Leadership and Marketing Excellence

HOW BLIND WE WERE MEDIA TRANSPARENCY AND A BRAND’S GUIDE WHERE WE GO FROM HERE TO SNAPCHAT

WINNING OVER NEW TALENT

THE REWARDS OF CONSUMER LOYALTY

AUGUST 2016 © 2016 DOWJONES&COMPANY, INC. ALLRIGHTSRESERVED. [email protected] |212.659.1919 For moreinformation,pleasevisitwsjcustomstudios.com orcontact consumers anddrive meaningfulconnections. ,crafts stories forbrands thatengage WSJ. Custom Studios, thecontentmarketing divisionof NATIVE ADVERTISING NATIVE PRINT INFOGRAPHICS IMMERSIVE DIGITAL EXPERIENCES VIDEO . AMPLIFIED CONTENT, GLOBAL EVENTS MOBILE APPS NEWSLETTERS &MAGAZINES CUSTOM RESEARCH PODCASTS

COURTESY OF SNAPCHAT Leadership and Marketing Excellence CONTENTSAUGUST 2016 Board of Directors Get the latest from all of the ANA’s publications in the new ANA Newsstand. ROGER ADAMS, USAA PAUL ALEXANDER, EASTERN BANK Leave comments, watch video, share online, and more. ana.net/newsstand DANA ANDERSON, MONDELEZ INTERNATIONAL LINDA BOFF, GENERAL ELECTRIC CHRIS BRANDT, BLOOMIN’ BRANDS ROB CASE, NESTLÉ 03 GAURAV CHAND, DELL DAVID CHRISTOPHER, AT&T CHRIS CURTIN, VISA JERRI DEVARD DEANIE ELSNER, KELLOGG SANJAY GUPTA, ALLSTATE JACK HABER, COLGATE-PALMOLIVE JON IWATA, IBM BRADLEY JAKEMAN, PEPSICO GERALD JOHNSON II, AMERICAN HEART ASSOCIATION JEFFREY JONES II, TARGET JOHN KENNEDY JR., XEROX RICH LEHRFELD, AMERICAN EXPRESS 14 KRISTIN LEMKAU, JPMORGAN CHASE CHANTEL LENARD, FORD ALISON LEWIS, JOHNSON & JOHNSON BOB LIODICE, ANA PAGE #ANALOG ROB MASTER, UNILEVER NADINE McHUGH, L’ORÉAL 02 The 5G future of the internet; the half-life of a digital post; the TONY PACE cost of ignoring gender bias; MasterCard’s new brand identity; MARC PRITCHARD, PROCTER & GAMBLE upcoming events; key stats; quick facts; and more. RAJA RAJAMANNAR, MASTERCARD TONY ROGERS, WALMART DIEGO SCOTTI, VERIZON PAGE REMOVING THE BLINDFOLD JAMES SPEROS, FIDELITY INVESTMENTS 04 An independent investigation into media buying practices has set MEGAN STOOKE, GENERAL MOTORS MARC STRACHAN, DIAGEO the marketing industry on edge, and a new set of guidelines is NUNO TELES, HEINEKEN showing marketers the way forward. // BY MICHAEL J. McDERMOTT JIM TREBILCOCK, DR PEPPER SNAPPLE MEREDITH VERDONE, BANK OF AMERICA DEBORAH WAHL, McDONALD’S PAGE A SNAPPY GUIDE RODNEY WILLIAMS, MOËT HENNESSY 10 How Gatorade, GrubHub, and Trojan use Snapchat, with overviews and explanations of how the platform works and ways marketers can use it for their brands. // BY ANNE FIELD

@ANAMARKETERS .COM/ANA Executive Editor Production Director DUKE FANELLI FREDERICK KNECHT PAGE THE TALENT BLIGHT

Editorial Director Publisher 14 Marketing faces a tough challenge that could have long-term rami- KEN BEAULIEU KRISTINA SWEET [email protected] fications. How does the industry win over and keep new talent when Editor so many grads are opting for careers elsewhere? // BY JOHN WOLFE ANDREW EITELBACH ANA [email protected] 708 THIRD AVE., FLOOR 33 NEW YORK, NY 10017 Art Director 212.697.5950 PAGE #ANALYSIS SORAE LEE 17 A look at consumer loyalty and the benefit of rewards programs, Copyright © The ANA (Association of National Advertisers) 2016. // BY ANDREW EITELBACH All rights reserved. Reproduction in whole or in part without express by the numbers. written permission of the publisher is strictly prohibited. Opinions expressed within are not to be considered official expres- sions of the ANA. The ANA assumes no responsibility for errors or omissions appearing within. The ANA reserves the right to accept COURTESY OF SNAPCHAT COURTESY or reject all editorial and advertising matter. The ANA does not assume any liability for unsolicited materials. COVER ILLUSTRATION: ALEX NABAUM

ANA.NET // 1 #ANALOG

anamarketers Number of times Instagram’s like 2,430,555 button is used every minute. source: 2016 Domo research

CARBON DATING CONTENT How long it takes for an article to receive half its total number of clicks by channel.

BETTER THAN A FLYING CAR YOUTUBE 7.4 HOURS

EMAIL 3.4 HOURS

ast month the Obama Administration announced it’s dedicating $400 FACEBOOK 3.2 HOURS million to a new Advanced Wireless Research Initiative, to be led by the National Science Foundation (NSF). A collection of projects, the initiative TWITTER 2.8 HOURS

aims to use four yet-to-be-determined cities as testing grounds for ad- source: 2016 Crowdynews survey Lvanced wireless technology. The initiative comes on the heels of a vote by the Federal Communications Commission to make additional bands of spectrum available for // WATCH IT licensed and unlicensed use, giving telecoms the bandwidth for faster internet speeds, quicker network response times, and greater capacity for wireless networks. The White House projects that, within the next 10 years, there will be a new 5G network that’s 100 times faster than the current 4G LTE network and devices that can slash the download speed of a full-length HD movie (with advertising, of course) from six minutes to five seconds. “These super-fast, ultra-low latency, high-capacity networks will enable breakthrough applications for consumers, smart cities, and the Internet of Things that cannot even be imagined today,” the Administration said in a release. Once this faster system is up and running, the Administration points to a number MasterCard may have previewed a new of possible advances that could radically change the world within the next 10 years, logo last month, but it’s only the tip of including fully-autonomous vehicles communicating with the outside world to opti- the iceberg. Designed by creative firm mize traffic and safety, smart factories that can self-diagnose and repair equipment Pentagram, the new mark is part of an without shutting down, virtual reality training environments and simulators, and more. entire brand evolution that’s been optimized More than 20 organizations will work with the NSF on the initiative, including to work across all digital platforms. AT&T, Sprint, T-Mobile, and Verizon, who will each contribute technical expertise in MasterCard created a video to help the testing ground cities. Intel Labs, another company working on the initiative, will demonstrate how the new brand identity use $6 million to develop a way to process huge quantities of data in less than one system will work, when it’s fully rolled out in

millisecond. — Andrew Eitelbach October. Watch it at ana.net/160801. SHUTTERSTOCK.COM

