2014 ANA Advertising Financial Management Conference presented by Active International

AGENCY RELATIONSHIP MANAGEMENT

The agency relationship management process is a central tool in building sustainable client/agency partnerships, yet relatively few companies do it well. Many either underestimate the importance or make the process overly complicated. But agency relationship management can be streamlined and easily implemented. It doesn’t necessarily need to be high-tech and sexy! It’s really about driving solid communication and problem-solving in a constructive environment. And a proper agency management process can save the time and costs of reviewing agencies too often. Please join this Sunday afternoon session to arm yourself with ideas to improve your client/agency relationship.

Terri Burns

Manager, Marketing Procurement - Aflac, Inc. Co-Chair, ANA Procurement Task Force

Welcome

Steven Wales

Chief Operating Officer Decideware, Inc

Opening Remarks

Jim Porcarelli

Executive Vice President, Chief Strategy Officer Active International

Economic Keynote: Yahoo Finance

Michael Santoli, senior columnist for Yahoo Finance, will discuss where the economy is headed as well as key implications, including those for marketing/advertising. Perspective will cover both the U.S. and global environments.

Michael Santoli

Senior Columnist Yahoo Finance

CMO KEYNOTE: WHY IT’S IMPORTANT FOR MARKETING AND PROCUREMENT TO WORK TOGETHER

At Nationwide Insurance, the procurement and marketing teams work hand in hand. But, it wasn't always like that.  With a new procurement partner came new processes, tools, experiences, and style, leading to increasing levels of influence, trust, and credibility. Through two-way communication, the two teams were able to better understand the brand teams' priorities, needs, and pain points, leading to increased efficiency and effectiveness. The teamwork of procurement and marketing was able to reduce agency fees by 7 percent year-over-year since 2011 while building the “Join the Nation” campaign that lifted total unaided awareness by 28 percent.

Matthew Jauchius

Executive Vice President, Chief Marketing Officer Nationwide

FUTURE TRENDS FROM ONE OF THE TOP 100 MOST CREATIVE PEOPLE IN BUSINESS

Sheryl Connelly immerses herself in social, cultural, environmental, technological, and economic ideas to imagine what consumers might want up to 20 years in the future. Her work allows Ford to better anticipate consumer shifts and act on them in a way that gives the company a competitive advantage. Ms. Connelly's creative prowess has earned her a spot on Fast Company’s most recent Top 100 Most Creative People in Business list, an annual look at the people and businesses that are redefining creativity in industry, culture, and commerce.  In this session Ms. Connelly will share her thoughts on trends that could affect us in the future.

Sheryl Connelly

Global Head, Trends and Futuring Ford Motor Company

Choose to attend breakout session 1A or 1B.

FINANCE AND MARKETING WORKING TOGETHER TO CREATE VALUE

This session will feature a duo from a major marketer to demonstrate how finance and marketing can work together to use measurement to create value. Key to this is the partnering of finance and marketing in planning and execution. Specific examples relating to resource allocation and marketing effectiveness will be discussed. Principles endorsed by the Marketing Accountability Standards Board (MASB) will be shared. MASB is looking to bring predictability and accountability to marketing and was formed to set the standards for applying the science of measurement and process management to the art of marketing.

Bill Berg

Director of Market Intelligence and Commercial Analytics MillerCoors

AGENCY SELECTION BRIEFING GUIDANCE

ANA and the 4A’s believe there is an opportunity to improve the productivity of the agency search/new business process, for both agencies and advertisers, and have developed specific best practices guidance around the subject of agency selection briefing. Every phase of a review requires a thoughtful briefing that provides specific direction to the agency. The review process should provide escalating information to the agencies as the review progresses from the initial phases (e.g., RFI, RFP, credentials) to the later phases (including any strategic and/or speculative work and finals presentations). Agency selection is an important strategic decision, and briefings matter. Best-practice agency selection briefings enhance the likelihood of selecting an appropriate and culturally compatible marketing partner. Members of the task force from the ANA and the 4A's who developed this guidance will lead this discussion.

Diane Fannon

Principal, Brand Management The Richards Group

DRIVING VALUE AND INNOVATION

Kimberly-Clark has had great success aligning its procurement strategy to marketing goals. Its marketing category management team applies marketplace insight to help provide focus within an increasingly complex landscape of strategic and specialized providers and channels.  The end result is greater value and innovation that helps Kimberly-Clark reach its marketing goals. Attendees will walk away with key steps to drive successful collaboration between their marketing and procurement teams.

Lowell Turner

Global Procurement Director, Marketing Kimberly-Clark Corporation

PRICING: FINDING THE PATH TO PRICING EXCELLENCE

Pricing is a critical component in the overall marketing mix, and one of the most important drivers of profit in the short-run. It is also at the juncture of two fascinating topics in business: big data and neuroeconomics. A.T. Kearney will explain what these topics really mean for your pricing strategy and execution, and how you can actually move the needle quickly.

Frank Bilstein

Partner A.T. Kearney

Choose to attend breakout session 2A or 2B.

