Marketing Financial Management
|Begins:||Thursday, September 8, 2011 at 9:00am|
|Ends:||Thursday, September 8, 2011 at 2:30pm|
800 North Brand Blvd.
21st Floor, Room 2109
Glendale, CA 91203
Meeting notes are available to current, logged in Members only.
8:30-9am Networking Breakfast
9-9:15am Introductions and review of agenda
I. AGENCY TRADING DESKS (9:30-11am)
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 the purpose of this session is to better educate ANA and our members. There's a great article here: http://www.digidaydaily.com/stories/the-trouble-with-trading-desks/
Quentin George, Chief Digital Officer - Mediabrands
David Gould, EVP, Global Digital Managing Director - SMG
II. AGENCY EVALUATION PROCESS AT NESTLE (11:15am-12:15pm)
Agency performance evaluations are a critical tool to help both marketers and agencies assess their relationships, identify potential problems, and improve performance. In this session, Sopan Shah will share best practices and insights on the agency evaluation process at Nestlé, including use of APRAIS and other models for agency reviews.
Sopan Shah, Group Manager, Marketing Procurement - Nestlé Business Services North America
Carleen Ramirez, Interactive Manager - Nestlé USA Corporate Communications
III. MEDIA DISCUSSION (after lunch)
Historically, this committee has spent a lot of time talking about agency comp, and less time on media (although media often represents 80% of the spend between agency comp, media, and production). Going forward, we'll cover more media topics, including branded entertainment and media barter in this meeting.
A. Branded Entertainment: According to new ANA research, the overall incidence of branded entertainment is relatively unchanged between 2006 (66%) and 2011 (63%), yet those companies involved appear to be making a bigger financial commitment. However, client-side marketers are not satisfied with the quality of research available to measure the impact of branded entertainment and little progress has been made with improving that research. We'll discuss the survey highlights.
B. Media Barter: Media barter, also called corporate trade, can be a financially sound way of realizing full value for excess assets. Typically, the way a media barter deal works is that a marketer liquidates some unsold goods or services either directly or indirectly in exchange for media credits. All the major agency holding companies now have barter units and Active International is the leading independent corporate trading company. Admittedly, barter has a bit of a mixed reputation and this will be an open discussion for members to share their experiences and perceptions, both positive and negative, with media barter.
IV. ANA PROCUREMENT TASK FORCE UPDATE
The mission of the ANA Procurement Task Force is to define and elevate the role of marketing procurement and close the "gaps" on the value of procurement between procurement and internal marketing as well as procurement and external agencies. We will discuss the initiatives of our three subcommittees.
- Mentoring: connects junior/less experienced marketing procurement professionals with senior-level marketing procurement professionals.
- Case Studies: these focus on the value and positive contributions of marketing procurement. To date there are contributions from Toyota and Anheuser-Busch InBev. Additional case studies are in progress.
- Webinars: a webinar series for marketing procurement professionals started June 10 and runs on most alternate Fridays.
V. OTHER BUSINESS
ANA committee meetings provide a "focus group-like" environment, allowing attendees to pose their issues and challenges to attendees for instant feedback.