conference - ISBA

ISBA ANNUAL CONFERENCE

2017

INSIGHTS & ACTIONS

SPONSORED BY

KEY TAKEAWAYS & LEARNINGS FROM ISBA’S ANNUAL CONFERENCE ON 08 MARCH

FUTURE INSPIRATION IMPACT NOW

ISBA’s 29th annual conference took place last week and was attended by over 300 people including CMOs and marketing directors from member organisations, agency heads and members of media owners’ commercial teams. Proceedings were kicked off by new ISBA Director General Phil Smith who told delegates: “The biggest and most immediate challenges are in media,” referring to recent headlines about brands funding terror and warnings by Marc Pritchard, Chief Brand Officer of P&G on the negative effects of digital media opacity on advertising. “The time to act is now,” Smith said, “and the need is to act together,” pledging ISBA’s intention to lead advertiser action. “Advertisers must take the lead,” he said, “and ISBA has a key role. But we cannot act alone. “ He added: “Our enemies are not each other, but apathy and a failure to lift our sights from the demands of the day job.” You can see his speech here, as well as view the agenda and a list of speakers. The media challenges are reflected in many dimensions, from trust and transparency to data and new technology. The following is a summary of the day, grouped by theme rather than individual sessions. They represent the key points made by contributors, individually and collectively, throughout the day. They do not necessarily represent the views of ISBA or a consensus. Each theme includes a section on the commitments and actions ISBA will be taking in response to the issues raised.

TRANSPARENCY & TRUST •

Bad ads and placement undermine consumer trust, and bad practices by agencies and publishers undermine advertiser trust. Placing the consumer at the heart of the process, and agencies acting in the interests of the advertiser, rather than their own, will lead to more transparency and rebuild trust. Transparency is the key building block to trust.

FAKE NEWS MAY DRIVE CONSUMERS AND ADVERTISERS BACK TO PREMIUM CONTENT, BUT PUBLISHERS NEED TO DO MORE TO CONVINCE ADVERTISERS OF ITS VALUE.

•

The industry - advertisers, agencies, media owners and tech platforms needs to work together and do it what ‘should’, not what it ‘can’.

•

Trust between advertisers and agencies is broken when there is a lack of knowledge on both sides. Education is vital.

•

In the short term, mistrust leads to cynicism. In the long term, CEOs and CFOs will lose confidence in advertising.

•

A fairer value exchange (particularly between advertisers and media agencies) is vital towards rebuilding trust. Fault may lie on both sides: advertisers suffer because they get what they ask for, while agencies have focused on price and failed to explain the true costs of servicing digital.

•

Remuneration that is fair and recognises value, and contracts (preferably longer than three years) that allow genuine partnership, will drive more transparent behaviour and help rebuild trust.

•

Good contracts are at the heart of transparency and trust.

•

ISBA’s contractual Media Services Framework Agreement is a critical part of rebuilding trust between advertisers and media agencies.

•

To date, 20 ISBA members representing £3.3b of spend, have used all or part of it, and four agencies have signed up to use it. It has also been adopted by US and Australian advertiser trade bodies.

•

Contracts should build on the relationship, not vice versa. They need to be managed on an ongoing basis and hold both parties to account. They should not be designed solely to protect advertisers.

•

Contracts need to be flexible, and change when the advertisers’ needs change.

MARTIN BROMFIELD, VP ADVERTISING, EMEA COMSCORE

QUESTIONS ISBA MEMBERS SHOULD BE ASKING •

When did we last review our media agency contract? (If it was more than a year ago it will need reviewing.) Contact ISBA for assistance.

•

Am I sure our contractual terms are explicit in instructing our agency in how to best protect our brand on-line? Access ISBA’s Brand Safety Guidelines here.

•

Is our contract clear in how it addresses digital metrics and measurement?

•

Does the way we remunerate our media agency drive good value for our organisation or has the drive to shave margins encouraged less than desirable behaviour from our agency?

•

Should I be using the ISBA framework media services agreement to help shape our commercial relationship with our media agency?

IN THE SHORT TERM, LACK OF TRUST BREEDS CYNICISM. IN THE LONG TERM, CEOS and cfos will lose confidence in the value of advertising. ANDREW MORTIMER, DIRECTOR OF MEDIA, SKY

ISBA COMMITMENTS AND ACTIONS •

ISBA is committed to educating advertisers in the value of proper contracts.

•

ISBA will create a suite of services and sessions designed to give members all the background, guidance and advice they need to prepare for a media agency renegotiation or pitch.

•

ISBA will continue to update and evolve the framework agreement for media services.

