Tag Archives: Association of National Advertisers

How Will You Assess the Benefit Delivery of Your In-House Agency?

14 Nov

Advertising concept: Ad Agency on digital backgroundThe number of marketers transitioning portions of their advertising from agency partners to in-house operations has grown in recent years. According to the Association of National Advertisers (ANA) 2018 study on this topic it found that “78% of its members had in-house agencies,” which was up from a level of 42% in 2008.

As marketers seek improved levels of speed, control and efficiency, the trend of marketers transitioning select services in-house or, in some instances, seeking to build full-blown internal agencies will likely continue.

Company management’s goals regarding this decision often revolve around the procurement of advertising support with shorter turn-around times and lower costs than what can be achieved through its external ad agencies. The question to be asked is; “How will in-house agency executives measure and report on their operation’s benefit delivery?”

Capturing data and providing feedback on the effectiveness and efficiency of in-house operations is a must when it comes to validating its existence, assessing project through-put potential and evaluating colleague satisfaction. That said, determining what performance criteria to measure and the methodology to be employed is an important decision.

In a recent article entitled; “Taking your marketing in-house? It is time to improve productivity” Darren Woolley, Global Chief Executive of TrinityP3, an Australian based marketing management consulting firm, suggests that when it comes to benefit delivery, in-house agencies are overlooking the “single biggest financial benefit” that they provide, which is “improving productivity.”

Measurement of “what” an in-house agency produces in addition to the cost of delivery aside, Mr. Woolley rightly points out that in-house agency executives have the unique ability to enhance the productivity of their operations by “streamlining structures and processes” between their internal clients and the in-house agency team. This is a structural advantage, not always available to a marketer’s external agency partners who have to adopt to their clients’ internal processes, no matter how inefficient they may be.

The good news is that there are resources available to assist marketers with crafting in-house agency effectiveness measures and to benchmark their performance. As an example, the In-House Agency Forum (IHAF) offers its members access to a normative database of performance benchmark and the ability to customize a performance survey that they can field to assess their service delivery where it counts most… with their internal clients.

Establishing the storyline for assessing in-house agency value delivery is critical to driving productivity and positively shaping stakeholder expectations. In the words of Paul Meyer, “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.”

 

 

 

 

 

 

 

 

Work from Home or Not at All. The Evolving Role of Perks in Attracting Talent.

12 Oct

Ping pong table, rackets and balls in a sport hallThe ping-pong table sat idle, covered with stacks of paper, the modern day version of an in-home treadmill as hanging plant holder. Once considered an important perk and a reflection of a firm’s employee-centric culture, ping-pong tables in the workplace may have seen their halcyon days.

The marketing industry as a whole is wrestling with the issue of attracting and retaining talent. So much so in fact that the Association of National Advertisers’ CMO Growth Council made “talent and capabilities” one of its five core pillars for “driving business growth and societal good.” Globally, business leaders are working with their counterparts in academia to help attract young people to the marketing profession, while aligning curriculums with the emerging needs of a fast evolving industry to better prepare students for a marketing career. Additionally, consumer marketing companies, advertising agencies, media firms and others within the marketing sector have stepped up their on-campus recruiting efforts in an effort to identify and secure the next generation of marketing practitioners.

Thus it was with great interest that I read a recent article in Knowledge@Wharton entitled; “Wither the Ping-Pong Table? Which Perks Matter Most to Employees.” The article focused on the role that perks play in attracting and retaining employees.

One of the principal benefits of perks is their appeal to “top performers,” that small percentage of a firm’s employees that drive disproportionate value. Modern day perks range from paternity leave to flex time, unlimited vacation, on-site gyms and dry-cleaning service. Equally as important as their appeal to top talent: “Perks are symbolic of valuing employees, and people will give more when they are in a culture which is supportive and caring.” This according to Nancy Rothbard, Professor of Management at Wharton,

For the marketing and advertising industry, which has increased its efforts to replenish its ranks of energetic, knowledgeable professionals across a range of functions, perks play an important role in their talent sourcing efforts. Aside from helping to attract newcomers, perks also play a vital role in helping to energize a work place, build comradery among co-workers and reinforcing a firm’s cultural identity.

According to the Wharton article, perks that emanate from an organization’s culture tend to resonate with its employee base in a way that yields significant symbolic value. One example cited by Sigal Barsade, Professor of Management at Wharton was the offering of pet bereavement days, which can reinforce the notion that a company’s culture traits include “affection, caring and compassion.”

