GSD&M&BMW

Austin American-Statesman

Austin ad agency GSD&M Advertising has won the BMW of North America account, adding an auto account to a roster that includes Wal-Mart Stores Inc. and Southwest Airlines Co.

GSD&M will handle all North American creative work for the luxury automaker. The account is worth an estimated $75 million a year in billings.

GSD&M employees were celebrating Monday night at the company's headquarters on West Sixth Street,with a German band playing in the background while BMW and agency executives made the announcement.

"They don't call Austin the live music capital of the world for nothing, if we can get an oompah band on short notice," said Roy Spence, president and co-founder of GSD&M.

"Oompah? How... fresh." Interesting. I like GSD&M, but hey, Walmart and Southwest owe none of their success to Spence's outfit--both are low cost players with real self-image, albeit playing opposite sides of the soul coin in the business model dept. by my measure. How BMW situates in between them after pretty compelling, "high-bar" experiences with Fallon and Crispin Porter& Bogusky leaves me wondering. Methinks suits have been at it again... Paging Mr. Westbrook? Mr. Bill Westbrook? BusinessWeek

June 17, 2005

Historic BMW and Fallon Advertiser-Agency Relationship Comes to an End

Man Bites Dog. That's how I felt hearing late Friday afternoon that BMW North American and Minneapolis ad agency Fallon Worldwide parted ways.

Having written a book about BMW, with a deep-dive into Fallon's work for BMW, I have long considered the work that came out of relationship to be the best in the auto industry, and among the best in any industry. The Internet films, BMWfilms, produced by the partnership was an especially high-water mark for creative and inventive advertising in any category.

Last year, at the Cannes Ad Festival, BMW was named best global advertiser, and Fallon's work was prominently mentioned high up in the press release from the judges.

BMW sales are strong. The company is rolling. The launch of the new 3 Series and 5 Series have been successful in a difficult market in which BMW is under tremendous pricing and profit pressure because of the weak dollar against the euro.

And there is the rub, methinks. Back in the early 1990s, BMW pulled the rug out from under another great ad agency, Ammirati & Puris, because bean-counters were looking for a lower price charged by the ad agency. Ammirati, when asked to compete for the account against other agencies, declined. Adweek named the agency Agency of the Year for standing up to an advertiser and showing some pride. BMW went to Mullen Advertising of Wenham, Mass., and the work that resulted was a disaster.

BMW has a new marketing chief, Jack Pitney, who successfully put BMW's MINI brand on the map in the U.S. with great work from Miami ad agency Crispin Porter+ Bogusky. Pitney asked Fallon to compete in a review against other agencies, and ad industry mensch Pat Fallon said, "No Thanks." My guess is that Fallon won't be out of the car business for very long.

But where BMW winds up with work as good as what Fallon produced is anyone's guess.

We'll see.