MINORITY CERTIFICATION: DOES IT MATTER OR NOT?
News Analysis by Ken Smikle
(August 24, 2002) Is the True ad agency telling the truth about its ownership?
The big mystery coming out of Detroit last month was which ad agency would
Chrysler select to handle its African-American and Hispanic advertising. The
choice came down to the incumbent GlobalHue headed by Don Coleman or PASS, a
partnership formed by Peter Arnell and hip-hop impresario Steve Stoute.
GlobalHue retained the business, partly because PASS did not pass the scrutiny
of proving it is at least 51% owned and controlled by persons who are racial or
ethnic minorities. The mystery was since certification was requirement to even
be considered for the assignment, how did PASS become a finalist in the first
place?
The suspense in the Motor City this month is why did Nissan decide on the New
York based True agency to handle its African-American campaign? The agency
didn’t exist six months ago. It had no other clients. And as of this writing
it has not been certified as a minority-owned business. Once again, this was a
requirement for be considered, so how could a new kid on the block beat out 24
other agencies, yet not be certified?
Critics of Nissan’s choice point to not only the lack of certification as
cause for alarm, but also the relationship that True has with the carmaker’s
general market ad agency, TBWA/Chiat/Day. TBWA, which is part of the Omnicom
group, has recently become the minority stakeholder in True.
There seems to be a new trend among automakers in how they hire ethnic
advertising agencies. The new process has been to put the account up for bid,
establish the criteria for eligible agencies, invite as many agencies
(regardless of size or experience) as you can identify to compete, ignore the
criteria and then find a way to justify the choice you’ve made.
In light of the Chrysler-PASS situation, the Nissan-True announcement has become
a serious issue. By selecting True as its agency before certification was
completed, Nissan’s actions have the potential to give the entire industry two
impressions: (1) that certification is a foregone conclusion, and (2) that there
was no consequence for selecting an agency that wasn’t certified.
Both impressions have drawn the fire of Harriet Michel. She is the president of
the National Minority Supplier Development Council. For the past 30 years the
NMSDC has been the organization of record for determining the legitimate owners
of minority-owned businesses. Its affiliated council, the New York-New Jersey
NMSDC, has the responsibility of reviewing True’s credentials. It also
rejected PASS’s application.
Michel said that the move by Nissan to name True as its agency prior to the
conclusion of the certification process will not make the council handle the
application any differently. “The fact that all of these things happened
simultaneously – they formed a business and went for certification all at the
same time – means that we’re going to be looking very, very carefully at
their papers.”
“I stand by our certification and I believe that we saved Chrysler a major
embarrassment,” said Michel. She added that the advertising industry needs to
have a better understanding of how the NMSDC and its local councils work.
Presently, there are no advertising agencies among the 350 major corporations
that are national members of NMSDC.
“Maybe we need to talk to the people in the advertising industry because this
keeps popping up and this is ugly,” said Michel “Maybe they don’t
understand that you don’t just go out and find somebody and put a suit on them
and call them the owner when in fact they’re not. Maybe they see opportunities
in the minority markets, but they can’t [use businesses that aren’t
minority-owned] and have a negative impact or try to put legitimate minority
shops out of business.
“You
can’t stop anybody from opening a business,” Michel continued. “But we can
certainly take a look at people who very purposely creating entities when they
know damn good and well [the business] is not what it’s advertised to be. And
unfortunately this has popped up in advertising lately more than in any other
industry I can think of.”
African-American marketing and media execs give
eye-witness accounts of horrific WTC attacks
(Sept. 12, 2001) Yvette Moyo arrived in New York City from
Chicago Monday evening, Sept. 10th with the hope of staying at the Marriott
World Trade Center Hotel. Even though the hotel was completely sold out, she
persisted in trying to get a room.
Moyo is president and co-founder of MOBE, the marketing and promotions company
best known for the conferences and special events they have presented for the
past decade. She thought she would get the hotel to give
her special consideration because her company had already signed a contract to
hold its tenth anniversary celebration at the Marriott next April.
"They told me they were sorry but they weren't able to accommodate
me," said Moyo. She spent the night elsewhere.
Tuesday morning in Greenwich Village, while waiting for the EPM Emerging Markets
conference to begin, Moyo and others were drawn outside to see the World Trade
Center in flames.
"The plane hit the [first] tower just as we were starting," said Moyo.
"We came out and saw the fire. Then there was another explosion and a ball
of fire. Flames were coming out of every window. We went back inside to hear the
reports about what had happened and they said that a plane went through the
building."
Sherman Kizart, director of urban marketing for Interep, was in a taxi en route
to the same conference. "The driver said, 'Look at that,' and I saw this
incredible fire. Everything in the street - people, traffic -- just
stopped."
Kizart left the cab and started walking south toward Greenwich Village.
"Before I got there, I saw the building just disappear in a cloud of
smoke."
Chuck Morrison, senior vice president of the UniWorld Group ad agency, was in
his office less than a mile from the Twin Towers. "We actually saw the
second plane hit the World Trade Center," said Morrison. "You could
hear the impact. Then we saw the building crumble."
Derek Dingle, vice president of Black Enterprise also witnessed the destruction
from the magazine's offices on lower Fifth Avenue. "To look south now and
see just nothing there…it's hard to comprehend."
