M Acof Advertising

FEBRUARY 2011

HOW TO DETERMINE YOUR MARKETING SPEND LEVEL INSIDE THE MIND OF GENERAL MILLS’ MARK ADDICKS

BRAND MANAGERS: THE NEW RINGMASTERS?

THE IMPACTM AC OF ADVERTISING

AD SPENDING ACCOUNTS FOR $5.8 TRILLION IN U.S. ECONOMIC OUTPUT AND SUPPORTS 19.8 MILLION JOBS (SURPRISED? GET ALL THE FACTS INSIDE)

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Talk about a fashion statement. Macy’s wanted to make a splash over Memorial Day weekend, so they came to Yahoo! to connect and engage with female shoppers. The effort went well beyond established targeting, using Yahoo!’s advanced Smart Ads capabilities to tailor each message to a consumer’s speciﬁ c shopping habits and locate nearby stores. That’s the power of SCIENCE + ART + SCALE. Find out more at advertising.yahoo.com/SAS

Yahoo Ad.indd 1 1/26/11 10:55:34 AM B17570_7b_MACYS_A.indd B17570c03D_300ucr.tif 09.17.10 150 L/S BS Client Yahoo Mechanical Specs People OK Job Number YAHOO-24 B 8.625” x 11.125” Creative Director Margaret Johnson / Jim Elliott Ad Number 000152 T 8” x 10.875” Associate CD None Ad-ID None L 7” x 10.25” Art Director Nik Daum Job Title B2B Phase 2 — MACY’S G None Copywriter Rob Katzenstein File Name YAHOO-24_B2B Phase 2_MACYS_Apg_REV.indd S 1” = 1” Proofreader None File Format Adobe InDesign Account Manager Ashley Smith Start Date 9-14-2010 8:14 PM Notes None Asst. Account Manager Frank Dudley Color / Media 4/c Mag Producer Kim Miles 1st Close 9.20.10 Operations Gina Bisarra 1st Insertion 9.28.10 Client None Vendor DMAX Digital Studio Samantha Troy @ 9-16-2010 10:36 AM Pubs Nielsen Pubs — Media Week Print Output at 100% Reader 9 Released on 09.16.10

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www.ana.net by ThePohlyCompany. Copyright year fortheAssociationofNationalAdvertisers,Inc., ANA Magazine,Issue#105,ispublishedsixtimesa ACCOUNT SUPERVISORBethanyFraser PRODUCTION MANAGERKateDonnelly ART DIRECTORGeorgeLee COPY EDITORKarenEnglish MANAGING EDITORBrianBertoldo 617.457.3901 [email protected] Ken Beaulieu EDITOR THE POHLY COMPANY 508.346.3525 [email protected] Kristina Sweet ASSOCIATE PUBLISHER ADVERTISING SALES Duke Fanelli EXECUTIVE EDITOR Barry Garbarino EDITOR NATIONAL ADVERTISERS ASSOCIATION OF manuscripts, photographs,orartwork. nor theANAassumesanyliabilityforunsolicited and advertisingmatter. Neitherthepublisher reserve therighttoacceptorrejectalleditorial appearing within.ThepublisherandtheANA no responsibilityforerrorsandomissions Company. Thepublisherandthe ANAassume Advertisers (ANA),ANAMagazine,orThePohly official expressionsoftheAssociationNational Opinions expressedwithinarenottobeconsidered 3rd Ave., NewYork, NY10017. changes to:ANAMagazine,MarketingDepartment,708 617.451.1700; fax617.338.7767.Sendaddress Floor 11,Boston,MA02110;www.pohlyco.com; write to:ThePohlyCompany, 211CongressStreet, Correspondence: Onmattersconcerningthemagazine, permission ofthepublisherisstrictlyprohibited. photograph, orillustrationwithoutexpresswritten Reproduction in wholeorpartofanytext, Advertisers 2011.Allrightsreserved. National

617.451.1700 Boston, MA02110 Floor11 Street, 211 Congress www.pohlyco.com a fanonfacebook.com/ANA @ANAmarketers andbecome Follow uson Twitter © Associationof CONTENTS 16 14 10 Features the yearahead the marketingindustrytofollow in 3 From theTop 22 Focus onAdvocacy 7 [ 5 [ Marketing Insights AllforOne Pushing theEnvelope Welcomed Feedback into the digital age of social networking into thedigitalageofsocialnetworking lineup ofculinarysuperheroeslikeBettyCrockerandtheJollyGreenGiant wider economy by theANArevealsimpactadvertisingindustryhason of addingcustomerproductreviewstoyourwebsite The RippleEffect conduct, notgovernmentoversight,arekeytoregulatingonline advertising your marketingspendwhilekeepingtheCFOinlinewithobjectives and marketers fragmented medialandscapewheretheymustbeprojectmanagers Say NotoDoNotTrack Structured Approach Measure Your Leverage PROJECT MANAGEMENT MARKETING SPEND

Six imperatives for Six imperativesfor ] ] A comprehensive new report commissioned A comprehensivenewreportcommissioned We lookattherisksversus the rewards Today’s brandmanagersfacea CMO Mark Addicks leads General Mills’ CMO MarkAddicksleadsGeneralMills’ Industry-driven, self-imposed codes of Industry-driven, self-imposedcodesof Use this three-step method to boost Use thisthree-stepmethodtoboost about lifeinthedigitalspace Laura KlaubergofUnilevertalks 24 Final Say Lessons fromHyperIsland ANA Magazine February 2011|1

1/26/11 10:42:56 AM

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| FEBRUARY 2011 GSN Ad.indd 1 1/26/11 10:52:00 AM FroM The Top All for One Officers Michael palmer Gary elliott Executive Vice President Marketing industry imperatives for 2011 Chair William Zengel robert D. Liodice Executive Vice President By Bob Liodice, president and Ceo, ANA President and Chief Duke Fanelli Executive Officer Senior Vice President Stephen F. Quinn Kathleen hunter Vice Chair Senior Vice President Mark r. Baynes robert rothe he marketing industry has always rigorous analytics leave many marketers Treasurer Senior Vice President had a penchant for “doing good grasping for guidance, metrics, and Christine Manna Keith Scarborough Chief Operating Officer Senior Vice President and Secretary things.” The work of the measurements. The industry has a Brian Davidson Bill Duggan Vice President Advertising Council and the number of important initiatives under way. Group Executive Vice President Tracy owens Partnership for Drug Free It’s imperative that these initiatives lead to Vice President Daniel L. Jaffe TAmerica are shining examples of how more effective marketing and media Executive Vice President marketing can be leveraged to make a decision-making. General cOunsel difference in people’s lives. But the industry 4. Advertising taxes. It’s crucial for the Douglas J. Wood, Esq., Reed Smith LLP still has a relatively poor public image. So this industry to fend off attacks on tax deduct- BOard Of directOrs year, let’s be more aggressive about providing ibility and product-specific proposals. In Mark W. Addicks, General Mills, Inc. the public — particularly young people — 2011, as representatives in Congress and Paul Alexander, Liberty Mutual Group with a better understanding of the value of state legislators seek to balance budgets Dana Anderson, Kraft Foods, Inc. advertising (see “The Ripple and slash deficits, the Mark R. Baynes, Kellogg Company Effect,” on page 10). Here industry must not let them Jill Beraud, PepsiCo, Inc. are six more industry do so on the backs of the Frank P. Bifulco, Jr., The Home Depot, Inc. imperatives for 2011: marketing community. Wendy Clark, The Coca-Cola Company Lisa D. Cochrane, Allstate Insurance Company 1.Self-regulation. 5. Mending client/ Craig A. Coffey, Nokia Corporation Self-regulation is the agency relationships. Gilbert R. Dávila industry’s most fundamen- Client/agency relationships Marie T. Devlin, American Express Company tal principle for effective appear to be deteriorating, Paul Edwards, General Motors Corporation marketing ecosystem as evidenced by agency Gary Elliott, Hewlett-Packard Company management. In 2011, the roster consolidation Natalia Franco, Burger King Corporation industry, under the aegis of (including multicultural), Neil B. Golden, McDonald’s Corporation the National Advertising the increased role of Thomas F. Haas, Siemens Corporation John Harrobin, Verizon Communications Review Council, will institute procurement departments, Judy L. Hu, General Electric Company the self-regulatory accountability program agency compensation issues, and Claire Huang, Bank of America for online behavioral advertising. This strategic concerns about the current John Kennedy, Jr., overarching program addresses privacy “unbundled” state of agency services. International Business Machines Corporation issues, consumer notification, and marketer It’s imperative that we make substantial Laura Klauberg, Unilever compliance with industry principles. The headway on these issues so that we can Esther Lee, AT&T Inc. get back to the fundamentals of building Keith Levy, Anheuser-Busch InBev success of this program is critical. Robert D. Liodice, ANA 2. Marketing diversity. Despite a wealth brands and businesses. Charlotte O. McKines, Merck & Co., Inc. of diversity programs, the industry has been 6. Brand valuation standards. What’s Marilyn Mersereau, Cisco Systems, Inc. unable to demonstrate real progress due to the valuation of your brand? Should you Deborah Meyer, Pulte Homes inadequate data, a lack of centralized and know? Definitely. The problem is that the Brian D. Perkins, Johnson & Johnson coordinated management, and inconsistency industry lacks generally accepted brand Marc S. Pritchard, The Procter & Gamble Company in our commitment to solve real issues. The valuation standards — that is, rules of the Stephen F. Quinn, Walmart industry needs to decide whether it’s serious road that would provide guidance for Scott Remy, Nestlé USA about making a commitment to real, understanding the impact of marketing. Sylvia L. Reynolds, Wells Fargo & Co. Rebecca Saeger, The Charles Schwab Corporation tangible, and measurable progress. In 2011, the Marketing Accountability James D. Speros, Fidelity Investments 3. Measurement. Despite increased Standards Board and the ANA will be John Travis, Adobe Systems Incorporated attention on marketing accountability, the working jointly to see if progress can be proliferation of media and a dearth of brought to this highly important area. ■