•

ISBA will share the aggregate views and learnings from members who have used the new contract to renegotiate with their media agencies.

•

ISBA will to continue to work with the IPA, media groups and agencies to improve transparency.

•

ISBA will seek ways to build a joint industry consensus on the key principles of trust and transparency and develop common strategies to tackle the existing problems.

CLEANING UP THE DIGITAL MEDIA SUPPLY CHAIN QUESTIONS ISBA MEMBERS SHOULD BE ASKING • Progress in issues such as fraud, viewability, brand safety and independent measurement is too slow. But the rallying call by P&G’s Marc Pritchard is already having an effect and may usher in a new age of transparency. • Brands are not as engaged in media-related governance issues as they should be. • The IAB 50% viewability standard should be seen as a minimum requirement. It may need to be reset. Unilever regards its insistence on 100% viewability as a matter of getting what it pays for. Other advertisers, particularly DR, see it as less important and accept there may be trade-offs between viewability and cost/inventory quality. • Progress in digital supplier validation by the joint industry Digital Trading Standards Group (DTSG) is slow. Less than 50 have been validated so far. This needs to be sped up. • Measurement tools and techniques are not keeping pace with innovation in platforms and technology. After many years, there are signs of a greater acceptance of the value of independent measurement of tech platforms. • Publishers need to do more to convince advertisers of the value of premium content.

• Are we asking our media agencies how they are protecting our brands online? What tools are they using? Are they using companies that have JICWEBS/DTSG verification regarding viewability, online brand safety and ad fraud. Please contact David Ellison for more information. • Do we know enough about ad fraud, viewability and brand safety to allow us to have constructive conversations with our agencies?

ISBA COMMITMENTS AND ACTIONS • ISBA is committed to maintaining momentum on minimum standards, supplier validation and marketer education. • ISBA will continue to push all companies in the digital media ecosystem to attain DTSG accreditation and to educate our members on the importance of insisting on this for all their media suppliers. • ISBA will continue to work through JICWEBS to improve the readiness of the industry to fight ad fraud. Most recently it was announced that JICWEBS will work together with US organisation TAG (Trusted Accountability Group) to share best practices.

WE [CREATIVE AGENCIES] ARE SERVED UP JUNK INVENTORY FROM MEDIA AGENCIES AND SPEND TOO MUCH TIME TRYING TO MEET THOSE REQUIREMENTS. MOST CLIENTS DON’T KNOW OR CARE WHERE THEIR COMMUNICATIONS TAKE PLACE. RICHARD HUNTINGTON, CHAIRMAN, SAATCHI & SAATCHI

THE IMPORTANCE OF A QUALITY MEDIA ENVIRONMENT QUESTIONS ISBA MEMBERS SHOULD BE ASKING •

A quality and diverse media environment is vital for consumers, advertisers and ultimately for democracy and society.

•

Advertisers should ask themselves if their actions, whether through lack of governance and oversight or chasing the lowest cost, threaten to undermine the media edifice and long-term brand health. The rallying call by Marc Pritchard of P&G underlines the role advertisers have to play in supporting a more responsible media system.

•

•

•

Advertisers who focus on audience and cost are in danger of forgetting the importance of context in their communications. Clients should take a greater interest in where their communications take place. Creative agencies have failed to educate themselves about programmatic buying and as a consequence are failing to make the case for context and placement. Context goes beyond risk management of brand safety.

•

Have we instructed our media agencies not to ‘blind buy’ inventory, where they are unsure where the ads will be served?

•

Have we got our metrics right? Are we avoiding a ‘race to the bottom’ via the cheapest CPMs (cost per thousand impressions), focusing instead on campaign effectiveness?


ISBA will continue to stress the importance of a quality media environment to advertisers and remind them how bad behaviours can undermine it.

•

ISBA will drive positive change in this area through our Insight & Effectiveness Action Group to raise awareness of the need for the proper balance between short term activation and long-term brandbuilding.

•

ISBA will continue to stress the need for members to consider the merits of all parts of the media ecosystem, especially the most threatened areas such as news brands. UK media brands are increasingly vulnerable to disinvest as more and more ad spend is channelled towards programmatic advertising.

•

ISBA will be vigilant in opposing media consolidation which threatens pluralism and the diversity of rich media environments.

Negative headlines such as ‘brands funding terror’ may lead to calls for media regulation and limit advertising freedoms.

advertisers should ask themselves whether they have a role to play in funding an open, vibrant media system. hamish nicklin, chief revenue officer, the guardian

MARKETING CAPABILITY

QUESTIONS ISBA MEMBERS SHOULD BE ASKING

• In many businesses, marketing is the fastest changing function.