In the aftermath of the destruction of the World Trade Center, companies such as
the UniWorld Group that are based in the surrounding area have had to establish
temporary operations elsewhere. "We're all working from home," said
Morrison. We're in touch with our clients and we could be out until next week,
but we'll get through this. It reminds you of what's really important in
life."
Moyo, like tens of thousands of other out-of-towners, was stranded in New York
for the remainder of the week. She eventually stayed at the home of a MOBE
advisory
board member in New Jersey. The Marriott hotel in which she was unable to get a
room was consumed in debris and ash.
"I woke up the next morning and just broke down looking across the
river," she said. "I feel really blessed."
"This is a bad time in our country," said Morrison. "I saw
Kennedy in Dallas when he was killed. I saw the parade. That was nothing like
this. This is much worst. Our country, and everything else, has been changed forever."
Diane Weathers Named Editor-in-Chief of Essence Magazine
(July 17, 2001) Diane Weathers, a veteran editor and journalist with almost
30 years of professional experience, has been named editor-in-chief of Essence
magazine,
replacing Monique Greenwood.
Weathers has in the past been affiliated with the black
women's lifestyle magazine. She previously served as articles editor and has
authored a number
of features for Essence. Prior to accepting the publication's top editorial
post, she was senior editor of news features for Redbook magazine. She also has
been the Washington bureau chief for Newsweek magazine and worked at
Black Enterprise magazine.
The rumor mills are buzzing about the friction between
Greenwood and Susan L. Taylor, Essence's publications director. Overlooked and
unreported by most of these sources, however, is the fact that Greenwood was a
full-fledged entrepreneur while she managed the editorial side of Essence. In
fact, Greenwood, who owns a bed-and-breakfast and a restaurant in New York,
is scheduled to open a second facility in Cape May, N.J. this month.
In an announcement dated last Friday, the company said that
Greenwood was stepping down "to devote her full attention to her businesses
and her family." Essence chairman and CEO Edward Lewis said "We
support and respect Monique for being true to what she desires. She personifies
what our
publication teaches black women -- to empower themselves to live out their
dreams to advance their individual lives and the lives of others"
What the 32-year-old magazine needs is stability. It is at a
point in its history where its identity and relationship with its readers should
be locked in place. What Lewis, Taylor and president, Clarence Smith, would like
to be focused on are ways to grow using the resources of its heavyweight
partner,
AOL Time Warner. They expect to return to that with Taylor assuming overall
responsibility for the editorial vision, and Weathers reaffirming the magazine's
voice with readers.
"We are confident that Diane's passion and intellectual
firepower will continue to help Essence grow even bigger," said Lewis.
"Diane is a visionary and an exquisite writer and editor who understands
and embraces the Essence
mission."
Caroline Jones, Advertising Pioneer, Dies
(July 2, 2001) A long bout with cancer has ended for Caroline Jones, one of
the advertising industry's pioneering African-American women. Jones died early
Thursday morning, June 28 in New York City where she had been in hospice care
for the past two months.
In an industry that has seen few women rise to the top ranks,
Caroline Jones built a distinguished career by breaking numerous barriers for
almost four decades. When she graduated from the University of Michigan, she
joined
J. Walter Thompson as a secretary and shortly after was accepted into the
agency's copywriters' program. She capped off her stint at JWT by being named
creative director. Jones moved to BBDO where she became the first black woman to
be named vice president. Later she joined
Kenyon & Eckhardt as vice
president.
Her groundbreaking efforts in African-American advertising
included positions at The Black Creative Group, The Zebra Agency and Mingo-Jones
Advertising. Among her most memorable work was the "We Do Chicken
Right"
campaign created for Kentucky Fried Chicken.
"People don't know how much of a pioneer she was in this
industry," said Sam Chisholm, chairman of the Chisholm-Mingo Group.
"Most people think of her as a hard-driving entrepreneur. But I think of
her as a damn good writer and superior editor of the creative product. She was
able to zero in on what was right for a client. It's just too bad that most
people probably won't remember her for that."
"The thing that was so pronounced about Caroline's
career path," said Thomas Burrell, chairman of the Burrell Communications
Group, "was that she was totally dedicated to the concept of niche
marketing from the very beginning [of her career]. And the other thing about her
was she could really work a room. She understood the concept of establishing
relationships. She had terrific social skills, and that's one thing I always
envied about her."
Jones started her own agency, Caroline Jones, Inc., in 1994.
Last year the agency, which has clients such as Anheuser-Busch, Ryder
Systems and the United Negro College Fund, reported $15 million in
billings.
Private services for Jones are to be held in her home town of
Benton Harbor, Mich. A memorial service will be announced at a later date.
CHRYSLER’S EXEC SAYS COLEMAN WILL CONTINUE AS ITS AGENCY
By Ken Smikle
(July 25, 2002) Some
light was shed yesterday on the four-month long drama over which agency will be
named to handle DaimlerChrysler’s $40 million African-American advertising
account. Chrysler’s executive vice president of global sales and marketing,
James Schroer, was among the panelists addressing the topic of multicultural
advertising at the Rainbow/PUSH Coalition's convention in Chicago this week.
When his comments included references to Don Coleman, he was asked about
Chrysler’s relationship with Coleman’s GlobalHue ad agency:
Q: Jim, did you just say that Don Coleman has been re-hired?
Schroer: He was never let go. The PR on this has always been interesting, but
Don Coleman has been our partner and will continue to be. (Don Coleman, who was
in the audience, received congratulatory applause from the audience.)