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A11-AN1-002 3FromTop.indd 3 1/26/11 10:43:40 AM onrequestimages.com | 877.202 .5025

OnRequest Ad.indd 1 1/26/11 4:12:32 PM ssues i MARKETING INSIGHTS g Bur NiN

MArketiNg sPeNd Measure Your Leverage A three-step plan to determine the right marketing spend level By Pat LaPointe

As the ecoNoMy sLowLy recovers, CMOs are looking once again to boost their marketing spend in pursuit of top-line growth. Yet in discussions I’ve had with many CMOs and CFOs across industry groups, the two most common methods for determining ideal marketing spending levels are still: 1. How much did we spend last year? 2. What percentage of sales spent on marketing is most common in our industry? Which is odd given that the quickest way to lose credibility as a CMO (or as any marketer for that matter) is to suggest that you need to match your competitors’ spending levels to maintain “share of voice.” Most CFOs, fresh off their cash crunch nightmares, find share of voice to be a fairly shallow rationale for spending changes. Moreover, they want to see a clear vision of return on investment before they even consider opening the spigot. To determine the right spend level and align the CFO to the cause, today’s CMO needs a smarter approach. Consider this three-step process: growth, etc.), while the rest of the focused on the right goals?” step 1: Align to the Proper organization has migrated to another Asking this question every six months goals and objectives (margin enhancement, channel or so is crucial to keeping your market- As silly as it may sound, too many expansion, etc.). This disconnect ing aligned with the overall company

marketers still work against one set of happens most often when marketing goals as directly and clearly as possible. ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| ||||||||||||||||||||||||||||| objectives (brand preference, share of fails to regularly ask, “Are we still Map out on a single page the relationship

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| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| BuRNING ISSuES MARKETING SPEND

February 2011ANAMagazine MARKETING tions. delivering oncustomervalueproposi- role marketingplaysinestablishingand company’s strategicplatform,andthe between shareholdervaluegoals,your on investment is potentially large and on investmentispotentiallylarge and for “leverage”—placeswherethe return resources everyday, arealwayslooking Ce Points ofLeverage Step 3:Identify credibility foryourproposal. goes alongwaytowardbuilding discussion readytoproposesomecuts initiatives. Comingintothebudget can freeupdollarstofundnew quintile analysis)toidentifywhereyou case processoramorejudgmental spend commitments(viaabusiness a generating fromcurrentspendlevels. clear ideaofthetypereturnsyou’re Before askingformoremoney, havea Every DropFirst Step 2:Squeeze tions mustbeclearandtransparent. used, butthecomponentsandcalcula- analytical/judgmental processcanbe spend allocationscenarios,ahybrid uncertainty gapsbasedondifferent parameters fortherightsolution.t are notdeadends,however, just nonexistent. Complexityanddatagaps funds, orwheredataisinconsistent P&L asacomplementtocorporate allocate marketingdollarsfromtheirown political matrixofbusinessunitheads organization where,forexample,a exactly howtohelpthebusiness. good focusandanunderstandingof tion moreorlessmoney—demonstrates market segmentstowhichyouwillappor geographies, products,channels,or prioritization planclearlydefined—i.e., greatest impact.Havingastrategic where youwillallocateresourcesforthe there isagreement. members oftheexecutiveteamuntil t the very least, rank your current t theveryleast,rankyourcurrent Os, faced with competing requests for Os, facedwithcompetingrequests for However, thatcanbetrickyinan Once youclarifythosegoals,state t hen solicit input from other hen solicitinputfromother

o close o close INSIGHTS - spend levels. from you’re generating the typeofreturns a clearideaof more money, have Before askingfor when buildingacaseformorespending. opportunities toexploitpointsofleverage nately, marketersoftenoverlooksimilar to fundacceleratedgrowth.Unfortu- realized quickly—togeneratecashflow supply chaininorder?a increased marketingspend?i business youhopetoattractthrough operationally readytoservethe new one wins? risk ofstartingaspendingwarthatno spend? Whatwillyoudo?a competitors reactifyouchangeyour between thetwo? margins? Canyoutellthedifference cherry-pickers whowillbleedyour now, orareyoumorelikelytoattract likely todobusinesswithyourcompany profitable prospectivecustomersmore direct selling)toshiftthestatusquo? different typesofstimulus(e.g.,more spending, ordoesitrequireadditional your categoryrespondtomoremarketing defend itfromcopycatclaims? ness ofyourmessage,andcanyou the relevance,clarity, anddistinctive- value propositionvs.yourcompetitors’? relative strengthofyourproduct/service looking ateachbrand’s: before proposingmorespendingby m to getthebestreturnsforyourefforts? forward: Wherecanyouspendadollar arketers can assess their leverage arketers canassesstheirleverage t Operational readiness. a Competitive reflex.Howwill Customer switchability. a Marketing responseelasticity. Will Message strength.Howstrongare Value proposition.Whatisthe he conceptofleverageisstraight- current

