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2 0 1 3 Annual Report Agency Compensation | Agency Relations | Brand Building | Business-to-Business | Digital, Social, & Mobile Marketing | Integrated Marketing | Legal/Regulatory | Marketing Accountability Multicultural Marketing | Media | Marketing Organization | Marketing Financial Mgmt & Procurement | Production Mgmt | Research | Shopper Marketing | Sponsorship & Event Marketing Leadership and Marketing Excellence Lead the industry and advance marketers’ success by: Championing marketing excellence and collaborative mastery • • Shaping the future of marketing 2 0 1 3 Annual Report Message from the President/CEO, Bob Liodice................... 3 Message from the COO, Christine Manna........................... 4 Corporate Highlights > Membership...............................................................6 > ANA Brand Positioning..............................................10 > Marketing2020.........................................................11 > Going Global with The Internationalist 1000...............12 > Celebrating Great Marketing......................................13 Message from the Washington, D.C. office, Dan Jaffe....... 14 Advocacy and Leadership > Top Issues in Government Relations......................... 16 > Industry Initiatives.....................................................18 » Making Measurement Make Sense (3MS)...............18 » Ad-ID.....................................................................19 » Alliance for Family Entertainment (AFE)..................20 » Joint Policy Committee (JPC)..................................20 > The Truth About Advertising......................................21 Message from the Board Chair, Stephen F. Quinn............. 22 Products and Services > Events.......................................................................24 > Sponsorships............................................................28 > Committees...............................................................29 > Training.....................................................................32 > Marketing Knowledge Center.....................................34 > Marketing and Communications................................36 Financial Performance > Financials.................................................................40 ANA Directory > ANA Member List......................................................44 > 2013 Strategic Partners and Thought Leaders...........47 > ANA Staff..................................................................47 > Officers and Board of Directors..................................48 ANA 2013 Annual Report — Leadership and Marketing Excellence | 1 “We are ready to deliver what our members need: marketing excellence and an organization that will shape the industry’s future.” — Bob Liodice 2 | www.ana.net Message from the President/CEO Dear ANA Members, Friends, and Industry Colleagues, 2013 was one of the most successful years in ANA history. Across every benchmark and measurement, we met or exceeded expectations. We generated substantial business and leadership momentum, and our progress is coming at increasing rates. This upbeat assessment is sourced from several fundamental areas: • Substantial growth in our industry leadership agenda across all platforms. The ANA’s leadership in areas such as marketing organization, agency relations, talent negotiations, advertising taxes, privacy, self-regulation, industry measurement, online piracy, and patent trolling has become an integral part of our growing legacy. Whenever there is an industry issue or opportunity, the question always seems to be: Is the ANA involved? This is a clear testament to the ANA’s overarching strength and ability to bring positive change to our ecosystem. Bob Liodice • Extraordinarily healthy business operations. The ANA’s strength is grounded in a core of “growth.” And that growth is a reflection of our devotion to quality. That is why every ANA product and service is growing, and why membership engagement continues to hit new highs. As such, total membership continues to expand, with 2013 growth of more than 13 percent. Financially, our operating income exceeded $2 million for the fourth consecutive year, reaching a record high of $2.8 million in 2013. These resources are redeployed to fuel future membership satisfaction, to expand products and services, and to pursue targeted leadership initiatives — all of which elevate our prospects for long-term growth and overall membership success. • Bolder business strategies for long-term success. The ANA continued to expand its reach, as members want us to fulfill evolving expectations across a wide, diverse, and complex ecosystem. To do that, we broadened our business model. We now look to external partners for marketing intellectual capital while concurrently pursuing initiatives to strategically strengthen our portfolio. We want to build new operating models and consistently sharpen our focus to meet the changing needs of our membership. This requires increasing quality and levels of staff, investments in technology, improvements in marketing and communications, and an expansive strategic approach. Our members have benefitted materially through: The addition of Effie and Mobile Marketing Association case histories to our marketing capital Our collaboration with MarketShare and the addition of the Marketing Analytics Leadership Award Our partnership with The Internationalist 1000, expanding our global marketing coverage The delivery of valuable marketing tools and templates via Demand Metric The incredible outcome of our partnership with EffectiveBrands to bring one of the most storied studies to our industry, Marketing2020 The unique insights and marketing perspectives of our Strategic and Thought Leadership partners We are very proud of our accomplishments, and look forward to addressing the challenges before us. We are ready to deliver what our members need: marketing excellence and an organization that will shape the industry’s future. We believe we have the membership strength, financial resources, and leadership platforms to accelerate our momentum even further. We are excited about working with our friends to advance the industry and bring continued growth to all our members in 2014. Bob Liodice | President and CEO ANA 2013 Annual Report — Leadership and Marketing Excellence | 3 Message from the COO The ANA wraps up its 103rd year of service to the marketing community on a strong operational and financial footing — a footing that provides us with the resources to advance the interests of marketers and empower them to shape the future of marketing. The ANA actively supports members by helping them identify the insights, tools, and industry forums that enable them to become leaders in marketing excellence. This support comes to life via a wide range of products and services: Christine Manna • The richest content library in the industry, with more than 8,000 research reports, case studies, insight briefs, and other carefully curated content items to keep marketers fully informed on the latest trends, best practices, and growth opportunities • Market-leading collaborative forums like the annual Masters of Marketing Conference; our major national conferences on topics like media leadership, real-time marketing, and multicultural marketing; and targeted discipline-specific committees where members can meet their peers and tackle topics of immediate professional interest • Continual learning and professional development through our School of Marketing’s wide range of training courses and onsite seminars • Speaking with the combined weight of 570 member firms — top brands and marketers all — in regulatory and governmental conversations of critical importance to our industry now and in the future We address this mission through a resolute focus on two core principles: value and quality. Creating value at all points of contact — from our member companies to our partners to the marketing industry as a whole — allows us to deliver on those guiding principles. As part of our focus on service, the ANA continually looks for opportunities to support the overall industry, whether addressing concerns over Internet domain names, helping lead talent payment negotiations, defeating advertising tax legislation, or improving the marketing supply chain. These initiatives benefit everyone — clients, agencies, and service providers alike. 