2 // ASSOCIATION OF NATIONAL ADVERTISERS CHANGING MINDS Business has a $300 billion problem, caused by ignoring the effects of bias in the workforce. That’s according to Beyond Bias, a new initiative created by a team of $600 MILLION seasoned advertising professionals and global diversity experts who want to tackle the issue of unconscious bias, starting with advertising. “The advertising industry wields The reported sale price for the web unrivaled power and influence in culture,” Kristi Faulkner, co-founder and president at browser Opera, which was purchased communications firm Womenkind and co-founder of Beyond Bias, said in a statement. by a consortium of Chinese companies “Advertising ideas and media images have global impact, and should always serve as a in July. Opera is the fifth most popular positive example of inclusion.” By helping marketing and advertising teams recognize desktop browser in the world, which only and mitigate bias, the initiative hopes to use advertising’s influence on society to effect represents a 1.9 percent share, but it positive change. Learn more at beyondbias.net. — Urey Onuoha holds 10 percent of the mobile market.

source: 2016 Engadget

THE COOL FACTOR Personalized product recommendations based on your 55% Calendar location within a store aisle? Cool. Salespeople using ANA MASTERS OF facial recognition software in order Month-to-month growth rate for MEASUREMENT CONFERENCE to greet you by name as you roam programmatic buying on YouTube September 14–16 the store? Not so much. That’s since it became available through Naples, Fla. according to a recent study on Google’s DoubleClick Manager in consumer attitudes toward retail September 2015. experiences by RichRelevance, source: 2016 Google Global State of Play study ANA MULTICULTURAL MARKETING & DIVERSITY which rates current marketing CONFERENCE trends as either cool or creepy. October 9–11 Scanning a product for details and Percentage of senior , Calif. custom recommendations ranked marketers who said best, with 79 percent of consumers 46 they haven’t mapped saying it’s a cool feature. Facial marketing activities to customer ANA MASTERS OF MARKETING CONFERENCE recognition came in at the bottom journey points. of the list, with 67 percent of October 19–22 source: 2016 3Q Digital Modern Marketers report respondents calling it creepy. Orlando, Fla.

ANA/BAA MARKETING “2016 is the year the Internet of LAW CONFERENCE November 9–11 Things entered the mainstream.” Chicago, Ill. — ERIK BRENNEIS, INTERNET OF THINGS DIRECTOR AT VODAFONE GROUP, DISCUSSING // For more, visit ana.net/events. THE FINDINGS OF THE TELECOM’S ANNUAL IOT BAROMETER REPORT, WHICH FOUND 76 PERCENT OF ALL COMPANIES INTERVIEWED BELIEVE IOT TECHNOLOGIES WILL BE CRITICAL TO FUTURE SUCCESS.

ANA.NET // 3 The Aftermath

A major report on media transparency has forced agencies and advertisers to face an inconvenient truth. So, what were its findings, and what comes next?

BY MICHAEL J. McDERMOTT ILLUSTRATION BY ALEX NABAUM

4 // ASSOCIATION OF NATIONAL ADVERTISERS The Aftermath

ANA.NET // 5 mong advertisers and agencies alike, many hoped the June release of “An Independent Study of Media Transparency in the U.S. Advertising Industry,” a report prepared for the ANA by K2 Intelligence, would deliver the coup de grace in a controversy that’s been worsening for at least five years. Such was not to be the case, however.

The study found there is “a fundamental widespread transparency problems exist, its efforts. “We offered them confidential- disconnect”A between advertisers and and most have attacked the report itself ity because the vast majority are still part agencies regarding the nature of their rather than address the issues it raises. of the advertising industry, and many ex- relationship. The majority of advertisers None would provide comment for this pressed concerns that their careers would interviewed by K2 expressed a belief article, although some have released be negatively impacted if their participa- that their agencies are, in fact, their statements avowing their individual tion were to become known,” Plansky agent, but there was a greater disparity commitment to full transparency while says. “I will tell you from experience, hav- of viewpoints among agency sources. simultaneously attacking the integrity of ing done this for almost 25 years, some- Some, for example, felt that any practice the report. times confidentiality is the only way to get not contractually barred was fair game, The primary objection raised by those accurate and reliable information. This is and one former CEO of an agency on the agency side is to the anonymity one of those cases.” (See “Transparency group characterized the idea of an ad and confidentiality K2 provided its 150 Report,” below.) agency serving as an agent to its clients sources — a group that included a signif- So how have things gotten to this as an “outmoded concept.” The report icant number of current and former point? ANA CEO Bob Liodice believes also found substantial evidence of non-­ agency and agency holding company ex- the current situation reflects a foundation transparent business practices related to ecutives. However, as Richard Plansky, of complexity in the digital media supply rebates in the U.S. market, substantial executive vice president for complex in- chain that has completely changed the evidence of potentially problematic vestigations at K2 Intelligence, explains, way clients and agencies do business. agency conduct concealed by principal “This is extremely common practice in “When business was conducted with transactions, and evidence of non-­ preparing reports of this type, and it’s not spreadsheets and face-to-face conversa- transparent business practices arising limited to the advertising industry.” tions, agencies and clients had a very clear from agencies holding or soliciting equity When an investigative firm is looking under­standing of what was necessary to stakes in media suppliers. at practices that are arguably unethical, get the job done and fulfill marketers’ ob- Despite the findings, the major agency the best source of information is people jectives,” he says. “As the landscape turned holding companies and their trade asso- directly involved in those practices in increasingly digital, marketers’ ability to ciation, the 4A’s, continue to deny that some capacity, so that’s where K2 focused follow the money began to decline. We

TRANSPARENCY REPORT K2 Intelligence is an industry-leading investigative, compliance, and cyber defense services firm founded in 2009 by Jeremy and Jules Kroll, who originated the modern corporate investigations industry. Richard Plansky, executive vice president for complex investigations at K2 Intelligence, points out that in the course of its media transparency investigation K2 spoke with many sources who have first-hand knowledge, from a number of different angles, of the non-transparent practices called out in the report. That information was corroborated against information obtained from other independent sources, emails, contracts, and other documentary evidence related to those practices. “We stand behind the integrity and accuracy of this study 100 percent,” Plansky says. To see the full report, visit ana.net/transparency. — M.J.M.

