Marketing Maestros

ANA Conclusions from “Payment Terms” White Paper

By Bill Duggan, Group EVP, ANA
Posted: Dec 5, 2013 9:30am ET

The just-released ANA white paper, “Payment Terms – Current Practices for Marketing Services,” finds that many marketers have extended payment terms or are considering doing so in the near future for a list of marketing services covering agency fees, research, media, production, and talent payments. ANA’s key conclusions from the white paper follow.

Client-side marketers who are considering extended terms should proceed with caution, and are encouraged to evaluate the downstream implications of such payment term extensions. There can be serious tradeoffs resulting from payment term extensions that can have both immediate and longer-term negative consequences. Noted in this survey are strained relationships with vendors, reduction in flexibility, and higher prices.

Furthermore, the very livelihoods of some of the smaller players in the marketing supply chain are threatened. This includes smaller agencies, production companies, editorial houses, and media outlets. Such companies require a predictable cash flow, often don’t have access to large lines of credit, and have pricing models that do not currently reflect the costs to their business resulting from extended terms.

Client-side marketers need to consider what is fair and how they would want to be treated. If the payment terms they are suggesting to their suppliers would not be acceptable to them as suppliers, a re-think might be in order.

With 42 percent of survey respondents stating that there is a likelihood of changing payment terms for advertising/marketing services within the next year, it would make good business sense to review the pros and cons of such a change, as well as both near- and longer-term implications. Companies are encouraged to open honest dialogues with suppliers to assess the consequences.

The full ANA report can be accessed here.

Payment Terms – Current Practices for Marketing Services

By Bill Duggan, Group EVP, ANA
Posted: Dec 2, 2013 12:30pm ET

ANA has just released the new survey research report, “Payment Terms – Current Practices for Marketing Services.” This work was initiated due to member interest resulting from reports in the advertising/marketing trade press and mainstream business press regarding changes in payment terms being implemented by a handful of companies to some suppliers. Our purpose was to determine if such changes were isolated examples or reflective of a broader trend. Key findings follow.

Payment Terms Are Either Being Extended or Kept the Same
In the past year, 43 percent of respondents report extending payment terms and 17 percent report shortening terms for a list of marketing services covering agency fees, research, media, production, and talent payments. Meanwhile, 90 percent report keeping at least payment terms the same. 

Reasons for Extending Payment Terms/Finance and CFO Main Drivers
The majority of respondents who have extended their payment terms have done so in order to derive better cash flow. Next in importance is upper management’s focus on accounts payable, which is tied directly to cash flow. By far, the finance department and/or the CFO have the most impact in driving payment term changes. The procurement/purchasing area also plays a role.

Negative Consequences of Extended Payment Terms
Extended payment terms can have negative consequences, notably:

More Than 40 Percent Likely to Change Payment Terms Within the Next Year
Forty-two percent of respondents say they are “very/somewhat” likely to change their payment terms for advertising/marketing services within the next year, including 29 percent who are “very likely.” Those respondents who are likely to change their payment terms cite three primary reasons for doing so:

The full ANA report can be accessed here.

At Artist’s Request – No Social Media!

By Bill Duggan, Group EVP, ANA
Posted: Nov 25, 2013 9:30am ET

Over the past month I have been to two concerts that prohibited cell phone photography. The notice here was posted on the doors of one of the venues. At another venue, an usher told me to put away the cell phone that I was using to record a song. C’mon … it’s 2013!!

It’s quite frankly antiquated thinking to request customers to “put away your cell phone.” Cell phone usage leads to sharing videos and pics which then stimulate conversations. The experience and good will of a concert can be amplified to many, well beyond just those in attendance. The branding of the artist can be extended. And they can sell more stuff – concert tickets, music, etc.

Artists – and consumer brands – need to encourage conversation. We are living in the era of real-time marketing, where consumers not only want to share their experiences in real time but also expect brands to reciprocate.

In today’s always-on digital world, brands need to be ready to not only connect with consumers at any time or place, but also readjust their campaigns based on real-time data. According to one survey, the use of real-time marketing techniques increases positive perceptions of a brand; interest in a product; the likelihood to seriously consider, choose, or try a product or brand; and the likelihood a consumer will recommend the brand to others.

I can guarantee you that there won’t be a sign on the door of the ANA Real-Time Media Conference (12/4 in NYC) prohibiting cell phone photography or any type of social media!

