2013 ANA Advertising Financial Management Conference presented by Active International

Best Negotiating Practices

Negotiating doesn’t have to be win-lose! Whether negotiating an agency compensation deal, media buy,  sponsorship, or buying raw materials, the best results are usually achieved when both sides work together to create value. How many marketers have dealt with an "unhappy/resentful supplier" once the honeymoon period wore off?  Stuart Shlossman — a former member of the ANA Advertising Financial Management Committee and current facilitator of negotiation workshops — will discuss impactful negotiation strategies that strengthen the deal for both parties.

Stuart Shlossman

Consultant Watershed Associates (a leader in negotiation workshops)

Welcome

Steven Wales

Chief Operating Officer Decideware, Inc.

Opening Remarks

Bob Liodice

President and Chief Executive Officer ANA

CMO Keynote

Andy England is executive vice president and chief marketing officer for MillerCoors, responsible for leading the company’s efforts in marketing, strategy and planning for more than 35 brands. In this CMO keynote, Andy will share how his team leverages a paid-owned-earned content strategy to connect with their consumers and drive sales while strengthening brand equity.

Andrew J. England

Executive Vice President and Chief Marketing Officer MillerCoors

Precision Marketing + Big Data = Lower Costs, Higher ROI

Relevance, revenue and risk loom large for marketers in today’s cut-throat environment. Faced with increasing expectations from consumers and the C-suite, marketers are under intense pressure to get more results with fewer resources and under tighter budgets. How do marketers ascend the mountain of Big Data instead of being buried beneath it? How can a marketer make a case for implementing new Big Data programs to a procurement department? And how can marketers use the alchemy of analytics and automation to render revenues from prospects? It all comes down to Precision Marketing. Sandra Zoratti, vice president of marketing at Ricoh and published author, will share the six principles that lay the foundation for the art and science of Precision Marketing. 

Sandra Zoratti

Vice President, Marketing / Author Ricoh, Inc. / Precision Marketing: Maximizing Revenue Through Relevance

Selling Procurement Internally

Many procurement departments do a lousy job ‘marketing’ their success internally with stakeholders. A stable foundation of ‘selling’ internally to gain alignment to common goals, showcase wins and continuously improve is imperative. That foundation enables the journey to value creation and high performance business partnerships that ultimately deliver for the company in the marketplace. This session will cover the art and science of partnering with the business to deliver value for the company that meets the collective objectives of Marketing and Procurement.

Sopan Shah

Global Leader of Advertising & Marketing Procurement Nestlé

Miles Nadal - Perspective From an Agency Holding Company Leader

Miles Nadal is the Chairman, CEO, and Founder of MDC Partners. MDC, which owns majority stakes in agencies like CP+B, kbs+, Doner, Anomaly and 72andSunny, is a different type of agency holding company, a partner to agencies in sectors including advertising, branding, digital/interactive, and media planning/buying. He last spoke at this conference in 2005 — and a lot has changed in eight years, including MDC, which has since grown three-fold to over $1 billion in revenues. In this session, Mr. Nadal will cover a host of issues including how MDC is driving optimum collaboration between its agencies and client procurement, their learnings from new compensation models, the evolution of data/analytics, the world of media optimization, and the role of networks today.

Miles Nadal

Chairman and CEO MDC Partners

Welcome

Barbara Martino

Executive Vice President, Client Development Active International

How Analytics 2.0 is Driving Higher Marketing ROI

Measuring marketing's ROI is no longer a simple correlation between spend and sales. Many of the world’s biggest companies are now deploying analytics 2.0, a set of capabilities that can chew through terabytes of data and hundreds of variables in real time to reveal how advertising touch points interact dynamically, often resulting in 10 to 30 percent improvements in marketing performance. This session will provide examples from a recent cover story in Harvard Business Review entitled "Advertising Analytics 2.0", especially relevant for those seeking to increase the ROI from marketing investments.

Patrick LaPointe

Executive Vice President MarketShare / Managing Editor, Marketing NPV

CPO Keynote

Kevin Nash is vice president, procurement services at USAA (the United Services Automobile Association), a diversified financial services group of companies.  In this CPO keynote, Mr. Nash will provide perspective on issues including:

• The role/importance of marketing procurement within the total procurement org at USAA
• How procurement at USAA works to build relationships internally with marketers and externally with agencies
• How to move the perception that procurement is about “cutting costs” to one that it is “building value”
• Career path opportunities and talent needs for marketing procurement

Kevin Nash

Chief Procurement Officer and Vice President of Procurement Services USAA

Choose to attend Breakout Session 1A or 1B.

The Art & Science of Agency Partner Management

Both creative and financial effectiveness can be achieved through improved agency partnerships.  This session will explore two extremes on the continuum of agency relationship models that aim to improve both commerce and creativity.  From a procurement-led model at Bristol Myers Squibb to the innovative partnership that Cirque Du Soleil has formed with agency Sid Lee, clients will share best practice examples on how their organizations have achieved optimal collaboration with their agency partners.  Topics will include elevating the agency role through strategic understanding; building “co-collaboration” to set partners up for success; and customizing the right structure and compensation approach to ensure a long lasting relationship.