2013 has been our strongest year on record, both financially and operationally. We exceeded our goals in terms of membership growth, member engagement, and member satisfaction. And once again, our strong performance was driven by the outstanding execution of our employees, deeper relationships with our members and partners, and a broadening portfolio of products and services. During the year we made investments in new products and services, added additional staff to support our memberfacing services and industry initiatives, and expanded and revitalized our office and technology infrastructure. Our philosophy is to reinvest in our products and services, and that will continue in the coming year. We will also continue to fund a variety of industry leadership initiatives that support cross-functional needs, such as measurement and consumer privacy. Our focus in 2014 is simple: carry on our strategy to advance marketing excellence through the leadership insights, collaboration, training, and services that our members and the overarching marketing industry need to succeed. Christine Manna | COO and CFO 4 | www.ana.net Corporate Highlights “The ANA actively supports members by helping them identify the insights, tools, and industry forums that enable them to become leaders in marketing excellence.” — Christine Manna ANA ANA2013 2013Annual AnnualReport Report— —Leadership Leadershipand andMarketing Marketing Excellence Excellence || 5 Membership 2013 Overview ANA membership achieved two historic milestones in 2013. First, we acquired a record 69 net new member companies, increasing the ANA’s size to 570 corporate members — a size that seemed unimaginable only a few short years ago. The ANA continues to be valued as a marketing resource for all segments of the client-side marketing industry, as member companies large and small are provided with the same level of high-quality service. Second, we established an all-time high in unique member engagement. Our members took advantage of ANA benefits and privileges such as access to proprietary insights and research, peer-sharing meetings and workshops, extensive networking opportunities, practical skill development programs, leading industry conferences, and advocacy. More than ever, members have come to rely on the ANA to provide the marketing insights they need to make better marketing decisions and build their brands. B-to-B segment marketers are also benefiting from the ANA’s proven, practical, and easy-to-access marketing insights. As the marketing landscape continues to become more complex, so do the needs and demands of our members. We’ve continued to invest in the tools, technology, and personnel to allow for quick and easy access to the right insights at the right time. In 2013, nearly 16,000 marketers (an increase of 18 percent versus a year ago) tapped the ANA to find the knowledge and resources they needed. What were they looking for? More than two-thirds of our members consumed case histories, research studies, and peer-to-peer insights on what works and what does not; more than half found the ANA’s School of Marketing to be an efficient and effective way to build and develop the team’s internal capabilities and skill sets; and one-third turned to the ANA because of our top-flight conferences. Of course, there is no finer or more respected marketing conference than the ANA Masters of Marketing. The 2013 event attracted more than 2,000 attendees — a record. This conference showcases the world’s leading CMOs and other top thought leaders. Nowhere can marketers learn more, connect more, or gain more insights into what drives a successful growth agenda. The ANA’s growing portfolio of best-in-class products and services is matched by our relentless dedication to servicing our members. The ANA experience begins and ends with you, the member. This is further exemplified by the high member satisfaction and quality scores we achieve. The ANA continues to rank among the highest U.S. companies in this category, and we never stop trying to improve our performance year over year. Judging from the growth of our membership, usage of ANA products and services, and our continued high satisfaction scores, the ANA is a resource and partner that marketers can count on to build their knowledge, capabilities, and brands. Christine Manna | COO and CFO Mapping Our Members • 6 | www.ana.net ANA member companies are headquartered in 39 of the 50 states. • California (111) boasts the most members, followed by New York (85) and Illinois (52). • In 2013, 110 companies joined the ANA — the most successful year in ANA history. There are nearly 30 ways members can interact with the ANA. In 2013, the ANA held 25 events, in locations throughout the U.S. Hosts included 3M, AnheuserBusch InBev, Walt Disney Parks and Resorts, Ford Motor Co., The Home Depot, MillerCoors, and Wells Fargo. Membership Did You Know? • We gained our first member in South Dakota in June: the Edith Sanford Breast Cancer Foundation. • The state that gained the most members in 2013 was California, with 21. • Members Alaska Airlines and Walt Disney Parks and Resorts teamed up with Disney-themed planes for flights between Seattle and Orange County. • Members King’s Hawaiian Bakery West and Arby’s partnered to launch new sandwiches using King’s Hawaiian buns. • In February, Hasbro held a social-media-based public vote that allowed fans of Monopoly to choose a new board game piece and eliminate another. The new token is the cat, and the retired token is the iron. Other pieces in the running included a robot, a diamond ring, a helicopter, and a guitar. Corporate dues-paying members hit 570 Dues Paying Members 570 600 501 500 438 400 Throughout the year, members received more than 600 pieces of proprietary marketing content, including case studies, best practices, and marketing tools, through the ANA’s daily email communications. 395 342 300 ANA’s membership crosses 35 industry categories. The top 15 are: 200 100 1. Financial/insurance (93) 0 2009 2010 2011 2012 2013 2. Food/beverage (50) 3. Technology (38) 4. Health care (35) Member dues rose to $12 million Member Dues (Millions) 5. Consumer goods/products (34) $14.0 $12.0 $12.0 $10.8 $10.0 $8.0 $8.8 6. Pharmaceutical (27) 7. Travel/leisure (27) 8. Professional services (26) $9.7 9. Restaurant/fast food (25) $7.8 10. Retail (24) 11. Consumer products/durables (23) $6.0 12. Entertainment (18) $4.0 13. Automotive (16) $2.0 14. Alcohol and tobacco (15) $0.0 2009 2010 2011 2012 2013 15. Telecommunications (13) ANA 2013 Annual Report — Leadership and Marketing Excellence | 7 Membership Collectively, these 10 companies have been ANA members for nearly 1,000 years: (Join Date) 8 | July 7, 1911 September 2, 1911 January 2, 1912 February 1, 1912 May 1, 1913 May 2, 1913 May 1, 1916 May 1, 1917 August 1, 1919 May 1, 1920 www.ana.net Membership Nearly 16,000 unique individuals engaged Number of Engaged Individuals 18,000 15,837 16,000 The ANA held 54 webinars throughout the year. These hour-long events covered hot topics such as digital, social, agency management, content marketing, and big data. 13,350 14,000 12,000 10,680 Our 2013 Masters of Marketing Conference in Phoenix, Ariz., attracted a record crowd of 2,200. 