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:
- It’s allowing us to have one-to-one relationships with customers.
- It’s allowing us to increase creativity and innovation, making marketing fun again.
- It’s making anyone who predicted the death of TV feel very silly.
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:
- Measurement — currently a lot of work is underway to come up with cross-platform comparison metrics but there’s still a lot of work to be done on the plethora of unmeasured media.
- Digital media value erosion — Why isn’t the industry doing more to address the problem of click fraud?
- Media transparency
- Training — Because of the rapid pace of change, very few marketers feel they know enough to optimize the tools they have. This has to be addressed.
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.
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:
- Better communication and collaboration
- Senior management support
- Alignment of success metrics
- Visibility of procurement organization
- Proven contributions from procurement
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!
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:
- Recognizes that one consumer or another may represent greater volume opportunities for brands. Consequently, TMA for one brand may be different than TMA for another.
- Supported and shepherded at the highest level of the organization.
- Intends for all marketing executives to be well versed on relevant segments and feel that they have “skin in the game.”
- Reflected and embraced across the organization, its partners and its communications strategy.
- Characterized by a collaborative dynamic between the marketer and the partner agencies from the outset.
- Reflected at the strategic AND the tactical/executional level.
- New vision and approach that should be embraced as a long term strategy.
And here is what a total market approach is NOT:
- One size fits all cost reduction plan.
- Translation or adaptation of a general market campaign without diverse consumer insights from the beginning of the process.
- An assignment that is a consideration only for the multicultural MC team.
- Not a short-term test or project
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!
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:
- Fairness, good judgment and transparency are key practices that should be followed by all parties (i.e., marketers, production companies, and agencies) when considering state commercial production incentives jobs.
- Additional lead time is sometimes required for jobs where production incentives will be pursued.
- A state commercial production incentive job must be filed via a single application, complete with all possible qualifying components included.
- Depending on the type of expenditure, qualification for the incentive, and the state in which the commercial was filmed, an advertiser, production company, agency or third-party entity can file/administer the process and application.
- When the marketer is filing, the production company should be incentivized to follow state guidelines and maximize the qualified spend and rebate.
- Contracts should address state commercial production incentives.
- Marketers should be aware that, in many cases, it can take between 18 and 24 months to receive rebate checks.
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:
- On the growth of the Hispanic consumer: "For the first time ever, the University of California admitted more Hispanics than whites to its incoming freshman class."
- Digital allows a one-on-one relationship with the consumer. And the wireless world is the biggest enabler to a digital strategy.
- "Mobility is everything." Mr. Murdoch talked about the fact that video "running in digital" ultimately means "running on a mobile device."
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:
- 50% of all new home mortgages are to Latino families.
- Growth for U.S. Hispanics is faster than all the BRIC countries (i.e., Brazil, Russia, India, China) combined.
Congrats to AHAA on a great conference. Their twitter feed is at #thinkahaa.
By Andrew Eitelbach, senior manager of marketing and communications
Posted: Apr 17, 2014 6:05pm ET
I recently took a business trip and flew on an airline I’d never used before. Things went smoothly until halfway through takeoff when, suddenly, the pilot throttled down and began taxiing back to the gate. He used the intercom to inform passengers that a warning light had flashed, that it was probably nothing, but it needed to be checked out. Hopefully, he told us, we’d be back into the takeoff queue in no time.
As we sat at the gate, the pilot gave us periodic updates about what was going on. He explained the warning light had signaled the flaps weren’t working properly but that it was likely a problem with the light, not the flaps. When we hit 20 minutes of wait time, he explained why they need to do things properly to ensure safety, and then what that meant in this specific case. When they deboarded the plane and pushed our departure time by two hours, the pilot stood near the plane door offering apologies and reassured passengers that this was the right call.
Once off the plane, a colleague and I retreated to a different part of the airport to wait out the delay, which stretched from two hours into four. When it was time to reboard, we walked back to the gate and found the pilot still standing there calmly talking about the issue and explaining to passengers what had happened, what was done to fix it, and why. He had been doing this all day.