Moderator: Jane Bedford

Principal and Founder The Bedford Group

Sourcing Governance

Many of us in the sourcing/procurement role do not have the luxury of owning the budget and/or decision rights for the services that we negotiate. If you can relate to this, then you know that running an RFP or negotiating a contract is the easy part of our jobs. The harder part is getting buy-in and support from our internal stakeholders. Having a simple sourcing governance policy in place at the corporate level makes regular competitive reviews the default for key suppliers or categories. Please join this breakout session if you would like to discuss issues like where to begin, how to decide which categories and suppliers to include, how this might impact your workload, the exception policy, and more.

Beth Correll

Director, Global Strategic Sourcing The Hershey Company

From Creation to Distribution - Do You Know How Your Marketing Dollars are Being Spent?

Post-production and distribution have traditionally been areas that are not in the forefront compared to media yet it is often the 2nd largest cost center in marketing. Technology and economies of scale are making both post production and distribution areas to focus on. The panel will share insights and best practice for improving workflows, fewer touch points from suppliers, and ways to drive creative excellence while maximizing efficiencies.

Andrew McLean

General Manager, Enterprise Marketing and Business Development Deluxe

In-House Agency Model: Wells Fargo Case Study

Per a recent ANA study, over 40 percent of marketers have an-in-house agency, that is, a department, group or person that has responsibilities that typically are performed by an external advertising or other marketing communications agency. And over the last several years, in-house agencies have shifted from order takers to business partners, focusing on broader challenges like how to expand their company’s digital footprint and how to integrate the global brand. Though some still focus on the financial upside, that’s not the only reason for the explosive growth of this model. Experience, institutional knowledge, and the benefits derived from having a dedicated team that understands the business and the brand are undeniable. In this session, Wells Fargo will share an insightful presentation on their  learnings, successes, and best practices with their in-house agency model.

Kellie Krug

Senior Vice President, Enterprise Marketing Services Wells Fargo & Co.

Marketing & Procurement: Strange Bedfellows but a Union Worth Hundreds of Millions

Given today’s escalating expectations for marketers, and static budgets, how welcome would a twenty percent windfall be? Many companies can recoup significant savings through systematic procurement – management of supply, demand, and process, better known as the total cost of ownership. McKinsey will outline proven strategies for rooting out inefficiencies in each of these three key areas. Do you want to save as much as twenty percent in agency costs? Use existing resources more efficiently? Prevent delays and campaign cost overruns? This session will share these valuable insights, and more importantly, the framework and focus for capturing future savings.

Jeff Jacobs

Principal, Marketing & Sales Practice McKinsey

How the Largest Collective Bargaining Agreement in the Entertainment Industry Impacts Marketers

2013 is the year in which the ANA-4A’s Joint Policy Committee for Broadcast Talent Relations will negotiate a new collective bargaining agreement with SAG-AFTRA, now a united union. As the digital revolution sweeps through video production, the challenges in negotiating the $3 billion Commercials Contract, the largest collective bargaining agreement in the entertainment industry, are daunting. The negotiations are scheduled to end just prior to this conference and a key member of the marketing industry’s negotiating team will provide an update.

Stacy Marcus

Associate Reed Smith LLP

Elevating The Role of Marketing Procurement

This session will showcase the recent work of the ANA Procurement Task Force, whose mission is to define and elevate the role of marketing procurement as well as close the gaps on the value of procurement between procurement and internal marketing as well as procurement and external agencies. Our 2013 Procurement Value Metrics Survey identifies the metrics used to measure the success/contribution of the marketing procurement organization and concludes that marketing procurement must evolve from a tactical to a more strategic role. In addition, other recent work from the task force will be highlighted including the procurement webinar series and procurement mentoring program.

Terri Burns

Strategic Sourcing Consultant AFLAC, Inc.

The Missing Link: Digital Business Services

How standing up the appropriate services layer is critical to driving efficiency in evolved global marketing operations. Technology platforms and low-cost content production models are key levers, but building the service model that supports your brands and markets is critical to driving adoption and realizing true business benefit at an enterprise level.   Jamie Posnanski, Managing Director for Accenture Interactive and founding member of avVenta Worldwide, will share what is required for the ideal global marketing operations. 

Jamie Posnanski

Managing Director Accenture Interactive

Choose to attend 2A or 2B followed by your choice to attend 3A or 3B.

Procurement & Marketing - Working Better Together

Many in our industry were surprised when a major ANA study (2010) reported that Marketing and Procurement were often at odds. People expected agencies to report frustrations with Procurement, but they didn’t expect to hear so many complaints from Marketing. Why does  conflict still exist between these two functions? Who should Procurement report to? Exactly why is marketing uniquely different than anything else Procurement touches? What must Procurement’s approach and deliverables be? What must marketers do differently? This talk addresses these issues head on and offers detailed, market-tested solutions for more effective collaboration between Procurement and Marketing.

