Marketing Maestros

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.


Never Stop Connecting with Influencers

By Ken Beaulieu, senior director of marketing and communications, ANA
Posted: Feb 6, 2013 12:00am ET

Sartori CMO Chad Vincent views social media as the “great equalizer” for companies with a limited marketing budget. When he joined the company in 2010, after serving as chief branding officer at Fiskars, he immediately scanned the blogosphere to not only see what people were talking about, but also determine whether they were a good fit for the brand. “It’s all about finding the influencers and enthusiasts for your brand,” Vincent notes.

Vincent led the effort to launch a company Facebook page to connect with customers and consumers through conversations and small competitions, and had Sartori’s website remapped to make it more consumer-friendly. He spends a few hours each week with a small social media team to discuss unique ways to drive engagement on Facebook.

“For example,” Vincent says, “one of our cheese-makers created a pink peppermint cheese. It was pretty bizarre, but it was incredible. So we posted a picture of the cheese on Facebook and ran a competition. The person who generated the most “likes” was sent some of the pink cheese. And for every like, we donated $1 to breast cancer research. We ended up with a couple thousand hits in three or four days, and people were really talking about it. It was engaging, and it helped generate awareness for our sell-in. It’s just a matter of trying things, having fun, and seeing what works.”

The bottom line, Vincent contends, is that companies need to give brand teams the freedom to reach out to, and communicate with, influencers. “So much of our awareness comes from this,” he says. “It’s just of a matter of working the relationships and making sure it works for both sides.”


Innovation Day at Walmart

By Bill Duggan, Group EVP, ANA
Posted: Feb 6, 2013 12:00am ET

I made my first-ever trip to Bentonville, Arkansas this past week where Walmart hosted ANA Innovation Day.  Here are some highlights from the day:

Finally, here are a few memorable lines heard during the day:


ANA Members Want Brand-Specific Commercial Ratings

By Bill Duggan, Group EVP, ANA
Posted: Jan 30, 2013 12:00am ET

Last week, ANA hosted the Commercial Ratings Summit.  Our purpose was to discuss solutions that could help facilitate the availability of brand-specific commercial ratings for television. The meeting was attended by 92 individuals representing client-side marketers, agencies, media (network, cable, and syndication), solution providers, industry trade associations, and other interested parties.

ANA members and other industry experts have identified numerous benefits for brand-specific commercial ratings.

Better Knowledge / Increased Accountability

Better Creative Decisions

Brand-specific commercial ratings would be a resource to help make better creative decisions via:

As one ANA member said, “It will be helpful to understand if our creative is incurring lower ratings than the average for that program.  If our creative is causing channel changing we want to know.  If networks want to keep audiences through the commercial break, understanding which creative keeps and which doesn’t keep is valuable for them too.  Makes us all want to strive for better experience for the consumer and have the data to understand it.”

Better Media Decisions

Brand-specific commercial ratings would also help make better media decisions:

Branded Entertainment

As one summit attendee noted, “brand-specific commercial ratings can identify leverage opportunities,” to those who decide to use them.

ANA members have unequivocally spoken, demanding brand-specific commercial ratings. ANA will continue to advocate on this issue and to keep our members and the overall industry informed of progress as well as roadblocks.




Facial Recognition – A Better Solution for Television Ratings?

By Bill Duggan, Group EVP, ANA
Posted: Jan 18, 2013 12:00am ET

We all watch television.  Now some televisions have the capability to watch us back.  Google the term “Facial Recognition” and you’ll see that there are 5.4 million search results!  A facial recognition system is a computer application for automatically identifying or verifying a person from a digital image or a video frame from a video source.

Companies including LG, Samsung, Toshiba, and Hisense (China’s leading TV manufacturer), have televisions with facial recognition technology.  A built-in camera recognizes the face(s) of the individual(s) in the room and then personalizes the experience to each recognized family member, switching to different preferences and home screens based on which member of a family sits down to watch.  If you have visitors over, those faces could be logged as well.

Which brings me to television ratings.  Clearly, both buyers and sellers want the most accurate ratings information possible.  That is undeniable – the more accurate, the better.  The current People Meter requires a viewer to “punch in” to a device hooked up to their television when watching TV and then “punch out” when leaving the room (even for a bathroom or refrigerator break).  Nielsen introduced the People Meter nationally in 1987, and while that was revolutionary at the time (especially compared to manual diaries), a lot has change in those sixteen years.

Facial recognition has interesting applications for television audience measurement to give a more accurate count of viewers in front of the TV, while not relying on the compliance of viewers to punch in or punch out.  There are privacy concerns, of course.  But facial recognition is an idea worth exploring for television ratings.  I’ve heard that there is some work already being done here, and encourage the sharing and acceleration of that work.


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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.