to blame Nielsen for every- tools can (and will) optimize for mar- “presto-change-o.”

36 Ad Age December 4, 2017 CONGRATULATIONS TO OUR 2017 Magazines of the Year

BE THERE when it happens.

AA013923.indd 1 11/30/17 11:12 AM Advertisement Opinion HOT RIGHT NOW

CUSTOMWEBCAST BRAND VOYEURS 12 7AT2PMET AdAecmSyntesiebinar AND CULTURE TURNSOCIALDATAINTO ACTIONABLEBUSINESSSTRATEGY VAMPIRES earn t mine and leverae scial data insits Marginalized people t el yu acieve a ily cmetitive ede in all acets are shaping the stuff we maretin, PR and custmer service rrams consume, not agencies or Hollywood execs

Snsred by By Alain Sylvain Paul Ryan: A little dab’ll do ya.

What do we mean buying fake followers or The internet has tribe, by the time you’ve by “pop culture”? It paying Google to serve created the perfect heard of them, the mo- encompasses the broad you content you never platform for these new ment has passed. CUSTOMWHITEPAPER range of social phenom- asked for. These people makers to disrupt the Second, they remix, AdAecmactualitePaer ena we consider to be will be the first to tell chain of command. reimagine and re- cool and unifying. It’s you that they create They’re designing, purpose old pieces of the connective tissue culture. They will be the workshopping and culture for new con-

Location Data for Mobile Advertising Is Only as Good as Its Source of society; our common first to tell you that they, distributing culture sumption. That can be language. The stuff that and only they, are the through the niche cor- anything from taking a ties us to one another. ones that know how. ners of the internet. And pre-existing image and Pop culture comprises But in 2017 pop cul- brands can learn a lot. adding text, parodying fashion, food, art, lan- ture was not the domain It’s an organic, leader- something in the main- guage, music and even of the elite. Just look at less movement that is stream for their own WHY QUALITY humor. It’s the stuff the language of the day: defining pop culture as benefit, or repurposing MATTERS that brings us together “bae,” “basic,” “fuck- we know it. an emoji for a new con- Sponsor Content as a people. boy,” “swag,” “ratch- How? First, they text. Suede the Remix But traditionally et,” “yas queen,” “bye create for the in-group. God not only makes WHYQUALITYMATTERS much of this stuff is felicia,” “squad,” “turnt They design stuff clips go viral, he’s even the work of a small up,” “clap back.” Sza, for themselves and reached the Billboard earn at uestins t as t discver mbile lcatin elite—entertainment Jordan Peele, Laverne each other, and don’t Hot 100 for a remix of data is surced, t best executives, brands and Cox, #BlackTwitter. particularly care if it the “Dr. Phil” clip “Cash use tis data in camains and their agencies—ped- Want more proof? This doesn’t resonate with Me Outside,” which at metrics yu suld be dling stuff in the hope year “on fleek” made it the masses. It’s unapol- launched the career of usin t measure results of penetrating culture into the Oxford English ogetic, exclusive and 13-year-old Danielle Pes- seemingly authentically. Dictionary, twerking was private—an inside joke kowitz Bregoli. In the past they were a featured segment on or conversation be- While remaining in Snsred by the ones that greenlit “Good Morning Amer- tween friends that plays the margins, these aes- movies like “Justice ica” and Paul Ryan, the on the behaviors of the thetic innovators’ point League” or placed cereal Speaker of the House, group. For example, is to assert a perspective boxes on the set of some “dabbed” on stage. GHE20G0TH1K is an art on the dominant culture CBS primetime com- This stuff was not collective, DJ crew and and exercise a sense CUSTOMWEBCAST edy. Today, this same created by Hollywood aesthetic movement led of self-determination. 12 14AT1PMET elite operates slightly studios or big brands. by visionaries Shayne (See: Vine, which was AdAecmracleNetSuite differently: hijacking In 2017, the drivers of Oliver, Venus X and DJ a tremendous outlet of PREPAREYOURAGENCY your Instagram account, culture are often young, Mike Q. They launched expression and commu- FOR2018:PREDICTIONSFOR marginalized people. an underground party nity for young people of THEADVERTISINGINDUSTRY They are members of eight years ago that color.) (Also, RIP Vine.) at are te t areas groups that historically ushered in a new era of Brands and enter- every advertisin and media have been forced out of New York cool. Regu- tainment executives business needs t reare r the mainstream: people lar attendees included have been rendered pas- in te ne year ear abut of color, members of musicians and fashion sive by the emergence of te canin state ealt the LGBTQ community, leaders and queers and these new makers. The armaceuticals, te people on the fringes, hood kids and tastemak- irony being that while transrmatin t diital and best strateies t retain economically, socially or ers from all corners of the entertainment and t talent politically. Yet despite the city. Like some next- advertising industries this marginalization, gen Warhol Factory, the fuss about diversity, the these people are driving collective birthed trends most prolific creators are Snsred by Alain Sylvain is founder what is relevant and hip that reverberated up already everywhere. and CEO of innovation and brand design consultancy today. And they’re doing into broader culture.

Sylvain Labs it in fascinating ways. But if you’re outside the CNN Ryan: Paul Alain Sylvain;

38 Ad Age December 4, 2017 Classic Ad Review

THE SWEET SMELL OF SUCCESS By Barbara Lippert

“There’s a fragrance that’s here today, and they call it—Charlie!” The year was 1973, and this spot—a kinda-wow-kinda-now beacon of hope and rising feminism—stands in stark contrast to this complicated harassment-outing moment in our culture. In the early ’70s, Mary Tyler Moore played unmarried TV producer Mary Richards, famously opening her TV show by throwing her beret in the air. That iconic gesture, now baked into the fabric of America, suggested to fellow single “career” girls in the city that the sky was the limit. Despite all this, Revlon founder Charles Revson was hardly a feminist. But he sensed something revolution- ary happening. The company had recently branched into fragrances, and the stars aligned for the release of his namesake scent . And who among the young ’uns wouldn’t dream of being (pre-“Char- lie’s Angels”) fashion model Shelley Hack, with her golden ’70s bob, light-up smile, and super-long-legged, jumpsuited bod? Imagine driving your Rolls con- vertible to the Plaza Hotel in New York City, throwing your cap at the bellman, scrawling your one-name signature, dancing around the bistro to Bobby Short’s live music and then being twirled into a booth by your date. Though this was actually more like a scene from a 1930s crack- pot-heiress movie, there was something about the alchemy of the jaunty male brand name and Hack’s forward movement that telegraphed to women a vision of future strides. Charlie became the ﬁ rst “lifestyle” fragrance, an a ordable, non-old- lady, daytime scent marketed to the wearer herself, not her man. By 1975 it had racked up $55 million in U.S. sales. Since then, the eau has gone cold. You can now buy Charlie Red or Blue for less than $8 at Target . Certainly, gender roles have grown more ﬂ uid. Still, it’s disappointing that 44 years via YouTube Revlon of courtesy images Charlie later, the jig is far less joyous. Images from various ads in Revlon’s Charlie campaign.

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