Real-Time Marketing Meets Content Marketing Innovation: #InaHyattWorld

By Meghan Medlock, director of committees and conferences, ANA
Posted: Nov 20, 2013 8:30am ET

Yesterday, I ran the Midwest Digital & Social Committee Meeting in Chicago. It is always interesting to hear what other brands are doing to deliver on innovation and content marketing within Real-Time Marketing. One of today’s presenters, Hyatt Hotels, showcased how they are delivering on this. Their approach is to “listen” to solve consumers’ needs and to do so outside of the typical customer experience within their hotel properties. They recognize that it’s really about human interaction on a global scale because, after all, they have a global brand story. 

In the course of a month, Hyatt activated around the globe to let people experience what it was all about, which is that Hyatt is a brand that listens to its customers and gives back through exceptional service, constant product enhancements, new amenities, and simply put, kindness. To deliver on this promise, they handed out umbrellas in high traffic areas during unexpected downpours, opened doors for people entering and leaving buildings and getting into taxi cabs, and more. The hotels took these gestures and ran with them around the world – 30 days, 31 participating hotels, 136 Hyatt associates in 25 global locations.

In 1 month (yes, just one month), they generated:

Talk about a global movement for random acts of kindness. 

The most valuable learning is that doing good things really matters and people will share it and come back for more. They learned that mobilizing a global staff isn’t as hard as it sounds when they are motivating them around something that showcases what makes them amazing. In real-time, no less! 

Another very important lesson they learned is that no matter how much you prepare, there’s never enough time. So getting good at being VERY FAST is integral. I think many marketers looking to dabble into real-time can take this to heart and be bold when it comes to acting fast even though it may not be perfect the first time.

They also learned that focusing on the continual customer community and what that can mean will amplify long-term growth.   

You will learn how top marketers are applying similar real-time learnings and much more at our first EVER ANA Real-Time Marketing Conference presented by Starcom on December 4th in New York City! Learn from Kraft Foods Group, The Coca-Cola Company, Hasbro, Anheuser-Busch, MINI, MasterCard Worldwide, Nestle, and more. Register now because space is limited! Click here for more information.

Spotlight on MINI USA: ANA Real-Time Marketing Conference Speaker

By Shannon Scanlin, associate manager, committees, ANA
Posted: Nov 19, 2013 1:00pm ET

Real-Time Marketing is one of the hottest buzzwords in marketing today. We all know the success story of Oreo during February’s Super Bowl blackout. With this headlining and award-winning tweet, the marketing world was shown the power of being in the moment.

But, “dunk in the dark” is not an example that every brand can adopt. Oreo had a fully stocked team ready to respond to what happened during the game. I believe smaller marketing teams can find inspiration in BMW’s MINI, one of the brands speaking at the upcoming ANA Real-Time Marketing Conference.

MINI USA is asking MINI owners (some of whom call themselves “MINIacs”) to create content for the brand. The company has issued photo challenges for owners. MINI owners take a picture of their car then post and tag the photo on social media sites (Instagram, Twitter, or Facebook). The tags help MINI find the photos and then curate them for their own use. Social media is helping MINI stay connected with their passionate owners and also have relevant content available for prospects.

Learn more about MINI USA from Lee Nadler, marketing communications manager, as he discusses how MINI incites passion with real-time content marketing at the 2013 ANA Real-Time Marketing Conference. Other speakers include Kraft Foods Group, The Coca-Cola Company, Hasbro, Anheuser-Busch, MasterCard Worldwide, Nestle, and more. Register now because space is limited! Click here for more information.

Suggestions for Improving the State of Sponsorship and Event Marketing Measurement

By Bill Duggan, Group EVP, ANA
Posted: Nov 18, 2013 9:30am ET

Sponsorship and event marketing are growing in importance within the marketing mix. Per the new ANA survey research report, “Sponsorship and Event Marketing Measurement,” measurement of sponsorship and event marketing is improving, but there is still work to do. The middling satisfaction with the return on sponsorship and event marketing measurement is tied to sub-optimal standards and practices.  Suggestions for improving the state of such measurement are outlined below.

Ask Properties to Help with Measurement
Marketers should ask all their sponsorship and event marketing properties for help with measurement, and write that requirement into contracts. It is important for properties not to just offer a menu of benefits, but to become true partners with marketers and work with them to establish, achieve, and measure business objectives.

Consider Procurement as a Resource
Companies with strong marketing procurement organizations are encouraged to engage procurement in sponsorship measurement and evaluation. Procurement often has strong process-oriented skills and could be helpful in establishing standardized processes for sponsorship and event marketing measurement and evaluation.

