Arun Sudhaman
Jul 24, 2008

Publicis quits 'risky' SEM

FUZHOU - Less than six months after winning the business, Publicis China has ended its relationship with Chinese automaker South East Motor (SEM), citing onerous contractual obligations that could have seen the agency heavily penalised for not meeting campaign objectives.

Publicis quits 'risky' SEM

Publicis China CEO Sheena Jeng said the situation demonstrated the continued gulf in understanding between local clients and international agencies.

The Publicis Groupe agency, in conjunction with sibling shop Starcom, won the creative account for the automaker’s Mitsubishi V3 model earlier this year.

However, Starcom soon departed the arrangement, upon learning that SEM intended to penalise the agencies by twice the media spend, if the necessary media timing schedule and space objectives were not met. Jeng explained that Carat was then persuaded to handle the account, before Publicis itself ended the relationship; SEM was also seeking the same penalty provision if its telephone number and address were misspelled in the advertising campaign.

"We felt this was not a fair position," said Jeng.

SEM, which produces passenger cars and commercial vehicles adopting Mitsubishi-developed platforms, has handed the account back to its local agency. It declined to comment.

Source:
Campaign China
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