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The Curse of Saatchi Strikes Again! Ad Agency Steered British PM's Losing Campaign

British prime minister Gordon Brown resigned yesterday after losing the election there, and nowhere was the pain of the loss more acute than at Saatchi & Saatchi, the ad agency Brown's ruling Labour Party used for their election campaign. The rub: Incoming Conservative PM David Cameron was backed by M&C Saatchi, the rival shop spawned in revenge after Saatchi's founders were booted from their own business in a 1995 boardroom coup.

The fact that Saatchi & Saatchi backed the losing candidate is, in some ways, not a surprise: Although Saatchi has a splendid record advertising traditional consumer goods such as Procter & Gamble (PG)'s Tide laundry detergent or Toyota (TM) cars, whenever the agency's leaders step into nontraditional areas such as politics or sport, disaster follows. Among those debacles:

Silver lining: The Conservative/Liberal Democrat pact that has formed a new government in Britain is doomed to fail, given its internal divisions and the dire economics of the country. Expect a new general election to be called anytime between the next seven months and four years. Saatchi may yet get a second bite of the cherry.

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