6 // ASSOCIATION OF NATIONAL ADVERTISERS became enamored with the opportunities ANA follow-up report, “Media Trans- denial creates when it comes to solving digital presented to improve our ability to parency: Prescriptions, Principles, and the problem of non-transparent business target customers and boost efficiency, but Processes for Advertisers,” regarding practices and restoring the agency/ we gave up some of our understanding of agency denial that the rebate issue and advertiser relationship to the basis of where our money was going.” other transparency problems exist in the trust and shared goals that have been its The pattern fell into “an abyss of : “To continue that denial hallmarks through most of its history. “We drift,” as Liodice puts it, with marketers’ would seriously undermine any hope of take no delight in these findings,” he says. ability to follow the money eroding year restoring the equity in the client/agency “It would have been better for us if it by year. “The K2 report woke us up to the relationship,” reads the report, which the turned out that the system itself was work- reality that, in fact, we now have an envi- ANA developed in collaboration with ing pretty well and there were just a few ronment where some agencies are leveraging clients’ financial assets to improve their own profitability and not fully disclosing what they are do- ing,” Liodice says. “And whether we call them rebates or something else, GET IT IN WRITING the whole transaction process has To help marketers implement the strategic platforms laid out in “Media Transparency: Prescrip- become increasingly opaque.” tions, Principles, and Processes for Advertisers,” the ANA has worked with its general counsel, Reed Smith LLP, to create a template agreement that members can use when preparing master media planning and buying services agreements with their media buying agencies. “We devel- o be sure, this “abyss of drift” oped the template in concert with many experts in the field to be a road map for advertisers as Thas not been a one-sided phe- they navigate this very complex and highly charged issue,” says Douglas J. Wood, senior partner nomenon. As James Speros, EVP of with the New York law office of Reed Smith LLP and leader of its advertising and marketing law corporate communications at Fidelity practice. (As the ANA acknowledges in the new template, one of those outside sources was the Investments and an ANA board “ISBA Framework Agreement for Media Buying and Planning Services,” developed by the In- member puts it, “There are no white corporated Society of British Advertisers and its legal counsel, Fieldfisher.) “At the very least, using the template as a basis for negotiations will encourage an open dialogue and result in gloves in all of this. Advertisers are relationships between advertisers and their media buying agencies that are based upon trust also to blame for the issues we’re ex- and transparency.” periencing. Many have not taken the The 51-page template (which can be downloaded at ana.net/160802) is complex, due in time to understand the media plan- part to the diffused structure of the holding companies that control most of the media buying ning and buying process and how market and the substantial course corrections necessary to restore trust in the wake of the K2 Intelligence report, Wood notes. “The template sets forth principles of transparency that provide negotiations are conducted. In part, assurances to an advertiser that its media buying agency is always working in the advertiser’s this is due to the growing complexity best interest, is avoiding conflicts of interest, is passing through all rebates and incentives to and media fragmentation we’ve seen which the advertiser is entitled, and is open to robust audit rights that allow verification that over the past decade.” those assurances have been fulfilled,” he says. “Much of the current debate is all about the now Liodice concurs that account­ hackneyed phrase, ‘Trust but verify.’ In this instance, however, trust has been seriously harmed ability levels have slipped at some and needs to be restored before healing will begin. So today’s phrase is more like, ‘Regain trust, then verify.’” — M.J.M. marketing organizations. “We’ve had people tell us they haven’t looked at their media agency contract in years. Well, five years ago, the world was Ebiquity, an independent marketing isolated instances of non-transparent prac- a different place,” he observes. analytics specialist, and FirmDecisions, tices.” But the K2 report concluded that Many on the marketing side are dis- an Ebiquity subsidiary that is the largest the use of non-transparent business prac- tressed by the stonewalling response to the independent global marketing compli- tices was “pervasive” in the U.S. media- K2 study exhibited by the large agency ance specialist. “Deflection, distraction, buying marketplace, that those practices holding companies and the 4A’s. “I find and denial are not the strategic pillars were not limited to a specific type of the agency response incredibly disap- that will bring resolution,” the report agency nor a specific type of media, and pointing,” says ANA Group Executive concludes. that there were “systemic elements” to Vice President Bill Duggan. He cites ANA Chairman Tony Pace is also some of the non-transparent practices re- wording in the conclusion section of an concerned about the difficulties agency ported and examined. ››

ANA.NET // 7 Still, in a letter released earlier this non-transparent business practices, and don’t speak for the entire advertising year, Pace indicated the marketing com- that a fundamental disconnect exists in community. Jon Mandel, who gave a pre- munity’s willingness to mend fences and the advertiser/agency relationship, the sentation at a 2015 ANA conference, work with agencies to resolve their differ- ANA and the Board of Directors would which Speros characterizes as the tipping ences. “The first step in solving a problem be pleased to collaborate with them to point for the current controversy, em- is identifying that one exists,” he wrote. develop specific, well-defined solutions.” phasizes that it was agency-side people “When the agency community con- It’s important to note that the big who prodded him to go public. “There cludes that there are issues involving agency holding companies and the 4A’s are many people within the agencies

