BBDO Detroit Closing

[mbr]

This has always been a one client shop. Read your history, from 1996:

http://www.nytimes.com/1996/08/07/bu...-chrysler.html

Ross Roy was bought by Omnicom, then became BBDO Detroit.

[ghettopalmetto]

This has always been a one client shop. Read your history, from 1996:

http://www.nytimes.com/1996/08/07/bu...-chrysler.html

Ross Roy was bought by Omnicom, then became BBDO Detroit.

History? Who needs it?

It's much easier to set your hair on fire and run around screaming "unions" and "taxes".

[BasementBeat]

Sad to hear. I recently tried to contact them for a possible internship.

[detourdetroit]

...better take a page from mad men and start up your own shop. we gotta start over and grow these things locally and organically again.

[mwilbert]

The union stuff I can at least understand, although in my view it is the management that runs car companies, not the unions. However, taxes in Michigan just aren't that high. According to the Tax Foundation, in 2007 Michigan ranked 30th among the states in total state taxes per-capita. So I am kind of unconvinced about that.

[BShea]

Chrysler is giving the work to other agencies -- Hal Riney in San Fran got some ... Richards Group in Dallas got the Dodge Ram truck work ... locally, Southfield's GlobalHue has the Jeep work.

[Mama Jackson]

I used to work at BBDO, Troy. It was a great business and had a lot of wonderful people who worked there. About five years ago, they completely closed down the dealer support area. [[That's when I lost my job and haven't found any work since) That work was handled by Ross Roy for years, and it eventually landed in the lap of BBDO. Who, by the way, had absolutely no experience with call center type work. They did a great job of it. Our work was sent to Canada, and we trained them to do our jobs. Then about a year ago, I heard the work was leaving Canada to be done in India.

[sumas]

Sorry to hear your news Mama. When I get a call from a call center in India I just hang up.

[lilpup]

Hmmm, NY mass transit = union, Philly mass transit = union, Major casino entities nationwide = union, Boeing = union, Goodyear = union, usw

but somehow only the Michigan automakers have union problems...

[ordinary]

Will someone please say what the hell BBDO stands for! I read the article. Did I miss something?

[PeachLaser]

I've noticed that Detroit's marketing message has recently gotten more refined, current and on key.

Not sure of the agencies doing the ads, but I think they understand the challenge facing Detroit a lot better than those of past.

Let's hope the product backs up the promo. So far, I'm impressed.

[BShea]

The agency has gone by BBDO since it was formed in 1928.

The founders were George Batten, Bruce Barton, Roy Durstine and Alex Osborn [[or the agencies they had previously formed, since I think Batten was dead before the merger). Their last names form BBDO.

[ChickenSoupForTheDee]

Michigan is home to the largest collective of automotive brainpower in the world.

But what good are brains if they are solely devoted to squeezing every last penny out of the flimsiest designs? We used to reverse-engineer the Japanese stuff just for the satisfaction of seeing it done right.

[tallboy66]

Hey all. This may be my first post or if not one in a LOOOOOONG time. But with this closing and the E.D.S. move a few years ago anybody know what the vacancy rate of Crooks road/Troy is?
Is this what they meant about the city of tomorrow, because today it's starting to resemble the city of Detroit, just the empty buildings are shinier.

[ordinary]

Thanks BShea. That helps me understand the thread a bit better.

[wazootyman]

Hey all. This may be my first post or if not one in a LOOOOOONG time. But with this closing and the E.D.S. move a few years ago anybody know what the vacancy rate of Crooks road/Troy is?
Is this what they meant about the city of tomorrow, because today it's starting to resemble the city of Detroit, just the empty buildings are shinier.

Troy office vacancy rates are around 25-30%.

Oh wait, I get it. Troy sucks?

[wazootyman]

But what good are brains if they are solely devoted to squeezing every last penny out of the flimsiest designs? We used to reverse-engineer the Japanese stuff just for the satisfaction of seeing it done right.

Speak for yourself. There are a lot of engineers for automotive suppliers in this area [[myself included) that take a lot of pride in their work, and produce a quality product.

When it comes to "squeezing every last penny out", blame the consumer and our style of life.

[ChickenSoupForTheDee]

Speak for yourself. There are a lot of engineers for automotive suppliers in this area [[myself included) that take a lot of pride in their work, and produce a quality product.

When it comes to "squeezing every last penny out", blame the consumer and our style of life.

We had pride too, and that's what made it so painful. Sounds like you're with one of those "bottom of the food chain" vendors. Keep the faith. Kirk out.

[tallboy66]

Troy office vacancy rates are around 25-30%.