While the gate crew worked to get people onto other flights and scrounged up sandwiches to hand out to the delayed passengers, it was the pilot who impressed me the most. He offered a direct line of communication to anyone seeking answers. He spoke clearly, patiently, calmly, and at length to ease worries and make sure that anyone who was affected understood the situation and was comfortable with the current course of action. It was great customer service.
Sure, it would have been nice to avoid the delay, but great customer service left me singing the pilot’s praises to everyone I talked to instead of bashing the airline on Twitter out of frustration.
Like I said, this was my first time using this particular airline. If it wasn’t for the tremendous efforts of this pilot to alleviate fears and clearly communicate with customers, it would have surely been my last.
By Bill Duggan, Group EVP, ANA
Posted: Apr 4, 2014 9:30am ET
Programmatic buying was the topic with the most buzz at the recent ANA Media Leadership Conference.
A few definitions of programmatic buying:
-- AdExchanger: the automation of manual media buying and selling decisions and processes, enhanced through data.
-- Forrester: a software-based system to automate the buying, delivery, and optimization of ad campaigns.
-- Google: using technology and audience insights to automatically buy and run an ad campaign in real time, reaching the right person with the right message.
ANA and Forrester debuted new research at the conference which provided a number of interesting insights about programmatic buying:
Marketers’ level of understanding of programmatic buying is mixed.
-- 40% don’t have a clue (including 12% who say they are “unaware of this way of buying”)
-- 60% have some level of understanding
Use of programmatic buying in the past year is also mixed.
-- 54% said their firms have used programmatic buying
-- Among the 46% who have not, many plan to in the next year (19% plan to; 27% have no plans)
The media for which programmatic buying has been used in the past year:
-- Online display – 77%
-- Online video – 41%
Also online search – 36%; mobile – 36%; social – 36%; TV – 13%; digital place-based media – 10%; print 5%; outdoor – 3%.
The top benefits of programmatic buying are real-time optimization, better targeting, and decreased cost of media. Consistent with this survey finding, Google’s Bob Arnold said at the conference, “Programmatic buying is about driving efficiency and effectiveness.”
Potential barriers to programmatic buying:
-- Lack of visibility into data used to define audience targeting especially in digital media
-- Less visibility into where ads are placed
Advertisers are clearly climbing the learning curve with programmatic buying. There is the need for increased education among marketers and ANA and other industry players must play roles here. Meanwhile, changing media practices and technologies are raising transparency issues and such concerns need to be addresses by agencies and media sellers.
Thanks to Forrester Research for partnering with ANA on this new research!
By Bill Duggan, Group EVP, ANA
Posted: Apr 3, 2014 2:30am ET
The following provides an assortment of interesting tweets from the recently concluded ANA Media Leadership Conference. Many, many more at #ANAMedia.
|barbara basney @bbasney
#Programmic #media priorities: transparency, data capture for optimization, tight link to #brand strategy - @KCCorp Mark Kaline #ANAmedia
|Stacey Lynn Schulman @Staceyschulman
Media companies need to actively address transparency: increase vigilance, improve viewability, educate advertisers #ANAMedia
|John Fredette @JFredette
ANA's Bob Liodice: Marketers are losing 'billions' due to fraud and lack of transparency. @ANAmarketers #ANAMedia
|Beth Egan @MadAdProf
BarbaraBasney's advice for native measurement:capture what you can,measure what you can&create your own tools @bbasney #ANAMedia @XeroxCorp
Kimberly Clark tells ANA audience Local is the sleeping giant in programmatic, eventually enabling marketing to drive hyper local #ANAMedia
|Kelly Wenzel @kellywenzel
Biggest challenge facing programmatic? @joannaoconnell #ANAMedia Lack of understanding, too much complexity, inventory quality.
