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Marketing Maestros

The Case For Media Procurement

By Bill Duggan, Group EVP, ANA
Posted: May 20, 2014 11:00am ET

The annual ANA Advertising Financial Management Conference just wrapped up. There were 600+ attendees and many of those were client-side marketing procurement professionals. Procurement has traditionally handled areas including contracts, RFIs/RFPs, agency evaluations, scope of work development, and supplier diversity. Agency compensation has long been a priority of marketing procurement; production has more recently become a focus.

Now, procurement needs to spend more time on media. When looking at the combination of media, production, and agency compensation, media comprises 80% of those dollars … but agency compensation and production account for 90%+ of the focus for most marketing procurement organizations.

A new trend is on the rise – media procurement – and those individuals have a laser-like focus on media. Kudos to those companies that already have media procurement. More companies now need to realize the benefit. It’s where the dollars are!

Responsibilities of media procurement include: media auditing – checking that the media a client has bought is in the right places, at competitive prices; media agency evaluations; and investigating media transparency issues. Media procurement can provide an overall company perspective and the benefit of visibility of media supplier pools across businesses to help leverage a company’s total investment.

Media procurement should ask, “Do we know what we’re getting?,” and see how and where digital advertising gets placed (e.g., frequency caps, inappropriate content, share of voice, above-the-fold) and push for greater visibility into data used to define audience targeting, especially in digital media. Media procurement should ask, “Are we getting what we paid for?,” and investigate issues such as click fraud and reliance on served versus viewable impressions.

Given the strong negotiating skills of procurement, the day will even come for some advertisers when media procurement will be at the negotiation table helping to cut deals with media suppliers.

For now, more companies need to recognize the very big value of media procurement.

Thanks to Radio & Television Business Report for first publishing this blog.

You don’t know what you don’t know: More marketers worry about media buying transparency

Posted: May 15, 2014 10:00am ET

Transparency issues between marketers and their media agencies are on the rise, per a new ANA/Forrester Research survey.

Forty-six percent of marketers have concerns about the level of transparency between themselves and their media agency(s). Further, concerns about transparency have increased for 42 percent of marketers over the past year, and have decreased for only 13 percent. 

The issues that cause the most concern are:

As stated in a previous blog, there is a transparency crisis in the advertising industry and this new research further confirms that. What are the implications for marketers?

As our industry continues to evolve, transparency issues between clients and agencies are likely to remain concerns. For example, programmatic buying—which has various intermediaries between the buyer and seller—appears to be an issue with emerging transparency concerns. Marketers would be wise to pay attention!

Thanks to The Economist for first publishing this viewpoint in their Lean Back marketing blog.

Metrics & Procurement

By Bill Duggan, Group EVP, ANA
Posted: May 7, 2014 3:00pm ET

ANA’s new research, “Optimizing the Procurement & Marketing Relationship,” looks at the relationship between procurement and marketing.

There was a notable disconnect when respondents were asked to rate the importance placed on various metrics.

A key learning in this research: better alignment between marketing and procurement on success metrics is required. While cost is important, procurement should pay closer attention to the metrics of highest importance to marketers – specifically sales/market share increases, improving marketing ROI and improving brand health metrics.

Is On-the-Job Training Enough?

By Jesse Feldman, manager, marketing knowledge center
Posted: May 7, 2014 11:00am ET

My team has had a busy month strategizing how to best bring insights from our Marketing2020: Organizing for Growth survey to members. Marketing2020 was a joint ANA and EffectiveBrands study and the most comprehensive global marketing leadership initiative ever undertaken. For a further overview of Marketing2020, check out this ANA webinar summarizing how CMOs, CEOs, and other leaders can align their strategies, organizations, and capabilities to build their brands in the years ahead.

New, “snackable” articles from Marketing2020 will go live once a week on a dedicated section of our site. You won’t need a password to view the articles — so if you find the findings as fascinating as we do, share the links across your social networks (hint: your LinkedIn connections will find them fascinating). This week I wrote about the direct correlation between companies offering more days of formal training and overall performance. You (or your boss) might be surprised to see how few respondents felt they received adequate on-the-job training.

