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Marketing Maestros

Transparency and Agency Trading Desks

By Bill Duggan, Group EVP, ANA
Posted: Mar 22, 2013 12:00am ET

This week’s Advertising Age features a terrific article by Alexandra Bruell reporting on a panel discussion at the recent 4A’s Transformation Conference.  The panel featured six media agency heads and a contentious debate on agency trading desks.  ANA agrees that there are indeed transparency concerns with agency trading desks. 

In late 2011, ANA released a white paper titled,"Agency Trading Desks: Basics Marketers Need to Know & Questions to Ask."  Its purpose is to help educate ANA members on agency trading desks including what they are, what they do, potential benefits, questions to ask, and more.  

Most importantly, the paper advises marketers to be educated on how their company's money is being spent. Every holding company (and independent) does things a little bit differently, so if working with a trading desk, marketers need to understand their agency's model and make sure they are comfortable with it. The following questions and action steps are important.

Facebook vs. Twitter: Hashtags and Social TV Ratings

By Marni Gordon, vice president of committees and conferences, ANA
Posted: Mar 19, 2013 12:00am ET

Last week, The Wall Street Journal reported that Facebook is working on incorporating hashtags as a way to group conversations. Hashtags, one of Twitter’s key symbols, are already prevalent within Instagram which was acquired by Facebook last year.       

This has implications for ad targeting as well as opportunities to build out Facebook’s graph search product, which currently relies on the “like” as an indicator of brand interest.  This tends to be a weaker measure as users may “like” a page if they are in fact interested in the brand, but other reasons could include entering a one-time contest or to “like” a page as part of a social obligation.  In addition, the main barrier for Facebook to widely adopt the hashtag is their high levels of privacy for publishing user content. 

If Facebook’s hashtag efforts are successful, they could be a formidable competitor to Twitter and even other third-party television ratings providers like Nielsen in the social TV ratings game.  Twitter is already becoming aggressive in this space with their recent acquisition of Bluefin Labs.  Twitter also mentioned last month that half of the 52 national commercials that aired during the Super Bowl included a hashtag within the advertisement. 

However, Twitter is only a fraction of Facebook’s size.  Facebook’s mass reach combined with using the hashtag to group conversations around TV programs could potentially provide a substantial sample size for real-time social TV ratings.

It will be interesting to watch the battle between Facebook and Twitter continue to unfold and how this could impact television and even cross-platform ratings in the future!

Learn more on social media from senior marketers at companies including Unilever, Taco Bell, Virgin America, Pepsi, MasterCard Worldwide, and Reckitt Benckiser at the ANA Digital & Social Media Conference on July 14-16!

 

How Does Procurement Drive Innovation?

By Bill Duggan, Group EVP, ANA
Posted: Mar 15, 2013 12:00am ET

We’ll define innovation as “identifying emerging trends and bringing new ideas to the organization.” So how does procurement drive innovation?

At the ANA Advertising Financial Management Conference we will share results of our “2013 Procurement Value Metrics Survey” which identifies the metrics used to measure the success / contribution of the marketing procurement organization. Innovation is one of the metrics we looked at.

Forty-four precent of respondents noted that innovation is indeed a metric used at their respective companies to measure the success / contribution of the marketing procurement organization. And the more mature the marketing procurement department, the more likely that innovation is a success metric.

 

                                                                            

What are some specific examples of procurement driving innovation?  We’ve heard lots in the area of production including creating rosters for preferred suppliers such as production companies, editing, trafficking, as well as consideration for shooting in states that offer commercial production incentives.  And we’ve heard great examples of procurement driving innovation by centralizing digital asset management and scope of work templates.

Cost reduction and cost avoidance will always be part of procurement’s role.  But procurement must not have tunnel vision and only be interested in cost reduction / avoidance.  Rather, procurement should think more strategically and embrace the role of driving innovation to improve marketing ROI as that is the path to long-term success for marketing procurement.