STRATEGIC PLATFORMS FOR ADVERTISERS The problems highlighted and examined in the K2 Intelligence report Contract governance. Advertisers should implement strong, disci- are significant and extensive, and marketers must do what they can to 4 plined internal processes to deliver contracts that ensure strict redress them. In “Media Transparency: Prescriptions, Principles, and accountability, compliance with effective management principles, rig- Processes for Advertisers,” the ANA lays out a road map to do just that. orous process governance, and significant senior management over- The meat of the report can be found in pages 11 through 30, which sight. Given the scale and importance of the advertising investment, present seven strategic platforms advertisers can adopt to do a better internal governance of advertisers’ budgets and contracts with media job of protecting themselves against non-transparent business practices agencies — including affiliated and related parties — should be a cor- and, ultimately, improving their overall relationships with media buying porate priority. agencies. Below is a summary of those platforms, which are presented Data and technology. Advertisers should take ownership of data in much greater detail in the full report. 5 and exert control over the media technology used on their behalf. In Agent versus principal. When the advertiser agrees to the agency today’s multichannel environment, advertisers must have a data man- 1acting as a principal, the advertiser should have disciplined, reliable agement strategy that affords them control and oversight of all their processes to manage the potential conflict of interest. Media agencies channels, but the K2 Intelligence report revealed that media transpar- now often act in a dual capacity with advertisers as both an agent and ency was notably lacking within agency trading desks, where opaque a principal. Unless otherwise agreed to in writing by the advertiser, trading may be common. An advertiser’s data management strategy agencies should at all times act as an agent for a disclosed principal should cover media planning data, partner/supplier selection and im- when dealing with third parties on the advertiser’s behalf. Advertisers plementation, data ownership and control, measurement of results, and should immediately confirm and reaffirm the basis on which their media programmatic trading. agency is conducting business. Advertiser responsibilities. Advertisers are responsible for more Contract content. Advertisers should ensure that contracts with 6 active stewardship of their media investments and fair compensa- 2 their media agencies contain robust provisions to deliver full trans- tion of their agency partners. “The blame [for the use of non-transparent parency. The negotiation and execution of contracts should become a business practices by some agencies] is all around,” says Jose Lozano, focal point for advertisers since the contract defines the commercial CEO at the Houston, Texas–based agency The Company of Others. “If relationship between advertiser and agency. Advertisers should immedi- agencies were more fairly compensated and valued for their work and ately and consistently reexamine all existing media agency contracts ideas, there would be no need to find alternative streams of income. and meticulously review all terms and conditions, using independent While that does not absolve them of responsibility, it does explain why expert assistance as needed. (See “Get It In Writing” on page 7.) these practices became so common. Additionally, brands’ complacency Contract audit rights. Advertisers should have robust and far-­ and lack of knowledge about their own agency’s compensation models 3 reaching audit rights that allow them to fully track contract compli- left them vulnerable. As for agencies, the blame they face is due to a ance and measure media-value delivery. “A critical part of a robust corruption of morals. In an effort to offset losses, some agencies lost sight audit, necessary in light of the K2 Intelligence report and statements by of what’s important and stopped acting as stewards for their clients.” other parties, is the advertiser’s ability to ‘follow the money’ through the Code of conduct. Advertisers and media agencies should establish entire holding company ecosystem,” says noted media law attorney 7 a culture of trust in their relationships via a specific code of con- Douglas J. Wood, senior partner with the New York law office of Reed duct. While a strong contractual agreement is critically important, it can Smith LLP and leader of its advertising and marketing law practice, as only go so far toward building a culture of trust between advertiser and well as general counsel for the ANA. “An audit provision today should agency. The contract must be supported by a code of conduct between allow review of records at the holding company level and throughout the the advertiser and the AOR, and they must work together to ensure its holding company’s operating units. Audit provisions that cover only the provisions are upheld across all entities, relationships, and activities. AOR [agency of record] are not adequate. That is the only way true The code of conduct should be signed by both parties and be included transparency can be achieved.” as a schedule in the master services agreement. — M.J.M.

8 // ASSOCIATION OF NATIONAL ADVERTISERS right now — and some in very senior po- throughout the client/ sitions — who are upset about this ethi- agency relationship. “Me- cally, and they came forward to me,” he dia is the single largest says. Mandel, who is chairman and CEO marketing expenditure — at Dogsled Enterprises and a former and most important mar- chairman of Mediacom, says he suffered keting investment — at a lot of attacks after making his presenta- most companies these days. tion, and he feels personally vindicated Advertisers must assume by the findings of the K2 report. “That greater internal steward- said, I’m also professionally saddened ship of their media invest- that it is as extensive a problem as it is. I ments,” he says. “They know there are an awful lot of people at need to ‘lean in’ and be the agencies who just want to be able to more active overseers of do their jobs professionally and move their media spending and their clients’ business forward, and they take a hands-on role in all have had their hands tied.” media-related­ decisions. It makes sense to assign that ome agencies are proactively ad- authority and responsibility Sdressing this issue on their own. For to a qualified chief media example, The Company of Others, a officer, who should drive the full-service strategic marketing firm based media strategy, partner with external agencies and to boost their ability to in Houston, Texas, posted a media trans- agencies, and work with third-party sup- take greater control of their media parency pledge on its website following pliers to optimize the media mix and spend — specifically, their ability to fol- the release of the K2 report. CEO Jose maximize ROI.” low the money. (See “Strategic Platforms Lozano, noting that The Company of Duggan’s suggestion is in line with for Advertisers” on page 8.) “Marketers Others already exercised transparent the framework laid out in “Media Trans- are responsible to make the very best de- media procurement practices prior to the parency: Prescriptions, Principles, and cisions possible for the benefit of their report, says, “We plan on helping to pro- Processes for Advertisers.” (In conjunc- brands and their business entities, but vide resources for both marketers and tion with that report, the ANA has also they can’t do that living in an opaque agencies alike in an effort to increase developed a Master Media Planning & world,” Liodice says. Continued accep- goodwill and better communication be- Buying Services Agreement template; tance of media agencies’ use of the non- tween the two sides.” He also counsels see “Get It In Writing” on page 7.) transparent business practices detailed that the most important thing brands The framework consists of three in the K2 report means that marketers’ can do to improve transparency in their pillars: decisions will be sub-optimized, as will agency relationships is to take a more Advertisers should establish overarch- the theoretical return on their invest- active role in them. “By that I mean that ing media agency management princi- ment in their media assets, he adds. brands should better educate themselves ples that can be easily understood and Marketers’ adoption of the seven about emerging technologies and mar- executed. strategic platforms detailed in “Media keting media. They should consider hir- Advertisers should establish primacy Transparency: Prescriptions, Principles, ing talent that is knowledgeable and over the client/agency relationship, and and Processes for Advertisers” can go a experienced in all areas of marketing,” they should regularly reevaluate and up- long way toward reducing or eliminating he says. grade internal processes and practices. the potential conflicts within the media Duggan says one particular hire all Advertisers and agencies should have a practices identified in the K2 Intelli- marketers should consider is a chief me- Uniform Code of Conduct to guide the gence report. The end result would be dia officer, either in title or function, who relationship and engender trust. “an elevated level of transparency and a would take responsibility for the internal The report recommends specific stronger foundation for trust between media management and governance strategies advertisers should adopt to advertisers and their agencies,” Liodice processes that deliver performance, me- promote greater transparency and cer- says. “Ultimately, that would benefit both dia accountability, and transparency tainty in their relationships with media parties.”

ANA.NET // 9 OH SNAP

Easy enough for tweens and teens, Snapchat may leave some marketers needing all the help they can get to master the multimedia messaging app. Here are three best practices from brands that know