So what perks will provide the greatest value for your firm? Unlimited vacation, while appealing, is also quite costly. Perhaps goat yoga will yield the same results, with lower costs to the organization. Either way, the role of perks, rather than a reliance on the escalation of salary dollars, cannot be underestimated in winning the talent game.

Advertisers Take Decisive Action to Safeguard Their Media Spend

25 Jul

Abstract concept, fingers are touching padlock symbol, With protAdvertisers, particularly larger, multi-national advertisers are assuming a greater level of responsibility for their organization’s media investments. The goal is to safeguard those investments and to spend their media dollars wisely.

The actions being taken by advertisers are clearly the result of the media industry not moving quickly or forcefully enough to resolve key issues confronting advertisers. Issues such as fraud, brand safety, viewability, tracking and performance vouching pose serious risks that undermine media effectiveness.

On the fraud front alone, cybersecurity firm Cheq issued a report earlier this year indicating that global ad fraud will cost advertisers “an unprecedented $23 billion” in 2019. Experts have stated that the continued growth in digital media expenditures, which will top $300 billion worldwide, combined with the lack of governmental and industry oversight makes this category highly appealing to fraudsters and organized crime.

Given the complexity of the global media supply chain and the technical nature of the sector advertisers are seeking to increase the level of rigor surrounding media performance and accountability.

Advertisers seeking greater transparency and security over their media funds and data have grown weary of waiting for the requisite level of support from their media supply chain partners. This has led some advertisers to transition certain aspects of their media planning and buying activities in-house. Others have formed or increased staffing and resource support for corporate media functions to enhance controls and stewardship over the investment of their media funds.

More broadly, in the wake of the Association of National Advertisers (ANA) 2016 study on media transparency, the organization in conjunction with its partner in the study, Ebiquity, issued a recommendation for advertisers to “appoint a chief media officer (in title or function) who should take responsibility for the internal media management and governance processes that deliver performance, media accountability and transparency throughout the client/ agency relationship.”

Recently, the World Federation of Advertisers (WFA), through its Media Board, recently announced that its members had formed the Global Alliance for Responsible Media. The Alliance will also be championed by the ANA’s CMO Growth Council, a member organization of the WFA. The council, which includes a coalition of advertisers, agencies, publishers, platforms and industry associations, will focus on delivering a “concrete set of actions, processes and protocols for protecting brands.”

We are hopeful that the initiatives being taken by progressive marketers such as P&G, Mars, Unilever and Diageo will spur the industry to action when it comes to comes to controls that safeguard media spend and improve the efficacy of those investments for all media advertisers.

While a rising tide may lift all boats, as the adage goes, we know from experience that when it comes to media accountability organizations cannot rely solely on the efforts of other advertisers, agencies or associations to protect their self-interests. This requires an ongoing commitment to improving media accountability, performance monitoring and stewardship efforts by them, their agents and intermediaries. In the words of Thomas Francis Meagher: “Great interests demand great safeguards.”

 

 

Assessing the Potential for Transitioning Work In-House

24 Jun

Ideas idea success growth creativity creative multi ethnic group of peopleAn increasing number of marketers are transitioning portions of their advertising activities from their external agency partners to in-house teams. A survey conducted by the Association of National Advertisers (ANA) in the summer of 2018 revealed the following:

  • 78% of survey respondents indicated that they had an in-house operation of some sort
  • This is up 58% from 2013 and 42% from 2008
  • 90% of marketers with in-house operations have increased their in-house team workloads
  • 70% of marketers have shifted work from external agencies to in-house teams in the last 3 years

Although the ANA survey indicates that some in-house agencies are increasingly handling brand strategy and creative ideation work, most marketers that we serve continue to rely on external creative agencies for this type of work and are initially focusing their in-house efforts on a range of specialty services. This approach can minimize risk and cost, while putting the essential building blocks in place for eventually launching deeper into in-house agency commitments, if desired.

Endeavoring to build out a full-service in-house creative agency is certainly achievable and there are a number of successes that one can point to. Consider Innocean Worldwide which originally began as the in-house agency for Hyundai-Kia and has gone on to acquire clients outside of the Hyundai Motor Company. Innocean’s work has won global recognition for its creative work that includes a Silver at Cannes and an ADFEST Grand Prix in 2019. As well, Innocean has committed to growing its brand and weight in the industry by acquiring noted independent creative agency David & Goliath in late 2017.

However, building out a full-service in-house agency takes time and requires an investment in evolving the culture of the operation, attracting top-notch talent, developing the appropriate processes, and positioning itself to be successful in winning internal client confidence and ultimately the creative development work.