10,000 7,225 8,000 5,645 6,000 4,000 2,000 0 2009 2010 2011 2012 2013 Member satisfaction is at extremely high levels 2011 2012 68 45 50 2013 71 51 67 Almost 3,900 members experienced a School of Marketing onsite workshop in 2013. The ANA’s 20 committees are comprised of individuals from more than 400 member companies. 65 47 More than 2,250 pieces of new content were added to the ANA website in 2013. 18 Meet/exceed expectations Engage again in the future Recommend us to a colleague The Washington, D.C. office had 61 meetings on Capitol Hill with members of Congress in 2013. “As members, we can work together to contribute the knowledge needed to navigate today’s turbulent, changing times.” — ANA Chair Stephen F. Quinn, EVP and CMO, Walmart U.S. ANA 2013 Annual Report — Leadership and Marketing Excellence | 9 ANA Brand Positioning Advancing the Interests of Marketers For years the ANA had struggled with its brand positioning — “Insights, collaboration, and advocacy” — because it’s a phrase that, in one form or another, a variety of trade associations lay claim to. This blurring of words not only causes confusion across the association landscape, but, in many cases, leaves organizations indistinguishable from one another. The ANA has long demonstrated industry leadership through the championing of legislative, regulatory, and industry initiatives on behalf of marketers. These include advertising taxes, commercial free speech, online privacy, and self-regulation, as well as major initiatives like Making Measurement Make Sense (3MS), Ad-ID, and SAG-AFTRA contract negotiating, to name a few. To differentiate ourselves in the eyes and minds of our members, the industry, and other trade organizations, in 2012 the ANA embarked on a journey to create a new brand positioning. We began by interviewing staff, members, former members, and nonmembers, and then, with the assistance and guidance of our agency partner TAXI-NYC, developed a brand positioning that clearly defines the ANA and sets the course for the future. At the same time, we have had a laser-like focus on fostering and advancing marketing leadership and excellence through the development and curation of thought-leading content, industry-leading conferences and training programs, survey research and white papers, and a growing committee structure. The positioning is drawn from our mission statement: Lead the industry and advance marketers’ success by: • Championing marketing excellence and collaborative mastery • Shaping the future of marketing Our new positioning gives us a singular, cohesive voice centered on advancing the interests of marketers through what the ANA does best: provide industry and marketing leadership. The positioning is also drawn from our mission statement: “Leadership that advances marketing excellence Championing marketing excellence and and shapes collaborative mastery the future offuture the ofindustry.” Shaping the marketing Lead the industry and advance marketers’ success by: • • We believe our new positioning articulates and amplifies our purpose and the value the ANA brings to our members and the industry. It is our goal that you, as a member, foster marketing excellence within your organization by experiencing how we live our positioning and make it come alive through the delivery of products and services. 10 | www.ana.net Marketing2020 — Organizing for Growth The most comprehensive study ever conducted on the future of the marketing function Bringing the Study to Life Looking ahead to the year 2020, many global marketing leaders are asking themselves how to ready their marketing organization to drive growth in a rapidly changing environment. In today’s evolving digital world, what marketing does has changed beyond recognition, but how the function is organized has not changed much. Marketing2020 — Organizing for Growth was initiated to better understand how marketing can best align strategy, structure, and capability to support business growth. The platform offers CEOs, CMOs, and their teams strategic frameworks, practical guidelines, and tools to increase marketing effectiveness. In 2013, through a series of 12 invitation-only roundtable sessions across the U.S. as well as one at Cannes Lions, CMOs and industry leaders came together to add their unique perspectives to the key findings. The research was also shared and discussed at the Masters of Marketing Annual Conference and several ANA committee meetings. Additionally, Marketing2020 content was incorporated into new pilot programs for the ANA School of Marketing. Next Steps Since the preliminary findings were unveiled at the Masters of Marketing, ANA’s signature work is now ready for prime time. In 2014, the ANA will share the findings with external audiences and across ANA’s membership. For more information, email Nick Primola at [email protected]. This global, landmark study was an important stake in the ground for the industry. Marketing2020 leverages the insights of more than 250 CMOs and 10,000 marketers from 92 countries. The ANA is collaborating with EffectiveBrands, SpencerStuart, Forbes, Adobe, and MetrixLab to help U.S. marketers interpret, discuss, and apply key insights and recommendations. Marketing2020 addresses the key questions that will drive the future of marketing: • What is the role brands and marketers should play? • How should the marketing organization be structured? • How do you build capabilities and equip marketers for success? • What are the winning CMO leadership skills, competencies, and behaviors? “The results of the study provide senior marketers around the world with clear pathways to business growth. This is the most ambitious and significant research and leadership initiative to help guide the future of the marketing function.” — Bob Liodice, President and CEO, ANA ANA 2013 Annual Report — Leadership and Marketing Excellence | 11 Going Global with The Internationalist 1000 Our global alliance with The Internationalist 1000 and its founder, Deborah Malone, kicked off in mid-2013 with events in New York, Chicago, and the 2013 Masters of Marketing Conference, among others. These events cultivated cross-regional connections, recognized new marketing leaders, and inspired others to take risks as they re-energized their marketing vision. The Internationalist 1000 are dedicated industry leaders who are reshaping our understanding of marketing’s expanding role throughout the world. In many ways, these individuals are the champions behind the brands. Their efforts ensure that multinational marketing programs move ahead and make a difference. They all share a passion for the business, a devotion to excellence, and a belief in furthering marketing best practices throughout the world. The main benefits of our global alliance with The Internationalist 1000 include: • The ability to shape the future of the industry through global marketing leadership • The opportunity to meet colleagues from around the world in similar roles with similar challenges • Participation in elite events, dinners, think tanks, awards shows, and online conversations around the world • Access to The Internationalist digital magazine, dedicated to the business needs of the international marketing professional • Participation in task forces (virtual or in-person) on key industry issues • Access to thought-leading insights from the world’s top marketers Tea and Content Afternoon Tea with The Internationalist, a newly added content session at the 2013 ANA Masters of Marketing Annual Conference, brought together 125 attendees to hear innovative solutions to everyday branding challenges from ANA members including Diageo, FedEx Corp., and Dell. Looking Forward to 2014 Over the course of 2014, there will be a minimum of eight co-presented domestic events. These include three seminars at existing ANA conferences in the U.S., plus a series of think tanks and dinners in Asia, Europe, and Latin America. 