by anne field

10 // ASSOCIATION OF NATIONAL ADVERTISERS ast year, Gatorade’s marketing simply, it’s a very powerful platform,” because, she says, “I haven’t mastered my team met with a group from Mitchell says. own brand on the platform.” Snapchat to hash out the That’s partly because over the past Yet plenty of brands, like Gatorade, brand’s plans for 2016. In the year or so Snapchat has been adding fea- have used Snapchat with flying colors. L course of their discussion, tures, capabilities, and partnerships to Here’s a look at three essential practices they hit on the idea to create a specialized make the experience more fun for users required for successfully marketing on lens Snapchatters could use during the and more useful to marketers. Those Snapchat. upcoming Super Bowl. (On Snapchat, a moves include lenses like the one em- lens is a feature that uses facial recognition ployed by Gatorade; “geofilters,” which PLAY BY to superimpose an interactive element are place-based designs that are only SNAPCHAT RULES over a video selfie. There are multiple available to users in predetermined areas; Brands have three ways to claim a pres- lenses, and they change regularly. Popular and a number of new ad-friendly partner­ ence on the platform. They can try the ones in the past have let users turn them- ship opportunities. free organic route, which means they selves into pirates, rabid bunnies, or sim- As important to Snapchat’s rising suc- have their own handle and send snaps to ply depict themselves barfing rainbows — cess are its demographics. No longer just their followers, just like any other Snap- people love them.) For Gatorade, its cus- for teens, and with more than 100 million chat user; they can advertise, where they tom lens let users of the social app partic- active daily users, the platform reaches pay to have promotional pictures and ipate in one of the game’s more august 41 percent of all 18- to 34-year-olds in videos placed in context of other snaps, rituals: dousing the coach in Gatorade at the U.S., according to the company. “It or within the content of the small num- the point of victory. Users were able to would be foolish for brands not to con- ber of publishers who have channels in give a virtual Gatorade bath to, say, a sider the impact Snapchat is already hav- Snapchat Discover; and then there’s friend’s video selfie. ing,” says Mallorie Rosenbluth, senior sponsored geofilters and lenses, like the It was quite the productive meeting. manager of social media at GrubHub, one used by Gatorade. The results, says Kenny Mitchell, the Chicago-based food delivery service. No matter what route a brand takes, Gatorade’s head of consumer engage- “You can bury your head in the sand for the content requires a distinct look and ment, were “a surprising success” that in- only so long.” feel — spontaneous, fun, and a little zany, cluded more than 165 million views over Of course, there are limitations to with nothing that smacks of the overtly an eight-hour period. Plus, brand favora- Snapchat. For one thing, the platform has promotional. “It’s all about content that bility rose 4 percent and purchase intent only recently started working on methods enhances the moment,” Malko says. And increased 8 percent. for measuring results in the same way videos must be brief: 10 seconds tops, The lens’ success underscores the po- that Facebook does, and users can’t share though less is more. Users often exit — or tential marketing wallop the platform existing content among friends as they swipe, as it’s called — after only a few sec- can pack for brands fluent in Snapchat. can on Facebook or Twitter. Plus, the onds, making it imperative for brands to Introduced in 2011, the free mobile app platform can be a bewildering and un- feature their most engaging material allows users to take and send to friends a nerving app to use, particularly for any- right away. smartphone photo or video, often deco- one old enough to, say, hold a mortgage Perhaps most difficult to master at rated with hand-drawn doodles. The or use a landline. It’s highly idiosyncratic, first, however, may be the format. Videos, content almost instantaneously disap- with its own peculiar lingo and look. (See which take up the entire screen, must be pears once viewed, a feature that makes the glossary of Snapchat terms on page vertical. As a result, marketers tend to each snap ephemeral and therefore all 13.) “There’s a different visual language avoid repurposing material from other the more engaging. But while the plat- that’s much more specific than any other platforms. “It’s really critical we create form was largely used in the beginning platform we’ve seen,” says Amanda content that is bespoke for Snapchat,” by teenagers attracted by, among other Malko, CMO at Tongal, a Santa Monica, Mitchell says. things, the ability to send salacious videos Calif.–based advertising and content A good example of producing content to pals without leaving a trace, it’s evolved marketing agency. “And that’s a challenge specifically for Snapchat is the Food Net- recently into a much more sophisticated for advertisers.” In fact, Malko says she’s work, which is one of a select number of and potent marketing vehicle. “Quite chosen not to use Snapchat personally, publishers with their own channel on

ANA.NET // 11 Discover. The Snapchat content includes ran a one-day campaign for its Civic City. Case in point: For spring break sea- 10 or so pictures, videos, and stories up- model with a sponsored filter featuring son, condom brand Trojan, working with dated daily. “The food is not as perfectly a light blue silhouette of the car, high- Tongal, produced three six-second video styled or the table as perfectly set as it lighted with white, and the text “They stories, one from the point of view of a would be on TV,” says Vikki Neil, senior see me rollin’,” a phrase from a popular young man being led around by a fetch- vice president and general manager at rap song by Chamillionaire. That cam- ing young woman. The last few seconds Scripps Networks Interactive’s digital paign received more than 50 million showed the woman leading the viewer media properties. Headlines are also dif- views and was used more than 3 million into a bedroom at a party. The videos re- ferent from what the brand would use on times, according to Mike Dossett, man- ceived 12 million views over a 24-hour air or other digital media — on Snap- ager of digital strategy at RPA. period and a 41 percent completion rate, chat they’re more direct, colloquial, and The ultimate goal is for a brand’s which is well above Snapchat bench- hip. “Why You and Blueberries Should Snapchat content to look like any other marks, according to Malko. Be Besties,” reads one. material on the platform. Advertisers, for Special-to-Snapchat content means example, can place their own “Snapchat EXPERIMENT not just creating vertical videos, but also stories,” which are groups of images or Like any social media platform, brands tapping graphics and other features, like videos that stick around for longer than can try out campaigns and immediately filters (not to be confused with lenses). Fil- the usual snap, in between regular users’ see consumer response. But, thanks to ters, which can’t be found on any other fare. “It’s important to make it fit natu- Snapchat’s peculiar nature and frequent platform, are often wacky designs that rally within the flow of the other feeds,” changes and additions, experimentation users can superimpose on a picture. In advises Justin Johnson, executive director is essential for brands, new and seasoned January, working with Santa Monica– of business development for Moment users alike. “You need a constant test- based advertising agency RPA, Honda Studio, a creative agency in New York and-learn approach,” Malko says. GrubHub, for example, started ex- perimenting with the platform in 2013 and hasn’t stopped. Rosenbluth recalls an early effort that involved a Snap­ Hunt, a week-long scavenger hunt, Updates Available during which the company shared a Over the past year, Snapchat has changed or added a bevy of features and new challenge every day for followers to functions. Here are some of the most notable: compete for a shot at $50 in free take- out. “We tried out different challenges Snapchat partners. Until recently, advertising on Snapchat required a hefty and rewards to see what kept the com- spend and had to be arranged with Snapchat directly. Now there’s a group of munity coming back,” she says. “The technology partners through which companies can make media buys. There also are creative and measurement partners Snapchat will steer you to. key is listening and optimizing.” Video between user stories. Brands can run sponsored stories in between Marketers at GrubHub also tested regular viewers’ feeds, though Snapchat has indicated it won’t allow too different tools users could employ to many of them at any one time. “They’re going to keep a pretty tight leash,” draw images — sketching lines around says Mike Dossett, manager of digital strategy at RPA. Before last June, an image in, for instance, the brand’s brands could only buy ads to run in between Live Stories. color red. From there, the brand could Memories. In July, Snapchat did the unthinkable — allowing users a way see what the community was “snapping to store snaps and to post previously recorded content from their camera back.” “We learned we needed to look rolls to their Stories. less like a brand and more like a friend,” Measurement. Snapchat has also recently partnered with Moat, Nielsen, Rosenbluth says. and Google DoubleClick to provide better tools to measure the effective- ness of ads on its platform. “Snapchat is slowly building out measurement More recently, GrubHub ran a tools for seeing how a brand’s activity is translating to business results,” “Takeout Takedown” event, which in- Dossett says. — A.F. volves a live-action version of the Hun- gry Hungry Hippos game on campuses at the University of at Los Angeles and Arizona State University.