The effort associated with attracting and retaining top-quality creative personnel to ply their wares at an in-house agency can be significant. Providing end-to-end creative services requires an increase in headcount and drives up operational fixed costs. Further, the timeline required to demonstrate in-house agency abilities and to consistently produce fresh ideas and deliver quality work is uncertain. This is particularly so if there isn’t a corporate mandate for brand marketers to utilize the in-house services. Thus, management must build-in enough time and budget to allow for relationships to take hold between the in-house team and the brand management teams, and for the in-house team to “learn” how to successfully compete for and win creative assignments.

Thus, many organizations focus initial in-house efforts on areas where the operations can clearly and immediately add value. Such services may include content curation and creation, digital, print and internal video production and the development of sales promotion and collateral material. Consolidating tasks such as these with an in-house team can improve a marketer’s agility by reducing project turn-around times and costs while improving the caliber of the output.

Many in-house operations begin as shared-services providers, subsidized by the organization and often with mandates for brand marketers to use their specialized services. Which is not a bad way to launch an in-house agency. Over time, some operations may adopt a charge-back model, where they must compete with external resources to win projects from their brand marketing peers.

Each model brings with it certain challenges. The charge-back model, with no corporate mandate for use, raises risk for the in-house team who must generate revenue to cover internal staffing, resource and real-estate costs. If the team cannot win work, their very existence may be jeopardized. And during competition for work, the team must address internal client perceptions that the services they provide will be less expensive than an external creative agency. On the other hand, if pricing is comparable to an external resource, brand marketers may question the risk / reward of transitioning work away from an established external specialist creative shop and bringing it in-house.  Additionally, end-user’s want to feel that utilizing their in-house agency “makes their life easier.”

Regardless of the model employed or the scope of services offered, it is imperative to embrace a strong project-management orientation with a comprehensive workflow management toolkit. The need to evaluate potential projects, provide cost and time estimates, log projects, manage projects and secure sign-offs requires a disciplined in-house project management function.

An important part of generating and demonstrating efficiency gains for the organization is the ability to track time-on-task, project gestation and completion rates, rework levels and the like… all of which require a commitment to recording and tracking in-house activities and utilization rates. Such information will also inform management on how and when to expand or contract staff levels and when to tap external resources to augment in-house skill sets.

The need for internal advertising support is real and makes a great deal of sense regardless of the breadth of services an organization seeks to source from an in-house operation. However, the application of the model requires a disciplined pragmatic approach to both set the breadth of service to be offered the team and to efficiently and effectively handle the anticipated volume of work.

 

 

 

 

 

Does Anyone Care About Media?

12 Apr

Coaching Mentoring Education Business Training Development E-learning ConceptMcKinsey estimated that companies across the globe could spend in excess of $2.0 trillion on media in 2019.

A big number to be sure, and for most advertisers the media component of their marketing spend, which runs between 10.4% – 14.0% of annual revenue is a material SG&A expense (Source: The CMO Study, from Deloitte, AMA, Fuqua School of Business at Duke University).

Thus it was surprising to read the results of advertising and media consultant ID Comms recent survey assessing advertiser interest in media training. Seventy-one percent of the respondents indicated that the “investment in media training” by advertisers was “unsatisfactory or entirely unsatisfactory.”

Given that in aggregate, the survey respondents firms spend “in excess of $20 billion” on media globally, one might say that their response was stunning. This is particularly so given the scrutiny that has been given to media advertising in the wake of the Association of National Advertisers (ANA) 2016 study on “Media Transparency” that brought to light some of the financial risks faced by advertisers in this area.

So why haven’t advertisers stepped up their investment in building media competency? It would seem that advertisers the world over would place a much higher level of priority on the recruitment and training of media personnel to help them steward their media agencies to safeguard and optimize their media spend.

Media savvy marketing professionals understand that the cost: benefit proposition for staffing and training corporate media departments is quite compelling. In fact, the ID Comms survey went on to point out that nearly all of the survey respondents agreed that “brands can gain a competitive advantage in marketing” by elevating their firm’s media capabilities.

Companies have plenty of Chiefs, ranging from Chief Executive Officers, Chief Operating Officers, Chief Financial Officers and Chief Marketing Officers to Chief Risk Officers, Chief Procurement Officers, Chief Technology Officers, Chief Information Officers, Chief Revenue Officers and more.

