AT&T; Gives Long-Distance Ad Account to New Agency

Awarding what may be the largest advertising account from any U.S. corporation, American Telephone & Telegraph Co. signaled Friday that it will focus on marketing and special calling plans more than prices.

AT&T; chose FCB/Leber Katz Partners to handle its consumer long-distance advertising, replacing N.W. Ayer Inc. as its major advertising agency. FCB/Leber Katz is now the ninth-largest U.S. advertising agency.

N.W. Ayer, however, was asked to continue to work on big projects, AT&T; executives said.

Dick Martin, AT&T; vice president for corporate advertising, said, “We were out looking for ideas and insights to the market and we got that with all five agencies” that bid. He would not divulge the size of the contract, but analyst Peter Hampton at Yankee Group research firm estimated the consumer long-distance account at $190 million.

“AT&T; is the largest account that is out there,” Hampton said. “AT&T; is deciding how to reallocate $190 million in consumer advertising.”

“This is a very big account” and includes all television, newspaper, magazine, radio and billboard advertising for AT&T;’s consumer long-distance business, Martin said. Young & Rubicam was chosen as a supporting agency.

Joseph Nacchio, the newly appointed president of AT&T;’s consumer long-distance business, said last week that he wanted to “freshen up the image” of AT&T;’s long-distance business to the consumer market. He said AT&T;’s emotional connection with consumers has eroded somewhat since the days of its “Reach Out and Touch Someone” slogan.