Performance Incentive Compensation

The use of performance incentives in client/agency compensation arrangements has increased significantly, according to the most recent ANA "Trends in Agency Compensation" survey. But pockets of dissatisfaction exist, among both agencies and clients. This session will provide an overview of the current state of incentive compensation, including metrics used, drawing data from both the ANA and the 4A’s. We’ll follow that with an open discussion to allow participants to share what’s working and what's not.

Facilitator: Sal Vitale

Category Lead, Media Procurement - Johnson & Johnson Co-Chair, ANA Procurement Task Force

Speed Networking

Speed networking is speed dating for business people.  In this session, you’ll have the opportunity to meet one-on-one with eight to ten of your fellow conference attendees to share insights and learning on advertising financial management issues.  (Note: advance registration required and details to come.)

HOW TO SAVE MONEY WITHIN THE ADVERTISING PRODUCTION BUDGET

Have you ever experienced a situation where you need to get more mileage out of your production budget? Has Marketing tasked you with finding a way to get costly special effects into a commercial that already is on a tight budget? Do you ever hear this from your finance group, "We need you to turn back X% of your budget."? If the answer is yes to any of the above questions, you should stop by to hear from Mike Kolko, Director of the Production Tax Incentive Division for CAPS Payroll. The time will well be worth the investment as Mike will share insights on how you can save, in more ways than one, providing information on how to stretch and maximize your budget through Production Tax Credits and other cost saving solutions.  

Mike Kolko

Director, Production Tax Incentive Division CAPS Payroll

TECHNOLOGY KEYNOTE: THE FUTURE OF MARKETING

Rishad Tobaccowala is chair of DigitasLBi and Razorfish, two leading, global digital marketing and business transformation networks that are part of the Publicis Groupe. In this role, Mr. Tobaccowala speaks for the future of marketing for Publicis. He helps activate technology and builds digital products and new media technology partnerships. And he is close to incubation and innovation efforts, including identifying and sourcing tech companies and start-ups that will determine the next generation of solutions for Publicis Groupe and its clients. In this keynote Mr. Tobaccowala will address how the world of marketing is changing and why; six broad trends that will shape the future of marketing; and, most importantly, how each of us needs to reinvent ourselves to be relevant in this new world.

Rishad Tobaccowala

Chair DigitasLBi and Razorfish

The Evolution of Value Based Compensation

The Coca-Cola Company (TCCC) is an industry leader in the area of agency compensation.  They introduced its approach to value based compensation (VBC) in 2008, to deliver "best work" for "best value." Today, The Coca-Cola Company implements value based compensation in 60+ markets around the world, with both creative and media agencies.  Built on the belief that the amount of labor should not define value, TCCC value based compensation approach is comprised of tools and guidance to enable teams to fairly define and reward the value of the work, not the time/hours to deliver it.  During this session, TCCC will share value based compensation 3.0, which showcases the evolution of value based compensation to support the company's “Liquid & Linked” strategy for delivering integrated marketing communications programs around the world.

Sarah Armstrong

Director, Worldwide Agency Operations The Coca-Cola Company

THE LAW AND THE FINANCIAL BOTTOM LINE

There are several major legal and regulatory issues that could significantly affect the bottom line of the marketing community. Patent trolls, according to one estimate, cost American businesses $30 billion a year. Piracy websites often carry ads from national advertisers that run adjacent to content that violates copyright laws. Both privacy issues and ad taxes remain serious threats. In this session the head of ANA’s Washington, D.C. office will outline the critical issues facing the industry and suggest ideas to take back home to safeguard your company.

Dan Jaffe

Group EVP, Government Relations ANA

OPTIMIZING THE PROCUREMENT/MARKETING RELATIONSHIP

New research from the ANA Procurement Task Force examines the relationship between procurement and marketing and the factors that lead to the strongest internal partnerships and business results. We surveyed both procurement and marketing to identify:

• Attributes which correlate with having a strong relationship between marketing and marketing procurement
• The success metrics indicative of close working relationships
• Tangible steps for both procurement and marketing to consider taking to enhance their working relationship
• Key characteristics of an ideal marketing procurement professional

You’ll leave this session with actionable ideas on how to optimize collaboration between marketing and marketing procurement.

Terri Burns

Manager, Marketing Procurement - Aflac, Inc. Co-Chair, ANA Procurement Task Force

The Stage Is Set For Data-Driven Content Marketing

There are two distinct camps emerging among digital marketing futurists. One has a focus on content marketing, while the other emphasizes programmatic advertising. The future of customer-centric marketing and advertising resides squarely where content, advertising, and data analytics intersect. If brought together correctly, the amalgamation would provide laser-focused advertising with personalized and compelling experiences. In this session, the two sides of the story (Content represented by Robert Rose, Chief Strategist, Content Marketing Institute, and Data represented by Ryan DeShazer, Managing Director, inVentiv Media 360) will join Mr. Rooke in sharing their vision of Data-Driven Content Marketing and the hyper-relevance it has to the consumer, from advertising through the experience.

