Cone, Inc., the Boston, MA, cause-marketing expert, has been purchased by global ad giant Omnicom Group for an undisclosed amount of cash and stock. Cone will operate as a subsidiary of Omnicom’s Diversified Agency Services group, says Carol Cone, ceo and founder.
The acquisition will provide “a constellation of resources we can tap,” says Cone. “Our mission is to build twenty-first century brands by creating relations with customers through one-to-one marketing and cause marketing.”
Cone has gained high visibility through its Cone/Roper Cause Related Trends Report, which it has published with Roper Starch Worldwide since 1993. The report tracks consumer opinions on cause-related marketing.
Cone helped Rockport stride to prominence – and become a $250 million brand – in the 1980s by linking the company’s footwear to fitness walking. More recently, the firm has built revenue through online marketing activity, helping dot.coms promote themselves and assisting offline companies in gaining Internet exposure.
About $3 million in projected 1999 net revenue of $9.5 million will come from interactive services, $2.4 million from cause-related programs, and the rest through p.r. work, says Cone. With a staff of 76, Cone posted 50-percent revenue growth this year. The client list includes JCPenney, Dunkin’ Donuts, Gillette, and ZanyBrainy.com.
CBS Sports signed a $6 billion, 11-year deal with the National Collegiate Athletic Association to broadcast the NCAA Men’s Basketball Championship until 2014. The groundbreaking agreement gives CBS the rights to handle the tournament’s marketing, corporate sponsorship, merchandising, licensing, and publishing.
Coca-Cola’s Minute Maid Co., Houston, formed a strategic alliance with J&J Snack Foods Corp., Pennsauken, NJ, through which the latter will produce and market frozen-juice products under the former’s Minute Maid and Hi-C brand names.
Einson Freeman, Paramus, NJ, teamed with fellow WPP Group unit CommonHealth, Parsippany, NJ, to launch EinsonHealth, a new agency that will combine Einson’s promotions capabilities with CommonHealth’s healthcare communications resources to offer branded events, strategic partnerships and sponsorships, retail marketing, and Internet programs. Einson managing partner John Hopper was named managing partner of the new venture, which will be based in Parsippany.
Visa International, San Francisco, signed a deal to remain the exclusive credit-card sponsor for the Olympics through the 2002 Games in Salt Lake City and the 2004 Games in Athens. The deal, reportedly worth more than $50 million, makes Visa the only card accepted by the United States Olympic Committee’s retail, catalog, and Internet sales efforts. Visa previously had only “preferred card” status in those ventures. Visa is the fourth major sponsor to extend its agreement with the International Olympic Committee through the Salt Lake City and Athens Games, following Coca-Cola, Sports Illustrated/Time, and Sema Group. Seven other corporations have yet to extend beyond next year’s Games in Sydney.
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