Target Market News has also learned that an official announcement will be made
no later than Tuesday of next week. What remains unclear is whether GlobalHue
will be the only ad agency to be given an assignment. In his comments on the
panel, Schroer spoke about Chrysler’s interest in marketing to urban youth.
”There is a big difference between the words multicultural and urban,” said
Schroer. “The urban side of this is really more of a word that people are
starting to use [to describe] where kids are getting their trends…[Kids] like
the policy of inclusion -- that we’re all starting to learn how to live
together. It’s created an enormous tension in the system for how do you do
both [multicultural and urban marketing].”
Schroer added “I think those are two big changes; that we’re going to be
more effective at marketing to each color of the rainbow…, and I think that we’ve
learned a lot about kids and what drives them.”
To answer the challenge of youth marketing, Chrysler may still have its sights
set on PASS, the New York-based agency formed by Peter Arnell and hip-hop
entrepreneur Steve Stoute. That agency, however, has had difficulty getting
through the credentials process in order to be eligible for consideration.
Though all of the finalists bidding for the Chrysler account were suppose to
already be certified as minority-owned businesses, as late as last week, PASS
could not obtain certification. The agency was not eliminated. Instead, PASS
reportedly sold 100% of its interest to the Hispanic agency, Cultura, with whom
it has formed an alliance. If it hadn’t made the purchase, Cultura itself
might have also been out of the running.
Cultura, which press accounts say is 60% owned by its president Juan Faura and
40% owned by Grupo Samba, a holding company of Hispanic shops, has received
certification.
At deadline, calls to GlobalHue for comment had not been returned.
Clarence Smith, co-founder and president of Essence, resigns
By Ken Smikle
(June 28, 2002) Clarence O. Smith, co-founder and president of Essence
Communications Partners, has resigned his position as of next month.
The action caught many in the industry by surprise and is the latest in a
series of changes over the past two years at the company that is the leader in
targeting African-American women.
Target Market News has learned that Smith’s decision follows a vote by the
company’s board asking that he step down. In a telephone interview, Ed Lewis,
CEO said that the board felt that it was “time to make the change,” and that
Smith, with whom he had a 32-year partnership, would be “always be
recognized” for his role in building the company.
There are no plans to name a successor to the president’s post, said Lewis,
and Smith would remain on the magazine’s masthead as president emeritus and
co-founder. The Essence Entertainment division, which produces the Essence
Awards television program, the Essence Music Festival and essence.com, would now
report to Lewis.
Smith, who could not be reached for comment at presstime, was quoted in the
press release as saying “I have contributed to Essence’s growth and
development, since its inception, and I feel privileged to have served the
community of African-American women. I am looking forward to this next chapter
of my career and am genuinely excited about the new opportunities and challenges
that await.”
The transition, according the statement released by the company, has been under
discussion “for some time.” It was brought to light publicly last week when
N.Y. Post gossip columnist Cindy Adams wrote that “Bad blood is coagulating at
Essence” and that Smith had been “beheaded.” The tabloid also said the
two-year-old partnership between AOL Time Warner
and Essence “may have been the spark, but the triggerman was Lewis.”
Lewis told Target Market News that “Time Warner and [newly elevated chairman]
Dick Parsons had nothing whatsoever to do with this.” Time Warner acquired a
49 percent interest in Essence two years ago.
Since the forging of the Essence/AOLTW alliance, a number of promotions,
new hires and corporate re-structuring moves have occurred.
”He has not only aided in making our publication the premiere magazine for
African-American women,” said Lewis of Smith in the statement, “he has
helped create a foundation for integrated marketing programs to the
African-American community.” Essence now has more than 1 million monthly
circulation and has maintained its dominance as the company’s flagship. Last
year ECP reported $114 million in sales.
Ariel/Schwab
study finds big increase in high-income black investors
(June 13, 2002) According to the fifth annual Ariel Schwab Black Investor
Survey, the percentage of high-income black households who invest in the stock
market grew by 30 % over the past five years.
Over the same period, stock ownership among whites with comparable
incomes rose just 4%.
The survey found that 74% of black households earning $50,000 or more are
invested in stocks or funds, versus 57% in 1998.
There were also significant differences in how black and white investors reacted
to the terrorist attacks of Sept. 11th. A higher percentage of blacks
than whites made no major changes to their portfolios (74% vs. 68%). More blacks
updated their wills (25% vs. 16%) and bolstered their insurance policies (12%
vs. 6%). More blacks than whites started reviewing their investment more
frequently (38% vs. 24%).
Only 6% of black households surveyed liquidated any investments as a result of
last year’s recession or acts of terrorism. “It is especially heartening to
see that we are demonstrating stability and confidence as investors through
economically and politically uncertain times.” said John Rogers, chairman and
founder of Ariel Mutual Funds.“
The survey was based on a random sample of phone calls placed to 500 blacks and
500 whites earning over $50,000 by Neuwirth Research, Inc.
[The results of the Ariel Schwab Black Investor Survey will be presented and
discussed at the African-American Consumer Research Summit in Chicago on June 26
and 27. For more information click
here.]