Ryan DeShazer

Executive Vice President, Managing Director inVentiv Media 360º

A. Perry Kamel

Chief Executive Officer Elateral, Inc.

Please choose to attend breakout session 3A or 3B.

BEST NEGOTIATING PRACTICES

In today’s environment, professionals are looking to improve the outcome of their negotiations. Then there are the relationships that professionals have with suppliers. In this breakout, we will visit why relationships are important, how a better relationship can improve the outcome of your negotiations, and how you build a better relationship. As an added bonus, we will look at how relationships affect the outcome when something goes wrong. Join Stuart Shlossman, a former member of the ANA Advertising Financial Management Committee and current facilitator of negotiation workshops, to discuss the impact relationships have on negotiations, and strategies to improve the outcome of your negotiations.

Stuart Shlossman

Consultant Watershed Associates

New CFO/CMO Research Study Highlights

Companies are faced with the ongoing need to identify efficiencies in their operations. A critical component to that is the alignment between CFOs and CMOs. In this session, insights will be shared from a new survey among CFOs and CMOs that explores the need and process for alignment on marketing and advertising priorities and the overall direction of the business, as well as better understanding of each respective department’s goals for a fruitful working relationship. In addition, the session will explore how corporate trade works and how it can fit into a company’s business objectives.

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

Kimberly Hairston

Chief Marketing Officer DRM/JPC Brands (Dr. Miracles)

Please choose to attend breakout 4A or 4B.

CHALLENGES OF GLOBAL PRODUCTION

More and more, marketers are seeking to globally leverage their assets and production spend. Global production challenges, however, can be daunting in their complexities, and very costly in execution. This interactive discussion will feature a panel of experts from global marketers Anheuser-Busch InBev, Hershey’s, and Kraft Foods as they walk us through the myriad of creative, production, and legal challenges involved. Learn from their experiences, hear best practices, and take away a framework for the global production process that marketers and agencies can apply immediately.  

Ari Ben-Canaan

Senior Manager, Global Advertising Services The Hershey Company

MYTHS, CHALLENGES AND BEST PRACTICES IN DIGITAL/SOCIAL AGENCY COMPENSATION

This session will look at the myths behind digital and social media agency structure and costs, the challenges of benchmarking, and an overview of best practices based on recent ANA compensation studies and R3's consulting experience with leading global and national marketers.  Some simple steps for more effectively aligning digital and social investments will be discussed.

David Beals

President and Chief Executive Officer R3:JLB

Manuel Reyes

CEO Cortex Media

The Power of Social Content: Today and in the Future

In today’s business environment, social media and its content can generate an impact well beyond a marketer’s expectations — and with that, volume and cost implications beyond expectations as well. Peter Friedman, a social media visionary, will discuss how marketers can scale social media across multiple brands and multiple continents.

Peter Friedman

Chairman & CEO LiveWorld

4A’s PERSPECTIVE ON CONFLICTS

According to the 4A’s, traditional conflict policies applied to agencies need to change. Industry dynamics are evolving — client/agency engagements are shorter, there are more agencies on a client roster (including more specialist/niche agencies), and there is a trend toward more project assignments. Meanwhile, emerging markets are becoming more important than ever, especially for Fortune 500 clients. Why are client conflict policies for agencies different than the policies for other client advisers, such as consultants, attorneys, or accountants? The operative question in an interconnected marketing ecosystem should be, “Is it a conflict, or is the marketer leveraging category expertise, proven servicing experience, and efficiencies of scale?”

Lauren Crampsie

Worldwide Chief Marketing Officer Ogilvy & Mather

ADVERTISING’S TRANSPARENCY CRISIS

There have been increasing concerns about the issue of media and media agency transparency (i.e., media sellers and agencies providing honesty and clarity to marketers on costs, placements, and data). In this “super session” the issue of transparency will be examined from multiple perspectives – industry trade associations, respected consultants, and client-side procurement.

A. The Global Industry Debate on Transparency
It’s something of an understatement to say that “transparency” is a cause of frustration between client and agency. It’s a multi-faceted problem with pressure points at every stage of the industry. It’s not just a money matter, nor is it something that clever contracts or a great client-agency relationship can fix alone. There are important considerations within the marketplace that clients need to be aware of, and those can vary market to market. Three advertiser associations from around the world will share new research and their members’ perspectives on how the transparency debate is evolving in major markets, what marketers should look out for, and what issues the industry should actually be debating to move this forward.

Susan Charles

Vice President, Member Services Association of Canadian Advertisers, Inc.

B. Media Transparency Issues and the Role of Media Procurement
It's a fact – ANA has heard more concerns about media transparency in the past year than at any other point in memory. The industry is facing a transparency crisis. This panel will feature:

• Results from a new ANA survey on client-side marketer attitudes on the issues that have contributed most to concerns about transparency between clients and media agencies;
• Insight from two industry consultants on the specific transparency red flags, and the actions that marketers can take to protect their interests;
• Perspective from a client-side media procurement professional on the important role media procurement can play to help safeguard and enhance what is likely the biggest marketing expenditure for most clients.

Bill Duggan

Group EVP ANA