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Association of National Advertisers

P&G’s Pritchard: Time to Cut the Crap — and the Pressure on Agencies – via AdAge

At the Thursday keynote address to the Association of National Advertisers (ANA) Masters of Marketing Conference 

Marc Pritchard (Chief Brand Officer at Procter & Gamble Co.) addressed issues with creative agencies in his talk on “Raising the Creative Bar.” But he said it’s time to lower pressure on agencies – which has included P&G cutting its agency and production fees the past two year by $570 million to $1.4 billion.

Doing good creative work requires time, he said. “And we have a problem, because we’re spending too much of our time on measurement of advertising vs. the quality. We’re fiddling with measurement debates while consumers are blocking our ads. Measurement is not going to make crappy advertising better.”

On creative measurement, while P&G certainly hasn’t abandoned copy testing, Mr. Pritchard said he favors a different test for deciding to proceed with work, which is “whether it makes my spine tingle.” If it does, it should at least get further development, he said.

http://adage.com/article/special-report-ana-annual-meeting-2016/p-g-s-pritchard-time-cut-crap-agency-pressure/306370/

Marketers Overwhelmingly Call for Third-Party Measurement of All Digital Media Owners’ Inventory

The Association of National Advertisers (ANA) surveyed its members to understand the perspectives of marketers on the issue of the viewability verification procedures used by digital media owners.  The results of the survey emphasized the need for third-party verification.

Among the findings:

-97 percent of ANA respondents believe that all digital media owners’ inventory should be measured by a third party.

-90 percent of respondents said they are not fully confident that their digital working media meets industry viewability standards.

-61 percent of respondents indicated they would shift their spending elsewhere if digital media owners did not provide independent measurement.

-Nearly two-thirds of respondents feel “very strongly” that a digital media owner should have internally derived metrics accredited by the MRC.

According to this press release, some large media owners do not allow third-party measurement vendors to report viewable ad impressions to their clients. Instead, they utilize internally derived metrics that have not been independently verified.  Currently, more than 20 firms are accredited by the Media Rating Council (MRC) to measure digital advertising viewability.

Bob Liodice, ANA President and CEO, commented on this issue, “During a time of intense scrutiny on transparency and accountability, it’s vitally important that all digital media owners measure viewability by an independent third party, consistent with industry standards. That’s just ‘table stakes’ for digital advertising.”

The ANA will continue working with the Media Rating Council and other industry trade associations to elevate the importance of this issue and drive industry standards.

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New Study Confirms Advertising as Key Driver of the U.S. Economy; Advertising is a Major Contributor to GDP, National Employment and Labor Income

The Association of National Advertisers (ANA) and The Advertising Coalition commissioned a study which highlights the industry’s considerable economic benefits.  According to this study, advertising contributed $3.4 trillion to the U.S. GDP in 2014, which represents 19% of the nation’s total economic output.

The research by IHS Economics and Country Risk provides a comprehensive assessment of the contribution of advertising to national, state, and regional economic activity across 17 industries.  This study includes information on the positive impact of advertising on employment, salaries, wages, consumer sales, and the overall economy.

According to Bob Liodice, President and Chief Executive Officer of the ANA, “this new study underscores the essential nature of advertising in promoting both business and economic growth in this country.”

IHS researchers also examined the effect of a tax proposal that would alter the treatment of advertising as an ordinary and necessary business expense. The proposal would only allow businesses who advertise to deduct 50 percent of all annual advertising expenses with the balance to be amortized over five years.

Speaking about the impact of the tax proposal, Liodice commented, “The very fact that this industry contributes nearly 20 percent to the nation’s GDP sends a powerful reminder to policymakers that advertising is an essential stimulus to the U.S economy that should be promoted and not subjected to a tax. We have long known that the economic value of advertising extends into other sectors like manufacturing, agriculture, healthcare, retail, and numerous other areas of the economy. ANA is proud to see data that affirms that advertising is a major contributor of revenue and a true engine of job creation in the U.S.”

The full report, an executive summary, and related materials are available from the ANA.

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Brand Marketers Reveal How Agencies Can Foster More Productive Client/Agency Relationships

Portada reports on a current Association of National Advertisers (ANA) Survey which reveals the areas of agreement and disagreement between clients and their agencies.

Among the questions clients were asked, “What could your agency do to foster a more productive client/agency relationship?”

Top responses:

-Be more proactive

-Have a better understanding of the client’s business

-Integrate/collaborate with other agencies

-Increase transparency

Enhancing client/agency relationships is essential to both partners in the industry.

 

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