Upcoming topics we’ll be covering include marketing leadership traits that drive growth and top motivators for successful marketers. We’ll also be publishing infographics and key findings reports to help marketers align their strategies, organizations, and capabilities to generate growth in the years ahead. You can also follow the conversation on Twitter with #Marketing2020.

Jesse Feldman works in the ANA’s Marketing Knowledge Center (MKC), a rich suite of insights, case studies, event recaps, and research. You might notice her taking notes for the MKC at committee meetings, members-only conferences, or (virtually) webinars. She’ll be popping onto the ANA blog to regularly highlight some latest and greatest MKC content.

Insights from Day 2 of AFM

By Constantine von Hoffman, editor of ANA Magazine
Posted: May 6, 2014 1:30pm ET

Tuesday at the ANA Advertising Financial Management conference got off to a great start with a lively, informed — and PowerPoint free! — talk on the future of marketing by Rishad Tobaccowala, chair of DigitasLBI and Razorfish.

He began by pointing out all the assumptions the marketing industry has about the future — how it will be increasingly digital, social, data driven, mobile, and focused on emerging markets. No great surprise there, but then he started dissecting those assumptions and looked at what is left out of them and their implications.

First, he looked at how important analog’s ideas and actions remain despite the seeming triumph of all things digital. For example, there is the way mobile is putting more emphasis on people and places, like how people go into a brick-and-mortar store and then look online to see if they can get a better price. That’s digital supplementing analog.

One of the reasons analog will always be important is because digital is binary – yes/no, on/off – while people are not. We are a “maybe” species that frequently rejects data we know to be true in order to follow our preconceptions. “People choose with their hearts and then use numbers to justify what they just did,” he said. While this might seem a critical flaw at a time when all the talk is of “data-driven decision-making,” it’s actually a strength we need to understand. “The underlying basis of our business is storytelling,” Tobaccowala added, “and storytelling is analog.” In other words, if Beauty had stepped back and made a well-thought-out rational decision about falling in love with the Beast, no one would have been the least bit interested.

Tobaccowala then warned about the risk of always looking to the market leaders for innovation. “TV and video is going to come from the slime, not the heavens,” he said, turning a phrase which I bet made everyone think. His point was that just as Netflix, Amazon, and Hulu have become big by being disruptors, they didn’t start that way. The next disruptors are already out there, it’s just that no one has caught on to them yet. “Don’t pay too much attention to your bosses,” he said. “They are the past.”

The future of marketing is less about ads and more about utilities and services. He pointed out that for $60 or $70 a month people can get much of their media ad free by subscribing to things like HBO GO, Amazon Prime, Netflix, and Spotify. While not everyone will or can do this, the 30 percent to 40 percent who do are going to be the ones most desirable to marketers. The only way to reach them is by providing something useful which they will use. He summed up the consumers’ view perfectly by pointing out that ads tell consumers the brand doesn’t value their time.

That really was just the first third of his talk and the rest was every bit as interesting and iconoclastic. Tobaccowala is @rishad on Twitter and I just became a follower.

AFM Conference Off to a Great Start

By Constantine von Hoffman, editor of ANA Magazine
Posted: May 5, 2014 2:00pm ET

The first session of the Advertising Financial Management conference got off with a bang as Decideware CEO Steven Wales announced a record attendance of more than 600 people. Proof that it’s a quality crowd here: Wales was happy about the number of people even though Decideware had just bought us all a truly fine breakfast!

Proof of quality of the content being offered: Despite the beautiful weather and the lure of nearby beaches and pools, it was standing room only for the entire first session.

Wales was followed by Jim Porcarelli, chief strategy officer at Active International, who promised interesting results of a new CFO/CMO alignment survey which he will be releasing tomorrow.