• Is my marketing organisation the right shape for an agile, contentrich, data-led marcoms environment?

• It is marketing’s job to keep up with the ever-changing consumer and represent them in the boardroom.

• Has my team got the right skill sets to drive brand growth; if not, how do we up-skill/cross skill?

• The real crisis in marketing is that brand owners have underinvested in and under-prepared their staff for the complex demands they face.

• Should I speak with my peers to see how they are reframing their marketing organisations and talent pools?

• Marketers fall into two tribes: those who understand their customer but don’t know how to reach them; and those who know how to reach them but don’t know why. If the two tribes can be brought together, the crisis can be solved. • Among clients, there is a serious lack of understanding about how the digital media eco-system works. Better-educated clients will ask better questions potentially leading, over time, to more trust in the system and agencies. • The ‘Mad Men/Maths Men’ analogy is wrong. Marketing needs all-rounders like Leonardo da Vinci who have both skills. • The most vital qualities for marketers in the future will be: curiosity, agility, and a preparedness to fail.

ISBA COMMITMENTS AND ACTIONS • ISBA will be creating a marketing transformation hub later in 2017, which will house trend information, useful reports, articles and videos which we hope will stimulate thinking and inspire CMOs who are seeking to reframe their marketing organisation and capability. • During the year, ISBA’s DG, Phil Smith will be holding a number of CMO dinners, bringing members together to share views and debate ideas and issues around marketing transformation and marketing capabilities. • ISBA will be developing capability training designed to equip marketing teams with the skills required to operate in the marketing organisation of today and tomorrow.

THERE ARE TWO TYPES OF MARKETER: FIRST-PRINCIPLE MARKETERS AND FIRST/LAST-CLICK MARKETERS and there’s a yawNing chasm between them ZAID AL-QASSAB, BT GROUP

DATA •

New legislation, the General Data Protection Regulation (GDPR), coming into force in May 2018 imposes significant new responsibilities on businesses to get their data processes right, and significant penalties for getting it wrong.

•

The key to getting consumer consent will be transparency. The law will not be about box-ticking.

•

Correct data protection procedures can transform business models for the better and give businesses a competitive advantage.


Have we undertaken an audit of all the data we have? Are we confident we have users’ consent to collect and use their data in the future?

•

Are we following the ICO Guidance on GDPR compliance?


ISBA shall continue to inform our members of any developments and guidance from ICO, and help them prepare for the onerous administrative changes that GDPR will require of them.

•

ISBA will provide opportunities for members to learn from each other and share best practice in this area though special events.

•

ISBA is holding a legal seminar on the ‘essentials of the GDPR for marketers on 29 March. Find out more about this event and register here.

•

ISBA is organising a data-protection round-table discussion with the ICO on 20 October. Contact David Ellison for more details.

THE NEW DATA LAW MEANS MOVING FROM A COMPLIANCE MINDSET TO ONE OF COMMITMENT. THOSE BUSINESSES THAT GET IT RIGHT CAN DERIVE A COMPETITIVE ADVANTAGE. ROB LUKE, DEPUTY INFORMATION COMMISSIONER

EDUCATION • Advertisers need to educate themselves on the workings of the digital media system. With better education they can ask better questions, improve their media governance and their relationships with media agencies. • A client-side Chief Media Officer (or equivalent) has a vital role to play in educating their marketing colleagues. • Marketer education needs to improve so that they understand both the principles of marketing and the mechanics of digital media. Only then can they operate effectively in today’s complex world.

QUESTIONS ISBA MEMBERS SHOULD BE ASKING • Do we know enough about how the digital media system works? • Are we providing enough training to our staff? • Are we making best use of ISBA’s digital education programme?

ISBA COMMITMENTS AND ACTIONS • ISBA is committed to driving a digital education programme for our members. • ISBA will upgrade its current media training to help members rise to the challenges presented by the increasingly complex job of managing media investments. We will create both face-to-face and eLearning programs for members to access remotely. • ISBA will continue to provide opportunities for members to learn from each other and from outside organisations through our expanded suite of media action groups (AVAG, 3D, Futures and the new Insight & Effectiveness group) as well as through special events on a range of subjects from programmatic trading to data privacy.

AS HEAD OF MEDIA IT IS ONE OF MY JOBS TO EDUCATE MY COLLEAGUES ON HOW DIGITAL ADVERTISING IS SERVED AND HOW MEDIA AGENCIES WORK.