12 // ASSOCIATION OF NATIONAL ADVERTISERS LOL IDK Can you speak Snapchat? Here’s a It used three different sponsored glossary of important terms necessary for doodles or lenses, “Viewers are geofilters on Snapchat, including mastering the platform. part of creating and personaliz- one with a more visually branded ing content, becoming advocates look and another progressively Snaps. Still photos or up to 10-second for a brand’s message in the pro- edgier version, to see which filter videos; they can have add-ons, like cess,” says RPA’s Dossett. “That’s received the most response. The hand-drawn doodles, laid over them. what makes it so powerful.” For brand plans to apply those lessons Filters. Special graphic designs that can best results, he says, marketers in new campaigns as the college be overlaid on a picture. need to take full advantage of fall sessions begin. Geofilters. Users design these filters and those capabilities. Many successful Snapchat mar- upload them, selecting what geographic One particularly relevant area they should cover — whether it’s a keters say experimentation is criti- few blocks around an event or an entire function is to run stories during cal to their performance. Gatorade, city — and set it to align with a certain live events, using geofilters aimed whose Super Bowl promotion was time, or even weather conditions. at making users feel they’re really one of the most widely viewed ever Lenses. Thanks to facial recognition there. GrubHub, for example, re- on Snapchat, adopted a test-and- technology built into the app, users can cently ran an event it called learn philosophy when it started on digitally superimpose animated designs on GrubHub BBQ Bash in Austin, the platform about 18 months ago. their selfies. There are a handful of lenses, Texas, and Scottsdale, Ariz., which change. Recent favorites include Its first foray was a campaign called pandas, bees, and face swapping. where country singers Brandy “Moving the Game Forward,” Clark and Lindsay Ell performed Live Stories. Compilations of snaps from which ran last year. The brand cre- Snapchatters at events and locations at local restaurants and took ated three 10-second spots to run around the world, curated by Snapchat. guest snaps using the GrubHub’s during Snapchat’s high school Snapchat Discover. A collection of account to add to the brand’s football Live Stories, a compilation channels that allows users to view content story. Plus, the company had a of snaps taken at various events from publishers and other partners. team on site sharing snaps of and locations or holidays. (Think Stories. Groups of images or videos that food and event swag, and adorn- Halloween or the Oscars.) The ex- don’t vanish immediately after being ing the images with emojis and periment allowed Gatorade’s mar- viewed. They’re available for up to 24 other doodles as an added touch. hours. keting team to get a taste of what “Only a finite number of people Swipe-ups. Snapchat’s version of a vertical video production requires. can attend an event, but an in- click-through. — A.F. “We were trying to understand finite number can virtually- at how the platform works and what tend,” Rosenbluth says. we could learn about it,” Mitchell Such campaigns may require says. “We were dipping our toe in a spontaneous and fun look and the water.” The brand took what it learned according to Brad Garoon, digital mar- feel, but they also call for a lot of plan- and created special geofilters for the NBA keting associate at 16Handles. At the last ning. At a recent gay pride parade in San playoffs that Snapchatters could use to cus- minute, the brand realized the process Francisco, GrubHub marketers worked tomize their snaps. could slow down the wait on line, so they closely with its local team to identify the Certainly, the try-it-and-see-if-it-sticks scrapped the idea and instead emailed basic parameters — areas of opportunity philosophy requires a high level of flexi- customers as planned and included a filter likely to be of interest to users, like pho- bility. Marketers need to be able to make but only required they display the email tos of parade participants and food from changes as necessary and do so quickly. message to receive the discount. Accord- local restaurants — and prepared to get That can involve stopping a promotion ing to Garoon, the promotion exceeded that content. Then, during the event, even before it’s launched. Recently, New his expectations. team members were free to take pictures York City–based frozen yogurt company and share them in real time. “You can’t 16Handles planned a Snapchat-enhanced FOCUS ON ACTIVE plan for every Snapworthy moment,” eighth birthday celebration for its first lo- ENGAGEMENT Rosenbluth says. But being prepared cation. The idea was to provide a geofilter More so than, say, Facebook or YouTube, gives marketers a better chance to con- that customers could use on snaps and Snapchat is all about users taking an ac- vert on a moment, before it disappears in show to cashiers to get a discount, tive part in content. Through features like a snap.

ANA.NET // 13 Collection Unit Expiry Date Number Date NEW

BLOOD BY JOHN WOLFE

Marketing needs a transfusion of talent in order to survive, but top candidates are opting for careers in other industries. What can be done to reinvigorate interest in marketing as a profession?

erhaps more than competition from in- ever, the marketing dustries that are more P industry is struggling attractive to young job with an issue that lies at the very recruits to the changing nature core of its being and will affect virtually of marketing itself and the inability of every aspect of its future growth and overall success: its own practitioners to clearly define its evolving talent — how to attract it and how to retain it. role in American business. “We regularly hear from market- In June of this year, LinkedIn published a global study of ers that talent is the number one issue affecting their future what the company called “Top Attractors,” which were defined business success,” says Bob Liodice, CEO at the ANA. “One as “powerful employer brands that bring in top talent, and in- of the biggest problems is that building the talent pipeline is a spire them to stay.” The U.S. portion of the list was sprinkled long-term proposition and it often doesn’t get the attention it with names like Google, Airbnb, Amazon, Apple, Microsoft, needs because of the intense pressure on CEOs and CMOs for and Tesla, but the names of more traditional brands, especially short-term results.” CPG companies, were conspicuously absent. And it’s not just the marketers who are grappling with the Experts say the problems with recruiting and retaining tal- talent issue. Agencies are also feeling the pinch. ent are wide ranging — some are old and some are new. They “Attracting and retaining talent is one of our top three priori-

include everything from longstanding and continuing ties, probably number one when you consider the long-term SHUTTERSTOCK.COM

