Happy New Year

May 2009 be free of economic freefall and bad PR.
Be well.
Be safe and we'll see you next year.--Editor

Sprint Ad Spending Soars

From "The Street":

Not all companies are slashing advertising spending. Sprint is on track to outspend its larger wireless rivals AT&T and Verizon this month in an effort to reverse its alarming subscriber losses.

The Overland Park, Kan., telco is buying three to four times as many TV ads in December than it normally buys in the summer months. And this week, Sprint will overtake top spender AT&T in the TV ad buying race, according to an analyst familiar with the industry's current advertising activity.

The surge in ad spending comes after Sprint swung to a loss in the third quarter on a 7% year-over-year decline in sales. The No. 3 wireless shop has lost nearly 4 million subscribers in the past year as disgruntled Nextel users tore up contracts and other carriers picked off customers with fancier phones like AT&T's Apple iPhone.

Last month, Sprint announced it was slashing costs, closing offices and offering buyouts to bring expenses in line with sagging sales.

The recent advertising push has attempted to put CEO Dan Hesse in the spotlight as a symbol of the new direction and leadership at Sprint.

Sprint has also been emphasizing its family calling plans and its lower prices to tailor its offering to a more cash-strapped customer in a faltering economy.

The move to the top of the telco TV ad buyers spending is not likely to be sustainable for Sprint, however. AT&T spends around $800 million on TV ads annually and No. 2 Verizon typically budgets around $650 million for TV ads. Sprint's annual ad budget is usually around $400 million.

THE SAUCE

Smart move. A down economy is no time to slash marketing--Sprint (and the telecom industry) already has enough problems. Fortune favors the brave, we say. An intelligent ad campaign centered on their steady leader, CEO Dan Hesse, is a smart strategic move--especially when they have been taking it on the chin from competitors for quite a while.




Disclosure: The editor of this blog owns shares in Sprint and is related to a Sprint employee.

Happy Holidays from Bernays Sauce

We'll be back shortly before the end of 2008, but in the meantime, whatever holiday you celebrate, we hope it's a great one. Be safe and have fun.--Editor

P.S. Now's the time to try out our great Béarnaise Sauce recipe, don't you think?

The Best and Worst Ads of 2008

Ah, the end of the year, when the "best and worst" lists are upon us. From the Wall Street Journal comes the "Best and Worst Ads of 2008." Here's one of the worst (and I happen to agree it was bad, as it was just plain too oblique):

Odd Couple
Client: Microsoft Corp.

Agency: Crispin Porter + Bogusky

Content: Microsoft shelled out about $10 million for pitchman Jerry Seinfeld and paired him with Bill Gates for a massive Windows ad campaign. In one spot, the pair shopped for shoes; in another, they bunked with a family.

Feedback: The much-anticipated ads were largely panned by viewers and ad experts. A Microsoft spokesman says, "The only thing worse than being talked about is not being talked about. We're thrilled."

Get the entire article here.

Have a best or worst local or national ad you'd like to nominate? The comments section is open.

Politico's "Top 10 Media Blunders"

Politico.com has come out with its list of the "Top Ten Media Blunders of 2008"--a fun read. Though these are political blunders (your Sauce editor is a bit of a political junkie), its instructive to see examples of ways the media can alter a message through their own mistakes or biases.

excerpt:

4) “Terrorist fist bump” and “baby mama”: Fox News, in one week last summer, twice took racially tinged shots at Michelle Obama. Host E.D. Hill apologized for calling the playful fist pound between the Obamas at the convention a “terrorist fist jab,” and then days later, the network placed an offensive chyron up next to the future First Lady: “Obama’s baby mama.”

Response: Hill’s contract wasn’t renewed when it expired in November, and the producer responsible for the “baby mama” line went to CNBC.

5) “Pimped out”: MSNBC’s David Shuster said that Chelsea Clinton was being “pimped out” by the campaign for calling superdelegates on her mother’s behalf. The Clinton camp and NBC executives became embroiled in a tense back-and-forth, with the Democratic contender threatening to withdraw from a network-sponsored debate.

Response: Shuster was suspended for a couple weeks, but the incident wasn’t a career setback. Just last week, MSNBC named Shuster host of “1600 Pennsylvania Avenue.”

Click here to read the entire story.

EventPros Garners KC Small Business Honor

We just found out that our firm, EventPros, is among the 2009 KC Small Business Magazine "25 Under 25" businesses in Kanasas City. We are very excited, especially on the heels of our nomination for the International Gala Award for KCRiverFest (we find out if we won that one Jan. 30 in San Diego).

Who says good things don't happen these days?

So...if you want some award-winning communications and special event services, give us a shout. We'd love to work with you.

Small Firms Being Studied for Acquisition

Attention small shop PR firms...blue light special! Seriously, it is encouraging to see that not only is the public relations sector surving the recession, its growing. Any ideas as to why? More outsourcing due to corporate PR layoffs? Your comments and opinions welcome.

Excerpt:

5W Public Relations, today announced intentions to make acquisitions, and aggressively pursue small PR agencies in 2009. The firm is currently in discussions with several firms. 5W Public Relations has quickly grown to be the nation's 21st largest independent firm since their founding in 2003.

"Thankfully, despite the tough economy, 2008 was a growth year for 5WPR as we continue to organically grow and mature. Given the state of the economy, as entrepreneurs, we understand the struggles small firms may have with collections, lowering of retainers and simple balance sheet issues, and as such we are interested in acquisitions or agencies that may be looking to merge into a larger agency," said Ronn Torossian, CEO of 5W PR. "We are targeting small firms and we are seeing a lot of Public Relations firms doing great work, but are facing tough times. We are very confident that we will continue to grow and view acquisitions as a component of that process. We are cash positive and want to invest in acquisitions to grow."