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Vitaminwater Agrees to Avoid Certain Health Claims and Add 'With Sweeteners' to Label

eschultz@adage.com (E.J. Schultz) — Wed, 30 Sep 2015 22:46:03 +0000

Coca-Cola-owned Vitaminwater has agreed to make certain labeling changes as part of a legal settlement with a health group that has criticized the brand's marketing practices.

The Center for Science in the Public Interest, or CSPI, filed a lawsuit against the company in 2009, alleging that Vitaminwater made deceptive claims by using healthy-sounding buzzwords such as "focus" and "endurance." The settlement agreement, which has been filed in a federal court in New York, lays out ten statements that Vitaminwater cannot use in its marketing or labeling.

The banned statements include "vitamins + water = what's in your hand," "this combination of zinc and fortifying vitamins can . . . keep you healthy as a horse" and "specially formulated to support optimal metabolic function with antioxidants that may reduce the risk of chronic diseases and vitamins necessary for the generation and utilization of energy from food."

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Nine Hot Election Takes From Nate Silver's Advertising Week Panel

adageeditor@adage.com (Felicia Greiff) — Wed, 30 Sep 2015 22:13:45 +0000

There's more than a year before the next presidential election, but that's no reason the statistics and politics wonks at FiveThirtyEight can't start making calls. We've got nine insights from Editor-in-Chief Nate Silver, politics editor Micah Cohen and senior political writer and analyst Harry Enten, issued during an Advertising Week panel at Nasdaq MarketSite in Times Square.

1. Joe Biden Is a Party Guy

The vice president would only enter the election if it would help his party in some way, Mr. Enten said. "At the end of the day, he's probably gonna do what's best for the Democrats," Mr. Silver said, agreeing that Mr. Biden would declare his candicacy for president only if Hillary Clinton were significantly weakened. "For Biden to go in would is basically a no-confidence vote for Clinton," he said.

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Advertising Week Video: Nissan Digital Exec on How Interactive Has Changed Marketing

Wed, 30 Sep 2015 22:00:00 +0000

Interactive has changed marketing in a multitude of ways, said J. Robert Brown, senior manager of interactive at Nissan North America, after a panel this week at Advertising Week. Particulary game-changing, he said, is its ability to allow the consumer to dive more deeply into the actual experience.

Mr. Brown also talked about some of the challenges that still exist in digital: "Direct response is great, but how do you measure how someone feels about something?"

See all of our Advertising Week 2015 coverage here.

Continue reading at AdAge.com

At Advertising Week, Sorrell Catches Us Up on WPP Companies

lwentz@adage.com (Laurel Wentz) — Wed, 30 Sep 2015 21:55:00 +0000

In his second Advertising Week appearance of the day, WPP CEO Martin Sorrell presided over a panel on Wednesday afternoon that wouldn't have been out of place at a WPP new business pitch.

The group included Alex da Kid, a songwriter and producer who announced a joint venture with WPP at the Cannes Lions International Festival of Creativity in June to bring music to brands, and George Pyne, founder of Bruin Sports Capital, a sports marketing startup in which WPP led a $250 million round of funding in January. Jonathan M. Perelman recently moved from Buzzfeed, which signed an advertising partnership with WPP in August, to talent agency ICM Partners, where he is head of digital.

During the panel, Mr. Sorrell encouraged Justin Stefano, co-founder and co-CEO of Refinery29, a style website popular with female millennials that WPP invested in six months ago, to talk about Refinery29's global expansion. Mr. Stefano said Refinery29 will enter Europe in November, and be in London, Paris and Germany by February 2016, followed by Asia, starting with China.

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Dad Ruins Teen's First Kiss in Bose Spot

Wed, 30 Sep 2015 20:15:00 +0000

Every weekday, we bring you the Ad Age/iSpot Hot Spots, new and trending TV commercials tracked by iSpot.tv, a company that catalogs, tags and measures activity around TV ads in real time. The New Releases here ran on TV for the first time yesterday. The Most Engaging ads are showing sustained social heat, ranked by SpotShare scores reflecting the percent of digital activity associated with each one over the past week. See the methodology here.

Among the new releases, Cheerios tackles the challenges of aging in a quiet, sad spot called "Grandpa." Shaquille O'Neal hawks men's Gold Bond lotion, and a Lowe's employee makes an awkward joke about carpets. In an ad for wireless Bose speakers, a dad embarresses his daughter and her boyfriend by switching an M83 makeout jam to "Skinnamarink" by Sharon, Lois & Bram.

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A-B InBev Sends Shock Top to the Super Bowl

eschultz@adage.com (E.J. Schultz) — Wed, 30 Sep 2015 20:06:25 +0000

Anheuser-Busch InBev will dedicate one of its Super Bowl ads to Shock Top for the first time ever, the brand confirmed to Ad Age.

"As California is the brand's spiritual home, it's fitting that the 50th edition will take place in San Francisco," Jake Kirsch, VP for Shock Top, said in a statement.

The move marks a departure from the past two Super Bowls, in which A-B InBev used in-game ads to spotlight its two biggest brands, Budweiser and Bud Light. Bud and Bud Light are expected to still get air time in Super Bowl 50. But the Shock Top spot is another signal that the wheat beer is stepping up its fight against MillerCoors-owned Blue Moon.

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Fox's 'Grandfathered,' 'The Grinder' Get Off to a Modest Start

adageeditor@adage.com (Anthony Crupi) — Wed, 30 Sep 2015 20:00:00 +0000

Since dismantling its two-hour Tuesday comedy block at the midpoint of the 2013-14 broadcast season, Fox has struggled to carve out an identity for itself on the night. A high-concept reality show ("Utopia") was scuttled a month into its year-ago run, and the long-running female-friendly battery of "New Girl" and "The Mindy Project" was formally dissolved in May, when Fox announced it had canceled the latter series.

Fox last night took another stab at redefining Tuesdays with a pair of new comedies featuring well-known male leads. At 8 p.m., the John Stamos vehicle "Grandfathered" launched to a modest 5.28 million viewers and a 1.5 rating among adults 18-to-49, which translates to 1.75 million members of the target demo. A half-hour later, Rob Lowe's "The Grinder" held onto 100% of its demo lead-in, while drawing 4.93 million total viewers.

