Value, Growth, and Eliminate Waste Through Marketing Technology

An ANA task group developed a set of documents to streamline procurement decisioning and the martech procurement process, helping marketers secure substantially better value out of martech investments, drive growth, and eliminate waste.

Key Takeaways

Marketing technology (martech) refers to any technology used by a marketer to automate or streamline processes, collect and analyze data, or provide various means of reaching and engaging with existing or potential customers. The full suite of these interconnected tools a company leverages to achieve marketing goals and objectives is known as the martech stack.

In 2021, the number of martech suppliers grew to over 8,000. Martech spending has doubled the past two years, with approximately $344 billion spent globally on martech in 2021. As expected growth continues, so does the complexity of the related issues that arise from the implementation and integration of what are often disparate solutions. As an example of the increasing complexity, research from Gartner shows only 18 percent of brands have mastered their martech stack.

ANA retained the law firm Venable LLP to manage an ANA-assembled task group and create documentation to assist with martech procurement. The objective was to create a suite of critical reference documents and contract templates to assist the evaluation and negotiation process, helping marketers secure substantially better value out of their martech investment, drive growth, substantially reduce waste, and eliminate redundancies.

The ANA task group was comprised of leading martech experts, assembled to discuss martech usage, problems, and related procurement strategies. Representative corporations included Disney, Ford, GM, AT&T, VISA, Wells Fargo, and IBM, among others.

Action Steps

From the task group meetings, the following four martech procurement documents were created:

Best Practice Observations and Tips Guide (Process Document)

A compilation of key insights and common pitfalls from industry experts, this guide provides invaluable insights from industry-leading marketers from the ANA task force. It was designed for reference during the procurement process and is organized by phases of the martech process.

Procurement Checklist (Process Document)

This is a step-by-step "how-to" guide for procuring and implementing martech. The guide breaks down consideration of the procurement, implementation, negotiation, and renewal processes to enable marketers to execute their purchasing decisions. It is meant to help marketers avoid common issues that arise in martech, such as dispersed (or siloed) data or integration snafus, by keeping them focused on the crucial considerations throughout the process.

Service Level Agreement (Legal Document)

The Service Level Agreement (SLA) is intended to supplement and enhance either an existing or vendor/provider-drafted master services agreement (MSA). Consequently, many provisions, such as confidentiality and payment terms, are not addressed and are presumed to have been addressed in a corresponding provider MSA. However, these sections could be added on a case-by-case basis.

The new MSA template draws attention to certain sections that could be added to the SLA (the SLA contains internal drafting notes that highlight important wording or clauses to help guide the drafter).

Material provisions of the SLA are:

  1. General service performance requirements: Imposes duties and obligations on the service provider to ensure prompt and efficient performance. Additionally includes reporting obligations to ensure that the services are meeting the marketer's expectations.
  2. Implementation: Addresses pilot or proof of concept phases, each party's responsibilities during integration of the services, provision of deliverables, use of third-party materials, and any necessary training.
  3. Required service duties: Provides additional performance requirements for the service provider, including data cleansing, service availability (including credits for breach), data backup, disaster recovery, and support and maintenance responsibilities.
  4. Proprietary rights: Addresses and allocates data rights using concepts from the ANA martech glossary (http://www.ana.net/content/show/id/martech-procurement) and also addresses work product.
  5. Information security: applies if parties don't have a standalone data processing addendum or terms specific to the handling of Personal Information (PI).
  6. Service level table: Attached as an exhibit to the agreement. Addresses service uptime and permitted downtime, severity levels and corresponding response times, and service credits.

Master Service Agreement (Legal Document)

All of the provisions of the SLA are contained in the MSA.

The MSA also contains the following material sections that are not in the SLA:

  • Services
  • Compensation
  • Confidentiality
  • Representations and Warranties
  • Indemnification
  • Term and Termination
  • Miscellaneous Provisions (limitation of liability, relationship of parties, governing law, etc.)

There are two versions of the MSA:

  1. Annotated MSA: Contains drafting notes that highlight important wording or clauses marketers or in-house counsel should consider when drafting and negotiating the agreement. The notes include some tips from the Procurement Checklist and Best Practices Observations and Tips Guide, but additionally point out important legal pitfalls and considerations. They are intended to help guide individuals who may not have the experience level or resources necessary to negotiate more complex agreements.
  2. Clean MSA: Removes the drafting notes, giving individuals a clean version to work from if they do not need the drafting notes.

Both MSAs contain bracketed and bolded wording that is optional. This wording can be added or removed and gives the MSA additional flexibility to allow marketers to tailor the document to their needs.

The four martech procurement documents are available from the ANA site at http://www.ana.net/martech.

Source

"Value, Growth, and Eliminate Waste Through Marketing Technology." AJ Zottola, partner at Venable LLP. 2022 ANA Masters of Data and Technology Conference, 3/30/22.

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