Backchannelmedia

Scotsman, The

By Fergus Sheppard

EARLIER this year, Maurice Saatchi succinctly defined the business philosophy of M&C Saatchi as "Brutal simplicity of thought". He explained: "It's easier to complicate than to simplify. Simple messages enter the heart quicker and stay there."

Maurice will no doubt today be contemplating the brutally simple truth that his company has lost the British Airways advertising account that Charles and Maurice Saatchi have held for the last 23 years. BA's advertising business is worth GBP 60 million and the account is regarded with iconic status, a blue-chip platform for creatives to carve out a career with major budgets for television work.

It was the Saatchis who devised the tagline "the world's favourite airline" for BA, a slogan now virtually burnt into the airline's corporate identity. Their more recent work had included the "Johnny Foreigner" commercials, narrated by American writer PJ O'Rourke, and the Club World adverts promoting the availability of beds on long haul flights.

On Tuesday, following several days of speculation, British Airways confirmed their account had been won Bartle Bogle Hegarty (BBH), a juggernaut of the advertising industry whose clients include Audi, Levi and Vodafone.

That victory will be particularly sweet for BBH, which was widely thought to have won the British Airways account from the Saatchi brothers in 1995, only to have it snatched away at the last moment. Advertising legend has it that Maurice retained the business by using his considerable charm in a personal appeal to BA's management.

This time, however, there was to be no reprieve. British Airways' commercial director, Martin George, said BBH was chosen "for the outstanding insight, creative ability and proven track record of delivering effective advertising it demonstrated throughout the pitch process."

M&C Saatchi struck back yesterday with a two-page advertisement in a national newspaper showcasing their work for BA since 1982. Underneath a montage of images from a string of memorable television adverts was the cheeky invitation: "Now taking new airline bookings." M&C Saatchi had clearly decided to make the best of a bad day with a stylish riposte to demonstrate its track record.

The change of advertising agency at BA was sanctioned by Willie Walsh, the airline's new chief executive, who had ordered a review of its global advertising contract as part of a drive to control costs.

Advertising and PR expert Mark Borkowski said the BA account, while prestigious, might not be a platform for the kind of innovative TV advertising witnessed in the past. "BA, supposedly, is one of those accounts you want to get because they will allow you to exercise your creative muscle," Borkowski said.

"But we live in times when the world is run by money men and accountants. Driving profits isn't about spectacular creative advertising any longer, and that is a dilemma for British advertising."

So what effect will losing the BA business have on M&C Saatchi? One inevitable casualty will be the financial bottom line. The company has warned that the loss of the account will mean reduced profits for 2005 and the following year. However, M&C Saatchi points out that British Airways accounted for only seven per cent of its revenues in 2004 from a high of 35 per cent figure in 1995. It also argues that the loss of the BA business has been partly offset by new accounts from Weetabix, Ribena and Tourism Australia.

The Saatchi brothers have also shown a remarkable ability to turn adversity into advantage. They have known incredible highs, from helping to propel the Conservative Party into power in 1979 with the famous "Labour isn't working" slogan to building Saatchi and Saatchi into an enormous business in the 1980s through a relentless string of acquisitions.

They have also weathered the ignominy of being ousted from their own agency by a shareholders' revolt ten years ago by investors unhappy with what some saw as the profligate style of the brothers. Fears of hubris at the top began to surface as the Saatchi brothers reportedly contemplated a takeover bid for Midland Bank in the late 1980s.

But after the 1995 revolt, the brothers demonstrated amazing powers of recuperation. They reformed as M&C Saatchi and took the BA account with them in an audacious coup, reportedly hiring Andrew Lloyd Webber to assure BA executives that he would personally re- write the airline's theme tune.

The fledgling new agency has since gone from 30 staff to 750 in 15 offices around the world. The business is driven on a day to day basis by Maurice, aged 59, while the famously reclusive Charles, aged 61, appears absorbed by his role as art collector and is not thought to have worked personally on accounts for some years.

The brothers have always had distinct roles within the business. Charles was the creative copywriter while Maurice handled the business and client relationships. Throughout the 1980s and 1990s, the Saatchi brothers offered the combined allure of proven advertising genius, business acumen, and a close relationship with Government through their work for the Conservative Party.

Maurice, as ever pictured in trademark tortoiseshell glasses, had a high profile role as Tory Party chairman in the last election. Jonathan Haslam, John Major's former press secretary and now a media consultant, knew Maurice in his political dimension in the 1990s. Haslam says: "His spectacles clearly mark him out. When he comes into a room, you know there is a presence there, he has charisma. He knows everyone. When he is talking to you, you are the focus of his attention and his interpersonal skills are phenomenal."

Charles is now famous for his taste in shock modern art and his marriage to TV chef Nigella Lawson. One senior advertising executive, who asked to remain anonymous, describes him as "the Howard Hughes of advertising". He continues: "His role with the Saatchi empire has always been an enigma. He is reclusive to the point that he doesn't attend his own parties at the Saatchi gallery. There is no doubt his renown as an art collector has a halo effect on the brothers' business."

One of the early maxims of the Saatchi agency was "nothing is impossible". While BBH is unquestionably savouring its long haul fight for the BA business, history suggests M&C Saatchi are only ever temporarily grounded.