The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Redundancies predicted at Northern Rock\\\'s incumbent creative agencies

Author

By The Drum Team, Editorial

September 27, 2007 | 2 min read

Following the tumultuous events engulfing Northern Rock, The Drum has been informed that a redundancies are likely at two of its rostered agencies.

According to inside sources, both advertising incumbent Cravens and TH_NK - which handles the banks digital account - are likely to make cut-backs as a result of the crash. It was recently quoted that Northern Rock has a media spend of £6.6million.

Chris Hill, chairman and managing director of Cravens, waved off the news of likely job cuts at the agency. “The fact that the share price has gone down is not related to the amount of advertising they do,” he said.

“We are not really concerned about whether their advertising spend is going to go up or down in the medium term.”

MediaVest, which handles the Northern Rock’s media account is also expected to feel the pinch. However, the media independent’s managing partner Andy Jeal has already moved to suggest it’s “business as usual” on the account.

Meanwhile, the future of Northern Rock’s sponsorship of Newcastle United Football Club is also expected to come under review once the current replica shirt runs its course. Ron Stout, assistant director of PR at Northern Rock said the bank will stand by the club until the expiry of the deal in 2010.

Stout said: “Not only are we committed to honouring the contract, Newcastle United are honoured to stand in support of the Northern Rock at this time.”

Hill maintains the bank can survive. “Nobody is giving up on Northern Rock at all. This agency is involved in a massive fightback,” he said.

Turn to page 10 for more on the crisis.

Trending

Industry insights

View all
Add your own content +