Advertising Financial Management
This event is over.
Networking Breakfast: 9:00-9:30am
Introductions & Agenda Review: 9:30-9:45am
I. PATENT TROLL: WHAT YOU NEED TO KNOW TO MINIMIZE THE RISK (9:45-10:45AM)
With the growing number of websites and apps created by companies, marketers are increasingly the targets of "patent trolls"-- a derogatory term for companies that don't produce anything, but buy up patents to make money from enforcing them. They have long been an issue for tech companies and now for mundane technology such as drop-down menus and product placements which makes marketers and their agencies targets as well, since agencies are often the ones creating these technologies for their clients. Patent-infringement claims can cost marketers millions of dollars and years of court time, so currently the only viable option is to settle out of court and pay licensing fees which can cost around $200,000, which is not favorable, however still the less costly option. The 4A's has taken a stance on this subject which marketers need to be aware. The 4A's recommends agencies tell clients they'll be the ones to assume the risk, and if they don't, clients should expect higher agency fees that can cushion potential claims. In this session, Cynthia Kernick, Partner - Reed Smith will discuss critical precautions you need to know in order not to become a victim of the Patent Troll and avoid higher agency fees.
Cynthia Kernick, Partner - Reed Smith
II. THE GLASSBOX: WHAT WAS THE AGENCY THINKING? (11:00-12:00PM)
How do you value the agency output? It's not black and white and can be open to interpretation depending on which side of the table you are on. So, who's right and who's wrong? In this session, Vince Chimienti, Director of Procurement & Negotiation Services - The Glassbox (formerly Vice President Commercial & Procurement Services North America- WPP Group USA) and Dorothy Young, CEO - The Glassbox (formerly CEO of SilverCarrot and CCOO of Ogilvy North America) will discuss the benefits of value vs. cost and show how to define the value of the creative output. You will learn how to establish, negotiate and measure the value of your agency's work, which will ultimately create more value for your organization. Both Vince and Dorothy have extensive agency side procurement experience and will share the agency POV in this fun-filled interactive session that will provide actionable results you can implement immediately.
Vince Chimienti, Director of Procurement & Negotiation Services - The Glassbox (formerly Vice President Commercial & Procurement Services North America- WPP Group USA)
Dorothy Young, CEO - The Glassbox (formerly CEO of SilverCarrot and CCOO of Ogilvy North America)
III. AGENCY TRADING DESKS (12:45-1:15PM)
Agency trading desks are "independent" subsidiaries set-up within holding companies to purchase digital ad inventory on exchanges as an alternative to ad networks. Clients therefore pay fees to the planning agency as well as to the trading desk. Lately, some have questioned whether agency trading desks are a conflict of interest, acting as an agency and vendor at the same time, i.e., "double-dipping." Agencies argue that, rather than executing a digital buy via an ad network, doing so via an agency trading desk is a better option as ad networks have very high margins and now instead, trading desks lower costs to clients while providing agencies with a fair profit. This issue has only recently come to the attention of ANA and we'd like to get input from members at this session.
Bill Duggan, EVP - ANA
IV. MEMBER ROUNDTABLE DISCUSSION: NEW PRINCIPLES OF FAIR AGENCY COMPENSATION SUGGESTED BY THE 4A's (1:15-2:00PM)
Almost a decade ago, the 4A's and ANA partnered on development of agency compensation best practice guidance. The principles that were developed have withstood the test of time and are still very relevant today. However, given the changes in the industry over the past decade 4A's has proposed that six additional guiding principles be considered:
• Calibrate agency pay with the scope of benefits derived by the marketer and the value added by the agency
• Recognize the objectives of all significant client and agency stakeholders
• Feature an ongoing relationship assessment process
• Feature transparency and understanding of appropriate and credible metrics
• Consider Digital Resource Requirements and Their Economic Dynamics
• Contract Terms are Interrelated with Compensation
4A's discussed the above in detail in a session at the recent ANA Advertising Financial Management Conference. In this committee meeting, we'll have a members only discussion on the six suggested new principles and seek feedback on whether ANA should adopt those or not
V. ANA PROCUREMENT TASK FORCE UPDATE (2:00-2:30PM)
This session will provide an update on the group's work to date and plans for the future.
The mission of the ANA Procurement Task Force is to:
• Define and elevate the role of marketing procurement.
• Close the "gaps" on the value of procurement between procurement and internal marketing as well as procurement and external agencies.
1. Branding & PR
2. Education & Curriculum
3. Procurement Mentoring Group
MEETING OF ANA PROCUREMENT TASK FORCE TO FOLLOW FROM 2:30-3:30PM.