While both shows finished last among the Big Four nets in their respective timeslots, they were also up 88% versus the 0.8 rating "Utopia" managed in the year-ago time slot. Comparisons to the comedies that premiered two years ago are less generous; "Grandfathered" was down 32% versus the Sept. 2013 debut of "Dads" (2.2), and "The Grinder" dropped 42% from the 2.6 rating notched by the "Brooklyn Nine-Nine" pilot.

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Why AOL's Tim Armstrong Says Advertising Is About to Get 'Exponentially More Expensive'

nives@adage.com (Nat Ives) — Wed, 30 Sep 2015 20:00:00 +0000

If marketers are surprised today by how much more automated ad buying costs than traditional methods, they have a new state of shock and awe ahead of them, AOL CEO Tim Armstrong said Wednesday in a talk during Advertising Week.

"Advertising is going to get exponentially more expensive," Mr. Armstrong said.

That's because every time e-commerce makes another purchase routine, it gets that much harder for marketers to tempt consumers into a switch. That's especially true with the rise of subscription services and Amazon's physical buy buttons.

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SC Johnson Taps PepsiCo Exec as First Global CMO

eschultz@adage.com (E.J. Schultz) — Wed, 30 Sep 2015 19:15:00 +0000

Ann Mukherjee, PepsiCo's president for global snacks and insights, is leaving the company to become the first-ever global chief marketing officer for SC Johnson, Ad Age has learned. Simon Lowden, CMO for Pepsi Beverages North America, will replace Ms. Mukherjee at Pepsi.

With Mr. Lowden promoted, Seth Kaufman, who is senior VP for the Pepsi and flavors portfolio in North America, will take on the new title of CMO for Pepsi Beverages North America.

SC Johnson confirmed Ms. Mukherjee's appointment to Ad Age and said she'll be starting "sometime this fall" but couldn't confirm an exact day. A PepsiCo spokeswoman confirmed the PepsiCo changes.

Continue reading at AdAge.com

72andSunny Wins Coors Light

eschultz@adage.com (E.J. Schultz) — Wed, 30 Sep 2015 18:55:00 +0000

MillerCoors has picked 72andSunny as the lead creative and digital agency for Coors brands after a nearly two month review.

MillerCoors, which moved Miller Lite to TBWA in Los Angeles last year, put Coors brands into review in early August after cutting ties with WPP's Cavalry of Chicago. MDC-owned 72andSunny beat out Interpublic's Deutsch and Omnicom's 180 L.A.

The agency move -- orchestrated by new Chief Marketing Officer David Kroll -- comes as MillerCoors seeks to improve sales trends on Coors Light. The brew was once a star performer but has been stuck in a sales slump since 2013. Returning the so-called Silver Bullet to volume growth has emerged as a major priority of new MillerCoors CEO Gavin Hattersley. Coors Banquet is a smaller brand but has posted stronger growth in recent years.

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Advertising Week Video: One Easy Way to Foil Ad Blocking

Wed, 30 Sep 2015 18:30:00 +0000

What's a marketer to do in the face of a rise in ad blocking? For Tom Peyton, assistant VP-marketing, American Honda Motor who was at Advertising Week in New York, the answer's fairly simple: "Just make an ad everybody wants to watch. Make great content."

Mr. Peyton made specific reference to the marketer's "Paper" ad, a two-minute spot that launched last week and has garnered over 10 million views -- and creative accolades -- since then.

Continue reading at AdAge.com

The Lowdown: Bud Light Apple Coming, Shock Top in Super Bowl

Wed, 30 Sep 2015 17:45:00 +0000

The Lowdown is Ad Age's weekly look at news nuggets from across the world of marketing, including trends, campaign tidbits, executive comings and goings and more.

Anheuser-Busch InBev will dedicate one of its Super Bowl ads to Shock Top for the first time ever. "As California is the brand's spiritual home, it's fitting that the 50th edition will take place in San Francisco," Jake Kirsch, VP for Shock Top, said in a statement to Ad Age. The move marks a departure from the past two Super Bowls, in which the brewer used in-game ads to spotlight its two biggest brands: Budweiser and Bud Light. Bud and Bud Light are expected to still get air time in Super Bowl 50. But the Shock Top spot is another signal that the wheat beer is stepping up its fight against MillerCoors-owned Blue Moon. Beer Business Daily first reported Shock Top's Super Bowl plans.

A-B InBev also appears to be taking aim at MillerCoors-owned Redd's Apple Ale with a couple new apple brews. A new line extension called Bud Light Apple will soon debut in the U.S., along with a new brand called Best Damn Apple Ale. Details are sparse but the brewer has filed for label approval for both brands. An A-B InBev spokeswoman confirmed that "both brands would be tested on a limited basis this fall." Bud Light Apple is already sold in Canada. Beer Business Daily first reported about the potential launch in a report earlier this month. A-B InBev already has a cart full of apple products, including Stella Artois Cidre, Bud Light Lime Apple-ahh-Rita, Shock Top Honeycrisp Apple Wheat and Johnny Appleseed Hard Cider.

Continue reading at AdAge.com

Jimmy Fallon's Viral YouTube Clips Finally Become Available to Advertisers

jpoggi@adage.com (Jeanine Poggi) — Wed, 30 Sep 2015 17:00:00 +0000

Advertisers will finally be able to buy ads in YouTube clips of "The Tonight Show Starring Jimmy Fallon."

NBC Universal has struck a deal with YouTube that will add pre-roll video to clips of its content that appear on the site, the companies said on Wednesday. Until now, NBC clips have played on YouTube without any commercials, leaving marketers out and dollars on the table whenever one went viral.

NBC Universal will be responsible for selling the inventory. The companies declined to disclose how revenue will be split between them.

Continue reading at AdAge.com

Sorrell on Rentrak/ComScore, Creativity and Changing the Name of Advertising Week

kwheaton@adage.com (Ken Wheaton) — Wed, 30 Sep 2015 17:00:00 +0000

Perhaps the most notable thing about a session titled "Pardon the Interruption: Advertising Is Back" held Wednesday morning at Advertising Week in New York was that, between two panels consisting of eight people, advertising was barely touched upon. Indeed, WPP Chief Executive Martin Sorrell, who participated in a fireside chat with Medialink Chairman-CEO Michael Kassan during the first half hour, suggested changing the name of Advertising Week.

