By Bill Duggan, Group EVP, ANA
Posted: Nov 7, 2012 12:00am ET
The ANA Multicultural Marketing & Diversity Conference took place last week in Miami, attended by 600+. The following provides insights and highlights from the conference.
- “The United States is the most demographically diverse nation on the planet,” per Burrell’s Fay Ferguson (who credits the quote to Faith Ruffins, curator for the Smithsonian American Museum of History). In May it was widely reported that for the first time, racial and ethnic minorities now make up more than half the children born in the U.S.
- “If you’re not already there (i.e., multicultural marketing), you are already behind,” said Fred Diaz, president and CEO, Ram Truck Brand Chrysler and group president and CEO, Chrysler de Mexico.
- Brad Davidson, president of Kellogg North America: “The Hispanic business opportunity is undeniable. Kellogg has integrated Hispanic into every step of our business planning process. The hope at Kellogg is that Hispanic marketing evolves from specialty skill to an integrated capability that marketers possess and becomes part of how they think holistically and completely about the business.”
- “100% of growth in retail and for Walmart will come from multicultural customers. Walmart’s dollars for multicultural marketing will grow at least 100% over the next year.” That was from Walmart’s Tony Rogers, svp, brand marketing & advertising and Greg Warren, vp, creative marketing.
- Niloufar Molavi, PwC’s vice chair: “Diversity is not a philanthropic pursuit. It’s all about smart business. The main benefit of diversity is innovation. When people with different points of view, different perspectives, and different experiences come together, that drives innovation.”
- “We have found through some initial marketing mix modeling that Hispanic media has a higher ROI than traditional consumer media– 2-3x in some cases,” says Maureen Brekka, svp marketing, North America at Brown-Forman.
- The two presidents of ANA member companies (Fred Diaz and Brad Davidson) also spoke about the importance of executive leadership and mobile.
- “A company definitely needs an executive champion. Take that role on yourself,” – Fred Diaz. “Blunt action from the top of the organization is often required to drive multicultural marketing,” – Brad Davidson.
- “We need to find ways to win better in mobile,” – Brad Davidson. “Hispanics have the highest smart phone adaption rates, hence mobile is critical,” – Fred Diaz.
By Ken Beaulieu, vice president of marketing and communications, ANA
Posted: Oct 26, 2012 12:00am ET
Marketers looking for a little R-E-S-P-E-C-T for their profession may need to start with themselves. A new study commissioned by Adobe found that only 35 percent of marketers surveyed consider what they do for a living valuable. That’s troubling.
Perhaps it has something to do with how the marketing profession is perceived in this country and beyond — which is not very fondly. According to the Adobe study of 1,000 consumers 18 years and older in the U.S., China, and Japan (including a mix of marketing professionals), marketing and advertising ranked below every other profession, with the exception of public relations. Bankers, lawyers, and politicians — yes, politicians — are viewed with higher regard than marketers on the respectability scale.
On the flip side, more than 90 percent of respondents agreed that marketing is “strategic to business,” and 90 percent said that marketing is “paramount” to driving sales. While that’s great, what often gets lost is the enormous contribution the marketing industry makes to the nation’s economy and employment, an argument no fact-checker can refute.
Two years ago, a study conducted by IHS Global Insight, Inc. for The Advertising Coalition, found that:
- Advertising expenditures account for $5.8 trillion, or nearly 20 percent, of the $29.6 trillion in U.S. economic output.
- U.S. businesses spend $279 billion on advertising annually, and every dollar invested generates nearly $20 for the U.S. economy.
- Ad expenditures support 19.8 million jobs, roughly 15 percent of all jobs in the country.
- For every million dollars spent on advertising, 69 American jobs are supported.
Those numbers are almost certain to be higher now given the improving economy — and the millions being spent on advertising this election season. Let’s also not forget the collective economic ripple effect of advertising in the U.S. When a retailer, for example, revs up its ad spending, it generates income from the wide array of businesses that rely on advertising — agencies, websites, cable operators, etc. And for every ad dollar spent, retailers realize an average increase of $8.77 in sales, the IHS-Global Insight report estimates.
The multiplier effect doesn’t stop there: High sales levels trigger additional economic activity throughout a company’s supply chain, its suppliers’ supply chain, and so on. This, in turn, leads to higher levels of job creation and retention.
Marketers may always be low on the totem pole in the eyes of the public, and unjustly so, but there’s no denying the profession’s economic impact. As an industry, we must continue to raise awareness of the full value of marketing beyond a company’s bottom line. And, honestly, would it hurt the winner of the 2012 presidential election to proudly state that he couldn’t have done it without advertising?