 

 

 

What to Keep in Mind When Entering Into a Sports Sponsorship

By Ken Beaulieu, senior director of marketing and communications, ANA
Posted: Mar 5, 2013 12:00am ET

In 2011, Liberty Seguros, the Brazilian subsidiary of Boston-based Liberty Mutual Insurance, was announced as a national supporter of the 2013 FIFA Confederations Cup and the 2014 FIFA World Cup. This year, the property and casualty insurer became an official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams. These partnerships represent Liberty Mutual’s first major foray in the burgeoning world of sports sponsorship.

I recently asked Chris Sloan, assistant vice president and senior corporate counsel at Liberty Mutual Insurance, for his perspective on the legal implications of sponsorship. As you might imagine, there is much that brands need to be aware of.

“You really have to pay attention to the rights granted with the sponsoring entity,” said Sloan, who will participate in a panel discussion on sports sponsorship and brand promotion at the 2013 ANA Advertising Law and Public Policy Conference, March 19-20, in Washington, D.C. “Are you getting the right rights, and how can you exercise them? How do those rights fit into your overall media and advertising plans? The rights around your specific category — or bubble, if you will — need to encompass everything you touch as a company. In other words, you must make sure that how you define your category, how you define your bubble of exclusivity is correct.

“On the activation side, there are several legal issues that can crop up along the way. For example, you need to clearly understand how and where you can use the sponsorship logos and materials, including photos, films, and athletes; how you moderate and control messaging in the fast-paced world of social medal; and how you protect your exclusivity. You have to be able to react quickly, and have a plan for how you control something that may be going off track.

“One of the biggest issues is ambush marketing,” Sloan continued. “There is quite a bit of anecdotal evidence of how non-sponsors find ways to leverage big events without purchasing the rights to do so. The rights to take action against an ambush marketer — say, a competitor — generally rest with the sponsorship organization, since an ambush marketer will try to find some way to create the illusion that it is affiliated with the sponsorship or the event. So, it’s not so much that they’re using our logo or our trademark; they’re using the sponsorship organization’s trademarks to create a false affiliation. But in doing so, they’re stepping on our exclusivity bubble. It can occur innocently, maybe a restaurant throwing up a sponsorship sign or a larger company trying to create the illusion that it is one of the partners by showing up close to a sponsorship event or in close proximity to the event advertising. Those are the ones we really have to pay attention to. So when you negotiate a contract, this is one of those areas you really need to understand. In FIFA’s world, they often get legislation enacted in the host country giving FIFA special rights and special expedited avenues of recourse through the court system to get cease and desist and restraining orders against marketers that stray over the line. Ambush marketing has become almost a subspecialty in trademark enforcement.”

 

 

Marketing is an Investment to be Maximized & Not a Cost to be Minimized

By Bill Duggan, Group EVP, ANA
Posted: Mar 4, 2013 12:00am ET

Gerry Preece (former P&G marketing procurement) and Russel Wohlwerth have recently published “Buying Less for Less … How to avoid the Marketing Procurement dilemma” and the key thinking in the book is outlined below.

Too often good procurement pros have approached the marketing space with misguided goals – goals to cut costs and reduce spending.  After much diligent work, some think they succeed, but that is an illusion.

They think they can achieve buying more for less.  But because talented people are the core of marketing costs (and talent has a cost), the new low prices actually translate into procurement buying less for less.

The marketing procurement dilemma is that the job isn’t to procure; the job is to invest.  Marketing is not a cost to be minimized.  It’s an investment to be maximized.  When procurement adopts the mindset of an investor, they contribute greatly and CMOs and brands win.  They succeed when they “invest” more and when they “buy” less.

The book is worth the investment (it’s not a cost!) and is only $9.95 on Amazon.

Gerry will be a speaker at the 2013 ANA Advertising Financial Management Conference.

 

Highlights from the ANA Media Leadership Conference

By Bill Duggan, Group EVP, ANA
Posted: Feb 28, 2013 12:00am ET

ANA’s inaugural Media Leadership Conference was just held in Miami, attracting 350+ media mavens. Here are some highlights from the event.

