By Bill Duggan, Group EVP, ANA
Posted: Nov 14, 2012 12:00am ET
I had the opportunity to facilitate a discussion at the recent “ProcureCon for Digital and Marketing Services” conference between the marketing and procurement leads at Intel – Mariann Coleman, director, global agency management and Sean Dowd, senior manager, global strategic sourcing. Intel is unique as their marketing procurement team is very mature (20+ years) and has long since moved its contribution from “tactical” to “strategic.” Some of the key learning from this discussion:
- What works is NOT a focus on “cost savings.”
- Rather, Intel has a collective focus on increased efficiencies and effectiveness. Sometimes that is cost, but often it is other measurements, such as time to market, global brand consistency, etc.
- To succeed in marketing, procurement must understand the marketing organization’s challenges and goals and build a solid marketing acumen.
- Procurement should talk in terms of helping their marketing partners achieve their goals, for example helping them stretch their budget to increase scope vs. saving dollars from their budget.
- Don’t lead the relationship building with “procurement speak” or procurement goals.”
- Procurement should start with small wins that build trust to demonstrate value add and then build from there.
And we’ll say it again: leave “cost savings” for the purpose of reducing costs out of the conversation, and focus on gaining efficiencies and effectiveness.
The marketing procurement departments continue to grow up in corporate America. Many are still young, still tactical, and still focus relentlessly on savings …and could learn a lot from the Intel experience.
By Ken Beaulieu, senior director of marketing and communications, ANA
Posted: Nov 12, 2012 12:00am ET
Fidelity Investments CMO Jim Speros contends that there has never been a more exciting time to be in marketing, a sentiment echoed by many of his peers. But he also realizes that, with rapid advancements in technology and the shift to a more empowered consumer, marketers today face some sizeable challenges.
In the latest issue of ANA Magazine, Speros offers an insightful perspective on what it takes to build a successful marketing organization. One of the most important ingredients, he says, is seeking social media engagement. “Establishing a clear plan and supporting infrastructure to leverage social media has never been more critical,” he points out. “There are clearly risks here too. Customer service and your public relations organizations must be tightly looped in. Rapid response to issues that emerge can make or break your brands.”
The industry still has a ways to go in this area. A Stanford University survey of C-suite executives at both public and private companies found that, while 90 percent of respondents claim to understand the impact that social media can have on their organization, only 32 percent monitor social media to detect risks to their business activities and 14 percent use social media metrics to measure corporate performance. Additionally, only 24 percent of senior managers and 8 percent of directors surveyed receive reports containing summary information and metrics from social media, and half of the companies do not collect this information at all.
The bottom line is that there is still a major disconnect between companies’ perception of social media and the actions they are taking to apply it to their business. “The majority of those we surveyed don’t have social media guidelines in place at their companies, haven’t had a social media expert consult with their company, and don’t have systems in place for gathering key information,” says David F. Larcker, a professor at the Stanford Graduate School of Business and lead author of the Stanford study. “They are putting themselves at serious risk by not taking action.”
You don’t have to convince Jim Speros of that.
By Bill Duggan, Group EVP, ANA
Posted: Nov 12, 2012 12:00am ET
For the first time ever, in 2012 mobile ad spending will be higher in the U.S. than anywhere else in the world. Japan, a market where mobile advertising is much more mature, had previously enjoyed that distinction. With the proliferation of smart phones, the growth of mobile has reached an inflection point. “Mobility is going to be a massive game changer and it will change the entire retail industry,” said Stephen Quinn, CMO, Wal-Mart Stores, at the recent ANA Masters of Marketing Conference.
Currently, about 1% of U.S. ad budgets are allocated to mobile, despite the fact that time spent with mobile represents a much bigger percentage of the media consumption pie. I’ve heard as much as 23%. The Mobile Marketing Association commissioned research that recommends an average of 7% of total ad spending be devoted to mobile marketing. Furthermore, the study recommends that, over the next four years, marketers should increase their investment in mobile to approximately 10%.
Meanwhile, the shifting population is good news for the mobile industry as multicultural consumers, particularly Hispanics, are heavy users of mobile. In ANA’s recently released survey/report titled, Multicultural Marketing and Newer Media Survey, mobile was identified as the fastest growing medium to reach multicultural consumers.
But the industry still has challenges, including the need to raise its profile among marketers and agencies in order to increase its share of spending. Also, some in the industry note the lack of standardized analytics and ad formats as a barrier to higher levels of mobile ad spending. And a recent report from Nielsen cites “text ads on mobile phones” as the most untrustworthy advertising platform with a 71% “Don’t Trust Much/At All” score.
By Caitlin Nitz, Knowledge & Research Specialist
Posted: Nov 8, 2012 12:00am ET
Recently, ANA’s Integrated Marketing Committee, hosted by Spark Communications, took a tour of 1871 — a non-profit space that provides offices and a community of lectures, classes, and support for tech startups. Located in the Merchandise Mart in Chicago, this modern and inspirational space is home to designers, coders, and entrepreneurs hoping to create the next Facebook, Instagram, or OpenTable.
ANA members got a sneak peek inside two startups relevant to the marketing industry, AdYapper and SimpleRelevance:
- AdYapper turns display ads into a chance for social engagement by letting viewers “yap” about ads and either “love” or “hate” them with a simple click.
- Tired of watching brands do a terrible job using email to connect with consumers, SimpleRelevance developed a fast and easy way for marketers to personalize web communications by combining their customer data with third party intelligence.
Named for the spirit of innovation ushered in after the Great Chicago Fire of 1871, this tech startup space is one of many popping up around the country. While most of the companies within its walls will fail, 1871 could just birth the next great marketing tool.
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, senior director 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.