After its recent failure to finalize a deal with DoubleClick, software giant Microsoft Corp., in a bid to be on par with its rivals in terms of online advertising, has bought Paris-based ScreenTonic SA, a European mobile-advertising company. The move stems from Microsoft's desire to increase its digital-advertising offerings. Compared to the online ad industry, the cell-phone ad industry is relatively new. Major players in the software arena are increasingly diverting their attention toward this sector. ScreenTonic offers multiple options for display and text ads in addition to ad-management and reporting capabilities. Microsoft has not disclosed the financial details of the deal. However, it has stated that the deal is part of its endeavor to link advertisers with their target viewers at home. Home viewers use a variety of digital devices ranging from PCs and video-game systems to cell phones. ScreenTonic will continue operating from its present headquarters in Paris.
Publicis to take over Citi's creative work
Financial giant Citi's global brand advertising account of around $150 million has been entrusted to Publicis. For seven long years, the bulk of "brand-identity and consumer work" for Citi was handled by Fallon, which developed the tagline "Live richly." However, Fallon's protégé, Publicis, recently rocked the boat with its "Get it done" tagline. Fallon will, however, continue to work for Citi in "select global markets." While realigning the agency last year, Fallon created the term "Publicis powered by Fallon." At that time, Publicis USA had begun work on the next brand campaign for Citi. Nielsen Monitor-Plus reports that Citi spent about $95 million on U.S. advertising last year.
Saunders to handle Bank of America's advertising budget
Bank of America has hired Anne Saunders as its new brand and advertising executive; she will begin work for the financial institution on June 1. Saunders comes from Starbucks Coffee Company, where she most recently served as senior vice president of global brand strategy and marketing. At Starbucks, Saunders handled global brand management, market research, advertising, field marketing, retail promotions, and strategic partnerships. Saunders is well known for her innovative approach to brand building. In her newly established position at Bank of America, she will oversee brand management, advertising, sponsorships, enterprise research, and agency engagements. She will be based in Charlotte and will report to chief marketing officer Anne Finucane. One of the world's largest financial institutions, Bank of America serves clients ranging from individuals to Fortune 500 companies in 175 countries, offering a full range of banking, investment, asset management, and other financial services.
MindShare pulls out of J&J review
WPP Group agency MindShare will not participate in Johnson & Johnson's (J&J's) media review. MindShare earlier handled J&J brands, including Listerine. The New Jersey-based drug and consumer-product company's global media review is worth $3 billion. MindShare bailed out because most of its offices are filled to capacity and it is not in a position to hire additional staff to handle the work. The list of agencies participating in the review includes Interpublic Group's Universal McCann and Initiative and Omnicom Group's OMD.
Microsoft-Yahoo merger possibilities appear distant
Although the market heated up last week with rumors of a possible merger of Internet giant Yahoo with Microsoft, market analysts are now saying the talks, which have been going on for more than a year now and recently turned toward the possibility of a "creative partnership" rather than an acquisition, are now as good as dead. Takeover rumors reported by the New York Post pushed the value of Yahoo's shares up by 10% to close at $30.98. However, Microsoft's shares fell to $30.56, reflecting a $0.41 reduction. March data released by comScore Media Metrix showed that the U.S. e-market was led by Google, which controlled 48% of the market share. Yahoo came in second, controlling 27.5%, while Microsoft clearly lagged behind, controlling only 11%. Recognizing its need to compete in the online-search market, Microsoft considered joining forces with Yahoo. Sources believe that if the merger had taken place, it would have allowed the two giants to successfully compete with Google for Internet-search advertising space, although a Microsoft-Yahoo search engine still would not be as large as Google, according to sptimes.com.