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him atwww.MarketingNPV.com. marketing strategyortactics.Contact economic impactofchangesin marketing metrics,andforecast the marketing investments,trackthe right and toolstomeasurethepaybackon advisory firmthatusesprocesses MarketingNPV, ahighlyspecialized Pat LaPointeismanagingpartnerat the Ce building trustandcredibilitywithboth the meritsofcomprehensiveanalysis, chances ofyourproposalwinningon recommendations willimprovethe disciplined approachtospending on iceduringthedownturn.a invest ingrowthprogramsthatwereput their handsout,jockeyingforfundingto Business unitsandfunctionsallhave demand, bothinternallyandexternally. address asignificantamountofpent-up require seniormanagementteamsto particular momentintime. likely toexperience,notjustata of themacrohead-andtailwindsyou’re s expected impactofyourinvestments. headwind, dramaticallyreducingthe spending intoanimpenetrable regulatory landscapecouldhaveyou macro-economic spectrumorthe unilateral effort.s enough toneutralizejustaboutany the businessenvironmentarepowerful opportunities, thedynamicswingsof e leverage tojustifyincreasedspending. competitors’ usuallyindicatessufficient these dimensionsrelativetoyour increased spending. find outbeforeyourecommend a reasonablepoint?i company’s overallriskexposurebeyond marketing, orwoulditincreasethe fund anaggressiveescalationin company havethecashresourcesto to realizethepotentialyou’repursuing? providing therightcustomerexperience o consider your leverage in the context o consideryourleverageinthecontext ven ifyouhaveclearleverage e s Balance sheetstrength.Doesthe conomic recoveries eventually conomic recoverieseventually coring stronglyinatleastthreeof O andCFO. udden changes in the udden changesinthe ■ f youdon’tknow, www.ana.net more more 1/26/11 10:45:53 AM

getty images projeCT MANAgeMeNT structured approach How brand managers can better orchestrate multichannel, multiagency campaigns by Chris Yeh

The life of A brANd MANAger has never been more complex or challenging. thanks to media fragmentation and the proliferation of specialist agencies, brand managers are spending an increasing amount of time managing multiagency teams working on multichannel campaigns. Rather than focusing on messaging, awareness, and share, they find themselves worrying about tasks, milestones, and deadlines.

g issues the result? in addition to being brand stewards, brand managers must think of themselves as project managers and marketers. the increased responsibilities may diminish the core work of a brand builder, but in today’s multimedia, multichannel, multiagency world, they’re of paramount importance to a marketing organization. ur NiN b The impact of Media fragmentation years ago, the function of a brand manager was simple, or at least simpler. traditional advertising (television, print, and radio) was the norm, and one agency could handle it all. But technological changes brought about media fragmentation, which amplified the complexity of a brand manager’s role. Rather than simply leading print and broadcast campaigns, today’s brand manager must consider the varying strengths, weaknesses, and needs of both traditional and new media, including digital, interactive, social, mobile, and, in some cases, alternative reality gaming. this added complexity has resulted in brand managers working with an increasing number of agencies. For example, a |||||||||||||||||||||||| ||||||||||||||||||||||||

getty images multichannel campaign might include a traditional creative agency, a direct mail agency, a digital agency, a social media

www.ana.net ANA Magazine February 2011 | 7

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agency, and, perhaps, outside consultants and software develop- collABoRATING wITH YouR cMo EcT oj EcT How can you as a brand manager better align with your CMO? ment firms. PR Here are three secrets to success: Even if each agency falls under ES the same corporate umbrella and is TREAT YouR cMo lIKE A coNSuMER. You’re a marketer, right? Apply your SS u focused on a specific channel, the marketing skills to your cMo. Research the cMo’s psychographic profile to burden of coordination rests with identify his or her hot-button issues. Most important, understand the chief the brand manager. As steward and marketer’s needs and aspirations. just as you can’t simply market your brand advocate of the brand, it’s the as being a “good product,” you can’t market yourself as doing “good work.” brand manager’s responsibility to BuRNING I Be targeted and specific. act as ringmaster for the multiagency circus. MINIMIzE SuRPRISES. while you focus on your particular brand, your cMo has a much broader portfolio to worry about. You’re steering a skiff; the cMo Project Management is maneuvering a battleship. The last thing the chief marketer wants to deal for Brand Managers with is surprises. Provide regular updates and access to relevant information so that the cMo has plenty of time to react if something goes amiss. The ability to connect a brand with its audience is the primary strength wHEN IN douBT, SIMPlIfY. one chief marketer I spoke with said he was of a brand manager. Today, however, dealing with more than 200 agencies. His major project for the first part of the job calls for additional core the year was figuring out a way to pare that number down to 30. As a brand competencies to manage the people manager, you must consider manageability as well as cost and performance. and processes involved. These Simple will endear you to your cMo more than clever, if the results you deliver include: are roughly the same. — C.Y.

communications. To keep a heterogeneous team on the same page, even as they focus among the various players, preferably face to face, but on their individual pieces of the puzzle, brand managers getting folks in the same room has become increasingly must efficiently convey the big picture while maintaining a difficult. Work around these limitations by using web grasp of the details. Formalizing communication channels conferencing tools such as WebEx, GoToMeeting, and is paramount, whether you use a simple mailing list in Adobe Connect, and by adopting online collaboration tools Microsoft Outlook, a consumer-grade message board, or for asynchronous communications. Wikis, for example, commercial-grade groupware like a wiki. Make it easy to offer a better way for many people to work together on a disseminate information to everyone involved in the project, document. Rather than emailing files back and forth and and let the group know where to go to catch up on past reconciling conflicting edits, wiki collaboration lets team communications. members work on the most current versions of the text and see the history of past revisions. coordination. Because timelines are compressed as never before, it’s imperative that brand managers know the status While the advent of multichannel, multiagency cam- of various projects at any time and keep them moving like a paigns has forced brand managers to think of themselves well-orchestrated ballet. Be deliberate in breaking down a as both project managers and marketers, the same project into specific tasks and milestones, and use the technological changes that brought about the problems of WDWBW (who does what by when) principle to assign media fragmentation may also prove their solution. By responsibility and hold people accountable. If a project is arming themselves with better tools for communications, particularly complex (and aren’t they all?), consider project coordination, and collaboration, brand managers can spend management solutions. Traditional tools like Microsoft less time managing project logistics and more on building Project may work if you’re familiar with them; simpler online brands and marketing products. ■ project management tools also provide a big-picture view to other team members. Chris Yeh is vice president of marketing for PBworks, a leading provider of hosted collaboration solutions for agencies collaboration. The saving grace of all this complexity is and brands. He discusses online collaboration and social the ability to blend these different voices and different marketing issues on the popular blogs Ask the Harvard MBA approaches into a harmonious whole that is bigger and (asktheharvardmba.com) and Adventures in Capitalism |||| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| |||| better than the sum of its parts. That requires collaboration (chrisyeh.blogspot.com).

8 | February 2011 ANA Magazine www.ana.net

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CLIENT INFO AKIMBO PROJECT INFO

Client:Mundocom Akimbo Job Number/Project Name: 3 January 14, 2011 Printing: 4/C Brand: 152250_MundoAd_Jan_2011 matte 152250_MundoAd_Fv9_AD. CMYK Contact:Creighton Grose Project Location: gloss ISSUE DATE: ai Title:Managing Global Mrkt Dir Akimbo_Clients/Mundocom other FEBRUARY phone: 1-312-222-8167 Scale: 1”= 1” 2011 email:creighton.grose Design Director: Live: 1/8” from Trim @mundocomww.com Ron Szafarczyk/Rutger Thiellier Trim: 8 x 10.875 Printer:The Pohly Company Designer: Nicholas Wright Bleed: 1/8” from Trim RIPPLE EFFE THE CT

A ke n el ew ap r K ep ck or hu t s y C how s B s th tate e fa ed S r-reac Unit hing e in the conomic impact of advertising

