NEWS: Y&R pips McCanns to Sega launch

Young and Rubicam has been appointed by Sega Europe to launch the games giant into the PC CD-Rom market with the July release of Virtua Fighter, one of Sega’s top arcade games, in the new format.

Young and Rubicam has been appointed by Sega Europe to launch the games

giant into the PC CD-Rom market with the July release of Virtua Fighter,

one of Sega’s top arcade games, in the new format.



The appointment was made as Sega confirmed that it has formally split

with its UK incumbent, McCann-Erickson. Its relationship with McCanns,

which won the pounds 25 million pan-European account more than a year

ago, is believed to have been on the rocks for some time. The agency’s

year-long contract ran out at the end of March, and will not be renewed.



Andy Mee, the Sega European marketing director, said: ‘McCanns no longer

handles our creative work, except on an ad-hoc basis. We have been using

in-house work for the vast majority of our advertising, but Y&R came up

with the right creative idea at the right time for the Virtua Fighter

job.’



Mee stressed that Sega will not be looking to appoint another agency and

that the split with McCanns was made because Sega wanted to ‘spread its

net’ creatively.



Y&R was awarded the business after a speculative pitch and has created a

press campaign for the launch, which breaks next month.



Sega Europe’s relationship with Universal McCann, McCanns’ media arm,

remains unaffected, although outside media resources will also be used

for some projects.



McCanns picked up the pan-European account after a fierce final contest

against the fellow Interpublic agency, Lowe Howard-Spink (Campaign, 3

February 1995).



McCanns still handles Sega’s creative account in Spain and France, but

resigned the German business last month.



Sega has slashed its advertising budget to about pounds 4 million over

the past 12 months.



Toby Hoare, the chairman of Y&R, confirmed the agency had only been

appointed for the Virtua Fighter project.



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