"It's something else week, but it's not Advertising Week."

And while advertising did not make a comeback during the session, Mr. Sorrell and Mr. Kassan didn't disappoint a packed room at the Times Center during a discussion that ranged from the previous day's news of ComScore acquiring Rentrak to redefining creativity to reviemageddon.

Continue reading at AdAge.com

What Snowden Joining Twitter Says About Twitter (and Snowden)

sdumenco@adage.com (Simon Dumenco) — Wed, 30 Sep 2015 16:13:00 +0000

At noon on Tuesday, former National Security Agency contractor and whistleblower Edward Snowden debuted on Twitter (@Snowden, Twitter-verified) with this five-word tweet:

A few observations:

Twitter is almost ancient by tech-company standards -- it turned 9 years old in March -- but a high-profile Twitter debut can still make headlines. News organizations around the world from the BBC to The New York Times have covered the arrival of @Snowden, and it's the big centerpiece story on the front page of today's print edition of USA Today.

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Legal War on Ad Blocking May Be a Loser, if Recent German Rulings Are Any Guide

mcmorrison@adage.com (Maureen Morrison) — Wed, 30 Sep 2015 16:00:00 +0000

The ad industry is looking into whether it has potential legal remedies against ad blockers in the U.S., but the issue is already playing out in German courts -- in favor of the blockers.

The regional court in Cologne ruled this week, for example, in favor of Adblock Plus and Eyeo, the company that makes it, rejecting arguments by German publisher Axel Springer.

Adblock Plus and its Acceptable Ads program do not "breach laws on competition, copyright or market dominance," the court found, according to Reuters.

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How Brands and Agencies Can Win at Multiculturalism

adageeditor@adage.com (Jeffrey Bowman) — Wed, 30 Sep 2015 15:30:00 +0000

Let's get a few of things out of the way. Yes, the advertising industry needs to hire more people of color. Yes, race relations are strained right now. Yes, immigration is a huge issue for the upcoming presidential campaign. And yes, Silicon Valley is still way too white. Do we all agree? Great. We've now all anted up in this particular game of poker.

None of this is news to brands and agencies. But something is changing fast -- the complexion of America. The general market isn't white anymore. In just a few years, the majority of people under 18 will be from minority populations. In a couple of decades, the majority of the nation will be minorities. And did you hear this? The millennial generation has come up with a new, better word for multiculturalism. They call it normal.

Winning this game is going to take a lot more than showing up and throwing a few pennies in the pot. Here are three big bets businesses need to place. Those that do will be guaranteed a winning hand.

Continue reading at AdAge.com

Brownley Joins B-Reel, de Thame Moves to Humble and More

adageeditor@adage.com (Alexandra Jardine) — Wed, 30 Sep 2015 15:30:00 +0000

B-Reel Films has signed director Russell Brownley to its roster. Brownley is currently wrapping up post on a Nike project and a short film for Patron out of Mullen Lowe U.S. After starting his career as a documentary maker for the nonprofit world, he has collaborated with clients such as Timberland, Red Bull, Google, Verizon, Sony, Pepsico & World Vision. Prior to B-Reel Films, Californian Brownley worked independently out of his owned studio. He will be represented by B-Reel Films throughout North America, Scandinavia and the UK.

Continue reading at AdAge.com

Advertising Week: GLAAD Recognizes LGBT-Inclusive Ads

adageeditor@adage.com (Felicia Greiff) — Wed, 30 Sep 2015 14:58:00 +0000

Former New York Times ad columnist Stuart Elliott hosted a GLAAD panel on this year's most buzzed-about commercials that represent LGBT people.

"I remember a time when it was noteworthy that a mainstream campaign would run an inclusive ad in LGBT media," Mr. Elliott said. "Now we've reached the point where these national brands are targeting the LGBT market and the general market in national media."

The "GLAAD Amplified" panel, held last night for Advertising Week, recognized DirecTV's "Rivalry," Wells Fargo's "Learning Sign Language," "Tylenol's #HowWeFamily," Target's "#TakePride" and Google My Business' "The Story of Jacob and City Gym." What sets these ads apart from years' past, Mr. Elliott said, is they're all general market ad campaigns. There's a difference between putting an LGBT-inclusive print ad in Family Circle versus putting the same ad in Out Magazine, he added.

Continue reading at AdAge.com

Chevy Volt Plans Attack Ads on Nissan Leaf, Toyota Prius

adageeditor@adage.com (Richard Truett) — Wed, 30 Sep 2015 14:37:06 +0000

The revamped Chevrolet Volt won't be available nationally until late next spring, but a series of attack ads targeting the Nissan Leaf and Toyota Prius will debut this fall on the Internet and later on TV.

At the press launch of the 2016 Volt in San Francisco this week, Chevrolet officials are showing the ads to auto writers and explaining the unusual rollout of the new Volt, which has been rebuilt from the wheels up.

Chevrolet began shipping the second generation of the Volt plug-in hybrid Tuesday to dealers in California and 10 other states. Those will be marketed as 2016 models in a shortened model year. In early 2016, Chevrolet will launch the 2017 Volt nationally, said spokesman Randy Fox.

Continue reading at AdAge.com

Twitter Gives More Marketers Easy Access to Its In-Tweet 'Buy' Button

adageeditor@adage.com (Tim Peterson) — Wed, 30 Sep 2015 14:25:00 +0000

Expect to start seeing more tweets imploring you to buy stuff. A year after it began testing a "buy" button to sell products within tweets, Twitter is looking to blow open its e-commerce business.

On Wednesday the company announced that U.S. retailers using Bigcommerce, Demandware and Shopify tech to power their e-commerce businesses will be able to more easily plug their products into shoppable tweets. Effectively a retailer using one of these e-commerce software vendors -- and there are hundreds of thousands of them, according to a Twitter spokesman -- will be able to effectively place a product link within a tweet that the platform will then fit with a "buy" button.

"The goal for all our commerce initiatives on Twitter is simple: make it as easy as possible for businesses to connect directly with, and sell to, customers on Twitter," said Nathan Hubbard, head of commerce at Twitter, in a company blog post. "With Buy Now, businesses can drive more conversions and remove much of the friction in the mobile purchasing process."

