2017 ANA Financial Management Pre-Conference Guide – Transparency, Supply Chain & Agency Remuneration

2017 ANA Financial Management Pre-Conference Guide – Transparency, Supply Chain & Agency Remuneration

The upcoming ANA conference in San Diego will have a focus on transparency and the overall relationship between advertiser – agency.  And, C2 Clarity Media will be attending and participating in the discussion. The pre-conference session on Tuesday afternoon (May 23rd) is in many ways an update on the latest findings since the June 2016 release of the K2 Transparency Report conducted on behalf of the ANA.

The 3 Sections we’re paying attention to in the Pre-Conference:

1.     ANA PRODUCTION TRANSPARENCY TASK FORCE UPDATE – Bill Duggan – ANA Vice President

In 2016, the ANA issued its much-anticipated report on media transparency, in which nontransparent business practices were found to be pervasive in a sample of the U.S. media ad-buying ecosystem. The ANA has since convened a task force to engage in fact finding to determine if transparency issues exist in production. This session will provide an interim report and recommendations for marketers.

Initial Thoughts
We certainly will be paying attention to this update on how the production task force work is commencing.  Interestingly,  ANA’s description seems to cast doubt on whether or not transparency issues exist in production. One would hope this task force goes further than the question of ‘if” and takes the next step of solid recommendations addressing issues already identified by AICE at the start of this year (Watch the video and read the AICE Statement).

2.     MANAGING THE CREATIVE PROCESS AND TALENT IN THE MARKETER-LED SUPPLY CHAIN – General Mills and TEAM Companies

Traditionally, the creative production process was managed vertically starting with a creative brief from the marketer handed down to the agency. The agency then took over, engaging production, distribution, and other suppliers further down the chain. While this vertical creative supply chain worked for decades, today the supply chain has become horizontal with scores of marketers taking more control and, in many cases, bringing functions in-house. Marketers now directly engage agencies, content producers of all types, influencers, and other entities that support the creative process. In this session, discover best practices for taking increased control of the creative process and managing creative talent.

Initial Thoughts
Whenever marketers take oversight ownership of the creative process – if done properly –  transparency and optimized efficiency are the outcomes. While several large actors have been in the news as of late, embracing this ‘greater control and oversight’ approach (General Mills being one of them), we’d like to see it become much more prevalent throughout the entire industry. With the experts from General Mills and TEAM this section should be very enlightening. Any best practices shared in the industry are always a win and we’ll be paying attention to the output of this meeting with a further comment later.

3.     AGENCY COMPENSATION TRENDS & BEST PRACTICES – JLB + Partners

The ANA’s 2016 Trends in Agency Compensation survey results show how marketers structure and manage agency compensation, including various incentives and overall compensation. The work illustrates key trends in agency remuneration methods and practices. Hear the results of this survey along with an expert analysis of what it means for you.

Initial Thoughts
Since many of the advertising supply chain issues are rooted in the murky waters of agency remuneration, this should be a very interesting section. We wonder to what extent the survey ties agency compensation to not only ‘encouraging unexpected thinking’ (as Jeff Goodby will discuss on Thursday), but also marketer knowledge of specifics of the supply chain workflows, especially when it is agency oversight on behalf of the advertiser. The best payment methods to employee, agent or contractor always include a thorough understanding as to how the work is best accomplished.

Stay tuned here for info, commentary, and a recap on this day’s sections from C2 Clarity Media.