By Bill Duggan, Group EVP, ANA
Posted: Oct 22, 2012 12:00am ET
The Rolling Stones are celebrating their 50th anniversary with two concerts each in London and at the Prudential Center in Newark, NJ (right outside NYC).
I’m a big fan – I first saw them in 1978 during the Some Girls tour and last saw them in 2005 when Clear Channel Radio treated attendees of the ANA Agency Relations Forum to a concert at the old Giants Stadium.
I missed the Facebook Fan pre-sale for the Prudential Center shows but then set my eyes on the American Express pre-sale (“to be eligible for this pre-sale use an Amex card to pay”) which began at noon on October 20th. And I logged on promptly at 12 noon. I expected the site to be busy and overcrowded but I got through and was now in a position to buy tickets. This pre-sale offered Exclusive VIP Packages … “Choose from 5 exclusive VIP packages that could include premium reserved seating or general admission ticket, pre-show buffet dinner, exclusive merchandise item, VIP entrance, official tour program, collectible laminate and more!”
I was ready to buy, until I found out that the top-of –the line “Gold VIP Package” was $2450 per ticket while the most frugal choice, the “Bronze Hot Seat Package”, was $950 per ticket. Yikes!!
I applaud the Rolling Stones for being such terrific marketers and their current partnerships with Facebook and American Express are just their latest marketing alliances. The Stones were one of the first rock bands (perhaps the first) with a corporate sponsor. Jovan Musk paid one million dollars to sponsor their 1981 American tour.
Earlier this month I attended the ANA Masters of Marketing Conference where there was lots of talk from leading marketers about the intersection of marketing and social responsibility. I have to think that there is an opportunity for the Rolling Stones to leverage their 50th anniversary tour for some greater good. They all have millions in the bank and don’t need to charge exorbitant ticket prices to cover their living expenses. But if there was a tie-in to a social/charitable cause, it just might make some of us feel a little better.
By Sloan White,Principal Brand Manager, Brand Sponsorships, Capital One
Posted: Oct 18, 2012 12:00am ET
It may be an election year, but every day is Election Day in the world of consumer goods marketing. Every day, we the American people cast our vote each time we purchase a product. We cast our vote as consumers for our favorite brands. We choose the winners and the losers daily. Consumers, like voters, want to feel good about the brands they endorse. This was the theme of Marc Pritchard’s presentation. He provided some vital information regarding the successes and a few mistakes that Proctor & Gamble has made over the brand’s lifetime. However, the common theme throughout his presentation was that brands shouldn’t be afraid to show their human side and this simple truth can make the difference between a win and a loss at the polls.
As consumers, we make decisions, often times from a very emotional place and that was the influence behind the P&G “Official sponsor of moms” Olympic campaign. The company leveraged this theme by communicating the message that being a mom is “the hardest job and the best job.” This campaign humanized P&G; advertising was created featuring daughters with their mothers showcasing athletes Shawn Johnson, Gabby Douglas, and Jordan Wieber with their moms.
Marc emphasized that brands must earn your vote by proving they understand your needs and wants. That is why P&G sent researchers into the homes of consumers to find out what parents really need from their Pamper diapers. It wasn’t how well it withstands hours on a crawling baby, but rather how dry it stays during the night. P&G quickly learned that what parents need perhaps more than anything is a baby that sleeps well. From there they went on to craft a product that met that need. A marketing campaign was developed with the tagline, “Peaceful nights. Playful days.” The campaign spoke directly to parents who understand the importance of a well-rested child.
Throughout his speech, Marc did an excellent job of providing insights into not only what P&G does to reach people, but why every single purchase we make as consumers is casting a vote. The key takeaway was that consumer insight + creativity is the key to winning at the polls.
By Bob Liodice, President and CEO, ANA
Posted: Oct 17, 2012 12:00am ET
In late summer 2012, the ANA’s Board of Directors unanimously voted to make Ad-ID the industry standard for all advertising asset coding by January 2014. Enough with all the industry excuses for not employing Ad-ID. There are no more valid reasons, no more lame excuses, and no rationale for deferring the broad scale adoption of Ad-ID. None.
So what’s all the fuss about? Let’s start at the beginning and talk about the grungy side of advertising: the “marketing supply chain,” which represents all the backroom business processes that move the creative from advertiser to agency to vendor to media. Most marketers like to look the other way when it comes to managing this because it’s not “sexy.” But the reality is that the process is suboptimal and it costs the industry plenty. The supply chain is unproductive and messy because much of it is mired in old, analog-based processes. The lost productivity in time, rework, and errors costs the industry $1 billion to $3 billion annually; that translates to $10 billion to $30 billion over a decade. I don’t know about you, but I see no reason to waste $30 billion over 10 years when the solution sits right in front of us: Ad-ID.