Continue reading at AdAge.com

Apple Just Expanded Its Music Streaming Service Into China

Wed, 30 Sep 2015 14:15:00 +0000

Apple began offering its three-month-old music streaming service as well as movies and electronic books in China on Wednesday, promising a library of content geared toward its most important market outside of the U.S.

Apple Music, the iPhone maker's answer to streaming services Spotify and Pandora, will kick off with a three-month trial before charging $1.57 a month, the Cupertino, California-based company said in a statement. That's a fraction of the $10 to $14 the company charges in the U.S.

In China, the service will carry regional artists like Eason Chan and Li Ronghao in addition to international stars like Taylor Swift.

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With the IoT, Data Scientists Must Become Data Creators

adageeditor@adage.com (Alex Kalluf) — Wed, 30 Sep 2015 14:05:25 +0000

The proliferation of the internet of things allows us to see that every single action and reaction in the world around us (and even within us) has the capacity to be measured. The revolution is still in the works, and marketers are closely watching how it will impact the way businesses are managed, campaigns are developed and, of course, the way agencies work with data.

In his HBR article "Design Thinking Comes of Age," Jon Kolko said "the business environment is so volatile that a company must experiment with multiple paths in order to survive." If businesses are becoming more volatile, then the data collected to evaluate each of these paths needs to be part of the initial design in order to allow these paths to be properly evaluated, optimized and, in some cases, enabled by leveraging the right IoT solutions.

Data scientists have to add this new layer of complexity to their work. Instead of waiting to receive a .csv file or to download data from a Hadoop cluster, he or she will have to think through how the data should be created in first place. Therefore, the concept of the data acquisition process shifts from "where is the data?" to one that allows for the data to be created, or improved upon in cases where it is not yet available or satisfactory.

Continue reading at AdAge.com

That Out-of-Home Campaign Rolling Around Advertising Week Has a Secret Message for Robots, Ad Execs

kwheaton@adage.com (Ken Wheaton) — Wed, 30 Sep 2015 14:00:00 +0000

The campaign even got its moment in Times Square last night.

All of the ads direct viewers, presumably human, to feelthereal.org, where they're first asked to answer whether they have seen the ads or are, in fact, robots.

The ads also contain more messaging than is immediately apparent. It turns out that binary numbers on each ad contain messages. One translates to: "Ad Age loves real clicks." The one on the truck making its rounds in Manhattan reads: "OOH makes digital real." Those who respond to the Feelthereal.org quiz by saying they are robots are greeted with a long line of binary that translates to a quote from USA Network's series "Mr. Robot."

Continue reading at AdAge.com

New Lenovo Campaign Plays Up Weird in the Good Way

adageeditor@adage.com (George Slefo) — Wed, 30 Sep 2015 11:50:49 +0000

A new, multi-year Lenovo campaign dubbed "Goodweird" includes a video beginning with images that most people will instantly recognize: grainy, black-and-white footage of man's failed attempt to fly with a pair of self-made wings attached to something that looks like a bicycle. The ad transitions to a more modern shot, also now familiar, of a person soaring by a mountain in a wingsuit, then switches gears to a rendering of what appears to be a Northrop B-2 Gruman, better known to most people as the Stealth Bomber.

The point for Lenovo, which will initially focus the effort on a tablet computer with a built in high-definition video projector, is that innovations that ultimately became familiar and accepted still looked very strange at first.

Lenovo opted to work with three different agencies to deploy their Goodweird campaign. London-based DLKW Lowe came up with the slogan after being approached by Lenovo, according to the company. We Are Social is handling social aspects and Blast Radius has been slotted to handle digital marketing.

Continue reading at AdAge.com

Hearst's Programmatic Ad Man Talks Cross-Device Attribution

kkaye@adage.com (Kate Kaye) — Wed, 30 Sep 2015 11:00:00 +0000

Experience on the buy side and sell side of media brought David Katz to where he is today, running ad solutions at Hearst's Core Audience, the programmatic ad buying division of the publishing giant. The senior director of ad solutions works with hundreds of salespeople, arming them with data and analytics seasoned with his unique blend of supply and demand knowledge.

Ad Age asked Mr. Katz about the data and innovations that are changing the way he approaches the media world.

Ad Age: When is the last time you used the phrase "big data"? Has the hype diluted or altered its meaning?

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Water Cooler Group Network Wins Celebrity Cruises Media Business

abruell@adage.com (Alexandra Bruell) — Wed, 30 Sep 2015 11:00:00 +0000

Celebrity Cruises has tapped Media Storm parent the Water Cooler Group to support media buying and planning, as well as data analytics and media mix modeling, the company said.

"As Celebrity Cruises continues to grow globally, we are focused on innovative, business-oriented solutions that will deliver an increased return and profitability, and that's why we are so excited to work with Media Storm," said Lisa Lutoff-Perlo, president and CEO of Celebrity Cruises, in a statement. "By offering in-depth analytics and measurement of all of our media activity, Media Storm will help to ensure that our investments are maximized, by offering the precision we need to reach the modern luxury traveler who seeks the experience only Celebrity Cruises can provide."

Water Cooler's JubaPlus will support data and analytics, and Media Storm will handle the main media account.

Continue reading at AdAge.com

Fantasy Sports Sites DraftKings, FanDuel September Spend Tops $100 Million

adageeditor@adage.com (Anthony Crupi) — Wed, 30 Sep 2015 11:00:00 +0000

Tired of watching those two Masshole Pats bros hopping around like House of Pain in that ubiquitous DraftKings spot? Had about enough of the weirdly soporific jackpot winners featured in the equally relentless FanDuel ads? Get used to them, because there appears to be no end in sight for the fantasy sports onslaught.

According to iSpot.tv estimates, DraftKings and FanDuel together have funneled $107 million into the networks' coffers since Sept. 1. Nearly half ($50.3 million) of that outlay was spent on national NFL broadcasts on CBS, Fox, NBC, ESPN and NFL Network.