|Joanna O'Connell @joannaoconnell
"It's difficult to build a brand with only one medium. We must harness content & reach in all its manifestations" Kim Canfield at #ANAMedia
|Andrea J. Levy @AndreaJobs
FAME! @google's @BobbyArnold Says data needs to be focused, actionable, manageable, & enlightening. #ANAmedia
|John Montgomery @taxidodger
#ANAMedia - Mark Kaline - KC. It's critical that marketing companies considering Programmatic have a solid data strategy. #ANAMedia
Google's Suzie Reider: Pay attention to programmatic, mobile, measurement, and cord-cutting.#ANAMedia
|Brittney Watson @BrittW_PR
Gained great insight from @bjankow on how @MasterCard leverages media to connect w/ consumers. #ANAMedia #Priceless #BrandLoyalty
|Bill Duggan @BillDuggan
Strong digital creative is (1) clear; (2) concise; & (3) compelling per Google's Bob Arnold. @BobbyArnold #ANAMedia
By Bill Duggan, Group EVP, ANA
Posted: Mar 25, 2014 10:00am ET
It must be tough to work in the airline industry. Everyone’s a critic – sometimes justified and sometimes not. Consider an experience I just had when trying to change my travel plans for an upcoming flight.
My roundtrip ticket from New York to Chicago cost $376. I now have to stay in Chicago for an additional evening and need to change my departure time from 7pm to 7am the next day. The cost for that change is $200. That’s more than half the cost of the original fare, which doesn’t seem right. Plus, this is my preferred airline and I am a “silver” member in their loyalty program.
It gets worse. The cost for a one way ticket from Chicago to New York is $188. How can the “penalty” for changing my flight plans possibly cost more than a new ticket? And wouldn’t the airline rather me not buy that new ticket to prevent having two reservations in their system (including one I wouldn’t use)?
I don’t mind paying a fair and reasonable fee to change my ticket – but this is ridiculous. We hear so much at ANA about brands “putting the customer at the center” and airlines (at least this one) would be smart to do the same.
By Jesse Feldman, manager, marketing knowledge center
Posted: Mar 19, 2014 12:30pm ET
You’re missing out* if you’re not taking advantage of your ANA membership by attending committee meetings. But that’s why I’m with the MKC: to provide snapshot summaries of meeting events. And last month had some seriously excellent committee meetings:
At the Mobile Marketing Committee, presenters were all about beacons. Denée Carrington, senior analyst at Forrester Research, even declared “beacon” the first buzzword of 2014. Carrington also shared five things marketers should do right now to prepare for the digital wallet trend. Check out her presentation to learn more about what’s next for digital wallets, m-commerce, and omnichannel wallets. (And, yes, we did discuss Bitcoin in the Q&A.)
Also at the Mobile Marketing meeting, Gayle Meyers, founder and managing partner of Digital Media Review’s Industry Index, took a deep dive into the technologies powering the latest mobile advertising revolution: location intelligence. Can you guess what year half of all ad spend will be location-targeted? It’s sooner than I’d expected. (But you have to click to find out.) Meyers also shared five questions to ask to find out if the location data you’re buying is being pulled the right way. The presentation finished off with a quick roundup of new, innovative startups that marketers should pay close attention to now.
I also attended the most recent Multicultural Marketing and Diversity meeting, held at NBA HQ (where the clocks are shot clocks and the floors by the elevators look like courts!). Tru Pettigrew, founder and CEO of Tru Access, had the full house singing and laughing with an exercise on culturational chemistry. Pettigrew coined the term “culturational chemistry” after realizing the internal and external business benefits of cultural and generational inclusion. Looking for ways to bridge the generation and culture gap with Millennials? This presentation offered five steps for both marketers and employers.
*Specifically, you’re missing out on knowledge-sharing, networking, great roundtables, and snacks.
Jesse Feldman works in the ANA’s Marketing Knowledge Center (MKC), a rich suite of insights, case studies, presentations, 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.