10 | February 2011 ANA Magazine

A11-AN1-002 5CoverStory.indd 10 1/26/11 10:47:11 AM RIPPLE EFFE E ADVERTISING EXPENDITURES account for C $5.8 trillion, or nearly 20 percent, of the H T $29.6 trillion in U.S. economic output. That’s one of the key ﬁ ndings from a new T report on the economic impact of advertising in this country, produced by IHS Global Insight, Inc., a Lexington, Mass.–based research ﬁ rm. Using a model developed by Nobel Prize–winning economist Dr. Lawrence R. Klein, the report estimates the “multiplier effect,” or economic chain reaction, that ensues when advertising sparks an increase in sales for U.S. businesses and their suppliers and service providers. According to the comprehensive report, U.S. businesses spend $279 billion on advertising annually, and every dollar invested generates nearly $20 for the U.S. economy. Moreover, ad expenditures support 19.8 million jobs, roughly 15 percent of all jobs in the country. For every million dollars spent on advertising, 69 American jobs are supported. The study also found that advertising is a major source of economic activity in all 50 states and all 465 congressional districts. And the impact of advertising is surprisingly consistent across the United States, regardless of the location or population of a state. For example, advertising generates 19 percent of economic output in both New York State and Arkansas. A e lk “This would be important information in n e the most robust times, but at a time when ew ap r K the economy is struggling, every job that is ep ck created and every bit of economic activity or hu are even more valuable,” says Dan Jaffe, t s y C how s B executive vice president of government s th tate relations for the ANA. “This is a very clear e f S signal to society at large, and to opinion ar ted leaders and politicians, that when you -reach e Uni ing eco in th restrict advertising, you need to be very nomic impact of advertising clear about what impacts that might have.” The ANA commissioned the study in conjunction with the Advertising Coalition,

www.ana.net ANA Magazine February 2011 | 11

A11-AN1-002 5CoverStory.indd 11 1/26/11 10:47:27 AM A11-AN1-002 5CoverStory.indd 12 12 | absolutely essential.” and ourmembersis cation betweenouroffice together. Theintercommuni - to workontheseissues proposals thatareadverseis turn backthevarious the advertisingindustrycan them respond.Theonlyway our membersbyhelping we canrespondandserve what’s goingon,thesooner “The soonerweknowabout the ANA’s d hear ofthingsimmediately,” alert usbecausewemaynot issues, andwehopepeople alert everybodyaboutthe www.ana.net/advocacy. “We tireless advocacyeffortsat more abouttheassociation’s companies themselves.” they inWashington oratthe connected withgroups,be staying increasingly the ANAtoensureweare “i the ANA’s Bobl help outwhennecessary,” stay connectedtousand relations peopleinvolvedto company’s government encouraged togettheir Washington, theyshouldbe interested inwhatgoeson senior marketersmaynotbe respective localities.“While issues emergingintheir legislative andregulatory are encouragedtotrack tions liketheANA.” resources throughassocia- important thatwecanshare competition, butitis nies, weoftenarein g ton,” saysMarkAddicks,of they’ve doneinWashing- for theindustryandwhat tion thattheANAprovides highly valuetherepresenta- state andfederallevels.“We tered bytaxationatthe that advertisingisunfet- advertising, andtoensure the positivebenefitsof ment policymakersabout awareness amonggovern- broader effortstoraise report ispartoftheANA’s The ihs g AT ThE eneral Mills.“Ascompa- t’s beenamajorpriorityfor ANA members can learn ANA memberscanlearn ANA membercompanies

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previous page: getty images forecAST of LoSS IN Ad SpeNdINg dUe To A redUcTIoN IN TAx dedUcTIbILITy AdverTISINg SeTS off (MILLIoNS of doLLArS) A chAIN reAcTIoN of ecoNoMIc AcTIvITy LoSS IN Ad SpeNdINg ToTAL LoSS IN SALeS Advertising expenditures INdUSTry 2010 2014 2010 2014 Agriculture & Mining 130.6 168.5 1,170.7 1,494.6 direct Sales Activity Arts & recreation 22.0 21.2 389.5 395.3 ➥direct employment construction 100.3 171.5 762.8 1,154.8 Impact finance 3,802.5 4,286.5 50,928.3 59,276.5 food & hospitality 511.0 548.5 7,825.8 8,936.7 Supplier Sales Activity government & Nonprofit 0.0 0.0 0.0 0.0 ➥Supplier employment health Services 410.6 533.8 3,897.9 4,768.6 Impact 2,252.2 2,367.2 40,360.3 44,879.0 Information Interindustry Manufacturing 5,288.8 7,109.9 98,183.6 125,469.9 Sales Activity ➥Supplier other Services 386.8 409.3 12,278.2 13,031.7 employment Impact professional Services 871.2 938.7 40,809.1 46,011.4 real estate & Leasing 241.9 421.4 19,665.6 30,868.3 retail Trade 5,406.2 5,936.2 119,345.4 135,361.3 The IMpAcT Transportation 798.9 955.0 16,753.3 21,548.0 of TAxeS oN Utilities 160.5 207.4 1,242.4 1,555.1 AdverTISINg Wholesale Trade 1,079.2 1,293.8 10,926.2 12,373.2 As part of its analysis of 21,462.8 25,369.0 424,539.0 507,124.4 the economic impact of advertising, IhS global which helped develop the report. “if you’re nomic environment, consumers are under Insight developed two an economist with a major manufacturer, or pressure, making it more critical than ever that scenarios based on changes a marketing executive, you now have a very the value equation is right.” to the cost of advertising due to taxation. important tool to show your Ceo and others general mills also has upped its ad spend, in The first scenario in the company why advertising — and your part to take advantage of the new tools available to assessed the impact of budget — is very important to the overall grow its business. “During the past few years, we reducing the tax deductibil- success of the company.” have been continuing to increase and diversify our ity of advertising from 100 spend in advertising,” says mark addicks, senior percent to 80 percent, based on 2010 ad spending levels. vice president and chief marketing officer for A Shift in Spending According to the report, such While advertising continues to drive both job general mills. “With digital technologies, you are a change would result in a and business growth, despite the challenging still a mass marketer, but you have to learn to be loss of $21.5 billion in economic times, the rise of digital media has a direct marketer, a relationship marketer who advertising spending and dramatically changed how companies are can start a conversation and stick with it. Whether $425 billion in economic output. It would also result investing their ad dollars. Forrester research it’s sending a tweet or creating a newsletter in the indirect loss of 1.4 estimates that, as marketers increasingly turn to customized 10 different ways, we’re seeing a million jobs across the search marketing, social media, mobile market- multiplication of creative that has to go out the United States. ing, and other digital media to improve their return door. you can’t do it with the same budgetary The second scenario on investment, interactive marketing will represent process; it requires a radical rethinking of what examined what would happen if advertising were 21 percent of all marketing spend by 2014. these things should cost, who produces them, made subject to a state-level For a company such as Kellogg, the digital and how they get created and repurposed.” sales tax in all 50 states. media environment represents new opportunities While each company works to gain its own The collective result, the to forge long-term relationships with customers. “economic impact” from advertising, the aNa’s analysis determined, is a after all, who would have guessed five years ago Jaffe says the industry as a whole should take reduction in sales of $392.8 billion and a loss of 1.36 that pop-tarts would not only have its own great pride in the role it plays in job creation and million jobs. “clearly, any Facebook page, but also attract 2.2 million fans economic growth. “We not only create jobs and modest federal tax revenue to its site in only 16 months? “the media economic activity, but provide the foundation for benefits from reducing the landscape has become more dynamic than much of the information people receive through deductibility of advertising ever,” says mark Baynes, vice president and the press and other means,” Jaffe points out. “it’s must be carefully weighed against the staggering global chief marketing officer for Kellogg. “We’re important that people in the industry understand economic losses that literally changing our brand-building model to that what they’re doing is creating many more would ensue,” the report create, deliver, and enable conversations with jobs in society at large, which should make them concludes. — C.K.

previous page: getty images previous page: our consumers. Clearly, given the macroeco- feel good about what they’re doing.” ■

www.ana.net ANA Magazine February 2011 | 13

A11-AN1-002 5CoverStory.indd 13 1/26/11 10:47:51 AM Feedback Welcomed Thanks to the rise of social media, more companies are adding customer product reviews to their websites. Is it a risky proposition? By DouglAs QueNQuA .com spo T he I auFFer/ T an s T br I

