Rank reviews media after profits fall

by Andrew McCormick, Media Week 26-Feb-08

Mecca Bingo owner Rank Group is reviewing its media agency relations amid a profits dip prompted by the smoking ban and a government crackdown on gambling machines.

Rank, which also owns betting outfit Blue Square and Grosvenor Casinos,
is understood to have a budget of £5m for media in 2008 and spent
£1.4m promoting Mecca Bingo in 2007, according to figures from

Nielsen Media Research.

The company is believed to be on the verge of appointing a media agency
for Grosvenor Casinos. That decision will be followed by a review of the
Mecca Bingo account.

Incumbent Mediaedge:cia is believed to be repitching, while several
other agencies have been approached by the gaming firm.

Rank Group, which is preparing to announce reduced year-on-year profits
for 2007 this Friday, was unavailable for comment as Media Week went to
press.

Rank Group has already warned that profits for 2007 will be
"significantly lower" than those for 2006, with the smoking ban
introduced last July being blamed in large part for the downturn.

Research company Mintel has forecast that bingo will suffer more than
other trades because of the smoking ban.

It has estimated that the bingo market declined 12% in 2007 to be worth
less than £2.5bn annually.

CIA Medianetwork, one of Mediaedge:cia's predecessors, landed Rank
Group's account in June 1997 and has had a relationship with it ever
since.