BET enters radio network with Westwood One partnership
(June 13, 2002) For many years, BET chairman Bob Johnson has expressed a desire
to take his company into radio broadcasting. A partnership announced today with
Westwood One moves that desire closer to reality. Beginning July 8 the BET Radio
Network will offer affiliate stations access to BET’s talent, news, concerts
and live remotes. The network will also provide short form programming with
BET’s Music News Minute, Weekly Movie Spotlight and News Minute hosted by
anchor Jacque Reid.
Westwood One, which offers more than 150 programs to over 7,700 stations is not
known for its connections with the urban market. The CBS Radio Network is
operated by Westwood One, but it has only five urban-formatted stations under
its umbrella. What makes this partnership a fit is the partners connection to
Viacom. Infinity, which manages Westwood One, is owned – as is BET – by
Viacom.
The NBA and Essence Awards take top spots with black TV audiences
(June 13, 2002) For the second week in a row, the NBA finals games and the
pre-game shows were the most popular TV fare with black households. During the
first full week in June, with most of the usual primetime favorites like UPN’s
Girlfriends
and The
Parkers in re-runs, the face-off between the Lakers and Nets swept
NBC into top three positions and captured six of the top ten slots. The
Essence Awards gave Fox the fourth highest-ranking show with 2.2
million households tuned in to the two hour special. Get all of last week's top
TV stats by clicking
here to view Nielsen TV ratings.
Target Market News to feature Nielsen's black TV audience data
(June 7, 2002) Beginning this week, Target Market News will be listing the top
ten prime-time network programs watched by black households. Thanks to a special
arrangement with Nielsen Media Research, you'll be able to see which shows were
the most popular with black viewers, what their ratings were and how many black
households tuned in.
Last week's big winner was the NBA. The second-round playoff games scored an
absolute blow out, capturing an incredible seven of the top ten slots with black
audiences. Last Sunday's final game between the L.A. Lakers and Sacramento Kings
was viewed by more than 4 million black households.
Our appreciation to Eddie Arnold of Nielsen Media Research for making this data
available to our readers.
Click here
to view Nielsen TV Ratings
Muse, Cordero Chen named agency for MGM Mirage Casinos
(June 7, 2002) MGM Mirage, owner of 15 casinos, boosted its plans to tap into
the African-American market by hiring Muse, Cordero, Chen & Partners as its
multicultural ad agency. The L.A.-based agency beat out five other contenders to
win the account. Future billings were not disclosed, but MGM Mirage spent $7.3
million in advertising last year, according to CMR, a unit of Taylor Nelson
Sofres.
Debbie Allen launches skin care line
(June 7, 2002) Debbie Allen, the award-winning actress, dancer and
choreographer, has launched the Debbie Allen Five-Step Skin Care Collection
through a collaboration with distributor Key Brands International and
dermatologist Dr. Carolyn Merritt. The new line debuted recently in selected
Wal-Mart stores throughout the country.
Burrell gets Fannie Mae Account
(May 29, 2002) Fannie Mae, the nation's largest lender of home mortgages, has
selected Burrell Communications Group, Chicago to handle its first
business-to-business campaign targeting African-American businesses. Billings
for the account were not disclosed.
"We are very pleased to have the opportunity to assist Fannie Mae with its
business-to-business marketing," said Thomas Burrell, the agency's CEO and
founder. "The addition of this prestigious financial services client to our
roster reveals the range of expertise within our staff."
Details about the campaign's launch have not yet been announced. It is believed
that the assignment marks the first time that an African-American agency has
been chosen by a major client to handle business-to-business advertising.
Chrysler meets with Jesse Jackson to discuss its plans to hire black and
Hispanic ad agencies
By Ken Smikle
(May 15, 2002) The Rev. Jesse Jackson met on Tuesday, May 14 with executives
from Chrysler to discuss how and why the automaker is going about hiring
agencies to handle its African-American, Hispanic and Asian advertising.
During the 90-minute meeting at Chrysler’s Detroit headquarters Rev. Jackson
questioned the motivation behind putting under review the $40 million account
once assigned to Don Coleman Advertising and Montemayor y Asociados.
Attending the meeting were Chrysler’s James Schroer, executive vice president
sales and marketing; George Murphy, senior vice president of global brand
marketing and representatives of the Rainbow/PUSH Coalition’s Detroit office.
“It was a meaningful meeting,” Rev. Jackson told Target Market News.
“I’m convinced that more and more they see [black and Hispanic consumers] as
a force in the market. And that even in the new arrangement, the key to their
growth is to include our talent.”
The new arrangement refers to a new advertising strategy announced by Jeff Bell,
Chrysler Group's vice president of marketing communications. "We are are
moving away from solely dedicated creative" for ethnic groups, said Bell,
to "doing a better job of urban marketing in general."
Rev Jackson said when Chrysler officials were asked why the account was put
under review, “they said that they want to make it a part of the mainstream
budget, not in the margins. They want to expand the budget. Let’s see if
that’s the case.”
Murphy has been quoted in Automotive News as saying that Chrysler intends to
substantially increase its multicultural marketing budget from the $40 million
in billings that Don Coleman handled to 25 percent of the group’s ad budget of
about $1 billion.
Jackson requested the Chrysler meeting four weeks ago. At that time news reports
quoted company officials as saying that not all of the ad agencies being
considered for the African-American and Hispanic accounts were minority owned.
Now that comments from industry and civil rights leaders have been aired,
Chrysler seems to be backing away from the possibility of hiring a so-called
white agency.
Officials at the car company required that the five agency alliances selected as
finalists would have to provide certification of their minority ownership
status.