AT NIKE, MEDIA INNOVATION IS SEEN AS A PLATFORM FOR BUSINESS GROWTH. MEDIA BUDGETS ARE LAST TO BE CUT AND FIRST TO BE INCREASED.

LISA WALKER, VODAFONE

DAVID INDO, CEO, ID COMMS

INNOVATION & COLLABORATION QUESTIONS ISBA MEMBERS SHOULD BE ASKING • As consumer behaviours change rapidly, advertisers need to innovate to keep up with them. Innovation should be part of business as usual.

• Are we sufficiently open to collaborating with innovators both from within our organisation and with external partners?

• Innovation can take many forms, whether product or service re-invention, an internal focus on ways of working, use of go-to-market channels or how to use search.

• Does my organisation understand agile, design-led thinking? Do we need to upskill?

• Embedding millennials in teams helps advertisers innovate. They are curious, agile and comfortable with failure.

• How do we access and connect with the start-up/innovation community?

• Collaboration – internal and external – can drive innovation. But it needs to be driven from the top. • At Nike, media innovation is seen as a platform for business growth. Media budgets are last to be cut and first to be increased.

• Do our processes help or hinder innovation?

• Have I connected my IT, Marketing and Legal Compliance departments to prepare them for collaboration in the future?

• Do my agencies work with innovators and embrace their approach?

ISBA COMMITMENTS AND ACTIONS • ISBA is committed to raising awareness of new developments in media and advertising communication through our communications, events and via our Futures Media Action Group. • ISBA’s VBS (Value Beyond Savings) group will launch a digital hub containing guidance on how to streamline procurement processes to enable brands to bring on board start-ups and innovators. • The VBS hub will contain guidance on how to access the innovation/startup marketplace. • ISBA is developing guidance on how PBR mechanisms can be appropriately set to reward collaboration, and explore a new value exchange dimension to further encourage collaboration and innovation. • ISBA is collaborating with the IPA on its Emerging Futures initiative with a view to mutually endorsing outputs and providing access for members.

SOCIAL MEDIA •

On social media, people follow other people. A sharer of content becomes a trusted source. Finding influencers and sharers is critical. Content that makes users look cool or funny resonates.

•

Via their notifications, messenger apps dominate. Mobile messaging opportunities are driven by micro moments when the consumer makes decisions about core areas such as destination/location, need to know, taking an action, or making a purchase.

•

In social, advertisers have 1-2 seconds to get their message over. Make content that fits messenger apps.

•

Smartphone users scroll the equivalent of 22 metres a day through their feeds. Advertisers have to earn the right to be in the feed.


Are we confident that we can manage potentially damaging comments about our brands on social media?


ISBA is committed to promoting our social talent contract.

•

ISBA will seek an effective measurement tool to evaluate sentiment and influence impact and effectiveness

ADVERTISERS HAVE TO EARN THE RIGHT TO BE IN THE [SOCIAL MEDIA] FEED. HANNAH CHASTON, SOCIAL DIRECTOR, IRIS WORLDWIDE

AR/VR/AI/BOTS QUESTIONS ISBA MEMBERS SHOULD BE ASKING • Rather than AR and VR technology itself, it is the eco-systems around them that will create value opportunities. • Pokemon Go (AR) succeeded because it was easy, fun, had no visible tech and brought the digital and physical worlds together. • To succeed, VR needs: significant consumer adoption of hardware; commitment to quality and areas such as set building and imagery; storytelling skills; engagement from the creative industries. • The role of tech, whether it is AI or bots, is to close the gap between content and commerce • Robots cannot (as yet) produce creative work without human interaction.

• Are we experimenting and learning with new tech? • Are we keeping abreast of new martech/brandtech advancements and the potential for our brands? • Where should we get our information on new tech developments from? • How will I safeguard my brand against the issues currently being faced in digital?

ISBA COMMITMENTS AND ACTIONS • ISBA is committed to keeping members informed of new developments and opportunities and providing unfiltered information and direct access to platforms and new tech; this includes a member-only event on 21 June looking at the opportunities available to advertise in AR, MR and VR and the pitfalls to avoid. • We are collaborating with an ISBA member to produce a standard submission document for data-driven advertising (martech) which will contain a Classification of Marketing Technology companies to follow. • ISBA will work via the WFA for advertising within AR, MR and VR will be covered by the Coalition for Better Ads.

Find out more about ISBA’s Annual Conference here. ISBA 12 Henrietta Str, London, WC2E 8LH Tel: 020 7291 9020 If you have any queries or questions about your membership, please contact Jane Salliss, Head of Membership, ISBA.