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Droga Steps Down as CEO of Accenture Song; NPR Challenges Trump Order to End Funding; Luxury Brands Pay for Over-the-Top Price Hikes
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Good morning. Today, a boldface name from creative agencies’ heyday steps back; public radio fights to keep its funding; and ultraposh brands prove that even their affluent customers have limits.
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David Droga’s sale of his namesake agency to Accenture in 2019 boosted consultancies’ move into marketing services. PHOTO: PAUL CARRERA
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Accenture said David Droga will step down as CEO of Accenture Song, the unit it describes as a tech-powered creative division, on Sept. 1 after four years in the role, Katie Deighton reports for CMO Today.
Droga was one of the last “Mad Men” to put his own name on the door of an agency when he founded Droga5 in 2006.
His sale of Droga5 in 2019 to Accenture sent ripples throughout the ad industry, which had revered the independent agency for its ability to win major clients as well as awards without the support of a big holding company. The deal also served as an endorsement of consulting firms’ push into marketing services.
Droga, 56, will become vice chair at the parent company, where he will advise the business and work with some clients more broadly.
Ndidi Oteh, the head of Song’s Americas business, will succeed Droga in the top job at Song.
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Content from our sponsor: Deloitte
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Gen Zs and Millennials Pursue Money, Meaning, and Well-Being in Careers
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Younger generations seek financial stability, a sense of purpose, and good work/life balance, according to a new survey. These values are shaping career choices and satisfaction on the job. Read More
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‘NPR has a First Amendment right to be free from government attempts to control private speech,’ NPR CEO Katherine Maher said. PHOTO: MICHAEL BROCHSTEIN/ZUMA PRESS
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National Public Radio has filed a lawsuit challenging President Trump’s executive order to end federal funding of public media, saying the effort violates the First Amendment and federal law, Joe Flint writes.
In the suit, NPR said Trump’s order runs counter to the Public Broadcasting Act of 1967, which prohibits federal agencies from controlling the Corporation for Public Broadcasting, the umbrella organization that oversees government funding for the Public Broadcasting Service and NPR.
NPR also called the executive order an attack on freedom of speech that is “textbook retaliation and viewpoint-based discrimination.” The suit was filed Monday by NPR, Aspen Public Radio, Colorado Public Radio and KSUT Public Radio.
Trump’s order said neither NPR nor the Public Broadcasting System “presents a fair, accurate or unbiased portrayal of current events to taxpaying citizens.”
More media news: The Washington Post offered buyouts to some longtime employees. [The Wrap]
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Price change on key products between 2020 and 2023. Source: Bernstein
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Luxury brands that went big with price hikes since 2020 are now paying a price of their own, Carol Ryan reports.
Luxury companies began to charge more during the pandemic, when excess savings sent demand for their goods through the roof. Brands raised prices by an average of 36% between 2020 and 2023, according to Bernstein analysis—roughly double the rate of overall U.S. inflation at the time.
But that figure was 51% for Chistian Dior and 59% at Chanel.
Now Dior had suffered a surprisingly big dip in sales in the first three months of the year, and Chanel said last week that its sales fell 4% in 2024.
Meanwhile Birkin maker Hermès and Cartier owner Richemont, which were more restrained with increases, continue to generate healthy growth.
So what do Dior and Chanel do now? Luxury brands can’t cut prices without damaging their image.
So the labels will most likely sit on their hands until inflation and income growth slowly make their goods seem more affordable.
More affluent pursuit: JPMorgan Chase is trying to convince more millionaires to let it manage their money by opening new-format branches in affluent areas. [NBC News]
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$2.5 billion
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Amount President Trump’s media company plans to raise from institutional investors to buy bitcoin, the latest entanglement of his private business ventures and the cryptocurrency markets
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Tinder, the app that revolutionized online dating for millennials, is falling flat with Gen Z. Its new leader wants to change that. PHOTO: PETER MORGAN/ASSOCIATED PRESS
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Tinder’s incoming CEO told employees they should focus on improving people’s experiences on the dating app, even at the expense of short-term revenue. [WSJ]
Should your celebrity client go on “Chicken Shop Date,” Theo Von’s podcast, “Hot Ones” or all of them? PR teams feel overwhelmed by the “New Media Circuit” that has replaced the routine press tour. [NY Mag]
Hoda Kotb will return to “Today” on Wednesday to guest-host one hour in a promotion for her new wellness brand. [NewscastStudio]
The NBA will promote its upcoming Finals around the world with viewing parties, live music, dance teams and mascots in Calgary, Mexico City, Mumbai, and São Paulo. [Adweek]
The Supreme Court declined an appeal from a law firm that unsuccessfully sued to stop its name from being used for a rival’s keyword search ads. [Mediapost]
TJ Maxx’s CEO said it may drop out of some product categories hit by tariffs and expand in others. [Retail Brew]
Coca-Cola redesigned Vitaminwater’s labels to look more fun and less pharmaceutical. [Creative Bloq]
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