Subway: Content has a foundational role in the Subway media plan as that provides greater “attentiveness” versus solely running ads.  For Subway, this is message integration and not product placement and must (1) seamlessly integrate into the story line; (2) be non-intrusive; and (3) increase brand likeability.  The reward here is shareable, talked-about content. (Tony Pace, CMO)

Kellogg: Kellogg asked, “What capability must we excel at to effectively and efficiently steward media investment and brand growth”? The answer – insights! Kellogg defines insights as “a fresh and unique understanding of a person’s thoughts, feelings, beliefs, or motivations that leads to actionable brand and category opportunities”. Human insights are the connective tissue that should guide how Kellogg invests in technology, uses data, and thinks of its channel mix.  Kellogg’s best brands, best work, and best results have rich insights at the core. (Jon Suarez-Davis, vice president of global digital strategy and North America Media)

Unilever: Discussed the three principles to craft brands for life: (1) Put people first – and do that by getting real insights to make a real difference in people’s lives; (2) Build brand love – to maintain and grow brands while being true to their strong equities, and ensure they are brands that people cannot live without; and (3) Unlock the magic – develop an expertise, a mastery that pays as much attention to the precision, the rigor of marketing, as to the passion for the magic of the end product.  (Rob Candelino, vice president of brand building)

Macy’s: Recognize the importance of authentic, exclusive content.  The Macy’s Thanksgiving Day Parade and “Yes, Virginia” (a musical) are prime examples. (Jennifer Kasper, group vice president of digital media and multicultural marketing)

Chrysler: Chrysler was once again a major Super Bowl advertiser.  The company ran two sixty-second commercials that we both ranked among the top five most popular per the USA Today poll.  It was noted that many advertisers took advantage of the “online playing field” with pre-game postings of teaser content. Many advertisers used video ads on YouTube ahead of the game, to complement their game-day media, to drive early brand buzz.  (Neville Manohar, head of emerging media)

Deutsche Telecom: Consumers respond best to engagement campaigns when they feel they are part of something bigger than themselves.  The presentation stressed the importance of the emotional over the rational. (Gerhard Louw, senior manager of international media management)

MillerCoors: One of the key media principles at MillerCoors is “Taking Multicultural Mainstream.” The company subscribes to total market planning.  It’s not enough to just have Spanish language activity.  These consumers are part of the mainstream and reaching them in broad communications is also essential.  (BradFeinberg, media group manager)

Two other themes were woven through many of the presentations:

  1. Shopper marketing and its increasing importance
  2. You´re only as good as your partners!  Media and agency partners.

The 2014 ANA Media Leadership Conference will be March 30 to April 1 in Boca Raton, Fla.  I can’t wait!

 

 

Social and Mobile Conference at Electronic Arts

By Marni Gordon, vice president of committees and conferences, ANA
Posted: Feb 21, 2013 12:00am ET

I had a great time hosting our second annual ANA Members Only Conference at Electronic Arts in Redwood City, California!  This year’s theme was Social and Mobile and the day included great sessions from Electronic Arts, Del Monte, Hewlett-Packard, Lytro, and Qualcomm.  The conference ended with a fantastic visit to the EA company store along with delicious candy donated by American Licorice!   Here are a few key highlights from the event:

Dish Hopper: Marketer’s Friend or Foe?

By Marni Gordon, vice president of committees and conferences, ANA
Posted: Feb 20, 2013 12:00am ET

Dish Network‘s Dish Hopper DVR has a feature called AutoHop which gives consumers the choice to skip all commercials with the push of a single button on a remote control.  Dish Network launched an ad campaign last week promoting the death of commercials which features the “Boston guys” who pay their last respects to commercials in the spot.

All  the major networks have sued.  Walt Disney Company’s ABC is seeking a preliminary injunction to shut down the feature.  News Corp’s Fox, CBS, and Comcast’s NBC Universal have filed separate suits  claiming Dish violated copyrights and breached retransmission agreements.  While Dish Network’s Hopper had a high-profile presence at this year’s Consumer Electronic Show, their latest version of its Hopper DVR was disqualified from CNET's "Best of CES" awards. The reason was that CNET's parent, CBS, is suing Dish over the Hopper's commercial-skipping technology.

