April 24, 2024

Advertising: Social Marketing Drives a New York Renaissance

Of late, it seems, New York has been regaining its appeal as a place to be in the ad business after many years of so-called hot shops being started in cities that included Austin, Tex.; Boston; Los Angeles; Miami; Minneapolis, Portland, Ore.; Richmond, Va.; and San Francisco.

A principal reason for the change may be the growing interest among marketers in digital realms like social media, in which agencies in New York — home to Silicon Alley as well as Madison Avenue — are increasingly proficient.

“For agencies our size, the whole area of digital, social and content creation is exploding,” said Steve Laughlin, chief executive at Laughlin Constable, an agency based in Chicago and Milwaukee that expanded to New York in 2009 through a merger with Partners Jeary, which became the New York office of Laughlin Constable.

New York is such “a vibrant market,” Mr. Laughlin said, that he has decided to expand further here by acquiring Filter Advertising, an agency with offices in New York and Red Bank, N.J. As Filter is merged with Laughlin Constable New York to form Laughlin Constable New York/New Jersey, the Filter client roster, which includes CBS Sports Network, Parfums de Coeur and USA Network, is being combined with the Laughlin Constable New York roster of clients like Sterling National Bank and the Lung Cancer Alliance.

“There’s a resurgence of New York, reclaiming the top of the market where we should be,” said Michael Jeary, who led Laughlin Constable New York as president and remains in that post at the merged agency as he is joined by the principals of Filter: JC Addison, Chris Brignola and Jay Sharfstein.

Mr. Jeary recalled being asked recently by a prospective client that often uses stars in its ads for alternatives to conventional endorsement deals, among them “how to activate the extraordinary fan base of celebrities through social media.”

“People are searching for the next bright light, the next creative idea,” he said, and New York ought to be the first place they look.

Mr. Addison, who was president at Filter and becomes executive vice president and managing director at Laughlin Constable New York/New Jersey, said: “The New York market is as good as it’s been in the last five years. People are taking meetings in ways they weren’t not that long ago.”

Mr. Addison also cited the recent arrivals into the market of other agencies based outside New York, among them Frank PR; Goodby, Silverstein Partners, part of the Omnicom Group; and McKinney, owned by Cheil Worldwide.

Those newcomers suggest “there’s business to be had,” Mr. Addison said.

Another reason for the renewed attraction to New York is a perception that it is a hospitable market for agencies that specialize in nontraditional services like experiential marketing, which is centered on offering consumers tangible ways to interact with brands and products that include live events.

“New York is a hotbed,” said Brian Schultz, a partner and chief operating officer at a new experiential agency named Magnetic Collaborative. “You’re surrounded by creativity and culture.”

“The city also offers marketers so many unique ways to engage with the population, whether they want to reach tourists or residents,” he added, suggesting Times Square for the one and Madison Square Park for the other.

The other founding partners of Magnetic Collaborative, which lists among its initial clients Google, HBO, New Balance and Samsung, include Glenn Marck, chief creative officer; Richard Rathe, chief executive; and Geoff Renaud, chief marketing officer. Their résumés include senior posts at R/GA, part of the Interpublic Group of Companies; Radar Entertainment; and the Jack Russell Group, which designs and builds trade-show exhibitions.

“Experiential marketing is critical,” said Josh Rowe, marketing manager for running at New Balance in Boston. “I’d say it’s the most important thing we do, putting a face to our brand advertising, because that’s when you have a real impact with consumers.”

“We want to dial up that engagement, that conversation, with people who buy running sneakers,” he added. “Magnetic laid out some ideas for us on ways we can enhance our presence at events, and we were hooked.”

Being in New York has other benefits, according to Dana Locatell, who has joined with Tim Mack and Zach Merck to open a company called Make, devoted to the creation of short- and long-form content like programs, commercials and video clips for television and the Internet. Make has worked with agencies that include Campbell Ewald, part of Interpublic, and Crispin Porter Bogusky, part of MDC Partners, and is also handling projects like a documentary about Nashville and its music.

“Our scope of talent is all over the country,” said Mr. Locatell, who like his partners worked at @radical.media before starting Make, “but, truth be told, New York has the access we’re familiar with.”

“In New York, you form relationships with the agencies and the networks that are right around the corner,” he added. “And you’ve got incredible crew talent based here.”

Article source: http://www.nytimes.com/2013/04/01/business/media/social-marketing-drives-a-new-york-renaissance.html?partner=rss&emc=rss

Mortgages: Expanding a Federal Refinancing Program

The biggest change to the plan, called the Home Affordable Refinance Program, or HARP, raises the debt limit at which such borrowers can obtain a new mortgage. Those who owe more than 125 percent of their home’s value are now eligible; the previous limit for many government programs was 97 percent to 125 percent. The percentage ratio is known as loan-to-value, or LTV. The government also reduced some fees.

While homeowners moving into fixed-rate mortgages will have no ceiling on their loan-to-value ratio, those who are sticking with an adjustable-rate mortgage will have a limit of 105 percent, said Jack Guttentag, a retired finance professor who now writes and runs a Web site called the Mortgage Professor. (ARMs are allowed if the initial rate is fixed for at least five years.)

The expansion could more than double the number of people who have refinanced under the Home Affordable Refinance Program, which in the first two years has helped 900,000 borrowers, according to the Federal Housing Finance Agency. This could mean one million refinancings in 2012, and a similar number in 2013.

The expanded program, dubbed HARP 2, could be “a potential lifeline for people who are underwater,” said Michael Bizenov, an executive vice president of Sterling National Bank, which has branches throughout New York and Long Island. But Mr. Bizenov and others say the program is getting a slow rollout.

You must meet three basic criteria to qualify for a HARP 2 refinancing:

¶Your mortgage must be owned by Fannie Mae or Freddie Mac, and must have originated on or before May 31, 2009. (Each has a Web site page that will check your address for eligibility.)

¶You must have been current on your mortgage for at least six straight months and have had at most one late payment in the last 12 months. If you are uncertain, check with your servicer or look on your statements for any late charges.

¶Your loan-to-value ratio must be above 80 percent, and you cannot have previously refinanced under HARP.

The next step is to visit your current lender’s Web site or office to start the discussion. “They’re the first ones who could help you if you’re eligible,” said Erin Lantz, the director of the Zillow Mortgage Marketplace, which has a tool that lets owners see if they qualify.

Some lenders started offering HARP 2 loans this month, while others will not begin until January. John Forlines, the vice president and chief credit officer for single-family product at Fannie Mae, said it would be fully rolled out by most lenders by mid-March.

Bank of America, one of the nation’s largest mortgage lenders, has already instituted the lower pricing and fees on HARP 2 mortgages and will begin making the higher loan-to-value refinancing in January, said Terry Francisco, a senior vice president. Wells Fargo, another big lender, said it would be “some time” before it started the expanded program.Both Fannie Mae and Freddie Mac will waive many closing fees for owners refinancing into a 15- or 20-year HARP mortgage. This could save borrowers charges ranging from a quarter of a percentage point to two percentage points of the loan amount, though banks are free to set their own fees.But going to a 15- or 20-year mortgage from, say, a 30-year mortgage or an interest-only one in an effort to build equity faster could set off a closer review of your finances if your monthly payment increased by 20 percent or more, Mr. Forlines said.

Article source: http://feeds.nytimes.com/click.phdo?i=d23fd06cb8d2d5c58fb9daeb3e23afcf