14 | February 2011 ANA Magazine www.ana.net

A11-AN1-002 6Feedback2.indd 14 1/26/11 10:48:22 AM Call it the FaCebook eFFeCt: as the web becomes more social, consumers expect every site to provide some sort of user feedback, a conversation they can either listen to or join. For the working mom, it’s not enough to know what David Pogue thinks of the new kindle — she wants to know what other working moms are saying about it. and l.l. bean may say those rain boots are a perfect size 8, but who wouldn’t feel better hearing what other shoppers think before committing to them?

according to a survey by eMarketer, 92 would rather hear it from their peers.” “We create a two-way conversation with percent of U.S. internet users said they Many marketers use a third-party host [customers] though our Friends Store, a read customer product reviews online, and to establish and monitor customer reviews social shopping experience where fans of 46 percent said those reviews influence on their site. PowerReviews and bazaar- levi’s brands can connect with one their purchases. Moreover, 43 percent said voice are the major players in the market, another through Facebook and see what they have actually decided against making say online retailers and analysts. Such apparel their friends are buying,” says a purchase because of a product review. Megan o’Connor, director of digital and “this is a day and age when people are social media for the levi’s brand. skeptical about what brands say about The trend now is to by hosting such conversations, many themselves and are more willing to trust foster free-wheeling, brands say they gain valuable insights that what people like themselves or friends community-style can be used in marketing and product have to say,” says Jeffrey Grau, a principal development. “For example, we’ve actually analyst at eMarketer. interaction on brand posed questions saying, ‘For the next Still, opening your site to customer sites, interactions holiday season, what should be the hottest product reviews can be tricky — and a little that include product fashion trend?’” says eui Chung, divisional scary. What if negative reviews drive away reviews but are hardly vice president and general manager for conversions? how can you be sure people limited to them. social commerce for Sears holding. “We reviewing your products have even bought allow our community to have that them? While allowing any kind of user-gener- conversation with us and with others.” ated content on your site requires a degree companies can not only create customer if nothing else, experts say, it’s of letting go, those companies that do it say review sections on your site, but also important to give shoppers a social the rewards — consumer insight, increased monitor them for foul or offensive content. experience on your site because it’s what credibility, customers spending more time they’ve come to expect. on your site — far outweigh the risks. Creating Conversations the trend now is to foster free-wheeling, Roll the Video Case In Point community-style interaction on brand sites, as video becomes commonplace online, Customer reviews have been an integral part interactions that include product reviews some forward-thinking retailers have begun of overstock.com for the past four years. but are hardly limited to them. Companies letting customers upload video product Users can write and upload their own like Sears holdings (which owns Sears and reviews. Sears enabled video product reviews, as well as provide a rating of one to kmart) and levi Strauss & Co. (which owns reviews in December 2009. both overstock five stars. to weed out trolls and troublemak- levi’s and Dockers) are taking advantage and levi Strauss say they are considering it. ers, overstock requires that people register of programs like Facebook Connect that “We know the importance of having that with the site using a valid email address allow consumers to import their profiles kind of media on our site because people before they can leave a review. and social circles directly onto brand have really adapted to seeing things visually “We’d like you to buy or at least own the websites. Facebook Connect also allows via video,” Chung says. product before you leave a review,” says consumers to import their activity on a of course, the risks of letting consum- Stormy Simon, senior vice president of retailer’s site back to Facebook. ers upload video to your site are quite marketing and customer care at overstock. the idea, experts say, is to turn your different from letting them upload text. “We While negative reviews are a fact of brand site into a place where consumers evaluate all reviews before allowing them to life, they’re actually less of a problem can discuss not only your company and its go up,” Chung notes. CoM than one might think. “Reviews are a products, but any topic they want. in such So far, he says the reaction to the new

/theiSP ot. positive thing for a customer, whether an environment, fears that user-generated medium has been purely positive. Not that it they’re good or bad,” Simon says. “at content will distract customers from necessarily matters; once you give consum- UFF eR ta overstock, we like to say, ‘You’ll love it, buy shopping or harm conversions seem ers a new way to express themselves on N S ia N

bR it, buy it.’ but the reality is that customers almost quaint. your site, there is no going back. ■

www.ana.net ANA Magazine February 2011 | 15

A11-AN1-002 6Feedback2.indd 15 1/26/11 10:48:37 AM pushingthe eN velope CMo Mark Addicks makes General Mills brands part of the new social network By todd WilkiNsoN PHoToGraPH BY THoMas sTraNd

Mark addicks, senior vice president and chief marketing officer at General Mills, dwells in a landscape populated by iconic figures that some regard as culinary superheroes. There’s Betty crocker, now Tweeting and blogging fashionably as a savvy millennial mother and wife. Next to her, standing Bunyanesque, is the Jolly Green Giant, and bouncing along, never far away, is the roly-poly Pillsbury doughboy. Together they stride forth, energized by General Mills’ signature consumer engagement approaches. addicks’ working mantra is simple: to effectively navigate a panorama of different media and multicultural spaces, marketers need to be devoted inhabitants of the architecture themselves, not mere voyeurs. General Mills’ kinetic dynamo has his own popular blog read by people throughout the industry. His only lament is that the site’s not flashy enough, though an aesthetic polishing ranks high on his New Year’s resolutions for 2011, he says with good humor. Needing no garlanding are addicks’ ideas for bolstering brand reach and relevancy. His uncanny prescience has made him a popular speaker at aNa events and guest lecturer at the country’s top business schools. Part of addicks’ appeal resides with this declaration: “Mediocrity will kill you — have a strong opinion.” “Marketing today is exponentially more fun and dynamic than when i entered in the late 1980s,” says addicks, who got his start at General Mills in 1988. “i tell students that it is much more right-brained than before, that technology will do most of the number-crunch- ing for you. But what is really demanded is a level of creativity, intuition based on curiosity and information observation.” according to addicks, the visual expression of your brand and what it seeks to deliver is a critical component to positioning a brand in today’s highly visual marketplace. This is true for new products and for brands that have a long history. From cartoon characters to the faces of real sports heroes on the boxes of Wheaties, big visuals, crafted around impactful narratives, remain central to the company’s success.»

16 | February 2011 ANA Magazine

A11-AN1-002 7Addicks5.indd 16 1/26/11 10:56:14 AM General Mills’ Mark Addicks believes the brands that are most agile and adaptive will come out winners in the 21st century marketplace.

pushingthe eN velope

ANA Magazine December 2010 | 17

A11-AN1-002 7Addicks5.indd 17 1/26/11 10:56:29 AM A11-AN1-002 7Addicks5.indd 18 across abroadspectrum. able toengageconsumers 18 |

