Friday, June 27, 2008
Spurs trying to score new ad agency in challenging times
San Antonio Business Journal - by W. Scott Bailey
Creative Civilization's decision to resign a Spurs advertising account it has held for more than a decade has the NBA team and its parent company, Spurs Sports & Entertainment (SS&E), searching for a new ad agency.
The successor to Creative Civilization will face immediate challenges, including the exit of a top Spurs executive, heightened NBA game-fixing conspiracy talk and an economy that is leaving fans with little disposable income.
Creative Civilization co-founder Al Aguilar says his agency contemplated resigning the SS&E account when the latter quietly moved to put the contract up for grabs by soliciting proposals from Aguilar's firm and its compe ors. But it was the surprising resignation of SS&E Executive Vice President Russ Bookbinder that Aguilar says cemented his agency's own resignation.
Bookbinder says he "needed to take a step back and see what the next chapter is."
Aguilar says Bookbinder's departure "helped me solidify my decision."
"I got with my team and we talked about all of this," Aguilar explains. "We made the decision to not (participate in the contract proposal process), to reassert our energies elsewhere."
Strong brand
Skip Wood is CEO of The Wood Agency and he is also an avid Spurs fan. Wood says his agency was a finalist for the Spurs account several years ago and was invited to participate in the current proposal process.
But The Wood Agency has elected to pass. Wood says compensation was a factor in that decision.
Wood says he expects there will be a number of agencies who are interested in landing the SS&E account.
But he also says the victor will likely have to deal with a number of important issues.
They include organizational changes prompted by Bookbinder's departure and a RefGate scandal that tainted the 2008 NBA Finals. Those allegations were made by ousted NBA referee Tim Donaghy, who contends that other NBA whistle blowers had manipulated previous playoff games and series.
Wood believes the Spurs can withstand the conspiracy scandal.
He also believes San Antonio's only major professional sports franchise can absorb the front office disruption and even the knocks from fans and media that the team itself is too old, too slow and too boring.
"The Spurs are a strong brand," Wood says. "A strong brand can overcome strong challenges."
What no one can predict is whether the Spurs or any NBA team can overcome a rough economy that has consumers dealing with rising household costs and shrinking disposable incomes.
"There are some serious challenges ahead for any entertainment vehicle," Wood warns.
One agency that has not been invited to participate in the contract proposal process as of press time is Austin-based GSD&M Idea City.
In the run up to the 2008 NBA playoffs, SS&E reached out to GSD&M for a creative assist. "Get to the Game" was a campaign designed to move Spurs fans from in front of their TV sets into AT&T Center seats.
Aguilar says it is GSD&M's relationship with San Antonio-based AT&T Inc. that got them a shot with the Spurs this season.
But as of press time, GSD&M had not leveraged that opportunity into a longer-term role with the Spurs.
"We have not received an RFP (request for a contract proposal from the Spurs)," says GSD&M spokeswoman Melanie Mahaffey.
Wood says he is somewhat surprised.
Climate change?
Aguilar says it's important to note that his agency and the Spurs are parting on good terms.
"Our legacy speaks for itself," he says. "No one can take that legacy away."
Would Creative Civilization have resigned the SS&E account and passed on participating in the new RFP process had Bookbinder not ended his two-decade tenure with the Spurs?
"I don't know," Aguilar says.
Spurs Chairman and CEO Peter Holt says Bookbinder's recent departure left the organization with enough time to assess its options and then move accordingly.
"We're going to use this as an opportunity to look at everything we're doing," he says.
The to-do list includes replacing Creative Civilization under less than ideal cir stances.
Aguilar says the Spurs have been an extremely important client. He says they represented Creative Civilization's first big score as an agency.
But just what does the next agency inherit?
A strong Spurs brand and a local market that loves its NBA team, Aguilar contends.
However, Aguilar is not blind to the outside factors that could impact the Spurs and their next agency.
His advice for that agency: "You have to know the psychology of the current marketplace. You play into that. You also have to understand the dynamics."
One of the big uncertainties, according to Aguilar: "We don't know what the climate will be (next season)."
http://sanantonio.bizjournals.com/sanantonio/stories/2008/06/30/story2.html?b=1214798400^1659872

Reply With Quote