Okay, so perhaps there is no room left in the C-Suite for a Chief Media Officer. No worries, build out the corporate media function within the marketing pyramid. No money in the HR budget to hire a seasoned media professional? No worries, bring on a fractional Corporate Media Director to assist in staffing and training the department.

The need is real.

What advertiser wouldn’t benefit from investing in the ongoing training and education of their marketing and or corporate media staffs? Honing capabilities related to setting media strategy, establishing KPIs, crafting a compelling media brief, reviewing media plans, evaluating media performance, building an understanding of the adtech sector and managing a diverse roster of media agencies would yield both near and long-term financial returns.

With the desire to improve “working media” in an increasingly complex marketplace companies would benefit mightily from building their corporate media proficiencies.

“Hire for passion and intensity; there is training for everything else.” ~ Nolan Bushnell

 

 

Who Says Advertisers Don’t Want Transparency?

26 Nov

transparency“No one wants full transparency.”

It was alleged that this intriguing pull quote echoed the sentiments of agency buyers at a gathering of agency executives dealing with the topic of “Transparency in Media Buying.” The event, hosted by Digiday in London, provided participants with complete anonymity with regard to their name and or company affiliation in order to encourage an open exchange of information on the topic. Understood.

Participants shared a range of thoughts as to why advertisers weren’t truly interested in media transparency. The ideas proffered by this group included:

  • A belief that advertisers were concerned about the costs associated with revamping how digital media is purchased.
  • Advertiser concern related to the impact of “overhauling how much” they spend on media.
  • A general lack of advertiser interest in the “mechanical” detail that underlies the media acquisition and delivery process.

There are two major problems with this perspective.

The first is the belief among digital media supply chain participants that advertisers should bear the financial burden related to the poor decisions made by agencies, ad tech vendors and publishers with regard to how media buys were executed, tracked and reported on. For years these intermediaries knowingly shirked their fiduciary responsibility to serve the advertiser’s best interest and to safeguard their media investment. To come back now and suggest that if advertisers want a return to normalcy it will cost them more in fees and the actual rates paid for media inventory is preposterous. Did these firms reduce their fees and costs to advertisers while they were participating in media arbitrage and purchasing low quality, high risk inventory (often without the advertiser’s knowledge)? Of course not. They padded their respective bottom lines at the expense of advertisers.

Secondly, the notion that advertisers aren’t interested in the mechanics and science behind the planning, buying, stewardship and performance analysis of media buys seems to be misguided. Or at the very least, not representative of the views held by a majority of advertisers, many who have cited media transparency as one of their most important concerns in industry survey after industry survey. Additionally, Gartner Research recently released the results of its “CMO Spend” survey and noted that chief marketing officers at advertiser organizations in the U.S. and UK were focused on areas such as email marketing, online media management and digital analytics as their top tech priorities. This further underscores advertiser interest in leveraging technology to improve transparency and drive media performance.

Perhaps the clients represented by the agency personnel at the Digiday event are different than those with whom we interact with on a regular basis or those who participate in industry surveys.

Or perhaps the more accurate sentiment is that no one on the agency, ad tech or publisher side wants full transparency. Either way, if the media supply chain doesn’t recognize and begin to address client concerns and the corrective actions that advertisers are already taking the risk of revenue contraction and ultimately disintermediation is real.

One only needs to read the Association of National Advertiser’s (ANA) October, 2018 study; “The Continued Rise of the In-House Agency” to understand the cost to intermediaries of not taking advertisers’ best interest to heart:

  • 78% of ANA members surveyed had an in-house agency in 2018 versus 58% in 2013 and 42% in 2008.
  • 90% of the survey respondents indicated that the workload of their in-house agencies had increased in the past year, including 65% for whom the workload had increased significantly.

Media supply chain stakeholders may want to heed the words of 20th century Russian-American writer and philosopher Ayn Rand:

“We can ignore reality, but we cannot ignore the consequences of ignoring reality.”

 

AARM Formalizes Its Relationship with the ANA

1 Nov

thAARM | Advertising Audit & Risk Management becomes a member of the Association of National Advertisers (ANA), joining more that 1,000 leading suppliers, agencies, law firms, media companies and consultants as a Marketing Services Provider (MSP).

 

Advertisers: What Does the Department of Justice Know That You Don’t?

19 Oct

FBI LogoIt has been two years since the Association of National Advertisers (ANA) published its blockbuster study on media transparency in the U.S. marketplace. Among the study’s findings were that the use of media rebates paid by publishers to agencies was “pervasive” and that there was a “fundamental disconnect” regarding client-agency relationships and the agencies assumed fiduciary obligation to act in an advertiser’s best interest.

