Advertising Financial Management

NETWORKING BREAKFAST (9:00 – 9:30)

INTRODUCTIONS (9:30 – 9:45)

I. AGENCY HOLDING COMPANY MODEL @ J&J AND PROCUREMENT'S ROLE (9:45-10:45 am)
Johnson & Johnson Medical Device and Diagnostics (MD&D) group of companies previously utilized an array of agencies which fragmented marketing communications, created redundancies and drove higher costs. Johnson & Johnson recognized that communications and marketing to patients, physicians, caregivers and institutions was going through a period of radical change and believed there was a better, more integrated and efficient way to elevate agency relationships by moving to a new type of holding company model. This presentation will provide a review of J&J's holding company model with Omnicom called Constellation and procurement's role in helping to implement and manage the model.

Speakers:
Tara Ennis, Marketing Procurement Director – Johnson & Johnson
Mark O'Brien, President & CEO, North America – DDB Worldwide


II. MEMBER ROUNDTABLE DISCUSSION:  HOT PROCUREMENT TOPICS (11:00am-11:45 am)
In this session, we will open up the discussion to the committee to talk about top of mind topics and issues that procurement professionals are facing.  Some topics of discussion will be production management, marketing efficiency and cost savings.  Will also discuss recap of ANA Advertising Financial Management Conference as well as topics of future interest for the committee to pursue.

Facilitator:
Mike Thyen, Director, Marketing and Sales Global Procurement – Eli Lilly and Company and Advertising Financial Management Committee Chair


III. HOW MERCK USED THE GROSSMAN GRID TO ESTABLISH ITS AGENCY COMPENSATION METHODOLOGY (11:45am-12:15pm)
The Grossman Grid was developed by Neal Grossman, chief operating & Compensation officer of TBWA\Chiat\Day, Los Angeles. Its purpose is to provide a tool to facilitate discussion between advertisers and agencies on the method of compensation best suited for mutual business needs. When Merck made a significant shift in agency compensation methodologies, a team comprised of procurement, marketing and marketing communications utilized the Grossman Grid. This presentation will show how the team utilized the Grid and the business case for change.

Speaker:
Eliana Goncalves, Global Marketing Procurement – Merck


IV. THE SECRETS OF AGENCY SEARCH CONSULTANTS (1:00-2:00pm)
There are likely more agency searches going on in current times than ever before.  The proliferation of media options and the new specialty agencies that pop up as a result, is one driver of that.  Also, marketers have a focus that's more short-term driven, leading to shorter client/agency tenures and resulting in agency searches.  Clients are conducting many of these searches themselves, without a consultant, and procurement is often leading those searches.  This session—featuring three of the industry's leading search consultants—will address issues including:

• How to stay on top of the various agency resources available to marketers
• Suggestions for your initial RFI (remember – you also want the agencies to be interested in working with you)
• How to better partner with marketing
• How to better partner with legal to
• Best practices for procurement professionals during the search process
• When to consider a consultant and when not to (this session will NOT be a sales pitch on the use of consultants)
• How to position the winning agency for success

Speakers:
Joanne Davis, President – Joanne Davis Consulting
Steve Fajen, Partner –  Drexler/Fajen & Partners
Dick Roth, President – Roth Associates


V. MEDIA REBATES & INCENTIVES (2:00-2:30pm)
ANA will share results of a new survey on rebates/incentives paid by media companies to agencies as well as implications for marketers. By rebates/incentives we are referring to money paid or volume discounts granted by a media company to an agency that are not reimbursed to the client.