12 | www.ana.net Celebrating Great Marketing Multicultural Marketing Excellence Awards Marketing Analytics Leadership Award Rising Marketing Stars Award For the 13th year, we acknowledged marketers who produced innovative and outstanding multicultural advertising campaigns. A total of 189 entries were received — a 13 percent increase over 2012. The grand-prize winners of the Multicultural Excellence Awards included: In 2013, ANA member USAA won the first-ever Marketing Analytics Leadership Award, created to highlight today’s important and rapid adoption of sophisticated analytics in the planning and measuring of global marketing investments. Conceived by the ANA in partnership with leading marketing analytics firm MarketShare, the award carried with it a $50,000 prize. For the fourth year, we recognized the latest class of “Rising Marketing Stars”, who demonstrated exceptional skills, creativity, and leadership in their roles and contributed to the overall effectiveness of their organizations. • Alexandra Bozenhard, brand manager, Excedrin, at Novartis Consumer Health Between 2008 and 2012, USAA surged from selling 9 percent of its products from marketing investments to 29 percent. The company spends a fraction of revenue on advertising compared to its industry competition. USAA donated its $50,000 prize to the Fisher House Foundation, which provides free or low-cost lodging to veterans and military families receiving treatment at military medical centers. • Emma Fryer, senior marketing communications manager at TOMY International • Coley Holnback, marketing manager of global sponsorship marketing at Visa, Inc. • Jay Sethi, brand manager, North America COVERGIRL, at Procter & Gamble Asian Category Marine Corps Recruiting Command United States Marine Corps Uniworld Group (agency) Hispanic Category Procter & Gamble PAMPERS Conill Advertising (agency) African-American Category Walmart History Teaching History Liquid Soul (agency) General Market Category Wells Fargo Convenience Campaign Acento Advertising Muse, UM/MRM, DDB (agency) The four winners were: Digital Media Category General Mills, Inc. LuckyToBe McCann New York (agency) Radio Category Heineken USA Tecate iNSPIRE! (agency) LGBT Category General Mills, Inc. LuckyToBe McCann New York (agency) Print Category City Year, Inc. Make Better Happen Allen & Gerritsen (agency) Significant Results Category MillerCoors Stand Up. It’s Miller Time commonground (agency) ANA 2013 Annual Report — Leadership and Marketing Excellence | 13 Message from the Washington, D.C. office The ANA’s Washington, D.C. office is a critical insurance policy for the advertising and marketing industry. We work to oppose any efforts by the government to tax, ban, or otherwise burden the legitimate rights of marketers to communicate with consumers. We help to educate important policymakers about the benefits of our industry to the economy as a whole and to individual consumers. We are the advertising community’s voice before Congress, the state legislatures, and the regulatory agencies in Washington, and in the courts. The D.C. office also manages a Legal Affairs Committee and organizes an annual Advertising Law & Public Policy Conference. Some of our major efforts in 2013 included: • Dan Jaffe Providing the primary funding for updated research on the economic impact of advertising by IHS Global Insight, a noted economics analysis organization. The study found that advertising accounts for $5.6 trillion of economic output and supports 21.1 million jobs in the U.S. annually. • Meeting with a broad cross-section of key members of Congress on both sides of the aisle to discuss the importance of maintaining the current tax deductibility of all advertising expenditures under the federal tax code. • Helping to defeat serious ad tax proposals in Minnesota, Ohio, and Louisiana. • Expanding and strengthening the Digital Advertising Alliance, the industry self-regulatory program for online behavioral advertising, including the introduction of new principles for mobile marketing. • Working to protect the interests of brand holders regarding the attempt by the Internet Corporation for Assigned Names and Numbers (ICANN) to vastly expand the number of generic top-level domain names on the Internet. • Successfully pushing for Congress to approve legislation that requires a cost/benefit analysis before four powerful federal agencies can impose unprecedented restrictions on the marketing of food and beverage products directed at children. • Working for federal legislation to address the serious threats of demand letters and frivolous litigation against both marketers and advertising agencies through the actions of “patent trolls.” • Hosting another successful Advertising Law & Public Policy Conference, featuring Senator Mark Pryor (D-Ark.), FTC Commissioner Julie Brill, Maryland Attorney General Doug Gansler, and Fadi Chehade, the president and CEO of ICANN. We want to work closely with the legal and government relations professionals from your company. Please urge them to contact us to discuss how we can best work together to protect your company’s bottom line and First Amendment rights. We can be contacted at 2020 K Street, NW, Suite 660, Washington, DC 20006; by phone at 202.296.1883; or by email at [email protected]. Dan Jaffe | Group EVP 14 | www.ana.net Advocacy and Leadership “We help to educate important policymakers about the benefits of our industry to the economy as a whole and to individual consumers.” — Dan Jaffe ANA ANA2013 2013Annual AnnualReport Report— —Leadership Leadershipand andMarketing Marketing Excellence Excellence || 15 Meet Our D.C. Team The ANA’s office in Washington, D.C. has a staff of five. Our staff members are all well-versed in the legislative, regulatory, and legal issues facing advertisers, and have extensive experience working for members of Congress, congressional committees, and state legislatures. We meet regularly with members of Congress and their staffs as well as key regulatory agencies, including the Federal Trade Commission and the Federal Communications Commission. We file amicus (friend-of-the-court) briefs in legal cases affecting key advertising concerns, and participate, where appropriate, in state, local, and international advertising issues. Our team also regularly updates our members on our activities and the issues facing them, and we often seek help from them in these efforts. In addition to our direct advocacy efforts, we manage a Legal Affairs Committee and organize the annual Advertising Law & Public Policy Conference. Dan Jaffe: Group Executive Vice President, Government Relations ([email protected]) Keith Scarborough: Senior Vice President, Government Relations ([email protected]) David Buzby: Director, Government Relations ([email protected]) Meghan Salome: Manager, Government Relations ([email protected]) Andrew Howell: Legislative Analyst ([email protected]) The D.C. staff stands ready to assist any members with questions or concerns about the issues affecting them. Our main office number is 202.296.1883. And be sure to follow us on Twitter at @ANAGovRel. For more information on our advocacy efforts, visit www.ana.net/advocacy. 