2017 ANA Financial Management Conference Guide – Day 1– Transparency & Advertiser/Agency Relationship Focus
2017 ANA Financial Management Conference Guide – Day 1– Transparency & Advertiser/Agency Relationship Focus
In Day 1 we dive into the meat of the conference with sections covering new agency advertiser models, agency perspectives and technology.
The 4 Sections we’re paying attention to for Day 1:
PERSPECTIVE FROM 4A’S INCOMING PRESIDENT AND CEO
Marla Kaplowitz officially joined the 4A’s on May 8 as president and CEO. As the former CEO of MEC North America, Marla has built a truly integrated digital and unique client-centric partnership model that elevated media to the heart of the communications planning process. Under her leadership, the agency has grown in both size and scope as it sharpened its focus on content and invested in the development of a best-in-class suite of cross-channel data and analytics tools. This will be one of Marla’s first industry events in her new position, and ANA is honored to feature her at this conference.
Initial Thoughts
We welcome Marla to her new position at the 4A’s and are most interested to hear to what extent MEC’s cross-channel data and analytic tools are available to marketers without filters. Transparency of media data related to placement, results, and costs is essential for effective Supply Chain Management (SCM.) We’re keen on understanding to what extent the ‘client-centric’ partnership model is buyer-focused versus seller-focused. Buyer focused means the tools discussed are not simply the next generation of proprietary agency tools, but rather offer the marketer full access to original data. That is our definition of client centric.
LEVERAGING FOR SUCCESS
Advertisers are at the top of the food chain and fund the entire advertising ecosystem, including agencies, media companies, and various suppliers. Yet advertisers can do more to leverage their advantage in contract negotiations, the process of “give and take” parties go through to reach an agreement. You must “give to get.” That is where leverage comes in and the principle of using even a small advantage to gain a larger benefit is applied. As Archimedes said in 230 BC, “Give me a lever long enough and a place to stand, and I will move the world.” Or, as said in business, “You don’t get what you deserve; you get what you negotiate.” Learn how advertisers, the ultimate decision makers, can use leverage to achieve more uniform contracts, cost savings, and smoother relationships with suppliers.
Initial Thoughts
This could be an excellent section and may be better entitled “Attention Advertisers: Procurement Works Even with Marketing”. It appears that much of today’s lack of leverage is a lack of clarity into what is being done and placing a proper value on services rendered. We’re not sure if we understand the “give to get” quote. Is this not a service relationship? I (the advertiser) pay you (agency or supplier) to do the following for an agreed upon charge, with oversight. Call us old fashion, but it works for us. (What’s wrong with the cost plus pricing model? No leverage required. Ok, so we sometimes push the envelop). Interested to see what levers are discussed. Definitely one to keep an eye on.
ARE JOINT VENTURES THE NEW AGENCY MANAGEMENT MODEL?
A joint venture model is aligning the way a global house of brands and its agency are improving the go-to-market process for Jaguar and Land Rover. Established as a fifty-fifty joint venture between Jaguar Land Rover and SPARK44 management, Jaguar Land Rover’s end-to-end marcom partner. Hear how this new agency management model has delivered greater value, transparency, and accountability.
Initial Thoughts
There is definitely some information to glean here! Looking forward to a critical review of how this relationship works and benefits derived for the advertiser. What does a joint-venture look like? In the above venture, Jaguar Land Rover owns a 50% stake in Spark44. How does the agency oversight work? Does it have Brand control? How is this different than the client specific agencies of days past like MAL or Team One? What’s the big payoff for the Advertiser?
ACHIEVING MORE IN THE “WHAT’S NEXT” ECONOMY
The “what’s next” economy is Active’s term for the disruptive marketplace we all find ourselves in. Beyond cutting costs, brands that survive in the current volatile marketplace are looking for innovative solutions that are sustainable, enhance business outcomes and enable them to gain traction and leap ahead. While technology is a key disruptor and has created havoc in certain verticals, it also has the potential to make us better, faster, smarter. The challenge is – how can brands harness the power created by that technology, along with other innovative business solutions, to move their business forward. With 80 percent of the C-Suite experimenting with alternative business models, this session will discuss ways that companies can achieve more in the “what’s next” economy.
