Agencies left hanging on word of Woolies account

THE battle for Woolworths’ $240 million media buying account has become embroiled in more controversy.

THE battle for Woolworths’ $240 million media buying account, Australia’s biggest advertising expenditure, has become embroiled in more controversy as the decision is postponed once again. A short list of agencies was informed late last week a decision would be made in July, surprising the contenders which were expecting news last week.

The shortlist includes Omnicom’s OMD, WPP’s MediaCom and Aegis Media’s Carat. Sources close to the pitch process have claimed individual agency running costs for taking part are as high as $500,000, raising questions about the integrity of the process. The pitch is being run by chief marketing officer Tony Phillips, who joined Woolies in March.

The coveted account, which will give the winning agency huge billings and enormous leverage in negotiations with media owners, includes the main supermarket business in addition to liquor brands BWS and Dan Murphy’s. It’s understood the majority of the stakeholders wish to appoint a new agency, but Phillips, who has the most powerful vote in the discussions, is at odds with the other marketing directors.

Phillips is a former advertising executive and Coles marketer. There he worked with Interpublic Group’s media agency UM, part of Mediabrands. Phillips has a close relationship with Mediabrands global chief operating officer and executive chairman Henry Tajer. UM was unable to pitch for the Woolworths account because of a major client conflict. The agency handles Coles.

Vice at a price

EVERY year at the Cannes Lions International Festival of Creativity, the number of media companies clamouring for attention is bigger than the previous year. Vice Media, once a humble magazine about doing heroin, stole the limelight this year. As well as hosting the most coveted party in town, Vice executives got tongues wagging when they swerved questions about Time Warner’s interest in buying a stake worth $1 billion in the burgeoning multi-platform media brand.

DreamWorks Animation boss Jeffrey Katzenberg had Vice’s chief creative officer Eddy Moretti feeling rather uncomfortable when he nudged him about talks with the prospective suitor. “We’re not supposed to talk about it,” Moretti said, adding: “Are there any Time Warner people here? There should be.” But Katzenberg continued to poke him. “Eddy and (Vice-CEO) Shane Smith are negotiating to buy Time Warner, hoping they’ll find a place for DreamWorks in their new empire,” he joked.

Not in vogue

US rapper Kanye West was in Cannes to talk about music and celebrity endorsement deals. Many have wondered how West persuaded editor-in-chief Anna Wintour to have him and his wife Kim Kardashian on the cover of the April issue of Vogue. US executives whispered to Diary that West managed to persuade Wintour that the magazine would get a sales bump. Except the issue is said to have sold only about 250,000 copies, way below early estimates of up to 500,000 copies. Covers with Michelle Obama and Beyonce sold 269,000 and 355,000 copies respectively.