Questions were raised with Chrysler by Rainbow/PUSH officials over media buying
practices. Jackson said that he was told that spending more of the budget with
black media “would be a part of the agenda.”
A decision on which alliance would win the account is expected in about two
weeks. Last week the California-based group called The Cooperative had decided
not to participate in the review. The incumbent agencies, Don Coleman
Advertising and Montemayor, decided at the last minute to compete for the
business under their new entity, GlobalHue.
Jackson said that there will be future discussions with Chrysler, though dates
have not been set.
Chrysler
announces the first cut of agencies for African-American and Hispanic accounts
By Ken Smikle
(April 24, 2002) Chrysler
has selected five agencies from the 20 invited to compete for its
African-American, Hispanic and so-called urban advertising accounts. Among the
agencies is GlobalHue and the Footsteps Group.
The announcement marks the first indication that GlobalHue has decided to
compete to retain the business. The agency’s chairman, Don Coleman, has said
repeatedly he was uncertain about participating in the review.
“We decided at the eleventh hour,” Coleman told Target Market News. “I
hadn’t made up my mind until then. I had to get some things clear in terms of
what this process was going to be all about.” He wouldn’t comment on what
those points of clarification were or how he came to decide. Montemayor y
Asociados, which handles Hispanic work under the GlobalHue umbrella, will
participate in the pitch.
The agencies selected are made up of alliances that have been formed to comply
with Chrysler’s request for broad marketing capabilities. The other groups
selected are:
Array (Footsteps Group, Admerasia, Hispan/America LLC in New York); PASS Urban
Powertrain (PASS, Cultura, Osmosis Media Lab, L3 of New York), SIP (Sanchez and
Levitan, Imada Wong and Prime Access in L.A.); and The Cooperative (A
Partnership Inc., ConceptFarm/La Finca Creativa, PFI Marketing).
Chrysler officials said earlier that of the 20 agencies invited to participate
“most are multicultural shops.” The next phase calls for the five agencies
to demonstrate that they are at least 51% minority owned by being certified with
the National Minority Supplier Development Council. The final three agency
groups will make presentation in May, and a final decision will be announced
June 1.
Copyright © 2002 Target Market News. All rights reserved
Is
The U.S. Government Guilty of Racketeering Against Black Ad Agencies?
By Ken Smikle
(April
23, 2002) Can the U.S. government be sued for its role in the underpayment or
non-payment of minority advertising agencies handling federal accounts? Can it
held accountable for the lack of compliance by the major ad agencies it hires?
When the Rev. Al Sharpton announced two weeks ago that he was teaming up with
attorney Johnnie Cochran to file just such a suit, he caught his supporters and
detractors off guard. Is such a lawsuit possible? How could you prove your case?
There was no question about whether there was a basis for the allegation of the
improper procurement and under-payments. On numerous occasions, the U.S.
government has made the case against itself and the agencies it hired to
subcontract with minority shops.
The most recent citing of such non-compliance was the executive order issued by
President Clinton in the fall of 2000. It sought to obtain compliance with
regulations already on the books for how government agencies spend hundreds of
millions in advertising budgets.
The EO mandated that all federal agencies (such as the branches of the military,
the Post Office and HUD) must submit a plan to the Office of Management and
Budget each year on the steps they would take to increase minority contacting.
Since the Bush administration has occupied the White House, there has been
virtually no enforcement of the executive order. An effort of have the EO
codified into law is now being explored by members of Congress.
A 1999 report from the General Accounting Office, requested by Rep. Carolyn
Kilpatrick (D-MI) and Rep. Robert Menendez (D-NJ), found that the practice of
major ad agencies to not hire “small disadvantaged businesses” had not
changed. Less than $5 million was spent with minority and women-owned agencies
in 1994 out of $368 million. That study echoed the findings of an earlier GAO
study conducted in 1989 for Rep. Cardiss Collins, which marked the first time
that the lack of compliance had come under federal scrutiny.
The discrepancies in advertising dollars paid by the U.S. government’s major
ad agencies to minority media outlets have also been thoroughly documented. And
that documentation has been paid for by the government. “When Being No. 1 Is
Not Enough,” the oft-quoted 1999 study, documented how minority-owned and
formatted stations were being paid less for commercials than their white-owned
counterparts. The FCC paid for the report and touted its findings.
The Department of Commerce and the National Telecommunications and Information
Administration issued a report in December of 2000 entitled “Changes,
Challenges and Charting New Courses: Minority Commercial Ownership in the
U.S.” It said, “advertising revenue commensurate with station performance
continues to elude many minority broadcasters.”
Additionally there have been a number of Congressional hearings over the years,
in which minority media and ad agency owners have aired – in great detail –
how the problem persists. All of those remarks are part of the Congressional
record.
So does a class action suit on behalf of those that have been harmed by this
pervasive practice have a chance on the legal merits? “If you file it and lose
you’ve still won if you get people talking about it,” said David Honig,
attorney and executive director of the Minority Media and Telecommunications
Council in Washington.
Honig believes that change is possible through the process proposed by Sharpton
and Cochran. He suggests that doubters look at how the FCC began granting
spectrum licenses. “That started because one person, economist Ronald Coase,
wrote an article in 1959 which said the spectrum is just like air and water and
land when it comes to drilling rights. It should be auctioned.”