16 | www.ana.net Top Issues in Government Relations Ad Taxes Online Privacy AT ISSUE: AT ISSUE: Advertising expenditures are fully deductible each year as a business expense under the federal tax code. The deductibility of these costs may be in serious jeopardy as Congress considers tax reform. Several state legislatures have also proposed imposing a sales tax on advertising services. Policymakers at both the federal and state levels of government are proposing legislation that would impose serious burdens on the ability of marketers to collect and use information in the online environment, including proposals such as a “do-not-track” regime. WHAT WE ARE DOING: The ANA is a founding member of The Advertising Coalition (TAC), which has held more than 20 “grassroots” meetings with key members of Congress over the past several years to educate them about the importance of advertising to the economy. We provided the majority of the funding for an update of the IHS Global Insight report, which demonstrates the economic importance of advertising in every state and congressional district. On the state front, we helped defeat serious ad tax proposals in 2013 in Ohio, Minnesota, and Louisiana. WHAT WE ARE DOING: The ANA was a founding member of the Digital Advertising Alliance (DAA), the industry self-regulatory program for online behavioral advertising, and that program continues to grow. Since the program’s launch in 2010, more than 23 million consumers have visited the DAA sites to learn about their advertising data choices, and over one million consumers have taken action via the DAA opt-out page to exercise their choice about how marketers will use their data. In July, the DAA released new selfregulatory principles for the mobile environment. The ANA joined two new state privacy coalitions to respond to the increased threat of restrictive proposals in several state legislatures. Working with our members and other industry groups, we were able to defeat, or positively modify, the most onerous bills at the state level. Top Issues in Government Relations ICANN Food Marketing Patent Trolling AT ISSUE: AT ISSUE: AT ISSUE: The Internet Corporation for Assigned Names and Numbers (ICANN) recently began rolling out new generic top-level domain names (gTLDs) on the Internet. The vast expansion of more than one thousand new domain names raises serious issues for both brand holders and consumers. In 2011, an interagency working group of four powerful federal agencies proposed unprecedented restrictions on the marketing of food and beverage products directed to children under age 18. Several members of Congress have proposed taxes or restrictions on food marketing. Marketers and advertising agencies are increasingly being hit with abusive patent litigation and demand letters alleging that they are violating the rights of patent holders through the use of common business practices or technology (e.g., use of Wi-Fi in a restaurant). WHAT WE ARE DOING: WHAT WE ARE DOING: In 2012, we successfully pushed for Congress to approve legislation that blocks the four federal agencies from issuing any report on food marketing unless they carry out a full cost/benefit analysis of their proposal. We have been able to get that restriction included in several funding bills and it remains in place today. In September, we participated in a White House meeting hosted by First Lady Michelle Obama, where we highlighted the efforts of the industry’s self-regulatory program, the Children’s Food and Beverage Advertising Initiative, to address childhood obesity concerns. The ANA is a member of the Stop Patent Abuse Now Coalition, which is working on various legislative solutions and has urged the FTC to become more active in fighting the unfair and deceptive practices of patent trolls. There is bipartisan support in Congress to address this issue. We are hopeful that legislation will be approved during the current session. WHAT WE ARE DOING: For more than two years, the ANA has taken a primary leadership role in casting a spotlight on the serious unresolved problems with the roll-out of new domain names. As a result of our efforts, there were two congressional hearings on the domain-name expansion, and we helped both the Federal Trade Commission and the Department of Justice better understand the risks posed to consumers and companies. We continue to meet with U.S. policymakers to strengthen protections made by ICANN before the expansion of gTLDs. The Washington, D.C. office had 61 meetings on Capitol Hill with members of Congress in 2013 34 Ad Taxes 10 ICANN Patent Trolls Privacy 7 10 ANA 2013 Annual Report — Leadership and Marketing Excellence | 17 Industry Initiatives Overview Across a broad spectrum of arenas, ANA articulates the agenda and leads the industry in advancing legislation, thought leadership, industry management, and social/industry responsibility. Over the past year, the ANA has taken on a number of new leadership programs while continuing to invest resources in critical existing efforts intended to make the industry stronger, more knowledgeable, and nimble. We are committed to making the marketing process more efficient and effective, enabling marketers to maximize the return on their investments. Among the industry programs and efforts we lead or support are Making Measurement Make Sense, Ad-ID, the Alliance for Family Entertainment, the Joint Policy Committee, Stop Patent Abuse Now, ad tax legislation, piracy, brand valuation, privacy, self-regulation, ICANN, and Online Behavioral Advertising. Making Measurement Make Sense (3MS) Sponsored by the ANA, the 4A’s, and the IAB, Making Measurement Make Sense (3MS) is a three-year-old cross-industry initiative designed to establish standards for metrics and advertising “currency” that enhance the evaluation of digital media and facilitate cross-platform media comparisons for brand marketing. The goal of 3MS is to enhance marketing and media management decision-making. 3MS changes the way digital media is bought and sold. Launched to help brand marketers and agencies keep pace with the consumer shift in digital media, 3MS addresses marketers’ concerns about having no reliable data and no single currency. For years, marketers have been plagued with inefficiencies in the planning/buying and post-buying stages of the supply chain, and they were unable to answer the question, “If I shift more of my budget to online, am I better off?” More recently, we have learned that the answer to that question may have been “maybe not.” At the core of the 3MS initiative is the creation of a viewable standard for digital display advertising. The industry has wanted it for years, and for good reason. It has been reported that as much as 30 percent of digital display advertising buys were wasted due to the inability to see or accurately measure served impressions. With approximately $35 billion spent on digital display ads in 2013, the potential wasted spend amounts to more than $10 billion. What is disturbingly obvious is that while there are more metrics for online media than in any other medium, none are effective for marketers, agencies, or media companies. A major milestone of the 3MS initiative is about to change all of that. Media Rating Council (MRC), a non-profit industry association which has the goal of confirming that measurement services are valid, reliable, and effective, will by the end of Q1 2014 endorse the widespread use of viewable impressions as a digital currency metric. The road to a viewable impression standard has been a long one, with significant input and discussion across the ecosystem. The new viewable impression standard changes the way digital ad impressions are measured and makes the buying of these impressions more effective and efficient for all marketers. 