Consider Marketing Mix Modeling
Only half of those surveyed say that their companies’ sponsorship and/or event marketing measurements attempt to isolate the impact of that activity versus other concurrent marketing communications. More marketers should consider marketing mix modeling to help isolate the specific contribution of sponsorship and/or event marketing.

Partner with Subject Matter Experts
Leverage the expertise of specialists like IEG (www.sponsorship.com) for sponsorships and the Event Marketing Institute (www.eventmarketing.com) for events.

Test and Learn with Social Media
A key finding of this survey is the rise of social media as a valuable tool in measurement. Marketers are encouraged to use social media as a lever for sponsorship and event marketing activation as well as measurement.

Establish a Dedicated Measurement Budget
All sponsorship and event marketers should have a dedicated budget for measurement. The benchmark identified in this study, a measurement budget of 5 percent, should be considered. IEG, in fact, recommends that the measurement budget should be at least 1 percent of the amount spent on the sponsorship, while a figure closer to 5 percent would allow for more meaningful assessment of outcomes.

In conclusion, there are opportunities via properties, procurement, marketing mix modeling, subject matter experts, and social media to enhance sponsorship and event marketing measurement, and help marketers make more qualified investment decisions. In order to maximize those opportunities, a proper dedicated measurement budget is required.

New ANA Research on Sponsorship and Event Marketing Measurement

By Bill Duggan, Group EVP, ANA
Posted: Nov 14, 2013 9:30am ET

ANA has just released our survey research report titled “Sponsorship and Event Marketing Measurement.” A snapshot of key findings follows.

Most Companies Measure Return from Sponsorship and Event Marketing for All or Most Activities
Most respondents (68 percent) measure all or most of their sponsorship and event marketing activities, while 32 percent measure about half or less.

Satisfaction with the Ability to Measure ROI and ROO is Not Very High
While the majority (62 percent) of marketers report being at least somewhat satisfied with their firms’ ability to measure ROI (return on investment) for sponsorship and event marketing initiatives, a substantial percentage are dissatisfied (38 percent). Only 20 percent report being “completely” or “very” satisfied with the ability to measure ROI. The majority of marketers (68 percent) also report being at least somewhat satisfied with their ability to measure ROO (return on objectives) but a substantial percentage are dissatisfied (32 percent).

More Companies Have Dedicated Budgets for Sponsorship and/or Event Marketing Measurement
Sixty percent of respondents claim that their companies have a dedicated budget for sponsorship and/or event marketing measurement, up from 40 percent in 2010. While the amount of the measurement budget as a percent of the amount spent to acquire the sponsorship rights is relatively low, the average percentage has gone up from 2.3 percent in 2010 to 5.0 percent in 2013.

Metrics Highly Used and Highly Valued for Measurement
The metrics that are both highly used and highly valued for measuring return of sponsorship and/or event marketing (meaning both noted by at least 50 percent of respondents) are: amount of media exposure generated, social media, awareness of brand, awareness of company’s/brand’s sponsorship, attitudes towards brand, and lead generation.

Having Partners to Help Measure Results Has is Important
Almost three-quarters of respondents feel it is “extremely” or “very” important for their sponsorship and/or event marketing partners to help in the measurement of the results of those initiatives. The top metrics desired from partners are: audience research on propensity to purchase/loyalty/behavior toward sponsors, audience demographics, audience research on attitudes toward sponsors, and audience research on sponsor recognition/recall.

Enjoy the report!

Tweets from ANA Multicultural Marketing Conference

By Bill Duggan, Group EVP, ANA
Posted: Nov 11, 2013 9:30am ET

Our recent Multicultural Marketing & Diversity Conference was one of our most active from a social media perspective. Below are some conference highlights, each delivered in 140 characters or less. The complete Twitter stream can be found at #ANAMulti.