DraftKings has been the bigger overall TV spender of the two fantasy sites, while FanDuel has dumped more cash into NFL games. Per iSpot data, DraftKings has bought $60.1 million in national TV inventory since the month began, of which $23.6 million was earmarked for NFL broadcasts. Other key targets include college football ($7.95 million), ESPN's "SportsCenter" ($2.05 million) and NBC's Sunday pre-game/kickoff show, "Football Night in America" ($1.6 million). In keeping with the brand's desire to target younger male viewers, DraftKing's highest non-sports investments were made in Comedy Central's "South Park" ($1.36 million).

Continue reading at AdAge.com

Adblock Plus Wants Advertisers and Publishers to Help Administer Its Blocking

mcmorrison@adage.com (Maureen Morrison) — Wed, 30 Sep 2015 11:00:00 +0000

Adblock Plus, one of the most popular pieces of software that consumers use to hide ads while they surf the web, has come under fire from ad industry leaders for letting publishers serve only certain "acceptable" ad formats, often accompanied by a processing fee. Now it says it will assemble an independent board to review which ads it lets through the filter.

And it's looking to the ad industry to take some seats.

The nascent board will consist of consumers, advertisers and publishers, according to a spokewoman. It's not yet clear, however, exactly who will take seats on the board. Its makeup is slated to be finalized next year.

Continue reading at AdAge.com

Top 100 CPG Brands Mostly Lost Sales and Share in Past Year

jneff@adage.com (Jack Neff) — Wed, 30 Sep 2015 11:00:00 +0000

The top 100 packaged-goods brands collectively saw sales and market share slip significantly in the past year, according to a report from Catalina, adding to recent reports of woe for the industry's biggest players.

While prior reports have showed the biggest manufacturers in CPG have been shedding share to smaller ones for years, it was natural to assume top brands, which get the lion's share of management focus and marketing dollars, were faring better than the overall companies. Not so, according to the Catalina report, drawn from a representative sample of scanner data from 26,000 food, drug and mass-merchandise stores in company's in-store promotion network.

Catalina found sales for the top 100 brands collectively declined 0.8% to $56.8 billion, even as overall sales tracked by Catalina increased 6% for the year ended June 30.

Continue reading at AdAge.com

Macerich Forms Joint Ventures to Raise $2.3 Billion

David Moin — Wed, 30 Sep 2015 23:47:22 +0000

The Macerich Company is selling interests in eight of its properties raising $2.3 billion by forming joint ventures with GIC, is a global investment firm based in Singapore, and Heitman, a Chicago-based global real estate investment management firm. GIC will have a 40 percent interest in five assets and Heitman will have a 49 percent interest in three assets. The transactions are subject to usual closing conditions and are expected to close in phases starting in October and concluding in the first quarter of 2016. The joint venture assets are Arrowhead Towne Center in Glendale, Ariz.; Deptford Mall in Deptford, N.J.; FlatIron Crossing in Broomfield, Colo.; Lakewood Center in Cerritos, Calif.; South Plains Mall in Lubbock, Tex.; Twenty Ninth Street in Boulder, Colo., and Washington Square in Portland, Ore. Macerich plans to use the proceeds for share repurchases under the company’s just announced $1.2 billion share repurchase program, to pay down a line of credit debt balance, and for a special dividend in the range of $3.50 to $4.50 per share. Macerich plans to put financing on South Plains Mall and Twenty Ninth Street Mall and will refinance the debt on Washington Square, Los Cerritos Center and Arrowhead Towne Center. Included in the total

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Neiman’s Highlights Precious Jewelry, Italian Style

David Moin — Wed, 30 Sep 2015 21:46:29 +0000

Neiman Marcus is staging an “Italian Jewelry Festival” to get shoppers in an early holiday-gifting mood and to rev up a category that can use a lift. The event, running Thursday through Oct. 18 inside the precious jewelry salons in the 41 Neiman’s full-line locations, involves 20 Italian brands and is supported by a look book mailed to 65,000 homes last week and supported online, with social media, parties and appearances by designers and artisans. “Even our food service division is behind this. They’ve come up with creative Italian dishes to feature in our restaurants,” said Larry Pelzel, vice president of precious jewelry at Neiman Marcus. “As far as I know, our precious jewelry division has never done anything to this scale before.” It’s being held in collaboration with the Italian Trade Commission, the Italian Ministry of Economic Development and Confindustria Federorafi. The mix of vendors include both big and established brands and newer or smaller vendors, including Utopia, a pearl resource; Vhernier a fashion gold house; Picchiotti, which is known for precision cut diamonds and gem stones, and Adolfo Courrier, for colored jewelry and gem stones. Others participating are Buccellati, Bulgari, Crivelli, Leo Pizzo, Marco Bicego, Mariani, Marina B, Mattia Cielo, Mattioli,

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Ralph Lauren Shares Soar, Gap Plummets on CEO Move

Arthur Zaczkiewicz — Wed, 30 Sep 2015 20:50:49 +0000

NEW YORK — When word came around on Wednesday that Ralph Lauren was handing off the chief executive officer role of his namesake company to Old Navy’s Stefan Larsson, the investment community was stunned. In the wake of the event were stock upgrades, downgrades and surprised reactions. Lauren revealed the management change after the market closed on Tuesday. On the first day of trading on Wednesday, Wall Street praised the appointment of Larsson by sending shares of Ralph Lauren Corp. up 13.5 percent to close at $118.12. The 52-week high is $187.49 and the low is $103.29 — a level reached only the day before. But while investors cheered the addition at Lauren, they were less happy about the impact Larsson’s loss will have on Gap Inc. Analysts noted that the retailer’s turnaround was pinned to the success of Old Navy. Analysts said under Larsson, the value-driven Old Navy brand had three consecutive years of profits and added nearly $1 billion in sales. It’s unclear whether the company can maintain its success without him, they added. As a result, shares of Gap Inc. fell 5.7 percent to close at $28.50. Its 52-week high is $43.90, and the low is $27.64. UBS equities analyst Michael Binetti downgraded Gap to a “sell”

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HBC Closes Kaufhof Deal; Changes in Matrix, Off 5th Growth Ahead