The supply chain needs a common coding system — one that serves functions similar to what the UPC code does with products and services. Each advertising asset should have a unique code assigned to it so that the asset finds its way through the supply chain like greased lightning. Unfortunately, the industry has not completely embraced this philosophy. Today, only 41 percent of television commercials, 12 percent of radio executions, and practically no digital ads at all leverage Ad-ID. All other marketers use homegrown coding systems that lead to confusion and waste, at an enormous cost to all players in the chain.
While lost productivity is one issue, the other major casualty of poor industry asset coding is suboptimum syndicated measurement. Without a common standardized coding base, syndicated measurement companies scramble to pull their data together — often incorrectly. This costs marketers dearly in terms of weak accountability and lost revenue due to bad decision making.
Ad-ID carries all the metadata necessary for the digital asset to fly through the supply chain “error free.” That means no rework, optimum productivity, and great measurement potential. So what’s not to like about it? The industry call to action is to have one universal advertising asset coding system by January 2014: Ad-ID.
By Lisa Wang,VP & Regional Head of Exchange Traded Funds Marketing, State Street Global Advisors
Posted: Oct 16, 2012 12:00am ET
Two recurring themes from the presentations at the ANA conference, whether they came from P&G, J&J, McDonald's, Luta, BP, Ford, etc. stick out in my mind. The first is understanding and embracing how technology can transform your business model and brand on a scale never before achieved; think how McDonald's efficient assembly line process revolutionized all industries across the globe. The second is leveraging your brand platform to do more just than sell products, but to personify the offering through acts that help underserved communities, as was the case for Luta's Fight for Peace program; a boxing-based project that takes youth off streets that are terrorized by drug wars.
Even more, today's technology allows people to communicate crisis, assemble a support group, or provide potable water to remote regions, and companies are pitching in. Although these high-profile humanitarian efforts might help companies sell widgets and build brands better and faster than hungry looking models, they are also the RIGHT things to do. And for us as consumers and marketers, it's very easy to support these efforts through linking inspiring Dove campaigns on Twitter and "liking" a relief effort post to donate a dollar through Facebook (and you know you like the warm tingle you feel as you push that send button). But what do we do about the dark side of humanity where the ticking bomb of technology is used to do WRONG? Things like advancing a nuclear arms race, releasing computer viruses on national defense systems and posting hate videos on YouTube? As much as we want to impact positive change, these situations are ones we tend to turn a blind eye to and leave in the hands of our national leaders. Because hey, that's above our pay grade, outside of our perception of our sphere of influence and frankly we've got enough problems to worry about! New York Times journalist David E. Sanger injects a dose of the current-events surrounding these realities, tells us why we should care and challenges us to consider what we can do about them.
By Bill Duggan, Group EVP, ANA
Posted: Oct 15, 2012 12:00am ET
I am just back from the ANA Masters of Marketing Conference and learned so much! The following provides a key take-away for me from each of the speakers.
- Marketing is a lot like politics. The voting booth is the store. Consumer insight and creativity are at the core of winning the brand election every day. (P&G)
- Marketers are responsible for connecting with people in ways that are instructive rather than disruptive. (J&J)
- Have standards. Know if you are fulfilling those standards. Take steps to close any gaps. (McDonald’s)
- Make the world a better place and focus on the positive. (MasterCard)
- Give voice to consumers; move from control to curation. (Sharpie)
- With every opportunity comes responsibility. (Luta)
- Innovate where others have gone on auto-pilot on normal go-to-market industry conventions, versus innovating on shiny new things. (Ford)
- Brands and business can be great agents for change. (Unilever)
- There is more value in building a deep connection with one consumer versus connecting in a superficial way with one-hundred. (popchips)
- Stay true to your brand’s core values. (Allstate)
- Marketing innovation is a must-have to drive brand relevance. Have patience and fail forward. (Coca-Cola)
- Believe in your culture. If you live by your culture, you can get through anything. (BP)
- Consider the full palette of marketing options as direct mail still works. (USPS)
- Marketers have to test, invest, and innovate. Take a percentage of your budget to try new things. (Cleveland Clinic)
- Brands with purpose need open organizations as that maximizes positive exposure. (Effective Brands)
- Innovate at the core and drop pet projects. (Discover)
- How you treat your agency gives a marketer the work it gets. (Owens-Illinois)
By Bill Duggan, Group EVP, ANA
Posted: Oct 5, 2012 12:00am ET
ANA has just completed and released research to help understand how marketers are using newer media platforms to reach multicultural customers (e.g., mobile, social media, webinars, blogs, search, and more). The results include some interesting findings related to how marketers are budgeting for this.