It took from 1959 to 1996, citing Cose’s article in the legislative history,
for Congress to adopt the idea as law. “At the time everybody thought he was
crazy. Cochran and Sharpton are, right now, where Coase was in ’59 in terms of
the way we should be dealing with our history.”
Copyright © 2002 Target Market News. All rights reserved
Rev.
Jesse Jackson calls on Chrysler for a commitment to hire a black-owned agency to
handle ad account
By Ken Smikle
(April
15, 2002) The Rev. Jesse Jackson has asked to meet with officials at Chrysler to
discuss the automaker's consideration of white-owned ad agencies to handle its
African-American and Hispanic advertising campaigns.
In a letter to DaimlerChrysler vice president Jim Schroer, Rev. Jackson called
the plan "a disturbing possibility." "This change in strategy is
all the more perplexing and disturbing because you have publicly praised the
excellent work by the African-American and Hispanic-owned ad agencies with which
you have had long successful relationships."
Chrysler announced April 1 that it had put its African-American and Hispanic
accounts under review, and invited 20 agencies, some of which are white-owned,
to make presentations to acquire the account. Don Coleman Advertising and
Montemayor y Asociados, now both part of GlobalHue, previously handled the
accounts valued at $40 million in billings.
Jeff Bell, Chrysler's vice president marketing communications, has said that the
automaker is "moving away from solely dedicated creative for
African-Americas, Asian Americans, Hispanic Americans and the gay, lesbian and
transgender communities. Instead, we are moving toward serving those dedicated
markets, and, at the same time, doing a much better job of urban marketing in
general."
"Your intentions seem to be...to make ethnicity and race non-factors both
in your advertising and in your recognition of those with whom you do
business," said Rev. Jackson in his letter.
"Chrysler says it is serious about moving forward with its economic
relationships with communities of color," Jackson's letter continues.
"This will not be achieved by disregarding African-American and Hispanic ad
agencies when it comes to selecting ad agency to communicate that
commitment."
The Rainbow/PUSH Coalition has had meetings with Chrysler to discuss its
policies and practices on marketing, employment and minority supplier
relationships, though it has been a year since the last such occasion. Chrysler
officials have said that an agency will be selected by June. 1.
Copyright © 2002 Target Market News
Is
Footsteps Group a contender for Chrysler's African-American advertising account?
By Ken Smikle
(April
9, 2002) When Chrysler put its reported $25 million African-American marketing
account under review two weeks ago, company officials said they had invited 20
agencies -- some black-owned, some not – to make a pitch for the business.
While the list of those agencies has not been released by Chrysler, it can be
safely assumed that every major African-American owned shop currently without a
car account would be included on a list that long.
Among the agencies that fit that criteria are Chisholm-Mingo Group in New York
which most recently worked on GM, and E. Morris Communications in Chicago which
handled Oldsmobile. Don Coleman, chairman of the incumbent agency Don Coleman
Advertising has not yet decided if he will compete to regain the business.
However, the agency that perhaps should be called the lead contender to provide
Chrysler with African-American expertise is the New York-based Footsteps Group.
Though the three-year-old shop would seem to be ineligible because it already
has an automotive client, that client happens to be DaimlerChrysler. Footsteps
is the African-American agency for Mercedes Benz, an account it won the 1999 six
months after opening its doors.
Footsteps can boast another competitive advantage as one of the 100-plus
agencies under the Omnicom umbrella. Omnicom, which invested in Footsteps for a
49% share of the stock, is the parent conglomerate for PentaMark, Chrysler’s
main agency.
In addition to Mercedes, Footsteps' list of clients include Radio Shack, Wella
Personal Care Products, the U.S. Air Force, pharmaceutical drug company Alcon
Labs, and Wells Fargo Mortgage. According to industry estimates, Mercedes
accounts for approximately $4 million of the agency’s $15 million in annual
billings.
Footsteps is Mercedes’ lead ethnic advertising agency, with the responsibility
for selecting and coordinating the shops that handle the automakers’ Hispanic
and Asian marketing efforts. Admerasia is currently assigned the Asian market. A
Hispanic agency has yet to be named.
Officials at Footsteps would not offer comments for this story, nor would they say if
their agency was invited to pitch for Chrysler’s African-American account, but
having the business while also servicing Mercedes would not be an unprecedented
relationship, even for black-owned shops. In 1994, UniWorld Group was awarded
the account for Ford, which had been with Burrell. At the time UniWorld was
already the agency for Ford’s subsidiary, Lincoln-Mercury.
Copyright © 2002 Target Market News
The $40 Million Question: What’s Behind Chrysler’s
New Ethnic Marketing Strategy?
By Ken Smikle
(April
4, 2002) In an unexpected
announcement, DaimlerChrysler’s Chrysler Group has put both its
African-American and Hispanic advertising accounts under review. The action has
raised numerous questions about the automaker’s future strategy and budget for
ethnic marketing, and its commitment to assign the accounts to minority-owned ad
agencies.
The incumbent agencies, Don Coleman Advertising and Montemayor y Asociados, were
informed of the review last week, at the same time that letters were being sent
inviting presentations from other agencies. DCA was generating $25 million in
annual billings from Chrysler, while Montemayor was receiving $15 million. Both
agencies were consolidated last week into the newly formed GlobalHue, of which
Don Coleman is chairman and CEO.