Later that same year, December of 2016, the Department of Justice (DoJ) announced that it was conducting an investigation into the practice of “bid rigging” by agencies for TV and video production jobs. The bid rigging was allegedly being done to favor the agencies in-house production groups over independent production companies. This was done by urging outside production vendors to artificially inflate their bids, creating a reason and a paper trail for supporting the agency’s decision to award the production job to their in-house studio, which coincidentally bid a lower price for the work. At least four of the major ad agency holding companies were subpoenaed as part of this ongoing investigation.

One year after the release of the ANA media transparency study the ANA conducted research among its members that found:

  • 60% had taken “some” steps to address the study’s findings
  • 40% had not taken steps or weren’t sure if their companies had taken action
  • 50%+ of those that had taken steps indicated that had revised agency contract language
  • 20% of those that had taken steps had conducted audits of their agency partners

Given the $200 billion plus in estimated U.S. media spending (source: MAGNA, 2018) and the $5 billion U.S. commercial production market the aforementioned numbers are stunning in that more advertisers have not taken action to safeguard their advertising investment by implementing controls and oversight actions that mitigate risks and improve transparency.

It would appear as though the Department of Justice is taking these matters more seriously than many advertisers. The reason that the DoJ and FBI have undertaken probes of U.S. media buying and creative production bidding practices is quite simple… fraud, price fixing and bid rigging are prohibited under federal law.

The question is; “Why haven’t more advertisers, whose media and production dollars are at risk, been more proactive in constructively addressing these issues with their agency partners?”

The fact that the federal government has determined that it was necessary to launch two separate investigations into U.S. advertising industry practices is a clear signal that marketers should reinvigorate their oversight and compliance efforts. The stakes are high and the risks have not abated since the aforementioned practices first came to light.

If federal investigations into ad agency practices in these areas isn’t enough to spur advertisers to action, perhaps the words of Jon Mandel, former CEO of Mediacom in an interview with Mumbrella following his whistleblowing presentation regarding media agency “kickbacks” at an ANA conference in 2015 will provide the necessary incentive;

Clients need to stop suspending disbelief. The agency is supposed to be a professional providing you with proper advice not tarnished by their own profit. Marketers need to know the limits of that.

 

 

Will Programmatic Ever Address Advertiser Transparency Concerns?

20 Aug

dreamstime_m_35343815It has been two years since the Association of National Advertisers released its study on media transparency issues impacting advertisers within the U.S. media marketplace.

While much has changed, there remain reasons for concern. Most perplexing is the fact that with all of the intermediaries in place between advertiser and publisher, few seem to be looking out for the advertisers’ best interests.

The reasons for this lack of an advertiser-centric perspective are many and include greed, a lack of knowledge, insufficient oversight processes and often times indifference up and down the programmatic digital media supply chain.

Thus, it was with great interest that I read a recent article on Adexchanger.com entitled; “Index Exchange Called Out for Tweaking Its Auction.” In short, the article dealt with the fact that Index Exchange had altered its auction processes, without notifying advertisers, ad agencies or DSPs. Ostensibly, the exchange’s motivations for this move was to boost its market share, although in fairness, they claimed that they believed their approach reflected “industry practice.”

Of note, Index Exchange made the aforementioned change more than one year ago, employing a technique referred to as bid caching. In short, bid caching is where the exchange retains losing bids in an effort to run advertiser content on subsequent content viewed by the consumer. From an advertiser perspective there are a number of issues with this practice, as detailed by author Sarah Sluis of the aforementioned article on Adexchanger:

  1. Buyers will bid higher prices for the first page in a user session. Thus, if the losing bid is retained and the ad is served deeper into a user session, the buyer will have overpaid for that inventory.
  2. Any delay between the initial bid and the ad actually being served, using a bid caching methodology, increases the chance that the DSP will have found the user elsewhere, resulting in the campaign exceeding the pre-determined frequency caps.
  3. Brand safety definitely comes into play, because even though the ad is served on the same domain, it is on a different page than what was intended.

What is truly remarkable about this scenario is that buyers just learned of this practice and, according to Adexchanger, “not from Index Exchange.”

How many advertisers were negatively impacted by Index Exchange’s unannounced move? What were their agency and adtech partners doing in the placement and stewardship of their buys that an exchange’s shift in auction approaches went undetected for more than one year? Unsettling to be sure.