February 2011ANAMagazine General Mills is General Millsis Qué RicaVida, campaigns like well asinnovative Betty Crocker, as Häagen-Dazs, and brands likePillsbury, recognizable With instantly brand champions in ways that are particularly brand championsinwaysthatare particularly can createanddelivercontentdirectly toour television wasinthepost–World War IIera.“We transformative tothemarketing landscape as amazing amountofhand-raisingandloyalty.” digital andeventmedia,”headds,“weseean “it’s onlywindowdressing,”hesays. movement indicativeofthebrand’s values,then capability, orinviteviewerstojoinasocial engage customersmoredeeply, possessviral that areone-dimensional.Ifacampaigndoesn’t costs toogreattosettleforentertainingTVspots on acampaign.” service orapptoputtinganexclamationpoint them todownloadavideoorsignupfor ers fromamassmarketplaceandmotivating fairly versatileforbrands,frompullingconsum- Addicks pointsout.“AndTVisprovingtobe newsworthy eventsorepisodicprogramming,” larly whenourcampaignsareattachedto intimate —relationshipswithcustomers. the vesselforforgingmorepersonal—and engaged. Digital,ontheotherhand,represents Mills’ devotedbrandchampions—expecttobe venue wherecustomers—especiallyGeneral demographics, hesays,televisionisstillthe building brands,isonthewane.Acrossall the cornerstoneofcompany’s successin doesn’t accepttheassertionthattelevision,long presence knowninthedigitaluniverse,Addicks These days, digital video is proving to be as These days,digitalvideoisproving tobeas “When TVisconnectedtootherformsof For Addicks,thestakesaretoohighand “TV isverystrongforusrightnow, particu- While GeneralMillsisdefi nitely makingits strategy itself.” When asked about the meaning of strategy itself.”Whenaskedabout themeaningof strong brandstrategy, butshouldnotbethe “social mediaisbecomingakeycomponent ofa of life,”henotes. unaided, abrandtheyassociatewiththeirstage brands inaperson’s life,abrandrecalled has —whenyourbrandisoneofthetopfi ve cream. “True relevancemeanswhatitalways than onemillionservingsofHäagen-Dazsice pounds ofGreenGiantvegetables,andmore yogurt, fi ve millionPillsburycookies,two Mills–branded cereals,fi ve millioncupsofYoplait consumers eat60millionservingsofGeneral can doforthem.Everyday, aroundtheworld, actually knowtheindividualandwhatbrand at therighttimecommunicateshowwellyou live withoutaspecifi c brand.” when thebrandchampionreallydoesn’twantto and needs,”Addicksasserts.“Relevancyis brands fi gure outhow tosolveconfl icting wants ing becauseoflimitsontheirtime.“Relevant consumers havebecomeevermorediscriminat- In amarketplaceofnearlylimitlessoptions, Finding True Relevancy transaction ofTVadvertising.” and engagementoffi lm andthecommercial marriage betweentheescapism,story-telling, kitchen,” Addickssays.“Digitalvideoisthe child fromballetclass,orcreatingdinnerinthe they’re inagrocerystore,waitingtopickup exact momenttheywantorneedit—whether relevant, customizable,andconnectedatthe On his blog, Addicks observed recently that On hisblog,Addicksobservedrecently that Addicks believesbeingattherightplaceand www.ana.net 1/26/11 10:56:48 AM

GETTY IMAGES (HÄAGEN-DAZS) those words, he mentions the dangers of becoming mills launched in 1996, has grown into one of too smitten with the allure of new technology and the largest education-focused loyalty programs not having clear results in mind. “it’s easy to get in the nation. By having parents and students lost and create a social media strategy that strays collect boxtops off cereal packages for monetary from your brand strategy because you’ve fallen in redemption, american schools have earned love with the medium,” he says. more than $340 million. and it comes at a time general mills entered this new era with a when the need for funding public schools has first-hand understanding of the relationship never been greater. between brand development and social media. Boxtops for education bridges traditional indeed, half a century ago the company marketing with digital communication and pioneered a social media approach with one of community activism, and the insights gleaned its biggest brands: Betty Crocker. “the brand have a wider application. “Boxtops for education strategy was for Betty to be an engaging, is bigger than general mills,” addicks says. “i trustworthy friend and an expert in the kitchen, have learned so much about marketing and what and it was inherently social,” he says. “she it can be from Boxtops.” communicated with consumers through there can be no doubt that doing good, as personal letters, and at the height of her an element of corporate responsibility, returns popularity, she received 5,000 letters a day.” rewards to the bottom line — a lesson addicks Betty Crocker, he says, has evolved with the never fails to mention when he appears before times. today, she engages consumers through marketers getting their mBas. “i’m especially BettyCrocker.com, Betty Crocker iPad and iPhone proud of what our Fruit snacks team has done apps, and in online “how-to” videos — not to with the virtual video campaign for Fruit by the mention traditional print media such as cook- Foot — a Cannes gold Lion award winner books. generating millions of new media contact created by saatchi & saatchi — as well as the points was part of the progression. “Before a One Laptop Per Child cause program,” he says. marketer says, ‘Let’s get a Facebook page,’ they the Fruit by the Foot piece, titled Replace- should think about whether their brand is truly ments, features young boys trying to outdo each social and how social media reinforces their brand other. it became a viral sensation among kids strategy,” addicks explains. — and more important, among their consumer He points to yoplait’s Know your girls product-buying parents — resulting in other In 2011 campaign as an example of promoting health companies trying to emulate it. General Mills consciousness on the back of a brand. the Fiber One brands, part of the “Big g” suite of campaign, designed to raise breast cancer cereals along with Wheaties and Cheerios, finds will launch awareness among women in their 20s, utilizes sales surging on the strength of memorable, all forms of social media, including Facebook resonant spots. and last year, Pillsbury easy-to- new rounds of and twitter. it began with a segmented focus on bake goods launched a series of digital viral design-smart, Hispanic consumers but has blossomed into a videos during the holidays, netting hundreds of general marketing phenomenon. addicks also thousands of viewers. authentic praises yoplait Light’s i Love my Curves campaigns for integrated marketing campaign, which focuses Focused on Diversity on achieving fitness through exercise and eating a topic dear to addicks’ heart is diversity. a fan Green Giant right — without obsessing about being thin. of amC’s blockbuster series Mad Men, he says yoplait has even collaborated with the susan the air of cocky narrowness, chauvinism, and and Hamburger g. Komen for the Cure network for cancer bigotry — true to the era — is instructive. Helper. awareness and research. sometimes, he notes, it’s important for compa- in the meantime, sales of an expanding line nies to not only reflect on themselves but enlist of yoplait products have shot through the roof. the help of people who are adept at identifying as a brand, addicks says, “yoplait is a high- broader trends in society. water mark right now.” “the world of Mad Men was one dominated general mills also continues to enjoy the by white men, where diversity was closeted or PR fruits of its community engagement efforts invisible,” addicks says. “although the industry centered on its two venerable heart-healthy came out with some classic advertising and cereal brands, Cheerios and Wheaties. the marketing strategies, it ignored most of the rest

getty images (Häagen-Dazs) Boxtops for education initiative, which general of america’s desires and only guessed at their

www.ana.net ANA Magazine February 2011 | 19

A11-AN1-002 7Addicks5.indd 19 1/26/11 10:56:58 AM A11-AN1-002 7Addicks5_REV.indd 20 clutter.” and simply actually maddening communication is call toaction.Otherwisethe emotionally, instory-telling orina cation shouldanswerthis:visually, central trendsofourtime.” boomers. Itissurprisinghowhardsomebrandsactuallyworktoignorethe opportunities tobedifferent.” and standardbannerads.Alllost 30-second TVads,fullpageprint, context. Andyet,weliveinaseaof is reallyforthembythedelivery People knowinstantlyifthebrand important —thanthemessage. important —perhapsmore the brandengagespeopleisas 20 | 6 5 4 3 2 1 Mark marketing touchpoint.” and design,isthemostunder-utilized an afterthought.Packaging,functional Most CPGbrandshavepackagingas 18–54 orwomenwithapulse!” actually havenobrandchampionatthecenterandbasicallytargetwomen values …itmustbeprimarilyforaparticularsomeonefirst. Too manybrands differentiated productexperienceprecedesanymentionofmarketing.” Best productfirst. It is always easier to market with the tide. Think multicultural. Think It isalwayseasiertomarketwiththetide.Thinkmulticultural. The trendisyourfriend. champion atitsheartandmindsothatithasadistinctpointofview, tone, Every branddeservesmorethanwomenwithapulse. what. Where, when,andhowequals “Virtually everymarketing communi- So whatdoyouwantmetonow? reach. Every brandpackagehas100percent

f ebruary 2011ANAMagazine “Where, when, and how “Where, when,andhow “This is a work in progress. “This isaworkinprogress. a ddicks’ “We mustalwaysremindourselvesthataunique and “This is from a mentor and leader at General Mills. “This isfromamentorandleaderatGeneralMills. 6 BestPractices 1960s advertisingwas,a contradictions inordertosurvive.a carefully observeandnotetheculturalnorms the outsideofmainstream,whohavehadto observations comefromindividualswhoareon has learnedthatsomeofthebestinsightsand needs —iftheyacknowledgedothersatall.”

