Media&Marketing: The largest Irish-owned advertising agency, McConnells, has reported a fall in turnover and profits, but its chief executive is upbeat about prospects for 2004.
Mr Jarlath Jennings said 2002 was an exceptionally strong year and it was always going to be difficult to match this in 2003.
The agency, which offers media buying and creative services to its blue-chip client base, saw turnover fall from €76.5 million in 2002 to €67 million for 2003. Pre-tax profits slipped from €14.7 million to €11.5 million.
Mr Jennings said that, in 2002, the agency's figures were boosted by once-off contracts such as the Nice referendum and the Census. He said the fast-moving consumer goods sector was under unprecedented pressure and advertising agencies were being hit by this.
He added that the 2004 figures were looking strong, with recruitment advertising in particular picking up on 2003 levels.
Mr Jennings was cautious regarding suggestions that MCM, McConnells' media-buying arm, might merge with one of the media specialists such as Irish International.
He agreed the lack of an international partner for MCM put the agency at a disadvantage, but a deal was some way off, he stated. Meanwhile, the company has won an interesting retail account believed to be worth €1-€1.5 million.
Dundrum, in south Co Dublin, is to be the site for a new town centre, due to open next year. It will host upmarket department stores House of Fraser and Harvey Nicholls, plus a new Tesco and a Marks and Spencer.
The centre is not modest in its ambitions. According to its website: "The day of the ordinary shopping centre has passed, we are about to enter a new era, an era that defines the way we live today, that offers a holistic experience to enrich, inspire and indulge every aspect of our lives".
Advertisers believe the key to the new centre's success will be traffic flow and parking. Two Luas stops should also help.
It is believed McCann Erickson, Cawley Nea and QMP Publicis were among those who went for the contract.
Newbridge wins award
Marketing magazine yesterday awarded its annual Marketer of the Year award to Newbridge Silverware. The company's chief executive, Mr William Doyle, was presented with the prestigious award.
Mr Robert Ward, group marketing manager of Roches Stores, received a commendation from the judging panel for his work on the re-launch of Roches Stores in Dublin's Henry Street.
The judges noted Newbridge's impressive growth over recent years, with the company's employment numbers rising from 25 to 95 people and sales increasing from €1 million in 1997 to €19 million last year.
In the Republic alone, it has also increased the number of outlets to which the range is sold from 100 to 600.
Ms Geraldine O'Leary, a senior executive from RTÉ and chairwoman of the judging panel, said that, in less than 10 years, Mr Doyle had transformed Newbridge from a name synonymous with the manufacture of cutlery to one of the leading names in the design and manufacture of quality jewellery.
"To achieve this in such a short space of time is in no small part down to innovative and effective marketing campaigns. The judges were immediately impressed by the weighting which is given to the marketing function within the company and the recognition of the fact that the success of the company is intrinsically linked with workable and successful marketing campaigns."
The company offers products in the tableware, giftware, jewellery, kitchenware, cookware, glassware, and earthenware markets.
This is the 12th year that the Marketer of the Year Award has been presented.
Past winners have included Mary Davis and Suzanne Weldon for Special Olympics World Games 2003; Brian Goold of Bio-Medical Research - Slendertone; Simon and Amanda Pratt of Avoca Handweavers; John Foley of Waterford Crystal; Pat Rigney and David Phelan of Boru Vodka; and John Keogh of Bulmers.
Film deal for US malls
Dublin agency AFA O'Meara reports this week that Twentieth Century Fox is to use shopping malls to promote its films and has signed a deal with the US's second-biggest mall owner.
The move is seen by many as a direct result of soaring TV advertising costs in the US.
The long-term deal has been signed with General Growth Properties and films will be promoted in shopping centres owned by the operator. As part of the agreement, Fox movie ads will be placed on everything from banners in the car park to tray liners in the restaurants.
