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TheBuzz Erika Engle |
Adworks bids
aloha to lucrative
AT&T Wireless
advertisingAT&T Wireless Services Inc. is ending its Hawaii regional advertising contract -- its only regional advertising contract -- estimated to be worth $3 million annually to Honolulu-based AdWorks Inc.
Cingular Wireless LLC announced its planned acquisition of Redmond, Wash.-based AT&T Wireless in February. The latter is terminating the local account in anticipation of the transaction, which awaits regulatory approvals.
"(AT&T Wireless is) still going to be advertising in Hawaii," but the ads will be created and placed by officials on the mainland, said Lissa Guild, spokeswoman for AT&T Wireless. "It's not at all a reflection of the work that's been done (by AdWorks)."
AdWorks has represented the account since before AT&T Wireless predecessor Honolulu Cellular became operational, said Darrel Kloninger, agency president.
"We did 18 years of great work," he said. "It's one of our proudest accounts in terms of what we've contributed to their success."
"We're not losing this (account) to a local agency," Kloninger said. "I hate to see accounts go to the mainland because it's a loss for Hawaii."
Kloninger said the agency will go through an adjustment as it restructures and looks to the future.
"We are really blessed with very long-time client relationships," he added, citing his 40-year term with Budget Rent A Car and 35 years representing Aston Hotels & Resorts.
"The biggest single way we've lost accounts is through ownership changes and management changes on the client side. Those are the really vulnerable times."
The agency will be pounding pavement to drum up new business, and welcoming calls from interested parties.
The contract is due to wrap up at the end of the month.
AdWorks previously laid off three people when Castle & Cooke Hawaii moved the remainder of its advertising work to Team Vision LLC. Earlier this month, Adworks and Team Vision both received Pele Awards for their Castle & Cooke work last year.
When AT&T Wireless purchased Honolulu Cellular, local officials convinced corporate executives that advertising specifically for the unique Hawaii market would be crucial, hence the company's only regional advertising account.
"They've always been very impressed with what a small local agency can do," Guild said.
"We're hoping that Cingular will see the benefit in producing local advertising."
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Erika Engle is a reporter with the Star-Bulletin. Call 529-4302, fax 529-4750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210, Honolulu, HI 96813. She can also be reached at: eengle@starbulletin.com