Oak Brook-based Ace Hardware is taking its advertising business out of Chicago and heading for the West Coast.
After a three-month national shootout that, in the end, included Kirshenbaum Bond & Partners and Atlanta-based West Wayne, Ace is parking its $30 million advertising account at hot creative shop Goodby, Silverstein & Partners of San Francisco.
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“Goodby was selected … because of their strategic thinking and progressive, creative approach to Ace’s future advertising initiatives,” said a statement from Ace.
A new campaign from Goodby, which recently won the $300 million Saturn account, is expected in six to nine months, the cooperative said.
Additionally, Ace said it will continue to use ABC “Monday Night Football” analyst John Madden as a spokesman in “select promotional efforts to support the Ace brand and image in the marketplace.” Going into the review, it was unclear whether the hardware cooperative would continue to use Madden, who most likely will get another image push this fall when he moves from Sundays to prime time.
Many believe Madden may be more valuable to Ace now that he’s moving into the MNF booth. Ace has him under contract until 2005, though he’s recently been used only in sales promotion material and in radio advertising.
Whether or not Campbell Mithun, Chicago, really had a chance to retain the business was not clear. Things got strange midway through the process when Ace director of advertising Sheryl Flaws left. The company then hired former Tru-Serv executive Frank Rothing to replace her.
Nevertheless, pressure to change agencies, despite a solid campaign last fall from Campbell Mithun, was being driven from the top of the $13 billion cooperative. Ace, like other traditional hardware retailers, is under tremendous pressure from so-called big-box hardware retailers like Lowe’s and Home Depot.
Sales at Ace stores generally are, at best, flat, and owners have been clamoring for answers.
While Ace gets one of the nation’s best creative shops, the fact that the company is moving its business out of Chicago comes at a bad time for Windy City ad agencies.
On top of a still-sluggish advertising climate, Chicago-area clients such as Midas and Budget have taken their business out of Chicago in recent months.
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FedEx and Shell Oil return as sponsors for the two days of racing. And Bridgestone, Simple Green and Motorola have signed for the first time. Schaumburg-based Motorola will sponsor “Pole Day.”
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Interpublic acquires Media First: The Interpublic Group said it acquired Media First International Inc., a New York-based full-service media company. Terms of the deal for the agency, which managed roughly $330 million in media expenditures for companies such as Burger King and Northwest Airlines, were not disclosed. With offices in New York and Minneapolis, the agency will operate as an independent unit within Interpublic’s The Partnership division.
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