David Moin — Wed, 30 Sep 2015 19:23:50 +0000

During its near decadelong pursuit of buying Galeria Kaufhof in Germany, Hudson’s Bay Co. was patient. Now with a deal finally completed, HBC will be anything but patient in making its mark on the business. “We’ve been looking at Kaufhof for nine years. We’re pretty excited to have reached the finish line,” said Don Watros, president of HBC International, on Wednesday, when the deal closed. “We are really going to hit the ground running. There’s a huge opportunity to add brands and expand the matrix and assortment here,” Watros said. Like the Hudson’s Bay chain in Canada, Kaufhof has “big boxes in great locations,” he added. “On a sales-per-square-foot basis, there is tremendous headroom.” In addition, “Kaufhof is underpenetrated in e-commerce,” Watros said. “We are going to use our expertise and leverage to help them move forward quickly.” Watros was joined in the interview by Jerry Storch, chief executive officer of the Hudson’s Bay Co., and Olivier Van den Bossche, ceo of Galeria Kaufhof Group, who continues in his position. Last June, HBC revealed its definitive agreement with Metro AG to acquire Kaufhof for 3.8 billion Canadian dollars, or $2.8 billion at current exchange. HBC is funding the acquisition by selling 41 Kaufhof locations to

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Enlivening the In-Store Experience With Digital Displays

Arthur Zaczkiewicz — Wed, 30 Sep 2015 18:11:22 +0000

Retailers are sinking a lot of money into an omnichannel approach to selling fashion apparel and accessories, which involves investments in the supply chain in addition to related e-commerce expenses that include revamped Web sites, reconfigured fulfillment processes and improved inventory management. But a big part of omnichannel retailing is the in-store experience, and that includes using various technologies — aka bells and whistles — to increase consumer engagement. For retailers and brands, getting the attention of shoppers is not as easy as it used to be. Things are changing, though. For department stores and specialty retailers in particular, there has been a noticeable shift toward use of digital displays, which are fast replacing static, printed images of products, brands and logos. Of course TV displays have long been used at retail. But over the past few years, retailers and brands have started playing around with the placement of digital displays as well as the content. Instead of a flat-screen TV hanging on a wall or suspended from a ceiling, units in various sizes are integrated directly into merchandise displays. The digital displays and touch-screen devices are not only used to engage shoppers while in the store, but also for them to research products

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Mackage Expands on Two Fronts

Sharon Edelson — Wed, 30 Sep 2015 17:20:50 +0000

Mackage, the Canadian outerwear company known for combining different textures and materials to produce architecturally inspired designs, on Thursday will open a pop-up store on Madison Avenue to test the U.S. retail waters. The 2,000-square-foot pop-up at 1122 Madison Avenue, will operate for six months. “It could turn into a permanent store,” said Elisa Dahan, co-founder of Mackage. “We were starting to look uptown and found that location. When we got the prices of Madison real estate, they were almost unrealistic. That’s the reason a lot of stores are closing — they can’t afford to renew their leases. We want to see how we adapt to a market that has an expensive rent. Before getting married to the area we want to date it a little bit.” The pop-up shop will sell outerwear for men and women, handbags and accessories. A black wool coat with leather details and fur sleeves is $2,100; a black down coat with a shearling collar, $1,395; double face wool coats that look like origami, $690, and washed moto jackets, $990. At the same time that Mackage is launching the pop-up, the company is opening its first freestanding store, a 2,133-square-foot flagship in Montreal. The bulk of Mackage’s business is wholesale,

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YogaSmoga on Expansion Tear

Sharon Edelson — Wed, 30 Sep 2015 17:17:49 +0000

YogaSmoga, the burgeoning athletic wear brand, said it is continuing its rapid growth, with six new stores slated to open this year, bringing its total to 12. Rishi Bali, who founded the company with his sister Tapasya, said that YogaSmoga in 2016 will open at least 25 stores, including the company’s first Manhattan location. At that pace, the company could have 100 units in operation by 2018. Besides New York City, new markets YogaSmoga plans to enter include Florida, Colorado and Hawaii. Canada is also in the offing. Bali has ambitions to become a $1 billion brand in the next five to 10 years. The company this month will unveil a 3,000-square-foot store on Union Square in San Francisco in a town house with double-height windows. High-profile openings in November and December will include a 1,365-square-foot unit at The Westchester Mall in White Plains, N.Y.; a 1,440-square-foot store at the Mall at Short Hills in Short Hills, N.J., and a 2,160-square-foot unit at the Village at Corte Madera in Corte Madera, Calif. YogaSmoga will also unveil a 2,736-square-foot store at Broadway Plaza in Walnut Creek, Calif., and a 1,200-square-foot unit at the Shops at Prudential Center in Boston during that period. Rishi and Tapasya Bali, who launched YogaSmoga in 2013, left careers at Goldman Sachs and Credit

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House of Fraser Launches Interactive Catalogue Using Augmented Reality

Lorelei Marfil — Wed, 30 Sep 2015 17:02:14 +0000

AUGMENTED APPEARANCES: House of Fraser has launched an interactive digital catalogue with the use of augmented reality technology. The British retailer has incorporated this digital function — a computer-generated sensor that utilizes 3-D models and videos — to showcase the department store’s range of products for its iPhone and iPad shopping app. Through a partnership with Poq, an app commerce platform, and Layar AR SDK, an image-recognition functionality for interactive applications, users can open the “Scan to Explore” feature to browse the catalogue and scan the pages. The shopper can access interactive content including “How To” videos, 3-D product reviews, recipes, look books and shop the items featured. “Through this initiative we are able to begin digitizing our physical content, and create innovative customer experiences which drive multichannel behavior and enable customers to interact and shop with us in a new and exciting way,” said House of Fraser chief customer officer Andy Harding. “Through our existing partnership with Poq, we were able to integrate Layar into our apps quickly and seamlessly.”

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Hugo Boss to Open Flagship in Milan’s Galleria Vittorio Emanuele II

Alessandra Turra — Wed, 30 Sep 2015 16:45:39 +0000

Hugo Boss has secured the winning bid at an auction for a space located in Milan’s shopping arcade Galleria Vittorio Emanuele II and covering around 10,294 square feet. The fashion brand will pay an annual rent of about $3.8 million for the five-story venue, which will feature three windows on the arcade’s main arm leading to Piazza Duomo, the square home to the city’s historical cathedral. The store, which is occupied by a bar and the National Polygraph Institute and Mint, will carry the brand’s men’s and women’s ready-to-wear ad accessories collections, as well as an area dedicated to made-to-measure. The last floor will host an art gallery showcasing works by the winners of the Hugo Boss Prize, along with a lounge area. According to a statement released by Milan’s municipality, the project presented by Hugo Boss is focused on respecting the space’s original look through the restoration of the internal areas. The store is expected to open in 2017. The current tenants’ contracts expire at the end of next year.