14 // ASSOCIATION OF NATIONAL ADVERTISERS effects on our competitive positioning in marketing or advertising means in our now since the traditional career paths the industry,” says Tim Cecere, chief talent digitally disruptive world.” have been shattered,” the ANA’s Primola officer and director of human resources at says. “Hiring managers can’t speak to the GroupM Worldwide. “Attracting ‘good’ MARKETING MARKETING potential for upward mobility as clearly talent is not ‘good enough’ anymore as the As much as anything, marketing has an im- or specifically as they once could. They industry becomes more complex. There is age problem when it comes to how young can’t speak with confidence about where more to know that is now knowable, more people entering the workforce — college the ‘next opportunity’ will come from, to communicate that can now be commu- students and recent graduates — perceive even though those opportunities certainly nicated, and as a result there is much more it as a profession. exist.” The problem, he says, is that these to win and lose.” “The single most important thing we roles are so ill-defined that someone on A key problem is a lack of aggressive- need to do as an industry is to raise the outside looking in cannot understand ness on the part of marketers to effectively awareness and better define how creative their potential. compete with the Googles and Face- and meaningful a career in marketing Primola says marketers should take a books in their efforts to attract new tal- can be,” McLean says. “I was speaking to more radical approach in their recruiting ent, according to Nick Primola, senior a professor recently who told me his stu- efforts and “embrace the ambiguity” of vice president of industry leadership and dents don’t have a particularly positive or what a career in marketing truly rep- the CMO practice at the ANA. negative view of marketing and advertis- resents. “Rather than focusing on the “Other industries are competing with ing — they have a ‘non-view!’ We have to complexities of marketing as being a marketing for talent but, as an industry, change that.” challenge, it could be more effective to we’re not competing back,” Primola says. Competition remains an ongoing own this reality,” he says. “After all, mar- “The people who possess the skill sets our challenge that has become particularly keting can mean so many different things industry will need most as it moves for- acute in recent years due to the prolifera- and include so many different skills — ward — tech-savvy, analytically driven, tion of technology-oriented startups and business savvy, creativity, entrepreneur- mathematically inclined, and business-­ other industries that are offering more ship, analytics, technical innovation, minded individuals — rarely consider a lucrative compensation and better bene- working on winning and rewarding career in marketing relevant for them- fits packages to young recruits. teams, building real connections to col- selves. They’re drawn to those industries “I was just in a room with 20 new hires leagues and consumers, and everything that have proactively made themselves at- introducing our entry-level training pro- in between. How exciting is that?” tractive to them and their career ambi- grams, and I asked them what school they tions, like finance, consultancies, and went to and what their major was,” says BUILDING A technology companies.” GroupM’s Cecere. “The responses were VIRTUOUS CYCLE Gord McLean, CEO at the ANA’s everything from marketing to public rela- Marketing and agency executives alike Advertising Educational Foundation (AEF) tions to international business to project agree that recruiting new talent to mar- and a former global managing partner at management and more. Competing with keting and advertising is a daunting task, Young & Rubicam Group, says a funda- just the usual suspects is a thing of the but retaining the talent already on board mental disconnect between job seekers past. Young people are entrepreneurial in can be equally challenging. and the marketers looking to hire them is spirit and will seek out startups, boutique Steps that marketers can take to en- also causing a problem. shops, big agencies, specialized services, sure their people — both new hires and “One of the biggest challenges we’re social media companies, you name it. We seasoned veterans — stay on the job can seeing is that all of the players come at it have to tell a compelling story to get their vary according to industry, but most ex- from different directions,” McLean says. attention.” perts say training and the opportunity for “Marketers are looking for ‘job-ready’ Part of that story should address the advancement should be at the top of any talent and they’re having a tougher time very nature of marketing itself, how it has company’s list. finding it, while academic institutions changed, and how its evolution has com- “Companies need to invest in continu- are desperate to find jobs for their stu- pletely altered some of the job descrip- ous training for their teams,” says Antonio dents and career tracks take a back seat. tions that have traditionally been used to Humphreys, senior manager of global The most important players — the stu- define marketing roles. procurement at Adobe Systems, Inc. dents — are having a much harder time “Long-term career paths in most mar- “That includes keeping abreast of market

SHUTTERSTOCK.COM understanding just what a career in keting functions are ill-defined at best trends and sharpening soft skills as well as

ANA.NET // 15 AS MUCH AS ANYTHING, MARKETING core competency areas. This will keep legal. Soft skills like emotional intelli- them engaged and on top of key trends.” HAS AN IMAGE gence and dealing with ambiguity are Humphreys says networking is also also critical to navigating through com- critical to growth, and allowing participa- PROBLEM WHEN plex structures and processes. When re- tion in key industry conferences and with IT COMES TO cruiting, you ideally want individuals trade associations is highly beneficial to who have a good balance of experience employees because it allows them to learn HOW YOUNG and evidence of these areas in order to from peers and build strong relationships. make an immediate impact in your But beyond training, other experts say PEOPLE organization.” recruiters need to go deeper and under- PERCEIVE IT AS Avelar adds that most practical skills, stand more about the people they’re try- like math or science, are important, but ing to retain and the nature of their A PROFESSION. they can be taught. She says marketers individual and professional needs, and need to go deeper and look for attributes aspirations. below the surface. “I look for someone “Marketers need to offer their people who has three innate skills: strategic agil- constant challenge, constant change, and, ity, negotiation skills, and influencing although it’s been beaten to death in Mil- Avelar says. “Finding a company that skills,” she says. “For strategic sourcing, lennial studies, constant reinforcement embraces a flexible work schedule is so we need folks who can put together a that the company they are part of is driven important, but it is also, thankfully, be- comprehensive strategic plan to drive by a clear sense of purpose,” says the coming more common. I believe it’s just change and maximize efficiencies across AEF’s McLean. “The new generation of as important to have a corporate culture a category. They also need to be able to talent is not hierarchical, and does not that ‘does the right thing’ whether it be negotiate tight contracts with strong in- think of their job as work.” business or personal decisions — and centive compensation plans and use in- Tracy Avelar, managing director of takes care of their employees and their fluencing skills with both internal vendor and sourcing management at suppliers.” stakeholders and to challenge the status Charles Schwab & Co., Inc., says hiring Cecere added that companies also quo with suppliers.” managers need to spend time understand­ should focus on measuring accomplish- Cecere agrees that it’s essential for re- ing what motivates an employee, what ments and emphasizing outcomes. cruiters to look beyond an applicant’s their interests are, and what type of feed- “The best leaders I have worked with resume and consider a prospect’s total back drives them, whether it’s bonuses, are always focused on a track record of profile, not just a particular skill set. praise, additional responsibilities, etc., real accomplishment,” he says. “Small “There is no substitute for ambition, en- and then do whatever it takes to give it to wins, big wins, insights, process changes, ergy, willingness to learn, curiosity, and them. “I also think it’s critical to push em- and the like. Before they implement a leadership,” he says. “We base our deci- ployees to get out of their comfort zone, plan they determine how it will be mea- sions more on the complete candidate and give them the necessary support to sured. What is the success story — what’s than a particular degree. We’re more do so,” Avelar says. “In my experience the narrative, what’s the benefit to the open than ever to people with nontradi- leading teams, when people are stretched client, how did we exceed all expecta- tional education backgrounds who can to try new things outside their comfort tions? Everybody loves to be a contribu- add a dimension to our business and level is when their best work is done. It’s tor and a part of a winning team.” strengthen our competitive edge. Telling also a great way to identify who can rise to All the experts agreed that they are the story, proving the narrative, and re- a challenge and thus are the next leaders seeking new marketing hires with diverse lating that to insights for a client requires of the organization.” skills and backgrounds. people with a broad range of skills, expe- “Marketing is constantly evolving in rience, and education.” BEING THE RIGHT FIT terms of new vehicles to reach consumers The AEF’s McLean says it most sim- A company’s overall culture and work and the need to analyze data and effective- ply when asked to describe the attributes environment also can be key factors in ness,” says Adobe’s Humphreys. “There’s of the ideal marketing job candidate, keeping talent happy. also a need to focus cross-functional col- which more or less sum up what recruit- “The key that makes a difference is laboration with other parts of the business ers are really looking for. “We need them workplace culture and team dynamic,” like finance, procurement, sourcing, and all!” he says.

