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SEPTEMBER 5, 2011
In pressure cooker,
GRIFFIN BREAKS SILENCE ON
marketers lay the
TIME INC., WHAT LIES AHEAD
blame on advertising
Seven months since his ouster, publishing exec talks about getting
off the ‘main line’and what he feels he accomplished at the TW unit
■ BY RANCE CRAIN rcrain@adage.com
Shops end up in cross hairs as GM, Gap, break
unwritten rule not to publicly critique the work
■ BY RUPAL PAREKH rparek@adage.com
IF A THERMOMETER was placed on
marketing departments right about
now, the mercury would be
rising faster than you can say
ROI.
There are higher expectations and stepped-up accountability for chief marketers—
and anyone else up and down
the chain who has a hand in
directing a company’s advertising efforts. The heavier burdens mean companies are
more vocal about their failures
on the ad front, oftentimes publicly laying blame at agencies’ doorsteps.
Last month, Gap Inc. CEO Glenn
Murphy bluntly told analysts on an
earnings call that he was “disappointed”
with marketing efforts for the compa-
ny’s largest brand, Old Navy. Around
the same time, adland was agape over
General Motors’ Global CMO Joel
Ewanick doling out grades for his high-
ly-regarded agencies, Goodby,
Silverstein & Partners and Fallon, to the
press. And when Groupon’s
Tibetan plight-themed Super
Bowl spots were deemed taste-
less, CEO Andrew Mason
vented to Bloomberg
Business Week about its work
with CP&B, saying he placed
too much trust in the agency.
“We learned that you can’t
rely on anyone else to control
and maintain your own
brand,” he said.
It’s an about turn from a time when
companies were reluctant to talk about
ad partners at all, let alone criticize
them publicly.
And it begs the question: Isn’t this a
partnership? Where does blame for bad
See MARKETERS on Page 22
MURPHY:
Gap Inc. CEO was
blunt about ads.
JACK GRIFFIN IS OUT TO prove there’s
life after Time Inc.
Fired seven months ago as CEO of
the Time-Warner unit, he has established Empirical Strategic Advisors, a
consultancy for media and related technology companies and investors.
And it wouldn’t have happened if
the Time experience hadn’t forced him
to get off the “main line,” he said last
week in an interview at the Harvard
Club in Boston—his first in-depth chat
with the media since his dismissal. Mr.
Griffin has a major client and an office
in Boston in addition to his New York
office on Park Avenue South. He was
upbeat and relaxed, and at the same
time his comments were very precise,
as if he had been thinking about what
he wanted to say for a long time.
“Absent any hyperbole, this has
turned out to be the most extraordinary experience of my life,” he said. “I
See GRIFFIN on Page 20
The economy’s latest casualty: America’s baby bottoms
Whether due to penny-pinching or parent laziness,infants are getting short-changed
■ BY JACK NEFF jneff@adage.com
BABY BOTTOMS IN the U.S. look to be
in worse shape than ever, and the economy—or inattentive parents—may be
to blame.
Sales of diaper-rash cream are up,
rising for the third straight year on a
unit basis, even though the number of
babies has kept declining over that period. Data suggest that babies are getting
diaper rash more often because parents
are changing their diapers less.
The number of babies ages 2 and
under in the U.S. fell about 3% to 8.1
million last year, based on data from the
U.S. Centers for Disease Control, which
tracks the number of live births. Yet
SymphonyIRI data show unit sales of
disposable diapers fell 9% in the 52
weeks ended Aug. 7, three times as fast
as the population of infants. At the
same time, unit sales of baby ointments
and creams rose 2.8%, despite fewer
babies.
ALSO INSIDE
How many times a
day do you change
your baby’s diaper?
Well, it depends on
what country you
are in. Hint: The U.S.
isn’t the most
frequent.
See DIAPER RASH on Page 21
See PAGE 21
NEWSPAPER
LOOKING FOR BIG BOY? TRY JAPAN
Several fast-food chains that used to dot the U.S. landscape
are harder—or nearly impossible—to find here, but are thriving
in markets like Aruba and Vietnam.
Read the
story on
P. 11
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