By studyingthecomedyindustry, GeneralMills “A brand must have a “A brandmusthavea ddicks says it reached ddicks saysitreached s classic as s classicas the bestproductexperiencewins.” and it’s thefirstruleof21stcenturyengagement: and authenticity. Butonethingstaysthesame, information, whichwillmandatetransparency “t multiplication ofcreativeoutput,”a band oftoolsandtouchpoints,causinga of digitalchannels.“t refreshening campaignshavetakenadvantage General Mills’multiculturaleffortsandbrand Winning Attitude growing margins,”hesays.“a agile andcontinuallyimprovingwhilerelentlessly “t the bestfeelingofall.” When thatenthusiasmreachesthe consumer, it’s idea anditbecomesinfectiousacross ateam. really loveitwhenpeoplearepassionate aboutan positive surprises.Whatexcitesme? t job intheworld,buteverydayisfullofunexpected brands likewehave,thisshouldbethemostfun for GreenGiantandHamburgerHelper. “With new roundsofdesign-smart,authenticcampaigns more challenging.” that soundsmorefun,creative—and gins whilegrowingshare.Believeitornot,i and learn about careers in marketing. and learnaboutcareersinmarketing. Hispanics. largest consumerfoodproductsadvertiserto landscape,” the Hispanicconsumerthroughasomewhatnew platform mightbuildabridgetoteachandguide a cultural disconnectsbetweentheHispanicand education, wellness,andholidaytraditions. lifestyle magazineandwebsitethattouchesupon cornerstone oftheinitiativeisafreequarterly more satisfyinglivesfortheirfamilies.t by helpingthemachievehealthier, easier, and establish atrustedrelationshipwithl General Millsbrandandinitiativethataimsto inwardly iscommittedtomulticulturalism. achieve authenticity, henotes,onlyifthecompany true broadmarketappeal.o only afractionofitsrichpotentialforachieving backgrounds to better understand brand appeal backgrounds tobetterunderstandbrandappeal school–aged studentsfromavarietyofethnic Mills helpedfoundBrandl merican consumer markets and how the merican consumermarketsandhowthe echnology also connects to more sources of echnology alsoconnectstomoresourcesof he marketing organization that wins will be he marketingorganizationthatwinswillbe a i a “Qué n n 2011,a ddicks and his staff are hardly daunted. ddicks andhisstaffarehardlydaunted. cross thea ear its headquarters in Minneapolis, General ear itsheadquartersinMinneapolis,General r ica Vida began by understanding the ica Vidabeganbyunderstandingthe a ddicks mentionsQuér a ddicks says General Mills will launch ddicks saysGeneralMillswilllaunch ddicks says. says. ddicks mericas, General Mills is now the mericas, GeneralMillsisnowthe echnology allows a wider echnology allowsawider ■ ab, which enlists high ab, whichenlistshigh utward marketing can utward marketingcan lways growingmar ddicks says. ddicks says. ica Vida, a ica Vida,a his isit:i atina moms atina moms www.ana.net he he 1/28/11 9:46:43 AM think think -

courtesy of General Mills ANA’s Conference Line-Up for 2011 Make Sure to Mark Your Calendar!

March 15–16, 2011: September 2011: Advertising Law & Public Policy Conference Mobile Media Conference Park Hyatt Washington, Washington, DC presented by Starcom MediaVest Group New York, NY April 5, 2011: Brand Innovation Conference October 20–23, 2011: presented by The New York Times Masters of Marketing Annual Conference Grand Hyatt New York, New York, NY JW Marriott Desert Ridge Resort & Spa, Phoenix, AZ

May 1–4, 2011: November 6–8, 2011: Advetising Financial Management Conference Multicultural Marketing & Diversity Conference presented by Active International presented by Ogilvy Arizona Biltmore, Phoenix, AZ The Fontainebleau Hotel, Miami, FL

July 14, 2011: December 2011: Digital & Social Media Conference Creativity Conference presented by Meredith presented by Yahoo! Grand Hyatt New York, New York, NY New York, NY

The ANA helps the marketing/advertisings community stay on top of cutting-edge trends and best practices with a robust and comprehensive calendar of national conferences.

For more information on ANA’s 2011 conference schedule including location, agendas, and speakers visit www.ana.net/events.

ANA House Ad.indd 1 1/26/11 10:52:48 AM focus oN AdvocAcy

say No to do Not track rigid restrictions would limit the effectiveness of online advertising

wo important reports released this past december, one by the Federal trade T commission (Ftc) and the other by the u.s. department of commerce (doc), cast a spotlight on consumer privacy issues and online behavioral advertising. the reports underscore how critical it is for the marketing community to develop a strong, effective self-regulatory program for the online space. otherwise, the government may impose a regulatory regime that would adversely affect consumers, businesses, and our economy. there is much to be commended in the two reports. the Ftc and doc both acknowledged that advertising provides the financial foundation for the immense number of media and web services available to u.s. consumers. in fact, commerce secretary Gary Locke stated that “the internet is becoming the central nervous system of our information economy and society.” Both reports also noted the critical role that strong, effective self-regulation can play in protecting the privacy of consumers in the online world. however, the aNa is strongly opposed to the Ftc’s call for a do Not track regime for online behavioral advertising, similar to the do Not call registry for limiting telemarketing calls. such an approach would be a blunt, technologically complex instrument, one that would actually offer consumers a false promise. indeed, consumers who join a do Not track registry to block all online behavioral advertising would actually see more, not less, unwanted advertising about products in which they have no interest. By limiting the ability of companies to reach the right consumer at the right time with the right message, the do Not track

approach would also seriously undermine the credit parker/theispot.com curtis

22 | February 2011 ANA Magazine www.ana.net

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curtis parker/theispot.com www.ana.net put thisinperspective,thei increase fromthesameperiodin 2009.to advertising industryanda17percent highest quarterlyresulteverforthe online third quarterof2010,representing the o the found thati at 13hoursperweek—afirst. watching the amountoftimeu.s d growing rapidlyeversince.a million usersintheu.s three yearsforthei television. Bycontrast,ittookonlyabout network television,and10yearsforcable to reach50milliona extraordinary pace.i their advertisingrevenues. content andonlineexperiencesthanksto sites allgiveconsumersfreeaccesstovast sharing services,andsocialnetworking entertainment portals,photoandvideo i recommendations. and entertainmenttojoblistingstravel content, fromnewsandhealthtosports access —atnocostalltypesof consumers aregoingtothei search engineseachmonth.t million research firmcoms online businesses.a an immensenumberofentrepreneurial i has fueledtheexplosivegrowthof t Fueling Growth place. economic efficiencyoftheonlinemarket- their productsorservices. accidently reachingsomeoneinterestedin ment istoproliferateadsinthehopeof reach consumersinanuntargetedenviron- nternet search engines, news outlets, nternet searchengines,newsoutlets, nternet, creating a low barrier to entry for nternet, creatingalowbarriertoentryfor he advertising-supported business model he advertising-supportedbusinessmodel ecember reportfromForresterr nline ad revenues hit $6.4 billion in the nline adrevenueshit$6.4billioninthe t o u.s he nline media has developed at an nline mediahasdevelopedatan t a . totaled $22.7 billion for 2009. . totaled$22.7billionfor2009. i he only way advertisers could he onlywayadvertiserscould nteractive mericans ages 15 and older use mericans ages15andolderuse t V andusingthei nternet advertising revenues in nternet advertisingrevenuesin