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Twitter’s Social Commerce Play

Rachel Strugatz — Wed, 30 Sep 2015 13:00:01 +0000

Twitter’s taking a more commercial tack, giving consumers an easier path to purchase with its most comprehensive take on the “buy” button to date. The move came just as speculation heated up Wednesday that Jack Dorsey, interim chief executive officer and cofounder, would be taking back the reins as permanent ceo following Dick Costolo’s departure in July. Twitter appears to be making a big push in e-commerce this time after several smaller efforts, and is teaming with three of the leading cloud commerce platforms — Demandware, Bigcommerce and Shopify. They will help Twitter users purchase items they find without leaving their feed, and Stripe Relay will power the function. Pacific Sunwear of California Inc. will be the first Demandware client to offer the service, but the functionality is available to any of the 295 brands that are live on Demandware’s platform. Bigcommerce and Shopify will roll out similar “buy- now” functionalities for brands operating on their platforms. Bigcommerce’s ceo Brent Bellm said any brand that has an “intense enough following” to use Twitter, Pinterest or Facebook to push news or product releases can benefit from having in-app purchasing. “What the ‘buy’ button does is turn that marketing — which was already effective to your best

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Dior Homme Unveils New Paris Flagship

Miles Socha — Wed, 30 Sep 2015 09:01:41 +0000

PARIS — Igniting its expansion drive, Dior Homme is to christen a 3,200-square-foot flagship on the Rue François 1er here tonight, decamping from the historic Avenue Montaigne boutique to a more expansive, sunny and streamlined space spread over two floors. Larger boutiques, an expanded array of accessories, ramped-up communications and a push into new markets are the chief growth avenues laid out by Serge Brunschwig, recently named president of Dior Homme, in addition to his responsibilities as chief operating officer at Christian Dior Couture. “I think we all recognize that with such a name, there was a way to go further,” the executive said in his first interview since taking on the role Sept. 1. “It’s our ambition to have a larger footprint.” Brunschwig declined to discuss figures, but noted that Dior has 195 boutiques worldwide, including 62 addresses for Dior Homme, either embedded in multicategory Dior boutiques or in freestanding men’s units, as is the case on Via Montenapoleone in Milan, for example. Larger stores will allow Dior Homme to better showcase its product ranges, including footwear, business and travel bags, plus ready-to-wear ranges devoted to formal and fashion parts of the collection, Friday wear and demi-mesure tailoring, Brunschwig said, describing a wish to

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Vionnet Opening First Paris Boutique Under Goga Ashkenazi

Joelle Diderich — Wed, 30 Sep 2015 04:01:31 +0000

Vionnet is returning to its roots, with the opening of its first Paris boutique since Goga Ashkenazi took control of the historic label in 2012. The 2,700-square-foot store at 31 Rue François-1er, opening in time for fashion week, is located close to Madeleine Vionnet’s former headquarters on Avenue Montaigne. Ashkenazi said returning to that locale proved impossible, but in every other respect, she sought to be as faithful as possible to the spirit of the founder. Architect Renato Montagner designed the space with images of the original atelier in mind, incorporating a wealth of details inspired by Vionnet’s creations. Thus, plaster work on the walls re-creates the designer’s signature draping, while a geometric spiral staircase takes its cue from a bias-cut dress. “A lot of connections to the past have been drawn,” Ashkenazi said. “For me, it was important to have those references, because I think our heritage is one of the most important parts and one of the biggest privileges that we have working with such a name.” The overall look nods to classical Greek architecture, with walls clad in white travertine and crystal marble panels, accented by brass rings and rods. Vionnet’s signature bright blue hue appears on the terrazzo flooring of the

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Devalued Yuan Set to Tarnish Chinese Golden Week in U.K.

Samantha Conti — Wed, 30 Sep 2015 04:01:22 +0000

LONDON — British retailers accustomed to doing a brisk business during Chinese Golden Week in October could be in for a shock next month due to the devalued yuan, according to new figures from Global Blue. The retail tourism organization has warned that spending by Chinese shoppers declined 2 percent year-on-year in August, following the devaluation of the yuan in June. Overall growth in spending was up 8 percent in the seven months from January to July. Global Blue said Golden Week, which runs from Thursday to Oct. 7, has long been a bumper season for U.K. retailers, “but as the effects of economic instability continue to take over the country,” British stores could be in for a shock. “Global Blue is anticipating the Golden Week rush will be significantly weaker this year, and the decline could continue throughout the fourth quarter as Chinese are left disinclined to book trips abroad,” Global Blue said. The U.K. is also losing Chinese customers to Europe because of the weaker euro. Global Blue said the growth in Chinese shopper numbers in the U.K. slowed to 4 percent in the first half. By contrast, in the euro zone, it saw an increase of 74 percent in the same

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& Other Stories to Open Second NY Store

Sharon Edelson — Tue, 29 Sep 2015 20:56:32 +0000

Two of H&M’s sister brands, COS and & Other Stories, are continuing their expansion in the U.S. with a spate of openings. On Oct. 30, & Other Stories will unveil a 9,700-square-foot store on two levels at 505 Fifth Avenue at the corner of 42nd Street. The site was formerly an H&M unit. COS will open a 3,982-square-foot store in the remaining space at the same location. An opening date for the store, which will be COS’ second in Manhattan, couldn’t be learned. It’s been a big year for H&M, which in May unveiled its largest store in the world, a 63,000-square-foot flagship in Manhattan’s Herald Square. H&M has also been lavishing attention on its smaller brands. Daniel Kulle, president of H&M North America, in April revealed that the Swedish retailer is planning to accelerate the U.S. growth of its denim-driven Cheap Monday brand, including possibly opening flagships. COS which stands for Collection of Style, plans to open a second California location with 4,165 square feet of space at South Coast Plaza in Costa Mesa, Calif., and will enter new markets in Boston and Houston. COS launched in the U.S. in 2014 with stores on Spring Street in New York and North Beverly Drive in Los