ANA President Bob Liodice then gave a nice overview of the topics to be addressed at the conference, which are also some of the biggest concerns of marketers and agencies. “This conference is about movement,” he said. “Every part of the media supply chain has been turned on its head.”

There’s no need for anyone to wait any longer for disruption, it’s here:

He then looked at the chief worry of the entire industry: Are we leaving money on the table? Undoubtedly yes. The way to address that is by focusing on strategic media imperatives:

Bob was followed by conference co-chairs Terri Burns, Aflac’s strategic sourcing consultant, and Sal Vitale, Johnson & Johnson’s category lead for media procurement, who further outlined what we could look forward to over the coming days.

Improved Relationships between Marketing and Procurement

By Bill Duggan, Group EVP, ANA
Posted: May 5, 2014 11:00am ET

The relationship between marketing and procurement has improved substantially and is driving results according to Optimizing the Procurement & Marketing Relationship, a new ANA survey.

The survey of 155 client-side marketing and procurement professionals, fielded in March 2014, looked at the relationship between procurement and marketing and the factors that lead to the strongest internal partnerships and business results.  

Both marketing and procurement note substantial improvements in their relationship in the past year – with 30 percent of marketers and 62 percent of marketing procurement professionals reporting positive increases. 

According to survey respondents, the leading factors that have driven these increases include:

The findings indicate that the marketing/procurement relationship, which historically has been much maligned, may have finally turned the corner and is now on a positive path. That’s big news! 

What is Total Market? AHAA Helps Provide a Definition!

By Bill Duggan, Group EVP, ANA
Posted: May 2, 2014 10:00am ET

Total market was all the rage at the recent AHAA Annual Conference. Kudos to AHAA for bringing together the industry to put a stake in the ground with a definition of total market. That definition …

A marketing approach followed by corporations with their trusted internal and external partners which proactively integrates diverse segment considerations. This is done from inception, through the entire strategic process and execution, with the goal of enhancing value and growth effectiveness.

In marketing communications this could lead to either one fully integrated cross-cultural approach, individual segment approaches, or both in many cases, but always aligned under one overarching strategy.

Collaborators to this definition included industry trade groups like ANA and 3AF; client-side marketers Clorox, Dunkin Brands, Kellogg’s, and Kimberly-Clark (all ANA members!); agencies including Acento, Burrell, FCB, IW Group; and consultants Dávila Multicultural Insights and Santiago Solutions Group. Apologies if I left anyone out!

Here’s what a total market approach is:

And here is what a total market approach is NOT:

Feel free to agree or disagree. As noted above, a total market approach for one brand may be different than for another. But this conversation and discussion are good for the industry!

State Commercial Production Incentives – Principles for Fair Business Practices

By Bill Duggan, Group EVP, ANA
Posted: May 1, 2014 11:00am ET

ANA has released State Commercial Production Incentives – Principles for Fair Business Practices,” a set of guidelines to help marketers navigate and monetize the complex area of state commercial production incentives. 

Many states offer financial incentives to shoot commercials in their states. Although such incentives originated more than ten years ago, recently they have expanded to additional states and have become increasingly attractive to production companies and marketers. It’s not uncommon to receive a $100k rebate for a single production job!  In order to help marketers navigate the complexities of state commercial production incentives, the ANA Production Management Committee developed these principles. Highlights are:

Insights from A Media Mogul at AHAA Conference

By Bill Duggan, Group EVP, ANA
Posted: Apr 30, 2014 11:30am ET

Rupert Murdoch was the opening keynote speaker at the 2014 AHAA (Association of Hispanic Advertising Agencies) Annual Conference.  Insights from Mr. Murdoch included:

Interestingly, Mr. Murdoch told the audience that this was his first time in Miami!

Sol Trujillo facilitated the Q&A with Mr. Murdoch following his prepared remarks and added interesting perspective of his own:

Congrats to AHAA on a great conference.  Their twitter feed is at #thinkahaa.


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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.