16 // ASSOCIATION OF NATIONAL ADVERTISERS #ANALYSIS Loyalty Is Its Own Reward

WINNING CONSUMERS’ HEARTS Consumers who say earning rewards is a primary and minds is one thing, but earning their driver for purchasing from a brand. $41 undying loyalty is quite another. In a 2015 45% source: 2016 Maritz LoyaltyNext Customer Study Additional amount a study by engagement optimization com- Millennial business pany Verint Systems, 31 percent of con- traveler is willing to sumers admitted they could be lured away Consumers who said they would switch brands in spend per night for a room in a hotel in his from a favorite brand by cheaper prices % order to use a coupon. elsewhere. 49 or her loyalty program. source: 2016 GfK MRI Survey of the American Consumer For Millennials To incentivize consumer loyalty many traveling for leisure brands turn to rewards programs, and the number is $35. consumers are eager to join. In fact, the Number of consumers who believe brands offer 6 in 10 source: 2014 Deloitte 2015 COLLOQUY Loyalty Census re- rewards programs only as a way to improve sales Hotel Customer Loyalty Survey ports memberships in U.S. rewards pro- rather than build a relationship with customers. grams reached 3.3 billion in 2014 (with source: 2016 Maritz LoyaltyNext Customer Study the average consumer enrolled in multiple programs), but only 43 percent of mem- % bers were actively participating. 73 So, how do brands keep consumers $1,128 vs. $645 Rate of 30-day trial loyal to their loyalty programs? One key On average, the amount credit card users who redeem their rewards subscribers to factor is ensuring the experience is person- spend per month versus those who don’t redeem their rewards. Amazon Prime who alized. According to the Verint study, 52 source: 2015 J.D. Power U.S. Credit Card Satisfaction Study pay for the first full percent of consumers want services per- year of membership. sonalized to their interests. While that Top five reasons customers continue to participate in a presents an opportunity for brands to en- rewards program: gage consumers in a one-to-one conversa- 81% THE PROGRAM IS EASY TO UNDERSTAND tion, it’s also something of a catch-22. The % same study shows 48 percent of respon- 75% I GET REWARDS AND OFFERS THAT ARE RELEVANT TO ME 91 dents are suspicious of how companies use 54% IT SUPPORTS MY LIFESTYLE/PERSONAL PREFERENCES their data. First-year Amazon Prime members In order to win consumer loyalty, brands 50% IT GIVES ME LOTS OF WAYS TO EARN REWARDS FASTER who renew their will first need to win consumer trust. 48% IT HAS A SMARTPHONE APP memberships for But the effort to build an effective mar- a second year. keting program can be worth it, and not The No 1. reason they leave? It’s too hard to earn points. source: 2016 Consumer only to keep existing customers around Intelligence Research source: 2015 COLLOQUY Loyalty Census Partners but to entice new customers too. Accord- ing to a 2016 Forrester Research report, one-third of marketers use customer loy- 3% Where Do Your Loyalties Lie? alty initiatives as a way to acquire new 1% customers. 8% When asked whether they anticipate allocating funds to loyalty Loyalty can be a fickle thing, but brands 13% programs in 2017, most marketers surveyed said they anticipate their funding will go up. that can inspire consumers to keep coming back will reap rewards. Here’s a look at the 44% INCREASING SOMEWHAT UNSURE value of consumer loyalty programs, and 31% STAYING ABOUT THE SAME DECREASING SOMEWHAT what consumers want from them, by the INCREASING SIGNIFICANTLY DECREASING SIGNIFICANTLY numbers. — Andrew Eitelbach source: 2016 CrowdTwist and Brand Innovators study

ANA.NET // 17 October 19–22, 2016 | Rosen Shingle Creek | Orlando, Fla.

At this premier industry event, learn from and interact with marketing’s top thought leaders and influencers who have built brands, leveraged new media, and made marketing more accountable.

CONFIRMED SPEAKERS INCLUDE:

Douwe Bergsma Juliana Chugg Alison Lewis Norman de Greve Chief Marketing Officer Executive Vice President Global Chief Marketing Officer, Senior Vice President and Georgia-Pacific Corporation and Chief Brand Officer Johnson & Johnson Consumer Chief Marketing Officer , Inc. Johnson & Johnson CVS Health

Stephanie McMahon Marc Pritchard Raja Rajamannar Diego Scotti Chief Brand Officer Chief Brand Officer Chief Marketing Officer Executive Vice President and World Wrestling The Procter & Gamble MasterCard Chief Marketing Officer Entertainment (WWE) Company Verizon Communications

James Speros Deborah Wahl Edwin Bragg Denise Karkos Executive Vice President, Senior Vice President and Vice President of Marketing Chief Marketing Officer Corporate Communications Chief Marketing Officer and Communications TD AMERITRADE Fidelity Investments McDonald’s USA, LLC SHAKE SHACK Holding Corp.

Susan Johnson Connie Weaver Gary Vaynerchuk Wes Nichols Corporate Executive Vice President Executive Vice President and Marketer, Entrepreneur, Senior Vice President, Strategy and Chief Marketing Officer Chief Marketing Officer Agency Owner, Social Media Guru Neustar; Cofounder at SunTrust Bank TIAA VaynerMedia MarketShare

Don’t miss out on the ANA’s signature conference. www.ana.net/2016masters | #ANAMASTERS