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Johannesburg ? The ad industry is abuzz over an innuendo-filled article in Noseweek, the investigative magazine, concerning the relationship between First National Bank brands director Derek Carstens and Jupiter Drawing Room Johannesburg CEO Renée Silverstone.
Noseweek claims Carstens, who has been "romancing" Silverstone for several years, appointed a new ad agency (MetropolitanRepublic) that could help ensure her a "windfall" payment of R30m to R50m for her shares in The Jupiter Drawing Room.
MetropolitanRepublic (MR) and DDB South Africa - both small agencies - were jointly handed the bank's R300m annual advertising account, after pitching against Ogilvy Johannesburg and Draftfcb (the incumbent).
Metropolitan is part of The Jupiter Drawing Room group, of which the global marketing group WPP recently bought 49%. Noseweek claims that Silverstone will receive the payout of R30m to R50m provided Jupiter and Metropolitan pull in sufficient new business and meet profit targets, implying that Carstens' agency choice will benefit her.
Jupiter chairman Graham Warsop says Noseweek's financial claims are not true, and adds that the WPP deal did not involve any payout to Silverstone based on the performance of MetropolitanRepublic.
The Jupiter Drawing Room reaction has been to downplay the report, relying on its numerous inaccuracies to undermine its overall credibility. For example, basic facts it gets wrong include putting the ad industry size at R7.2bn a year, but the Nielsen Company media advertising expenditure figure for 2008 was R24bn. Silverstone's former husband Dermot Magowan is called Dermot McGogan by Noseweek.
The article suggests the agencies may have been chosen before engaging in the costly pitch process, but a bank statement says "the selection process was closely governed by our audit committee to ensure it was fair and thorough. The appointments were compliant with our corporate governance requirements applicable to every procurement decision."
Choices were based on the need to "revitalise our above-the-line media presence" to achieve "very clear benefits". Silverstone herself says the allegations are "sleazy, blatant untruths that don't warrant a response".
- Fin24.com
