2007 Advertising Financial Management Conference

General Session

Conference Chair
Hiten Patel
Global Sourcing Director
Global Commercial Operations and Corporate Communications
Amgen Inc.
Chair, ANA Marketing Financial Management & Procurement Committee, West Coast Chapter

THE MOST-IMPORTANT METRIC IN BUSINESS
The Net Promoter Score (NPS) is a relatively new metric for measuring customer loyalty as well as loyalty among employees and strategic business partners. NPS is a framework for setting strategic research objectives and priorities to ensure organic growth. It's extremely simple and asks the ultimate question--"How likely is it that you would recommend our product/service to a friend or colleague?" : Enterprise Rent-A-Car was the inspiration for NPS, and ANA member Fiskars Brands is an advocate.

Carol Perry
Director, Insights & Intelligence
Enterprise Rent-A-Car Company

Chad Vincent
President, Fiskars School, Office & Craft Division
Fiskars Brands, Inc.

Introduction/Q&A Session
Shepard Kramer
Senior Director, Committees and Conferences
ANA

WHAT STICKS [or MARKETING'S INCONVENIENT TRUTH]
Based on research against a billion dollars in advertising spending, the authors of What Sticks found that an extraordinary amount of advertising spending today is wasted. In fact, they estimate that waste to be $112 billion in the U.S. alone. In the 30 studies conducted, they found, for example, that 47% of campaigns fail before one dollar of media is spent. Why does this happen?

And the real bad news - those projections are based on studies conducted in-house with brands at P&G, Ford, Kraft, J&J, Nestle and two dozen other so called "champions of marketing."

So while procurement and financial officers at marketers and agencies are busy negotiating hourly fees or commission structures, it appears the village is burning down. Call it the marketing industry's equivalent of melting polar ice caps. What's more, as our speaker will suggest, we are missing the point and in fact slowly killing a business that many of us, including the author, love.

Ad Age named What Sticks the number one book you should have read last year.

Greg Stuart
Coauthor, What Sticks
Former President and Chief Executive Officer, Interactive Advertising Bureau

Introduction/Q&A Session
Ken Beaulieu
Editor
ANA's The Advertiser Magazine

THE CHANGING MEDIA LANDSCAPE--WHAT'S NEW, WHAT'S NEXT AND WHAT'S INNOVATIVE
The vast majority of marketing budgets are in working media. Meanwhile, the media landscape is undergoing dramatic change as it transitions from a mass model to a consumer-centric, targeted approach. In the old media world, the marketer with the most money for network television usually won. In the new media world, it is the marketer with the best sense of how to work with new media, viral, and buzz marketing that often wins against the heavier traditional-media spender. This session will include perspectives from one of the architects behind Bud.tv (the social video entertainment network launched in February) and the head of an agency holding company's emerging media lab.

Moderator
Dr. Peter S. Sealey
Founder and Chief Executive Officer
The Sausalito Group, Inc.
(Dr. Sealey is a former Coca-Cola CMO and a new media guru.)

Panelists
Robert C. Lachky
Executive Vice President, Global Industry Development & Chief Creative Officer
Anheuser-Busch, Inc.

Jim Lecinski
Regional Sales Director
Google, Inc.

LUCK AND PERSPECTIVE
Bob Parsons has an impressive track record of entrepreneurial and business success. In 1997 he founded The Go Daddy Group, Inc., carving out a unique niche for GoDaddy.com® as an alternative to the early monopoly held by much-larger companies in the Internet domain registration market. As a full service domain registrar, Go Daddy® was founded on Mr. Parsons' commitment to provide superior customer service, highly competitive pricing, innovative product offerings, and a responsibility to do the right thing. His vision and leadership propelled Go Daddy to become the preeminent registrar of domain names in the world. Mr. Parsons will share his experiences and insights--including his "Rules for Success"--plus war stories behind Go Daddy's legendary Super Bowl spots.

Bob Parsons
Chief Executive Officer and Founder
The Go Daddy Group, Inc.

MEDIA COST TRANSPARENCY AND THE TOOLS TO MANAGE IT
Sponsored by SQAD
As the shift in media dollars continues, the call for increased transparency and accountability from marketers has become louder. At the forefront of this movement, SQAD has been the industry's standard source for media cost analysis, with more than $20 billion worth of media transactions collected annually. SQAD's CEO will discuss how media professionals can best navigate through this valuable data and be armed with the knowledge that enables them to best serve their clients.

Neil D. Klar
President and Chief Executive Officer
SQAD, Inc.

CREATING A VALUE-BASED AGENCY RELATIONSHIP
Progressive client-agency relationships are moving away from a system of simply tracking and charging for time to evaluating the value of an agency's contribution to its client's success. Two of the industry's thought leaders in this area will present the highlights of a new ANA study on value-based compensation. This session will also explore in detail the benefits of a value-based compensation system which:

• Focuses on value and effectiveness instead of time and cost.
• Results in more proactive ideas and marketing leadership from your agency.
• Has both the agency and the client sharing risk.

We'll also explore how to make value-based pricing work in your organization. The discussion begins not with "scope of work," but rather "scope of value"--the ultimate benefit the agency is expected to provide for the client. Most importantly, it switches the focus of the dialogue from inputs (agency time) to outputs (client results).

Agency compensation based on value created, rather than efforts expended, works for a key reason: it aligns the interest of the agency and the client, replacing the sometimes adversarial and zero-sum nature of cost-plus pricing to one of abundance and mutual gain. This presentation will show how.

