Donny Deutsch: 'People Like Advertising. It's Not Going to Go Away.'
The advertising exec and host of upcoming CNBC specials about media says that TiVo won't kill off commercials, product placement in TV shows "certainly helps," and New York magazine is an "undernourished brand."

By Patrick Phillips
I Want Media, 10/29/03

Donny Deutsch is chairman and CEO of Deutsch Inc., a $2.4 billion ad agency that boasts such notable clients as Revlon, Snapple, Coors, Tommy Hilfiger and Bank of America. The multi-award-winning agency was sold to industry giant Interpublic Group three years ago, freeing Deutsch to pursue other creative endeavors. Chief among those is a new deal with CNBC for several on-air assignments, including hosting a series of six prime-time specials about media. The first special debuts in December.

Deutsch appears to be giving Howard Stern some serious competition for the title of King of All Media: Last month he formed a partnership with Open City Films, a New York production company, to produce independent films through a new venture called Deutsch Open City. He is also considering joining the high-profile crowd of contenders bidding for New York magazine, teaming up with Michael Wolff, the magazine's media columnist.

I Want Media: Judging from your current activities -- your ad agency, CNBC, independent film production, the possible bid for New York magazine -- you're quite a busy guy. How do you juggle everything?

Donny Deutsch: I sleep fast and work hard. [laughter] We've built a tremendous agency, a thousand people strong. It far from runs itself, but I have incredible support system. One of the reasons I sold the company [to Interpublic] was to enable me to explore other ways to hit various consumer touch points. So that's what I'm doing.

IWM: How did you become involved with CNBC?

Deutsch: Over the years I've tended to get calls from several networks asking me to be a commentator on marketing and advertising. I did a lot of that, especially with CNBC. I was one of the early guests on "Kudlow & Cramer." They liked the chemistry and invited me to substitute co-host a few times, and from there they said they'd like to do something together.

So we worked out a deal where I'm a substitute co-host on "Kudlow & Cramer," I'll be guest hosting "Squawk Box" in the morning, I'm doing six of my own prime-time specials and developing a pilot that'll hopefully turn into an ongoing show. I'm having a lot of fun with it.

IWM: What will your CNBC specials be about?

Deutsch: Everything media-related -- the business of TV and sports and movies and publishing and advertising and fashion -- everything that's along the pop culture spectrum of business. It's going to be interesting, fun and engaging. I like to think of it as a sexy business show about media.

The initial pilot was called "Deutsch on Demand." But I don't know if we're going to stay with that name. The first one will be in December.

IWM: Your CNBC specials sound a lot like the specials that Tina Brown is doing for the network, no?

Deutsch: There are tons of overlaps in business programming. Tina is a tremendous talent. She's doing her thing, and I think it's wonderful. I think I'm in a whole kind of different space.

I don't take myself too seriously. That's important on the tube, with all the so-called talking-head "experts" on every subject. When you can kind of poke fun at yourself -- even though you're talking about serious subjects -- I think that it works.

IWM: As a "media guru," as CNBC describes you, is anything happening in the media landscape that you find particularly interesting?

Deutsch: One of the huge challenges is that all of sudden people are watching a lot less TV. The numbers, particularly of men 18 to 34, have dropped off dramatically. So the question for the networks and advertisers is what are the implications, especially with TiVo coming? How do we keep people coming back to this medium? And the "convergence" that everyone's talking about -- where does content and advertising come together in this new world? Those are some of the challenges going forward.

IWM: Will personal video recorder technology like TiVo kill off the 30-second commercial?

Deutsch: There have been a lot of things that people over the years have said would kill off the 30-second commercial, including the Internet. I think people like advertising. It's not going to go away. Even in the early research of TiVo, a lot of people were not zapping through the commercials -- particularly beer commercials, which are entertaining, and pharmaceutical commercials, which are so informational. If anything, I think [PVR technology] will force advertisers and agencies to take their game up and make sure their messages are relevant, engaging and very informational.

IWM: How do you feel about product placement in TV shows?

Deutsch: The big worry is how consumers feel about it. Consumers are going to have their say in the end. If we see Phoebe in an episode of "Friends" take a swig of a Snapple and say, "This tastes great," consumers are going to say, "bull----." It has to be done in a relevant way. Consumers also want to be allowed in on the bit. On "American Idol," they knew what [sponsor] Coke was doing with all those Coke cups in there.

A generation is growing up that understands about being marketing to and will accept it -- to a point. If it starts to go overboard, consumers will just start turning off programming. But when it's done low-key -- like when you see Tony Soprano driving a GMC truck -- I think it certainly helps. [Product placement is] not going to be the savior for advertising, as new technologies start to encounter consumers more often. It'll be part of the overall picture.

IWM: New York magazine published a profile of you earlier this year --

Deutsch: Yeah, unfortunately.

IWM: Why "unfortunately"?

Deutsch: They took a few shots at me. They made it a bit cartoonish. Instead of focusing on the incredible [ad agency] that we've built, and the place that we've earned in the industry, they focused a lot more on that every once in a while I use a four-letter word. And that was unfortunate.

IWM: That's why you want to buy New York magazine now, huh?

Deutsch: Exactly! Fire the writer! [laugher] To me, New York magazine is a fascinating brand that right now is very undernourished. [Investment bank] Allen & Company just sent out the books, and we're going to take a very hard look at them. I'm working with Michael Wolff, which could be an interesting combination. There's a great brand here, and what I do is build brands. So we'll see.

IWM: How did you hook up with Michael Wolff?

Deutsch: When I saw [that the magazine] was on the block, I said to myself it was something I'd be interested in. And, coincidentally, Michael put in a call to me saying he was looking for a business partner. I've always respected the work that he's done as a writer. I thought, wow, this could be really interesting, and it just came together. I think there's a viable business proposition here. It can be a lot of fun, and I think it can be turned into a very profitable business.

IWM: If this venture goes forward and you end up buying New York magazine, would you have a day-to-day role in the magazine's operation?

Deutsch: I would like to leave that to the experts. I could very much be part of the spirituality of the magazine. But as far as the editing and content, that's what brilliant editors do. Michael [Wolff] would be the main editorial voice.

IWM: What is your opinion of New York magazine today?

Deutsch: The magazine, as it's been part of a larger public company and under a lot of pressure, has moved a lot more to the utility covers, which tend to have good newsstand sales. But it needs to find a bit more of its soul. It can become a powerful voice in New York about politics, about social issues.

IWM: In the Internet age, is a weekly city magazine still relevant?

Deutsch: Look, you're talking about New York City. And that's the beginning and ending of the story. Instead of looking at it as a weekly city magazine, look at it as the must-read, must-hear voice of New York. I think it has incredible relevancy.

IWM: Getting back to your profile in New York magazine, in it you described Bill O'Reilly of Fox News Channel as "the Antichrist" after you appeared on his show. I take it your on-air time with O'Reilly didn't go well?

Deutsch: [laughter] That was meant to be a little tongue in cheek. I tend to think he has some bullying ways, but that's his schtick. It works for him. We've had some very heated on-air debates, so viva la difference. I certainly don't share most of his views.



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