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Topshop, Topman Arrive in India Via Jabong

Mayu Saini — Tue, 29 Sep 2015 19:49:24 +0000

MUMBAI, India — British brands Topshop and Topman launched in India last week with a party in the heart of Bollywood and a plan to tap the Indian market through e-tail. The exclusive link with fashion e-tailer Jabong added to the existing relationship between Jabong and Sir Philip Green’s Arcadia Group, which owns Topshop and Topman. In 2014, Jabong launched Miss Selfridge, another brand from the group, at Lakme Fashion Week here. Jabong has brought other global brands into India, including Bugatti shoes, which were launched last month; Dorothy Perkins; Tom Tailor, and Miss Bennett London. Jacqui Markham, who was appointed the global design director for Topshop in February, said the e-launch was intended “to reach the larger geography of the country” and get a better sense of the Indian market. “India is a completely different market with a lot of effortless approach to style here, which is not too formal, with an edge to glamor. It has the high-low combination that Topshop is known for,” said Markham. “There’s nothing to beat being in the country and seeing what people are wearing and what they want. “India has such a rich heritage of textiles, color and print, it is a sensory overload to be here,”

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Hudson’s Bay Consolidates and Realigns

David Moin — Tue, 29 Sep 2015 18:59:27 +0000

Hudson’s Bay Co., which has been growing rapidly through acquisitions, on Tuesday said it will cut 265 non-customer facing positions across the company to save $75 million on an annualized basis beginning in 2016. It also will form three “centers of excellence” for customer relationship management, creative and human resource functions. The $75 million in savings is in addition to the $100 million in savings being attained through synergies via the acquisition of Saks Fifth Avenue in 2013. The company anticipates taking a charge of about $20 million in the third quarter of fiscal-year 2015 in connection with the realignment. The centers of excellence are central units serving the North American operations of HBC, which include Saks, Hudson’s Bay, Lord & Taylor and Saks Off 5th. Heading up the three centers are Dan Caspersen for human resources, Mark Briggs for creative and Aaron Shockey for CRM. HBC already operates central centers for its digital, information technology, legal, logistics and real estate functions. The 265 cuts are occurring across many areas of the company involving the different retail banners and headquarters. Richard Baker, HBC’s governor and executive chairman, commented that the company’s rapid growth, both organically and through acquisitions, “has created meaningful opportunities for us to

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Footwear Line Madison Harding Tries Apparel on for Size

Kari Hamanaka — Tue, 29 Sep 2015 18:23:28 +0000

NEW STRATEGY: Seventies-inspired footwear-maker Madison Harding is testing the apparel waters. The New York-based company released a capsule collection — its first foray into clothing — about a year after the company was sold to PLC Brands LLC and shifted to a strategy of selling direct-to-consumer. The deal to PLC placed Madison Harding in a portfolio that includes footwear brands Aska and Claetyn Wood. Cofounder Hilary Koyfman parted ways with Madison Harding at the time of the deal. Apparel seemed like a natural progression for the brand, said Barri Budin, the company’s other cofounder who stayed on as designer. Apparel, if successful, could also pave the way for the brand to enter into other categories, she added. The collection totals 13 pieces and ranges from $68 tops to $165 for a velvet jumpsuit. The capsule will be sold direct through the company’s Web site, in line with a larger shift that took place after the PLC acquisition to switch to a direct selling model. “We used to sell wholesale when we had [only] the shoes and then we re-branded over the past year and decided to take the brand direct,” Budin said. “So we’re only selling on our Web site. That way we’re able

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HookLogic CEO Discusses E-commerce, Mobile Trends

Arthur Zaczkiewicz — Tue, 29 Sep 2015 17:40:53 +0000

Performance marketing firm HookLogic, which was recently infused with Series C growth funding from Fung Capital USA, offers a technology platform that allows e-commerce retailers to better target consumers. Jonathan Opdyke, chief executive officer and cofounder of the company, said by leveraging data, the platform can also be used to predict new consumers who would be interested in a brand or Web site. Opdyke discussed the platform, its use and current consumer behavior trends that are impacting e-commerce — especially how companies are seeing consumers navigate a “shopping journey” that begins on a smartphone or other mobile device. WWD: Would you agree that it’s important for a brand to have various “touch points” that reinforce the brand or product along that journey? What would that look like? Jonathan Opdyke: Absolutely, brands can’t underestimate the value smartphones play in a consumer journey in driving transactions on tablets, desktops and off-line. Today’s consumer shifts seamlessly between devices — and she no longer even realizes she’s doing it. Measuring attribution is difficult across the various media, but it doesn’t mean that stimulus and response isn’t happening. WWD: Are brands and retailers fully leveraging the data that is generated on consumers? How can they do better? J.O.: They are only scratching

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House of Harlow to Test Retail at Village at Westfield Topanga

Kari Hamanaka — Tue, 29 Sep 2015 16:19:32 +0000

NICOLE’S HOUSE: House of Harlow 1960 continues to dabble in the retail game. The company is slated to open its second pop-up at the Village at Westfield Topanga on Thursday, located within another temporary space at the mall, Nathan Turner’s American Style. It follows the firm’s first temporary shop in the summer at The Grove shopping center. “We learned so much at The Grove about what type of products our clients like best and what experiences they value,” said designer Nicole Richie. The company retooled its Kate dress — a breezy, loose-fitting design — which will be sold at the Village at Westfield store and also wanted to provide an interactive experience based on takeaways from The Grove unit. Richie and Turner are expected to hold a conversation about personal style the evening of the store’s opening. The store, which will be open through Oct. 31, will carry the company’s fall collection of apparel, jewelry and accessories. There is also interest in a permanent storefront for the brand, although the timing of that appears less certain. “I never say never and I would love to have a permanent House of Harlow 1960 someday,” Richie said. “However, I am having so much fun popping up and

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Video Highlights: WWD Digital Forum New York 2015

WWD Staff — Mon, 28 Sep 2015 20:37:35 +0000

The event gathered the most imaginative innovators, strategists, and marketers from the most influential companies in the apparel, footwear, beauty, and retail industries. Watch video of the highlights of the two-day event.

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