Sandra Gengler ‏@sandra_gengler 7 Nov
A "Total Market" strategy: where a #multicultural perspective is a necessity for marketers http://adage.com/article/the-big-tent/shift-multicultural-teams-total-market-gains/245149/ …

lindalanegonzal ‏@lindalanegonzal 6 Nov
“Lead with ethnic insights first!” Takeaway from ANA #Multicultural Day 1 http://bit.ly/1b7Hk5o  via @portada_online #ANAMulti...

lizette williams ‏@LiZetteW1 6 Nov
You cannot think about growing the $2 billion Huggies business without leading with ethnic insights first #ANAMulti http://lnkd.in/bkhwfRN 

Fatma ‏@F_Kokon 5 Nov
"Embrace cultural complexity is what Total Market is" @LatinWorker #anamulti

Marco Lopez ‏@don_marquito 5 Nov
#totalmarket is a journey, until we get to a place where ethnic is not a need #anamulti says Sergio Alcocer @nydiajanet

Sue De Lopez ‏@suedelopez 5 Nov
Nice challenge for #brands "If we do total market right, the role of Multicultural #marketing should go away"~Strachan #ANAMulti #CMO

Victor Paredes ‏@paredes6699 5 Nov
Diageo charges you $5 every time someone says "general market" - #ANAMulti

Kristen Creager ‏@kristencreag 5 Nov
If you're not working for a company that is living & breathing diversity-- where are you working and why? #ANAMulti pic.twitter.com/paSqOij1OA

madeline beniflah ‏@maddybeni 5 Nov
Best quote of the conference so far, "we are not MC marketers, we are all just marketers" #ANAMulti

Jeffrey Bowman ‏@jeffreylbowman 5 Nov
#ANAMulti @diageo_news Marc Strachan great Total Market Enterprise case study & transformation. Requires C-level commitment.

sean blankenship ‏@pairaces 5 Nov
Multicultural advertising means Millennials. As a brand, this is the gap to fill. #ANAMulti

Carlos Santiago ‏@Carlos_SSG 5 Nov
#ANAMulti: Coke, Walmart, GenMills agree #Millennials demand different lens w/ massive #Multicultural overlap & #totalMarket approach.

Alain Groenendaal ‏@AlainGro 5 Nov
Coke's Lauventria Robinson says it's total and (not or) targeting marketing @cocacola @Insidewing #anamulti

Sue De Lopez ‏@suedelopez 5 Nov
"@Walmart we focus on 2 macro trends: rise of multicultural market and growth in technology"~ T. Rogers #ANAMulti #marketing

Alma ‏@AlmaAgency 4 Nov
"Every 30sec a Latino turns 18; every 2 min a GM Consumer retires..." Roberto Orci @AHAA #ANAMulti

Portada-Online.com ‏@portada_online 4 Nov
@PepsiCo's Carlos Saavedra: "Traditional multicultural marketing is not sustainable in the long term," #ANAMulti

Uriel Saenz official ‏@UrielSaenz 4 Nov
@dcastil: Amway projects 50% of their growth will come from Hispanic #ANAMulti

Bill Duggan ‏@BillDuggan 4 Nov
Total market strategy being done by all brands only for 35% of companies; a few for 54% & one test brand for 14% per @AHAA #ANAMulti

Missed yesterday's #ANAMulti AHAA Total Market Study presentation? View it here: http://buff.ly/1bVNDct  (and on Slideshare).

Chiqui Cartagena ‏@ChiquiCartagena 14 Nov 11
In case you missed it, my blog from Ad Age on #ANAmulti ...ANA Speakers Push Multicultural Marketing as Key to Growth http://adage.com/u/OHz3sb

Real-Time Marketing: Getting Started is the Hardest Part….

By Meghan Medlock, director of committees and conferences, ANA
Posted: Nov 8, 2013 3:00pm ET

Real-Time Marketing is still new and uncharted territory for nearly every brand in the world. As brands determine how they can apply and utilize Real-Time Marketing techniques, they must ask themselves what feels right, why it feels right, how they can react and respond to events that are presently unknown, how technologies will be applied, and how their efforts will be measured. Not an easy task for even marketers with deep pockets and a plethora of resources.

We hear feedback from many marketers through Webinars, Surveys, Committee Meetings and Conferences, veterans and rookies alike. One of the most commons questions we get asked is, “How in the world do I get started in Real-Time Marketing?”  

I have reflected on this question and tried to dig deeper by speaking to ANA members, reading many articles in the trade, and following brands who I think are doing it right (OREO, Coca-Cola, Honda, IBM, to name a few) and I think it boils down to some simple pillars that marketers can all use as they think, plan, and staff for Real-Time Marketing. Real-Time Marketing is much more complex than coming up with your own “dunk in the dark.”  