a nternet to reach 50 nternet toreach50 t core, more than 200 core, morethan200 t took 38 years for radio t took38yearsforradio dvertising Bureau dvertising Bureau mericans, 13 years for mericans, 13yearsfor ccording to the ccording tothe he most popular he mostpopular ., and it has been ., andithasbeen . households spent . householdsspent nternet is equal, nternet isequal, nternet today is nternet todayis ccording to a ccording toa nternet to nternet to hese hese esearch, esearch, same asconsumermagazineadvertising. and outdooradvertisingaboutthe a biggeradvertisingmediumthanradio channel. Fortunately, thec ad dollarsintothispromisingnewmedia advertising, therebydiminishingtheflowof would limittheeffectivenessofinteractive imposing undue,rigidrestrictionsthat believe policymakersshouldrefrainfrom Given today’s challengingeconomy, we Aiming fort a o across theentireonlineecosystem.Last wide rangeofcompaniesandtradegroups has beenworkingforseveralyearswitha this legitimateconsumerneed,theaNa about themiscollectedandused.t should haveachoiceoverhowinformation consumers andevolvingbusinessmodels. privacy codesofconduct”thatprotectboth the developmentof“voluntary, enforceable Not d more robust and effective self-regulation of more robustandeffectiveself-regulation of response totheFtc’s call,in2007,for t for onlinebehavioraladvertising purposes. control overthecollectionanduse ofdata program thatwillgiveconsumersenhanced of acomprehensivenewself-regulatory Business Bureaus)announcedthedetails ing Bureau,andthec m a he programrepresentstheindustry’s merican ssociation ofa ctober, sixindustrygroups(theaNa, epartment reportdidnotendorsethedo arketing and u.s nesses andPolicymakers,”visitwww.ftc.gov/opa/2010/12/privacyreport.shtm. t c t rEAD thE accessed atwww.commerce.gov/node/12471. that consumers We agreewiththeFtcthatconsumers o readtheFederalt onsumer PrivacyinanEraofr t rack concept;rather, itencouraged . Departmentofc i nnovation inthei a a dvertising Federation,a ssociation, dvertising ransparency ouncil of Better ouncil ofBetter i nteractive rade ommerce’s “greenpaper,” titled“c a nternet Economy: A Dynamic Policy Framework,” can be nternet Economy:ADynamicPolicyFramework,”canbe rEPorts ommerce ommerce gencies, c ommission’s preliminarystaffreport,titled“Protecting a merican merican o meet o meet dvertis- apid d irect irect c ExE hange: AProposedFrameworkforBusi- By DanielL.Jaffe v cutivE ing onerousgovernmentrestrictions. program tomorefullydevelopbefore impos- c this challenge.We hopetheFtcand community istotallycommittedtomeeting enforceable self-regulation.”t could beaccomplishedthrough“robust, program toeffectivelyprotectconsumers tive, ratherthanprotectiveofthepublic. solution thatislikelytobecounterproduc- would beprematuretoimposealegislative c of theh content/show/id/advocacy-obatoolkit.) information isavailableatwww.ana.net/ join thisimportantprogram.(m engage inonlinebehavioraladvertisingto We stronglyencourageallmarketers who throughout theentireonlineecosystem. rapidly rollouttheself-regulatoryprogram and theadcommunityisworkinghardto t cal andstructuralissueshadtoberesolved. of self-regulation,manydifficulttechnologi- push forad the new112thc legislation. for consumers.(m foster transparency, knowledge,andchoice online behavioraladvertisingpracticesto available atwww.a government relationsfortheANA. Dan Jaffeisexecutivevicepresident of hese barriers now have been surmounted, hese barriersnowhavebeensurmounted, ongress will allow our new self-regulatory ongress willallowournewself-regulatory ommittee heldahearingond t Lastly, ind While theFtcreportcriticizedpace ’s he Ftc’s ouse icE ANA Magazine s PrE o Nott everal prominent members of everal prominentmembersof e d ecember, asubcommittee ommercial Data Privacy ommercial DataPrivacy nergy andc ecember report states that a ecember reportstatesthata ongress are expected to ongress areexpectedto siDENt ore information is ore informationis bouta rack regime, but it rack regime,butit

ds.info.) February 2011|23 ommerce ommerce he advertising he advertising ore ore o Nott

■ 1/26/11 10:50:45 AM he he rack rack

FiNAl SAy By laura Klauberg

Lessons from Hyper Island To truly have success in the digital space, you must live in it

t was a little over 30 years ago when a the past few years trying to shift the learning environment and real-world group of computer scientists successfully communication approach of a $50 billion+ experience of the teachers. I was especially iconnected three networks around the company, with 5,000 marketers and offices struck by the seemingly endless marketing world, creating what we know today as the in more than 100 countries, to one that is possibilities the digital space will afford us Internet. But the Internet didn’t become more engaging and less TV-centric. We’ve in just a few years: the massive personal- commercially available until 1989, and it took made considerable progress thanks to ization of messaging; the filtering of another decade for it to achieve widespread supportive and committed senior manage- messages by consumers to prevent brands penetration in the developed world. ment, as well as to some really innovative from intruding on their space; e-newspa- If you happen to be like me, born prior and passionate people in our business. But pers based on what your friends are to this huge transformation in communica- every time I think I have my finger on the reading; the growing importance of data; tion and democratization of information, pulse of what’s happening in the digital the explosion of apps; RFID tagging and you’ve no doubt witnessed a revolutionary space, I learn something new. augmented reality; and the expansion of change in both your personal and brands into services and social commerce. professional life. To think Google didn’t Reason for Optimism The list goes on and on. even exist 15 years ago, or that Facebook Last spring, a team of about 20 senior and Twitter are relative newbies. What was leaders from our business took a trip to the An Exciting Time life like before the Internet? West Coast for a number of “top-to-top We are also entering into a world of mash- sessions” with the world’s leading digital ups. In one 30-minute exercise at the Hyper Seize the Moment companies, venture capitalists, and Island Master Class, our group was asked to For those of us in marketing and advertising, start-ups. And for the first time in a long create a new business model by combining the evolution of the Internet poses dramatic time, I sensed real optimism in this three to four businesses. Our idea? Merge changes (and challenges) in the way we country, something I’d experienced the Facebook Connect with Skype and a health build our businesses. But to fully appreciate past several years while visiting our club (or personal trainer) to allow friends to those changes occurring in front of us, you companies in Brazil, India, and China. exercise together. We called it FitFriends. I have to live in the digital space. That’s what However, I still feel a bit overwhelmed think it’s a brilliant idea, but I bet someone I’ve tried to do over the past five years — by all the possibilities the digital space is is already working on that concept. from establishing a Facebook profile, much creating for consumers and marketers I’m glad the Mad Men era is over. We’re to the chagrin of my three teenage daugh- alike. So in my never-ending quest for in the midst of the greatest changes in ters, to setting up a Twitter account (although digital knowledge to keep up with the marketing since the telephone and I receive more Tweets than I actually send), changing landscape, I recently participated television. There has never been a more to creating RSS feeds to get information that in a three-day Hyper Island Master Class, exciting time to be building brands. But to interests me most, to downloading more along with about 20 other colleagues from achieve success, you really need to get in apps than you could imagine, to using my Unilever. Hyper Island, founded in Sweden the game, not simply sit on the sidelines. Mac to watch television, to even setting up but now offering classes in London and I will be friending you soon, so be on a Slingbox in my London flat so I don’t miss New York, features both long-term courses the lookout! ■ out on American Idol or Big Ten football in digital media and shorter workshops. when I am traveling. Talk about a great program. Our group Laura Klauberg is senior vice president of On the professional front, I have spent was blown away by the collaborative global media for Unilever.

24 | February 2011 ANA Magazine www.ana.net

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