The great majority of marketers project they will spend more (60%) or the same (24%) on newer media for multicultural efforts in 2012 compared to last year. The average increase in spend on newer media for multicultural marketing in 2012 is 9%. Meanwhile, the great majority of marketers project they will spend more (56%) or the same (31%) on all multicultural media compared to last year. The average increase in spend on all multicultural media in 2012 is also 9%.
Respondents to the survey were asked how newer media platforms for multicultural customers are currently being funded at their company. More than half surveyed (56%) said the funds are shifted from the general market media/marketing communications budget. An additional 22% have shifted funds within their multicultural media/marketing communications budget. Only 28% have an incremental budget. This indicates that marketing budgets continue to be under pressure, and while there may be some incremental budget available for multicultural newer media marketing, for the most part, existing funds are simply being reallocated.
Finally, in 2012 the average percentage of the multicultural media budget allocated to newer media platforms was 7.7%. That percentage is likely too low, as the consumers’ consumption of newer media in reality represents a much bigger percentage of their overall media consumption. At the same time, investment in multicultural marketing overall is also likely too low for many marketers.
At the upcoming Multicultural Marketing & Diversity Conference, a panel will share the results and offer insights on the survey.
By Bill Duggan, Group EVP, ANA
Posted: Sep 26, 2012 12:00am ET
ANA recently announced the finalists for the 2012 Multicultural Excellence Awards, which celebrate the year's preeminent multicultural advertising campaigns. This year, there are some interesting observations regarding the finalist agencies.
- mcgarrybowen, a “general market” agency, is a finalist in the Hispanic category for work done on Kraft Real Mayonnaise.
- LatinWorks is a finalist in the General Market category for its work on General Motors/Silverado.
- McCann Erickson, also a “general market” agency, is a finalist in the Significant Results category for its work on L'Oreal.
- And Leo Burnett is a finalist in the Digital Media category for work on Allstate.
More multicultural agencies are doing work for the general market, and more general market agencies are doing work for multicultural markets.
LatinWorks is an interesting case study. Their website describes them initially as“a full-service advertising agency.” They have been named Hispanic Agency of the Year by Adweek and Multicultural Agency of the Year by Advertising Age. Alejandro Ruelas, LatinWorks' managing partner and chief marketing officer, was quoted earlier in the year in Ad Age saying, "The agencies that will survive in our space are the ones that behave like general-market agencies." LatinWorks then backed up that statement when the Texas Lottery awarded its entire account to the agency, which had previously only handed the Hispanic portion.
Meanwhile, general market agencies like mcgarrybowen, McCann, and Leo Burnett appear to be increasingly involved with communications targeted to multicultural segments.
In ANA’s soon to be released survey on multicultural marketing and newer media we asked respondents to identify the external resources used for multicultural initiatives.
- 52% of marketers surveyed said they utilize an external multicultural agency
- 40% utilize a general agency for their multicultural initiatives
These results are most interesting as there appears to be the opportunity for more marketers to engage multicultural agencies, as only half of survey respondents are currently doing so. At the same time, general market agencies appear to be increasingly involved with communications targeted to multicultural segments, as some clients are now “marketing to a multicultural nation” rather than doing “multicultural marketing.”
Let’s see how agencies continue to evolve in this space. And stayed tuned for the winners of the ANA Multicultural Excellence Awards, which will be announced at the ANA Multicultural Marketing & Diversity Conference October 28-30 in Miami.
By Bill Duggan, Group EVP, ANA
Posted: Sep 21, 2012 12:00am ET
Viacom recently announced plans to increase the number of commercials run on some of its cable networks to offset loss of revenue due to a decline in ratings. Really??
This is a short-term strategy and is clearly not sustainable over the longer haul or in the best interests of advertisers. With even more commercial minutes, consumers are likely to tune out, and off, even more. Why would a viewer put up with as many as 16 minutes of commercials on Nick at Nite when DVDs, VOD, YouTube and other options are available with no or limited interruptions?
More commercials is NOT the solution to a decline in ratings as that will ultimately lead to an even greater acceleration to declining ratings and ad rates. And then what’s the solution to that … even more commercials?