Chrysler officials said new agencies will be chosen in eight weeks and that the
review will also usher in a number of changes in their approach to attract
ethnic consumers. James Kenyon, Chrysler’s senior manager of sales and
marketing pr, told Target Market News that of the approximately 20 agencies that
were sent invitations to bid, “most are multicultural shops.” He would not
comment on how many were black-owned or Hispanic-owned.
Compensation for these agencies will change from a commission basis that
produced an estimated $40 milllion in billings to one based on fees and
incentives. Kenyon said “revenues going to these companies will be between $4
million and $6 million.”
“We are moving away from solely dedicated creative for African Americans,
Asian Americans, Hispanic Americans and the gay, lesbian, bisexual and
transgender communities,” stated Jeff Bell, vice president, marketing
communications, Chrysler Group. “Instead, we are moving toward serving those
dedicated markets, and, at the same time, doing a much better job of urban
marketing in general.”
Since arriving from Ford a year ago, Bell has been shaking up Chrysler’s
marketing practices with an emphasis on reducing costs. In a December 2001 story
in the Wall Street Journal, Bell said that the car company reduced the
total number of ads it produced in 2000 from 85 to 40. “It’s not a matter of
majority and minority,” Bell was quoted as saying in the article, “It’s a
matter of major influencers in popular culture.”
One strategy Chrysler hopes to use in African-American and Hispanic ads and
commercials is to make them more “ethnically neutral,” by de-emphasizing the
race of people portrayed. Keynon said the objective is to have agencies utilize
“creative that is vertical and also can be used in the general market so that
it just doesn’t just show up on BET but will be on ESPN and Fox and other
networks as well. [We] want to say that this ad is going to be in Black
Enterprise and People and Esquire.”
In this week’s Advertising Age, Bell cited what the sports shoe company
Reebok is doing through its agency, the Arnell Group as an example of an
approach that he finds appealing. “They are trying to do it with an urban
mind-set,” he’s quoted as saying. The Arnell Group was hired by Chrysler one
month after Jeff Bell’s arrival last year to be a strategic partner with
PentaMark, its lead ad agency.
In a press release, DCA asserts that through research it conducted with
Yankelovich, it has pioneered the “Urban Mindset” attitudinal model.
“There are opportunists coming to the fore with no credentials who want to
capitalize on the urban mindset,” said Coleman in the release. “GlobalHue
offers bona fide market performance to its clients.”
Though invited to make presentations, Don Coleman told Target Market News he’s
not certain his incumbent agencies will pitch to retain Chrysler’s business.
Chrysler’s new approach to marketing to African-Americans is departure not
only from its own tradition, but from the practices of virtually all other
automakers. Growing competition for the $31 billion that black households spend
on cars and trucks has made the expertise of African-American agencies a
necessity rather than a luxury throughout the auto industry.
Last fall Toyota appointed Burrell Communications in Chicago as it first
African-American ad agency. Two months ago, General Motors announced that it was
consolidating all of its black-oriented advertising under the Carol H. Williams
agency in Oakland, California. In February Mazada selected the Wimbley Group in
suburban Chicago as its first black ad agency. Nissan, which previously worked
with Carol H. Williams, is expected to announce a new African-American agency
within days.
There are two African-American owned agencies with auto marketing experience but
that are currently without a car company on their rosters; the Chisholm-Mingo
Group in New York most recently worked on GM and E. Morris Communications in
Chicago handled Oldsmobile.
Copyright © 2002 Target Market News. All rights reserved
HealthQuest suspends publication of magazine,
plans
debut of new consumer guide
(Feb 11, 2002) HealthQuest, the nine-year-old magazine distributed through
newspapers targeted to African-Americans, has suspended publication as of its current February/March issue. "The economy hit us hard,"
publisher Sarah Lomax Reese told Target Market News. "We have put the magazine in its former format on hiatus and we're developing an annual report on the state of black health that will come out in June."
The new publication, which will carry the HealthQuest title, will be a 120-page consumer guide designed to help African-Americans navigate health-related concerns. Though the circulation will be 50,000 (just ten percent of the supplement's half-million), advertisers have signed up for the debut issue. To distribute the guide, Reese said that they would make use of the 75,000 names in their database, bulk orders to churches and organizations, and single copy sales at traditional retail outlets.
Domino’s African-American ad assignment
goes to JWT in agency realignment
(Feb 11, 2002) Domino’s Pizza has consolidated its roster of advertising
agencies from four to two, and as a result, Don Coleman & Associates will no
longer handle the chain’s African-American ad campaigns. That assignment now
goes directly to the same agency that will be also be handling its general
market work, J. Walter Thompson.
In an unusual move, JWT is acquiring consulting services from Greg Walker,
former president of the UniWorld Group who will assist in Domino’s
black-targeted ad efforts. Walker, according to a press announcement, will
assist JWT “in leading Domino’s multi-cultural marketing programs and
business strategies.”
Walker’s multi-cultural responsibilities presumably won’t be necessary on
Hispanic advertising because Domino’s is continuing its relationship with
Marti Flores Pietro Wachtel for that work. Also presumably, UniWorld, a WPP
Group agency like JWT and Marti Flores, wasn’t selected to handle Domino’s
African-American ads because of its existing relationship with Burger King.
Media placement for the account will now be handled by JWT.
Susan Taylor to be inducted in ASME Hall of Fame
(Feb. 11, 2002) The American Society of Magazine Editors has announced that it
will induct Susan L. Taylor, senior vice president and editorial director of Essence
magazine, into its hall of fame during the National Magazine Awards luncheon on
May 1.