Oh wait, I get it. Troy sucks?

No it doesn't suck the economy does, the competition that has taken market share and the failure of the big 2 [[Ford seems to be ahead of the curve a little) to develop anything new in response to falling sales... you can't have a dead city and affluent suburbs, no real mass transit and hope to have a vibrant area to live in.

And if the suburbs keep having job losses then Troy will start to look like Southfield as it is starting to look like Detroit.

[Zacha341]

Well stated.... and yes, some other agencies may be next... especially those tethered over half in auto stuff.......

This is much more about BBDO getting the short end of the bankruptcy stick than anything else - and there's quite a few other agencies that may be leaving/closing but it's hearsay so I shan't repeat.

To give you an idea of why the area agency market is in shambles - as BShea says, it's almost all automotive [[yes, there are other accounts, but in general, almost none are as big as carmakers) - and there's been a big problem with both domestic manufacturers going through bankruptcy. The numbers I've edited for easy math.

Car company X makes agreement to hire Acme agency for $10 million dollars. Fine.

Car company X tells acme agency to do work. Fine. Acme uses let's say $5 million. Great.

Car company X, four to six months in, tells Acme agency that the $5 million in billing they've already used? Yah, they're only going to pay half the rate, oh and by the way, for the work Acme has already done? Car company X will only pay for half of that rate too.

So the the work going back - Acme agency gets stiffed for $2.5 million. You may think that the $2.5m is a lot of money, but not when you've spent more than that to do the work, leaving you in the red. You've expended a ton of effort for nothing, if not owing your people money and having to stiff/slow pay them, causing a horrid chain reaction.

This is even before bankruptcy, where in some cases, it's completely wiped out, leaving the agency with the bag. And there's way more than $9m in this single case - try $58m Chrysler owed BBDO on April 30.

So, it makes perfect sense BBDO will leave. Others will be closing/moving their auto accounts going to more reliable pastures [[i.e. hunting for foreign work, or Chinese upstarts). More implosion is coming [[not like the hits already haven't been apocalyptic) which means moving to California or New York.

It has absolutely nothing to do with labor or taxes.

[tallboy66]

But they got bailout money and had a plan to develop a new electric/hybrid something the Fiat said it wasn't part of the restructuring plan!!!???
And who's going to take over the advertising?
Seems like they are just going around making enemies and still trying to compete with Honda, Toyota, Mitsubishi, Nissan... without changing at all.

[gnome]

Tallboy, could you please do everyone a favor and write in complete sentences? These fragmented, disjointed and poorly constructed posts are very disturbing. They are disturbing for no other reason then they point out that people at BBDO can't think or write.

T.B., keep in mind, we appreciate clear writing here. Try to keep up.

[crawford]

... you can't have a dead city and affluent suburbs, no real mass transit and hope to have a vibrant area to live in.

Detroit has been a dead city with vibrant suburbs and no real transit for 40 years now.

Other examples: LA, Atlanta, Phoenix, Houston, Dallas. All of these cities have extemely weak cores and poor transit, yet relatively prosperous suburbs.

Whatever the problems of the region, it can be said with certainty that:

1 Suburbs do not need a vibrant core for their own prosperity, and

2 Mass transit is not a neccessary condition for regional prosperity.

[tallboy66]

Detroit has been a dead city with vibrant suburbs and no real transit for 40 years now.

Other examples: LA, Atlanta, Phoenix, Houston, Dallas. All of these cities have extemely weak cores and poor transit, yet relatively prosperous suburbs.

Whatever the problems of the region, it can be said with certainty that:

1 Suburbs do not need a vibrant core for their own prosperity, and

2 Mass transit is not a neccessary condition for regional prosperity.

Well if it works for them like it works for Detroit? And they all have more options than Detroit for mass transit, I've heard L.A.'s system is nothing to write home about but Detroit doesn't even have a light rail. Atalanta has a subway, Dallas has a light rail, Miami has a FREE monorail/people mover type. Detroit is the only [[former) major city in the U.S. without a decent mass transit. Columbus Ohio has a better bus system than Detroit, Peoria, Il has a better bus system than Detroit...

[tallboy66]

Tallboy, could you please do everyone a favor and write in complete sentences? These fragmented, disjointed and poorly constructed posts are very disturbing. They are disturbing for no other reason then they point out that people at BBDO can't think or write.

T.B., keep in mind, we appreciate clear writing here. Try to keep up.

Not intended to slam BBDO but I thought we were talking about more jobs leaving, and sometime I don't have time to formulate a sentence, paragraph or whatever but it is a discussion board.