  1. Content is King!  Good Content + Good Content Strategy = A Marriage Made in Heaven
    At the core of integrated social media programs is content. It not only invites your community into a conversation, but a solid content foundation makes real-time content creation incredibly efficient.   
  2. Develop a Social Media Listening/Responding Strategy 
    Choose keywords to monitor and map out the live events that make sense and matter to your brand. And don’t forget to respond! Did you know that 6% of people generate 80% of impressions online? That 6% are the influencers. They are present, they are there, and they are trend setters and infrastructure is needed to respond to them so that you can make a difference. Think like a publisher, act like a newsroom, and respond quickly!
  3. Content Mix and Balance Matters 
    Determine the balance between planned content from your brand, curated content that other people have posted, and real-time content that is in-the-moment interaction. All 3 are necessary, but finding the right balance for your brand is essential for engaging your audience.
  4. You Can Achieve Results Without Responding to Every Single Individual Tweet. 
    Create new ways to respond, like Vine videos, to deliver on your goals.  
  5. Understand and Accept That a Social Customer Service Program is Essential
    Did you know that 86% of buyers will pay more for the same product or service for a better customer experience, according to a CEI survey, and that 1 in 3 users and growing now prefer to contact brands using social media rather than the phone, according to Nielsen? A solid strategy, involvement from the current customer service team (including a creation of a customer care guidebook), transparency, a dedicated social account for customer service, and a system for tracking and data about your customer service interactions will lead you on the path to success.  

I’ll leave you with two quotes I love on Real-Time Marketing:

 “The power outage was unexpected, and the brands that pivoted and embraced the opportunity before them were the brands that were celebrated by the public for truly understanding the nature of real-time engagement. Why? Because they related to us, not because they forced us to relate to them.”
- Scott Monty, Global Head of Social Media – Ford Motor Company

“If you say fewer quality things in relevant spaces, that will do so much more for you than trying to force fit your brand into every pop culture event that there is.”
- Jason Miller, Social Content Manager – Jim Beam

Let’s continue this conversation by offering you a chance to dive deep with leading real-time marketers and network with your peers. Please join us for our first EVER ANA Real-Time Marketing Conference presented by Starcom on December 4th in New York City!  Learn from Kraft Foods Group, The Coca-Cola Company, Hasbro, Anheuser-Busch, MINI, MasterCard Worldwide, Nestle, and more.  Register now because space is limited!  Click here for more information.

My Pilot Also Needs to be the Chief Communications Officer

By Bill Duggan, Group EVP, ANA
Posted: Nov 4, 2013 9:30am ET

I was on a plane to LA this past Friday when the airport was attacked.  I heard about it from a woman in my row who was watching in-flight television.  I immediately bought the in-flight TV and watched CNN on and off for the next four hours.  The television reports made it clear that many or most flights were not taking off from LAX but flights were landing or being diverted to other airports (a colleague of mine was diverted to Long Beach).  The reports also informed me that there were no cars allowed inside the airport and showed video of people walking away from the terminals with their bags.  The TV reports mentioned shuttle buses and taxis were available outside the airport.

I should note that Wi-Fi was not available on this flight so the internet and social media were not resources at the time.  Thank goodness for the information provided by the television as we heard next to nothing from the pilot or crew.  When it was announced that the plane was descending, there was a very brief mention of an “incident” at the airport earlier in that day.  No more than that.  No mention on how the passengers on this flight would be affected and no advice on what to expect upon landing.  A friend of mine who was on a later flight had the exact same experience.

Plain and simple, airline pilots need to do a much better job keeping passengers informed of relevant information.  Airline pilots must be chief communications officers!  I have often been frustrated with the lack of information provided by pilots, e.g., “Why have we been going in circles for the past half hour?”  That needs to change as consumers expect much more from their interactions with brands.  Yes, airlines should think of themselves as brands and employees should think of themselves as brand ambassadors, especially those in-flight employees, led by the pilot.

It was widely reported that the first reports of the LAX shooting came from social media.  When all (or most) airplanes have Wi-Fi, of course, the internet and social media will be available to passengers.  While passengers would then have information (or perhaps misinformation) from the internet and television, information from the person flying the plane is critically needed.

I think this LAX incident (as incredibly unfortunate as it was) provides an opportunity for airlines to re-examine their in-flight communications policies and to better train their pilots to be chief communications officers.


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About This Blog

To complement our two leadership blogs and build dialogue on the seismic changes happening in marketing, we launched Marketing Maestros. Our in-house citizen journalists will talk about everything from marketing technology to accountability and everything in between. This blog is written for marketers by ANA's marketers whose insights are drawn from the voices of the client side marketing community.