Ironically, this exchange had implemented a similar move previously, adopting a first-price auction approach, which was known to publishers but not announced to buyers.

Advertisers would be right to raise questions about the current state of programmatic affairs; exchanges not notifying the public of shifts in auction methodology, agency buyers and DSPs unable to detect these shifts to adjust their bid strategies, ad tech firms not catching the shift to safeguard brand ad placements, and publishers that were aware, but settled for the higher CPMs resulting from the shift, rather than informing the buy-side.

This is disheartening news, particularly when one considers the percentage of an advertiser’s dollar that goes to fund each of their intermediaries (at the expense of working media). Yet, advertiser fueled growth in programmatic digital media continues unabated.

Clearly a case of buyer beware. Advertisers that have not already reviewed their supplier contracts or enacted the “right to audit” clauses of their agency and adtech supplier agreements may want to make plans to do so as they begin finalize their 2019 digital media budgets. As the old saying goes:

The buyer needs a hundred eyes, the seller but one.”

 

Don’t Start There

25 Jul

contract complianceMost would agree that the days of conducting business on a handshake are long gone. Make no mistake, honesty, forthrightness, trust and respectability are still qualities that we look for in our professional relationships. However, when it comes to transacting business the protection afforded to all parties is greatly enhanced with the use of a contract versus a verbal agreement marked by a handshake.

A verbal contract isnt worth the paper its written on.” ~ Samuel Goldwyn

The good news when it comes to the advertising industry, most client-agency relationships are governed by a contractual agreement. That said, there is one common mistake made by many advertisers when it comes to contracting with their agency partners… they start with the agency’s base contract.

Unfortunately, this creates a handful of challenges beginning with the fact that by its nature, agency contract templates are not client-centric. Then, when the advertiser turns the draft agreement over to counsel for review the document will likely require major modifications or, depending on counsel’s degree of advertising industry knowledge, there is a risk that key terms and conditions, which safeguard the advertiser’s interest will not be included in the agreement.

For advertisers, getting the contract “right” is important for two reasons. Firstly, the client-agency agreement establishes the legal nature of the relationship (e.g. principal-agent), while clearly articulating both stakeholders’ roles, responsibilities and rights. Secondly, the agreement establishes expectations and guidelines related to key aspects of the relationship, including; agency performance, staffing, remuneration, reporting, audit and record retention and intellectual property and data rights.

Over the course of the last several years the nature of client-agency relationships has certainly evolved with the advent of emerging technologies, changes in the regulatory environment and a move away from principal-agency relationships, which once held agencies to a much higher fiduciary standard. Thus it comes as no surprise that the complexity of the legal agreements that govern these relationships has increased dramatically.

Larger advertisers certainly benefit from working with marketing procurement departments and in-house counsel that are adept at contracting with a myriad of marketing vendors. Many organizations have developed standardized marketing vendor Master Services Agreements (MSAs) that can be used across their agency network, with some modification. These are typically “evergreen” agreements that don’t need to be renegotiated on an annual basis. Complimentary annual Statements of Work (SOW), which include key deliverables, agency staffing plans and remuneration program details are designed to be reviewed every year.

Additionally, the Association of National Advertisers (ANA) and The Incorporated Society of British Advertisers (ISBA) have both developed comprehensive, client-agency contract templates for use by their members that reflect industry “Best Practice” trends in this area. For small advertisers, or relationships with smaller, independent agency partners, the ANA and ISBA contract templates may not be wholly appropriate, but will provide a worthwhile guide for key terms and conditions that will certainly be applicable.

In our experience, advertisers will be much better served by taking this approach as opposed to accepting or attempting to retro-fit an agency’s base contract.

Of course, once the contract has been executed, marketing and advertising team personnel have an obligation to their organizations… monitoring contract compliance and financial management across each of their agency partners. The first step in this process, one which is often overlooked, is to socialize the agreement. Since an agreement is intended to serve as the basis for the client-agency relationship, it is important to share a summation of this agreement with those client-side individuals responsible for managing these important relationships.

As it relates to ongoing contract compliance monitoring tactics, these can include the tracking and reviewing agency time-of-staff commitments, retainer fee “burn” rates, budget control and project status reports and annual fee reconciliations. Progressive advertisers compliment these efforts with periodic business review meetings (i.e. quarterly or semi-annually) and by conducting independent agency contract compliance audits every year or two.

Good contracts can be the building block for great relationships. The time and effort invested in fashioning them and insuring compliance to them will yield dividends and across an advertiser’s agency network.

 

 

 

 

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