Gerry Preece

Senior Consultant External View Consulting Group

Driving Efficiency and Cost Savings Through Corporate Trade [Barter]

Procurement and finance executives are faced with increasing pressure to identify efficiencies and cost savings in their operations. Corporate Trade offers innovative solutions to help meet those challenges and unique options to solve them. In this session, review the basics of the Corporate Trading model and gain an understanding of how it may be relevant to your business challenges. You’ll hear first-hand from executives who have benefitted from engaging in trade and have the opportunity to participate in a Q&A to gain insights about your particular objectives.

Please note: this session is closed to competitive barter/corporate trade companies.

Moderator: Bill Duggan

Group Executive Vice President ANA

Overhead and the Truth About Efficiency Metrics

Many people incorrectly believe that overhead rates are indicators of efficiency. And some cost consultants and search consultants have created confusion about what can be determined from an agency’s overhead rate.  Overhead rates are NOT efficiency metrics. And agencies do not hide profit in overhead. This session will provide perspective on how understanding of overhead rates is essential to correcting the misperceptions in the marketing industry.

Rick Brook

Senior Vice President, Global Client Operations, New York WPP Group / Chair, 4A’s Agency Finance Committee – Large Agencies

Big Savings From State Commercial Production Incentives

A year ago ANA published the white paper, “The Found Money of State Commercial Production Incentives” and advertiser awareness of this opportunity has since sky rocketed.  Many states now offer compelling financial incentives to shoot commercials in their state and more and more advertisers are reaping those benefits.  In this session the state film commissioners of Connecticut, Illinois, and Louisiana will discuss why they offer incentives, how they work, and what you need to know to maximize these opportunities.

Moderator: Mike Rose

Chairman & CEO Ease Entertainment Services

Save Money on TV Advertising Without Sacrificing Reach

The largest advertising budgets go toward TV, and rightly so. Why? Because more people are watching TV than ever before and it is the only medium that reaches all 115 million American households instantaneously. But there is a problem in the TV world. You are paying more money to reach fewer people than ever before. Why? Because TV viewers have fragmented across TV. How does this affect you? On average, 75 percent of your TV advertising dollars are going to 40 percent of your target audience. And in 2012, 50 percent of all advertising dollars went to 15 TV networks that delivered only 30 percent of the TV viewing audience. This problem can be fixed. You can save money on TV advertising and reach more consumers. In this first-time reveal, John Piccone will showcase Simulmedia’s a7 Analytics Engine, a newly launched, free and publicly available tool for tracking TV advertising reach, frequency, and spend.

John Piccone

Chief Revenue Officer Simulmedia

Developing Effective Compensation & Agency Performance Measurement in Digital

Digital is changing the way brands and agencies operate and, as a result, the way both parties need to approach compensation. Different KPIs, beyond old fashion definitions of working and non-working media, are needed to facilitate proper evaluation and incentivize the best digital work. In addition, different contract terms are often necessary in digital to encourage innovation and enable nimbleness.   This session will discuss the current challenges of buying and measuring digital services as well as the opportunities and pitfalls in aligning agency compensation.

Bryan Wiener

Chairman & CEO 360i / Chairman, 4A's Digital Board

Media Procurement Panel

For a large portion of marketers, media is the largest part of their marketing spend. In order to address the increasingly complex process of integrated, cross-platform media planning and buying as well as and the embracing of media audits by many companies, more and more procurement and strategic sourcing professionals are specializing in media procurement. This panel will explore key topics in the areas of media buying and media procurement such as organizational structure for internal media management and procurement, procurement's role in media agency sourcing and ongoing agency relationship management, media agency compensation models, improving the effectiveness of media investments and proving out ROI on media dollars invested, and much more!

Moderator: Bill Duggan

Group Executive Vice President ANA

What's New in Agency Compensation

For nearly half a century, the ANA’s triennial Trends in Agency Compensation has been the industry’s benchmark for reporting agency compensation methods and practices. At this session, hot off the press results of our 16th survey will be debuted. Among other things, this year’s survey will cover whether newer methods of performance-based compensation are taking off and how agency compensation is being managed through a tough economic period.

David Beals

President and Chief Executive Officer R3:JLB

Beyond De-coupling

De-coupling has its benefits – improved quality and achieved savings through consolidation, automation and streamlining of processes. In this session,  Mattel, Inc. and Hogarth Americas will discuss how they centralize production and will share a business case on how to drive continuous improvement while maintaining a consistent brand message to deliver savings year on year and solving emerging business challenges. They will also review how a technology platform has enabled data-driven continuous improvement, reduced creative rework, standardized global rights management and rationalized delivery costs and finally, how their partnership has helped to overcome the new production regulations in Brazil and helped evaluate and manage the growing digital production needs in today's environment.

Meritxell Guitart

President Hogarth Americas