”In her 30 years at Essence, Susan Taylor has been a role model for an
entire generation of African-American women working in media, and a graceful
inspiration to millions of readers,” said ASME president, Cyndi Stivers.
Taylor will be the first African-American editor to receive the honor.since the
hall of fame was created six years ago
Survey finds African-Americans more focused
than whites on self-improvement for
2002.
(Feb. 11, 2002) According to a poll sponsored by General Nutrition Centers, more
African-Americans than whites said that they are going to improve their lives in
various ways during the coming year. The findings point to a significant
difference in attitudes following the Sept. 11th terrorists attacks.
Dieting and weight loss were nixed as the traditional top resolutions for the
year. In their place was a promise to enjoy life more. While 78 percent of
blacks said this was going to be the top priority in 2002, only 64 percent of
whites made the same pledge.
In fact, a greater percentage of African-Americans than whites responded
positively to most questions concerning ways they will improve their lives:
Spend more time with friends and family (72% of blacks vs. 56% of whites)
Manage finances (72% vs. 42%)
Improve relationships (63% of vs 50 % )
Manage time (61% vs. 38%)
Manage stress (60% vs. 42%)
Exercise more (56% vs.47%)
Do volunteer work (38% vs. 24%)
Quit a bad habit like smoking (38% vs. 25%)
The one area that slightly more whites pledged to improve upon than blacks was
to show more patriotism. Forty-four percent of whites said they would, and
forty-one percent of blacks agreed. The poll was conducted through a random
telephone survey of 1,484 households in November and has a margin of error of
plus or minus here percent.
HealthQuest suspends publication of magazine,
plans
debut of new consumer guide
(Feb 11, 2002) HealthQuest, the nine-year-old magazine distributed through
newspapers targeted to African-Americans, has suspended publication as of its current February/March issue. "The economy hit us hard,"
publisher Sarah Lomax Reese told Target Market News. "We have put the magazine in its former format on hiatus and we're developing an annual report on the state of black health that will come out in June."
The new publication, which will carry the HealthQuest title, will be a 120-page consumer guide designed to help African-Americans navigate health-related concerns. Though the circulation will be 50,000 (just ten percent of the supplement's half-million), advertisers have signed up for the debut issue. To distribute the guide, Reese said that they would make use of the 75,000 names in their database, bulk orders to churches and organizations, and single copy sales at traditional retail outlets.
Domino’s African-American ad assignment
goes to JWT in agency realignment
(Feb 11, 2002) Domino’s Pizza has consolidated its roster of advertising
agencies from four to two, and as a result, Don Coleman & Associates will no
longer handle the chain’s African-American ad campaigns. That assignment now
goes directly to the same agency that will be also be handling its general
market work, J. Walter Thompson.
In an unusual move, JWT is acquiring consulting services from Greg Walker,
former president of the UniWorld Group who will assist in Domino’s
black-targeted ad efforts. Walker, according to a press announcement, will
assist JWT “in leading Domino’s multi-cultural marketing programs and
business strategies.”
Walker’s multi-cultural responsibilities presumably won’t be necessary on
Hispanic advertising because Domino’s is continuing its relationship with
Marti Flores Pietro Wachtel for that work. Also presumably, UniWorld, a WPP
Group agency like JWT and Marti Flores, wasn’t selected to handle Domino’s
African-American ads because of its existing relationship with Burger King.
Media placement for the account will now be handled by JWT.
Susan Taylor to be inducted in ASME Hall of Fame
(Feb. 11, 2002) The American Society of Magazine Editors has announced that it
will induct Susan L. Taylor, senior vice president and editorial director of Essence
magazine, into its hall of fame during the National Magazine Awards luncheon on
May 1.
”In her 30 years at Essence, Susan Taylor has been a role model for an
entire generation of African-American women working in media, and a graceful
inspiration to millions of readers,” said ASME president, Cyndi Stivers.
Taylor will be the first African-American editor to receive the honor.since the
hall of fame was created six years ago
Survey finds African-Americans more focused
than whites on self-improvement for
2002.
(Feb. 11, 2002) According to a poll sponsored by General Nutrition Centers, more
African-Americans than whites said that they are going to improve their lives in
various ways during the coming year. The findings point to a significant
difference in attitudes following the Sept. 11th terrorists attacks.
Dieting and weight loss were nixed as the traditional top resolutions for the
year. In their place was a promise to enjoy life more. While 78 percent of
blacks said this was going to be the top priority in 2002, only 64 percent of
whites made the same pledge.
In fact, a greater percentage of African-Americans than whites responded
positively to most questions concerning ways they will improve their lives:
Spend more time with friends and family (72% of blacks vs. 56% of whites)
Manage finances (72% vs. 42%)
Improve relationships (63% of vs 50 % )
Manage time (61% vs. 38%)
Manage stress (60% vs. 42%)
Exercise more (56% vs.47%)
Do volunteer work (38% vs. 24%)
Quit a bad habit like smoking (38% vs. 25%)
The one area that slightly more whites pledged to improve upon than blacks was
to show more patriotism. Forty-four percent of whites said they would, and
forty-one percent of blacks agreed. The poll was conducted through a random
telephone survey of 1,484 households in November and has a margin of error of
plus or minus here percent.
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