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GE uses Olympics to pitch emerging markets push

General Electric (NYSE: GE) is still trying to convince investors that it can offset slow growth and some weak divisional results by doing well in emerging markets. So far, the stock market has not bought in.

The market has actually been hostile to the message. GE shares are just above $34, which is not far from their 52-week low and down considerably from their high of $42.15. Over time, earnings from regions like India and China may help the stock, but the company is going to have to push harder to mark its case. It will use the Olympics in Beijing as a spring-board.

"We want to humanize G.E. even as we show worldwide investors that G.E. is a major player in the world," said Don Schneider, executive creative director at BBDO New York, the Omnicom (NYSE: OMC) unit that is G.E.'s longtime advertising agency, told the The New York Times

GE is a major player in the world but the politics in countries such as China may not make growth there as easy as investors would hope. A global recession could also slow infrastructure building in Asia and the India sub-continent.

To some extent, the large marketing budget for this Olympics is a waste of money. Wall Street wants to know that GE is willing to deal with its slow-growing medical and industrial units either by selling them or cutting costs. Tickets to the Olympics won't help.

Douglas A. McIntyre is an editor at 247wallst.com.

Best Buy picks BBDO as new ad agency

Looks like Best Buy (NYSE: BBY)'s recent shopping trip for a new ad agency has been completed. The nation's largest consumer electronics retailer has chosen BBDO for its annual $170 million-$200 million advertising account after a thorough review of qualified companies.

BBDO, a unit of Omnicom (NYSE: OMC), beat out other large-name ad agencies like GSD&M , MDC Partners, and Crispin Porter + Bogusky, as the selection came down to a final round of bidding, presentations, and -- let's face it -- extreme butt-kissing. Well, most likely, anyway.

Best Buy had previously handled most of its advertising in-house, which is surprising for a retailer of its size. But with growth in previous years and projections for growth not only in the U.S. but overseas, the electronics retailer needed more expertise and manpower. BBDO will be handling account planning, ad strategy and execution and media and consumer connection planning.

Will U.S. consumers see a new face of advertising from Best Buy soon? Its television advertising, while cute, is not that creative and its newspaper advertising has not changed in years and years (perhaps a decade). Changes may be afoot, though they might be subtle. What Best Buy needs is a McDonald's-esque "I'm Lovin' It!" catchphrase.

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Last updated: December 05, 2008: 01:16 AM

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