BMWNA official statement on the seperation from GSD&M Idea City

Interesting | October 23rd, 2010 by 8
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Yesterday, the headlines in the marketing world was kept by the separation announcement between BMW and GSD&M Idea City agency, based in Austin. After five …

Yesterday, the headlines in the marketing world was kept by the separation announcement between BMW and GSD&M Idea City agency, based in Austin.

After five years, GSD&M Idea City and BMW are ending their relationship effective December 31st. The split comes on the heels of the death this summer of BMW’s VP-marketing of North America, Jack Pitney, a longtime advocate for the shop, and just over a year since the agency won a pitch to handle global brand marketing for the automaker.

The $140 million contract is set to expire at the end of this year, but it’s unclear how much Idea City’s portion of the account was worth in revenue. In 2009 in the U.S. alone, BMW devoted $138 million to domestic measured media, and its on track to surpass that this year, having spent $83 million in the first six months of 2010 alone.

BMWNA official statement on the seperation from GSD&M Idea City

Shortly after the news broke out, conspiracy theories emerged, mostly fueled by an AdAge article suggesting that BMW was fired by its own agency. Pulling a Donald Trump-like stunt is for sure noteworthy for front pages, but at the moment, none of the sides have confirmed these allegations.

We reached out to BMWNA for an official statement, embedded below:

BMW and GSD&M Idea City will end their relationship after the current contract expires. We thank GSD&M for their contributions over the last five years. They have been great partners.

However, we have a number of agency partners, both in the US and globally, that provide high quality work. We look forward to continuing to work with this team of great agencies now and in the future on a wide range of dynamic new products, technologies and initiatives.

As side note, the Joy campaign will continue to play a role in future marketing campaigns and it has never been seen internally as a replacement for the Ultimate Driving Machine slogan, but rather as an addition, a new marketing layer that reaches out to the current BMW younger demographic.

  • http://www.facebook.com/profile.php?id=100000477069969 Hugo Becker

    There may be a back side to this story. Here was a GSD&M view: http://www.mediabistro.com/agencyspy/gsdm-idea-city-to-resign-bmw-account-at-years-end_b8826 and a pointer to another article: http://www.mediabistro.com/agencyspy/crispin-nabs-gsdms-bmw-lead-creative_b5788 If Crispin ends up with the BMW account . . . ;-)

  • Tom

    Sounds like the new VP of Marketing wants to have a choice in marketing firms and ahem, possibly some kickback from the winning firm. That’s how the corporate world works, right?

  • Laszlo

    something is fishy… they just lost the mastercard account as well. Hmm…

    • http://www.facebook.com/profile.php?id=100000477069969 Hugo Becker

      Not fishy – just business as usual in ad agency world. There’s moe account turnover than you can imagine.

      There is a pretty good literary account of advertising in the automotive market called, “Where the Suckers Moon”, by Randall Rothenberg. It’s a look into an ad agency’s work for Subaru in the late ’70s early ’80s.

      Now if you really want to be a cognoscenti on auto advertising you have to know the story behind, ‘Somewhere west of Laramie . . . ‘ ;-)

      • oly

        Where could these stories be found?

        • http://www.facebook.com/profile.php?id=100000477069969 Hugo Becker

          Try abebooks.com for the book. As to ‘Somewhere west of Laramie . . . ‘, search is your friend for the ad copy itself, but for the story itself the blurb at this page is a good summation: http://www.charleswelty.com/authors/jordan.htm

  • George

    Personally, I never liked this whole ” Joy” marketing campaign. How does everyone else feel?

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