Ronald J. Baker
Founder
VeraSage Institute

Tim Williams
Founder, Ignition Consulting Group
Senior Fellow, VeraSage Institute

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A NEW MODEL FOR BUYING MEDIA: eMEDIA EXCHANGE
At this conference in 2006, a small task force of advertisers and agencies proposed a new model for buying media, an online media trading exchange. That session was the catalyst for broader industry support of this concept and its 2007 pilot program launch. National cable television will be the initial focus. The pilot will test the viability of securing inventory and matching it with the marketers' requirements in an electronic marketplace. The pilot will be an adjunct to the existing media-buying system and provide efficiencies to advertisers, agencies, and the media; eBay will develop and manage the framework and technology for the project.

Introduction
Barbara Bacci Mirque
Executive Vice President
ANA

Speakers
Meredith S. Brace
Global Media Manager
Hewlett-Packard Company

David Grubb
Worldwide Media Director
Microsoft Corporation

Kathleen Malone
Global Media Director
Intel Corporation

HOW MARKETING OPERATIONS HELPS TODAY'S MARKETING DEPARTMENT ACHIEVE SUCCESS
More and more marketing organizations are creating specialty functions within marketing operations and charging them with leading the path towards better process management, efficiency, and enhanced accountability. For some this is the root of large-scale automation and the adoption of standardized practices, often in the face of passive resistance. While for others marketing operations concerns continuous process improvement that will enable the organization to do more with the resources at its disposal.

Panelists will discuss their experiences pioneering the emerging role of marketing operations, provide insights into the way to define and scope its charter, and explore methods to implement or enhance such a group.

Moderator
Pat LaPointe
Managing Partner
MarketingNPV LLC

Panelists
Melanie Harrison
Director, Marketing Effectiveness
Sprint Nextel

Rob Redford
Vice President, Marketing Strategic Planning and Operations
Cisco Systems, Inc.

A "RESULTS-ONLY WORK ENVIRONMENT" TRANSFORMED BEST BUY'S WORKPLACE CULTURE
At Best Buy there are no fixed schedules and no mandatory meetings. Their "results-only work environment" (ROWE) frees employees to make their own work-life decisions and seeks to demolish the decades-old stigma that equates physical presence with productivity. ROWE judges performance based on output instead of hours. With ROWE an unwavering focus on results, rather than time or place, has increased productivity (up an average of 35 percent), increased retention, increased engagement, and generated massive ROI. By the end of 2007, all 4,000 corporate Best Buy associates will be ROWE participants. (BusinessWeek recently featured a cover story on ROWE.)

Cali Ressler
Principal
CultureRx, a wholly owned subsidiary of Best Buy

Jody Thompson
Principal
CultureRx, a wholly owned subsidiary of Best Buy.

Q&A Session
Bill Duggan
Executive Vice President
ANA

Speed networking is the corporate equivalent of speed dating. During this session, attendees will rotate through a series of short one-on-one meetings that will last no more than ten minutes. Share your experiences and learn from your peers at other companies. The specific discussion topics for this session will be Agency Compensation, Procurement, Agency Relations and ROI. (1:00 pm - 2:15 pm)

TAKING THE NEXT STEP-UNLOCKING PROCUREMENT TO TRULY POWER AND EVOLVE MARKETING
Join Jeff Hicks as he discusses Crispin Porter + Bogusky's (CP+B) philosophies and strategies for successfully using compensation to reinforce and power progressive marketing. He will share several client case studies and talk about CP+B's experience in working to better align agency compensation with the mission of client marketing. CP+B has been at the forefront of evolving agency compensation, including incentive compensation, co-ownership of intellectual property, and forming equity partnerships with clients.

Jeff Hicks
President, CEO and Partner
Crispin Porter + Bogusky.

Q&A Session
Joanne Davis
President
Joanne Davis Consulting, Inc.

INNOVATIONS IN VALUE-BASED AGENCY COMPENSATION (SEEKING A WHOLE GREATER THAN THE SUM OF ITS PARTS)
A recent study says 4 out of 10 clients use some form of incentive aspect when paying their agencies. Yet another reports 3 out of 4 clients say there is no way to determine ROI from their lead agency, with ROI being too difficult to measure. How can a client assess the value of its agency and its appropriate compensation? Taking into account client experiences and case studies, this panel will discuss value-based agency compensation models applied to advertising, media, interactive, and promotion agencies.

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Moderator
Arthur A. Anderson
Principal and Co-Founder
Morgan Anderson Consulting

Panelists
Steve Fajen
Principal and General Manager
Morgan Anderson Consulting

Rebecca L. Hughes
Procurement Specialist
J.C. Penney Corporation, Inc.

TRENDS IN AGENCY COMPENSATION - WHAT DO THEY MEAN FOR ADVERTISERS?
Every three years the ANA reports on the types of compensation arrangements used by national marketers to pay their agencies, based on an extensive survey to ANA members. This survey has become the leading benchmark for the industry and has always been the "go to" report for the latest trends and practices. There has been considerable talk and attention given to new methods of agency compensation; e.g., value-based compensation and sales based commissions. Are these new methods gaining ground amongst U.S. advertisers? Will one or more of these supplant labor-based fees as the predominant form of agency compensation, much as fees replaced commissions? Exclusive results from the latest survey will be premiered.

Introduction
Will Waugh
Senior Director, Communications
ANA

Moderator
David Beals
President and Chief Executive Officer
Jones Lundin Beals, Inc.

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Panelists
Maryjo Tisor Cummings
Group Director, Strategic Sourcing
Visa U.S.A. Inc.

Beau Fraser
Managing Director
The Gate Worldwide LLC

Greg Taucher
Chief People officer
Director of Worldwide Accounts
DDB Worldwide Communications Group Inc.