While the AutoHop technology clearly could have a negative impact on advertising revenue for the networks, there is also a cause for concern among marketers.  According to a recent survey among ANA members, 65% of respondents felt that Dish Network’s Hopper DVR poses a threat to their company.  Some of the concerns expressed include that skipping commercials directly impacts the brand’s ability to quickly generate reach, the inability to recover lost ad exposures, and that this technology encourages consumers to skip ads which undermines the advertising business model.  In addition, some respondents noted that while Dish is still small relative to other cable and satellite providers, the technology and capability to skip commercials sets the wrong precedent.  Note that the respondent base for this survey was about twenty members of the ANA Media Leadership Committeee, so results are qualitative, but directional.

However, Dish Network is trying to overcome their “anti-ad” reputation among the advertising community and recently launched an interesting innovation through Dish Hopper called “What’s Hot Now”.  This feature allows Dish Hopper users to see what other Dish customers are watching and then can choose to flip channels to the most popular shows.  “What’s Hot Now” collects real-time data through set-top boxes and could potentially provide a new way to buy and sell advertising.

It will continue to be interesting to watch Dish Network as their recent innovations have potential to revolutionize and disrupt the ad industry if their subscriber base reaches critical mass.

Precision Marketing: Maximizing Revenue Through Relevance

By Bill Duggan, Group EVP, ANA
Posted: Feb 19, 2013 12:00am ET

I just finished reading the book, Precision Marketing: Maximizing Revenue Through Relevance.  Co-author Sandra Zoratti is VP marketing at Ricoh and will be a speaker at the ANA Advertising Financial Management Conference in May.

Precision marketing is about using data-driven insights to deliver the right message, to the right person, at the right time, via the right channels. Precision marketing uses relevance as a catalyst to reach and fully engage customers.

The book drives home that relevance is the key differentiator that separates successful marketing from wasteful marketing. To survive you must get relevant as the damage inflicted by irrelevant messages can be severe. With precision marketing, marketers customize their communications, interactions and offerings to reflect what their buyers have told them about themselves and what the marketers can ascertain about them from the insights they have generated.

Rather than devote marketing budgets to mass campaigns that treat every recipient in the same manner, precision marketers are mining customer data for predispositions and propensities to spend in order to target buyers in sophisticated ways so communications are targeted and relevant to each individual recipient.

Precision marketing is about bonding, not branding.  While branding marketers communicate with more of a “shout,” precision marketers converse with their customers about what these customers want and then show how their offerings or products satisfy those needs.

The role of precision marketing is to bring “the voice of the customer” into the enterprise and to help make the customer the center of the business across all functions.

Kudos to Sandra and co-author Lee Gallagher as all author royalties from the sale of their book go to Room to Read, a charity working in Asia and Africa to develop literacy skills and a habit of reading among primary school children.

 

 

 

 

 

 

 

 

ANA's Perspective on Nielsen’s Acquisition of Arbitron

By Bill Duggan, Group EVP, ANA
Posted: Feb 12, 2013 12:00am ET

Since Nielsen announced its plans to acquire Arbitron in late December, ANA has been listening to industry perspective – from our members, analysts, agencies, other associations as well as the coverage in the trade press.  Here’s where we are coming out: ANA’s position is that there is no reason to oppose Nielsen’s acquisition of Arbitron; but meanwhile, there are some valid concerns.

Here’s why we are not opposed:

While ANA doesn’t oppose Nielsen’s acquisition of Arbitron, there are nonetheless valid concerns:

It’s important to note, in this qualitative survey, half the respondents had “no concerns” and half had either “some concerns” or “serious concerns” about the acquisition. So opinion was clearly split.

At the recent ANA Commercial Ratings Summit (http://www.ana.net/conference/show/id/CRSUMMIT12) we heard from five very innovative companies, besides Nielsen, who may offer solutions for brand-specific commercial ratings: Invidi, Precision Demand, Rentrak, Simulmedia, and TRA.  These companies can do amazing things. We would hope that the Nielsen acquisition of Arbitron does not stifle innovation from these and other companies.

In closing, we expect that the Nielsen acquisition of Arbitron is a situation where 1+1=3, as combining technologies and processes may enhance some capabilities that the industry needs.

 


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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.