18 | www.ana.net Ad-ID Ad-ID is a web-based system that generates and manages a unique identifying code for each advertising asset and applies that code to all media. Valid Ad-ID codes can only be issued from the Ad-ID system, and include all basic information regarding the advertising asset. To assist the industry with the transition to Ad-ID, extensive educational material was created and distributed. In October 2012, Ad-ID was unanimously endorsed by the boards of directors of the 4A’s and the ANA as the industry standard for commercial advertising coding. Ad-ID has been widely endorsed as a cross-media standard by more than a dozen associations, as well as by all national networks and local TV stations throughout the U.S. The Ad-ID system was developed by the ANA and the 4A’s in 2003. Ad-ID serves more than 900 clients, including the largest advertisers and advertising agencies in the world. Ad-ID was named Media Supplier of the Year by Media Magazine in 2012. SAG-AFTRA Requires Ad-ID for All Union Commercial Production Last August, commercials negotiations between the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the ANA-4A’s Joint Policy Committee, representing the advertising industry, mandated universal adoption of Ad-ID, the industry coding standard for identifying advertising assets across all media platforms. Ad-ID provides the necessary identification required by all parties for fair talent compensation. Under the new agreement, all commercials produced for television, radio, and digital platforms featuring SAG-AFTRA union members must now use Ad-ID as the sole standard commercial identifier. The mandate is a critical step forward for Ad-ID and the advertising industry as a whole. Full adoption of Ad-ID will enable greater transparency and accountability and eliminate costly errors associated with the inconsistent use of advertising asset identifiers. ANA 2013 Annual Report — Leadership and Marketing Excellence | 19 Alliance for Family Entertainment and Joint Policy Committee Alliance for Family Entertainment (AFE) 2013 was a transformational year for the ANA Alliance for Family Entertainment (AFE). The “Search for America’s Newest Scriptwriter” contest with judge Will Smith and the first industry upfront partnership for family entertainment with YouTube both delivered on the AFE’s mission of finding, nurturing, and supporting quality content the entire family can enjoy on multiple distribution platforms. In December 2013, Stephen F. Quinn, executive vice president and chief marketing officer at Walmart U.S., was named chair of the AFE. The news was well received by family marketers and resulted in more than 60 million media impressions. Under Quinn’s leadership, the AFE is off to a strong start in 2014 with bolstered activities and increased membership. The AFE will focus on three key initiatives in 2014: research, content development, and knowledge sharing. The operating plan will create breakthrough consumer/customer understanding; distribute knowledge of consumer habits, practices, and trends; highlight which TV programs have the highest odds of securing family viewership/support; and drive more family programming options across broadcast, cable, and digital media via advertising, sponsorships, and ownership rights. The AFE will serve to better position the family entertainment industry to meet the needs of family-driven brands. Members will realize tangible benefits for their companies, leading to improved media ROI and operational excellence. Joint Policy Committee on Broadcast Talent Union Relations (JPC) On April 1, 2013, the Joint Policy Committee on Broadcast Talent Union Relations (JPC), the employer bargaining unit established decades ago by the ANA and the 4A’s to deal with the unions representing actors and musicians who perform in television and radio commercials, successfully concluded negotiations on a new three-year collective bargaining agreement with SAG-AFTRA. The collective bargaining agreement represents nearly $1 billion in annual spending by advertisers on actors who perform in commercials. It is the largest union agreement in the entertainment industry, exceeding the compensation paid to actors in movies or on television. Under the ANA’s leadership, the JPC kept wage increases below 3 percent per year and eliminated many provisions that were costly to advertisers when they edited commercials or produced spots for digital media. Perhaps most importantly, the JPC advanced the ongoing negotiations to adopt a payment structure for performers based on gross rating points rather than on the current system of payment silos for each type of media (network, cable, syndication, wild spot, etc.). The old model has prevented the industry from measuring its return on money invested on performers in commercials since the 1950s. The JPC hopes to adopt the new system in 2016, revolutionizing how performers are paid and ROI is measured. Despite the JPC’s hard-driving negotiations, it continues to have an excellent working relationship with SAG-AFTRA leadership that ensures labor peace year-round. 20 | www.ana.net The Truth About Advertising Advertising is a vast driver of sales and jobs and an essential component of the U.S. economy. Each form of advertising — including print, television, radio, mobile, and the Internet — helps businesses build brand awareness and communicate the benefits of their products and services to consumers. Advertising stimulates new economic activity that triggers a cascade of sales and fosters job creation across every industry, state, and congressional district. Impact on Sales and Employment IN 2013 BY 2017 $5.6 trillion of the $33.8 trillion in U.S. output and supported 21.1 million of the 136.2 million U.S. jobs. Advertising accounted for $6.5 trillion of the $42.3 trillion in U.S. output and support 22.1 million of the 146.7 million U.S. jobs. Advertising will account for $22 81 Sales generated for every dollar of ad spending $8.78 Direct sales for each dollar of ad spending $3.61 Supplier sales for each dollar of ad spending American jobs supported for every million dollars of annual ad spending Potential Impact of Change in Tax Policy Advertising is currently treated as a fully tax-deductible expense necessary to the cost of doing business. Just making advertising only 80 percent deductible would trigger: • A loss of $19.4 billion in ad spending • A loss of $419 billion in additional economic output • A loss of approximately 42,000 jobs directly related to advertising • The elimination of an additional 1.6 million in indirect U.S. jobs Source: IHS Global Insight study, commissioned by the ANA and The Advertising Coalition (forecast period 2012–2017) ANA 2013 Annual Report — Leadership and Marketing Excellence | 21 Message from the Board Chair It was another year of exceptional growth for the ANA, from the number of new members to the attendance at events to the organization’s overall influence. Most importantly, the ANA delivered on its new positioning: “Leadership that advances marketing excellence and shapes the future of the industry.” This success was the result of ANA staff meeting the tremendous demands of marketers for its services. In her book The Gifts of Imperfection, Brené Brown writes, “One of our greatest barriers to connection is the cultural importance we place on ‘going it alone.’ Somehow we’ve come to equate success with not needing anyone. Many of us are willing to extend a helping hand, but we’re very reluctant to reach out for help when we need it ourselves. It’s as if we’ve divided the world into ‘those who help’ and ‘those who need help.’ The truth is that we’re both.” Stephen F. Quinn That’s the great thing about the ANA: as members, we can work together to contribute the knowledge needed to navigate today’s turbulent, changing times. There’s give and take that benefits customers, consumers, our organizations, and our careers. At the 2013 Masters of Marketing Conference, we heard remarkable stories about the stunning breadth of change our industry is undergoing. At the same time, we received practical advice from the best in the business on what to do about it. Amid the disruption brought about by technology, it was inspiring to hear Visa CMO Antonio Lucio talk about the importance of purpose as a north star in building brands and reaching consumers. John Costello of Dunkin’ Brands reminded us that a great idea differentiates a company and answers the question, “Why should I choose you?” And Salesforce.com’s Mark Benioff showed just how much customer-centricity is changing in a world dominated by social, mobile, and local media. As Instagram and Pinterest have proved, social media is evolving rapidly, suggesting that there may never be stability in the platforms and channels we’re learning to master. Perhaps the most dramatically changing dynamic is the customer. As Unilever CMO Keith Weed said, “Get to the future first, and welcome customers when they get there.” I believe the only way we can do that is together — and that’s what the ANA enables us to do. Here’s to an exciting 2014! Stephen F. Quinn, Board Chair | EVP and CMO at Walmart U.S. 22 | www.ana.net Products and Services More than ever, it is critical that the ANA help to ensure marketers have the necessary skills and experience to lead the industry’s transformation. ANA ANA2013 2013Annual AnnualReport Report— —Leadership Leadershipand andMarketing Marketing Excellence Excellence || 23 Events 2013 Overview The ANA has a large and diverse portfolio of national industry and members-only conferences. Our conferences are unique in the marketing industry, as we showcase the client-side perspective. Our national industry conferences, open to all, are true “events,” consisting of great content, superb networking with an A-list of attendees, and evening entertainment, all in fabulous locations. Our members-only conferences, open to current members and invited guests, are a complimentary benefit of membership. In 2013 we held 25 events, in locations throughout the U.S. Hosts included 3M, Anheuser-Busch InBev, Walt Disney Parks and Resorts, Ford Motor Co., The Home Depot, MillerCoors, and Wells Fargo. Our complimentary Webinar Wednesdays provide members with the opportunity to enjoy rich content from the comfort of their offices. We held 54 webinars throughout the year. These hour-long events covered hot topics such as digital, social, agency management, content marketing, and big data, with perspective and insight from seniorlevel members and industry experts. ANA sponsorships and partner programs provide the opportunity for interested companies to have exposure to, and engage with, ANA members and other industry leaders. • The Strategic Partner program, our most exclusive sponsorship level, provides our partners with year-round access, involvement, and networking via various ANA member touch points. • The Thought Leadership program is a secondary sponsorship level, and its cornerstone is a solesponsored custom magazine delivered both digitally and in print, in addition to other ANA member touch points. • À la carte sponsorship opportunities are also offered across all ANA national industry conferences, providing opportunities for access to ANA members through exhibit spaces, coffee breaks, dinners, breakfasts, receptions, and more. Bill Duggan | Group EVP “I have been attending this conference for several years. I always find relevant topics and learn something new. It is a unique conference where I have a great opportunity to meet peers, network, and benchmark.” — Attendee, ANA Advertising Financial Management Conference 24 | www.ana.net National Industry Conferences A Year of Record Performance Our eight national industry conferences in 2013 — including seven premier multiday events — collectively attracted more than 5,000 members and nonmembers. Even more impressive, four events posted record attendance. February 24–26 | Miami, Fla. ANA Media Leadership Conference presented by YouTube 324 registrants; exceeded goal March 19–20 | Washington, D.C. ANA Advertising Law & Public Policy Conference 251 registrants April 17–19 | Palm Beach, Fla. ANA Brand Masters Conference presented by The New York Times 285 registrants; sold out May 5–8 | Scottsdale, Ariz. ANA Advertising Financial Management Conference presented by Active International 613 registrants; sold out; record attendance July 14–16 | Dana Point, Calif. ANA Digital & Social Media Conference presented by Meredith 384 registrants; sold out; record attendance Did You Know? • The 2013 ANA Multicultural Marketing & Diversity Conference was the biggest in its 15-year history, with a record 798 registrants. • Four events included live-stream coverage. • Two conferences transitioned from single-day to multiday events: ANA Media Leadership Conference (formerly the ANA TV & Everything Video Forum), and ANA Brand Masters Conference (formerly the ANA Brand Conference). October 3–6 | Phoenix, Ariz. ANA Masters of Marketing Annual Conference 2,200 registrants; sold out; record attendance November 3–5 | Los Angeles, Calif. ANA Multicultural Marketing & Diversity Conference presented by Clear Channel Media + Entertainment 798 registrants; record attendance December 4 | New York, N.Y. ANA Real-Time Marketing Conference presented by Starcom 352 registrants; exceeded goal “ANA content is consistently excellent, and the networking is better than at other conferences.” — Attendee, ANA Brand Masters Conference ANA 2013 Annual Report — Leadership and Marketing Excellence | 25 Masters of Marketing Conference Better Than Ever Living up to its billing as the industry’s signature event, our Masters of Marketing Annual Conference in Phoenix, Ariz., attracted a record crowd of 2,200. In addition, nearly 100 members and nonmembers took advantage of our live-stream coverage. Attendees heard remarkable stories and rich insights from the best senior marketers in the business, from companies such as Walmart Stores, Inc., The Coca-Cola Co., Subway Franchisee Advertising Fund Trust, Dunkin’ Brands, Inc., and GE, as well as from other industry thought leaders across the entire marketing ecosystem. “The best conference I have been to,” one attendee wrote in the post-event survey. “I believe the conference produced excellent content and points of view.” The evening entertainment was also masterful in every way, with performances from Jewel, Jason Mraz, and Tony Award-winning actress Laura Benanti. “It is great to be able to hear directly from CMOs and other top executives from our industry. And the entertainment was phenomenal!” — Attendee, ANA Masters of Marketing Conference “As my colleague said, ‘It’s like Disneyland for marketers.’ The location, hotel property, and staff were over the top, and the content each day was filled with great messaging for smarter marketing methods.” — Attendee, ANA Masters of Marketing Conference 26 | www.ana.net Members-Only Conferences and Webinars Spreading Our Wings 5554 We held 25 members-only conferences in 2013 in cities across the U.S., including Boston, New York, Atlanta, Detroit, Orlando, Louisville, Chicago, Minneapolis, St. Louis, and San Francisco. These complimentary events collectively attracted more than 2,800 members, a new record. Number of complimentary webinars held in 2013, attracting more than 3,800 members. Many of these members-only events were centered on hot topics like digital marketing, social media, content marketing, agency management, and big data, while others revealed key highlights from industry events and ANA leadership initiatives. The conferences with the highest attendance included: • Innovation Day at Walmart Stores, Inc. in Bentonville, Ark. • Social and Mobile at Electronic Arts in Redwood, Calif. • Digital, Social, and Mobile at Walt Disney World in Lake Buena Vista, Fla. • ANA/Effies: Effective Marketing and Media Insights at Time Warner in N.Y.C. 21 Number of members-only conferences held at member company locations, including 3M, Anheuser-Busch InBev, Walt Disney Parks and Resorts, Ford Motor Co., The Home Depot, MillerCoors, and Wells Fargo. 82.1 The record Net Promoter Score for a members-only conference, established at our ANA/Effies: Effective Marketing and Media Insights event at Time Warner. “This was an excellent conference. There were a wide variety of topics and speakers and great learnings. Overall, the best conference I’ve ever attended.” — Attendee, Digital, Social, and Mobile Members-Only Conference at Walt Disney World “The staff was amazing, and the speakers and content were phenomenal. I walked away with a lot, and I am excited to brainstorm some new strategies.” — Attendee, Marketing to Millennials Members-Only Conference at the House of Blues ANA Innovation Day ANA Marketing to Millennials Members-Only Conference at Home Depot presented by BrightLine Members-Only Conference Tuesday, September 24, 2013 | Home Depot, Inc. | Atlanta, GA Wednesday, December 18, 2013 | 1201 16th Street NW | Washington, D.C. at National Education Association ANA Integrated Marketing ANA Procurement Day at Vistaprint presented by Scripps Networks Interactive Tuesday, October 22, 2013 | BP P.L.C. — 30 S Wacker Dr. | Chicago, IL Members-Only Conference Members-Only Conference at BP p.l.c. ANA Agency Relations Day Members-Only Conference presented by Microsoft Thursday, November 21, 2013 | 599 Lexington Ave | New York, NY Thursday, November 7, 2013 | Vistaprint — 95 Hayden Ave | Lexington, MA ANA/Effies: Effective Marketing & Media Insights Members-Only Conference at GRAMMY Museum (Hosted by AEG Worldwide) presented by USPS Thursday, September 19, 2013 | GRAMMY Museum | Los Angeles, CA ANA Content Marketing Members-Only Conference at 3M presented by AT&T AdWorks Wednesday, September 18, 2013 | 3M Innovation Center | St. Paul, MN Members-Only Conference From PDF ANA ROI ANA Content Marketing Members-Only Conference at Wells Fargo at Time Warner Inc. Wednesday, December 11, 2013 | 420 Montgomery St. | San Francisco, CA Thursday, September 12, 2013 | Time Warner Inc. Corporate Headquarters | New York, NY Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA ANA/Effies: Effective Marketing & Media Insights Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Members-Only Conference at Thomson Reuters presented by A+E Television Networks Tuesday, October 22, 2013 | Thomson Reuters — 3 Times Square, 30th Floor | New York, NY Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA Join the conversation on Twitter by using #ANAmarketers Upload photos and video, and make comments on facebook.com/ANA ANA 2013 Annual Report — Leadership and Marketing Excellence | 27 Sponsorships In the Spotlight In 2013, we produced 12 issues of ANA Magazine Spotlight, our 12-page sponsored digital magazine. A print version was also mailed to senior-level ANA marketers. Spotlight is available at www.ana.net/mkc. The issue themes included: • Brand strategy and identity design Lippincott • Tablet publishing Condé Nast • Direct mail marketing USPS • Digital marketing [x+1] • The expanding impact of TV TVB • Agency management Decideware • Data management SAS • Mobile strategy Yahoo! • Mobile video Millennial Media • Programmatic marketing Chango • Digital place-based advertising DPAA • Customer experience RAPP 28 | www.ana.net 188 Did You Know? Number of sponsorships across our eight national industry conferences in 2013 — a record. The ANA Masters of Marketing Annual Conference attracted 37 exhibitors and 36 conference sponsors — a record for the event. Sound of Music Thanks to great sponsorship support, attendees at many of our multiday national industry conferences in 2013 were treated to live performances by well-known artists. They included: Jewel Jason Mraz Laura Benanti Provided by LiveNation Four-time Grammy Award nominee who has sold more than 27 million albums worldwide Provided by Clear Channel Media + Entertainment Grammy Award winner whose song “I’m Yours” has surpassed $21 million in sales worldwide Provided by Meredith Tony Award winner for Best Featured Actress in a Musical Meghan Hilty RaVaughn Frankie J. Provided by VEVO Starred in the hit TV musical drama Smash Provided by Columbia Creative Agency Up-and-coming singer/songwriter from California Provided by Pandora Former member of the musical group Kumbia King Committees 2013 Overview The mission of ANA committees is to advance the marketing knowledge of members and provide a forum for peer-to-peer exchange and networking. Increasingly, our committees play thought leadership roles in addressing key industry issues. We have 20 committees covering topical areas such as agency relations, integrated marketing, media, multicultural marketing, and social media. Committees meet in New York, Illinois, and California, and a teleconference option is offered to members who are unable to travel to meetings. • Media Leadership Committee: Convened the Commercial Ratings Summit to discuss solutions that could help to facilitate the availability of brand-specific commercial ratings for television. Released the white paper “Brand-Specific Commercial Ratings: Benefits and Solution Providers” to highlight solutions from eight companies and continue the industry dialogue on this issue. • Multicultural Marketing and Diversity Committee: Established Multicultural Marketing Thought Leadership Forums to help increase the impact of marketing to an increasingly multicultural nation. Created the ANA Multicultural Excellence Awards to elevate exposure of outstanding work and celebrate the year’s best multicultural advertising campaigns. • Production Management Committee: Released the white paper “The Found Money of State Commercial Production Incentives” to raise awareness of financial incentives that many states offer to advertisers which shoot commercials in their states, and to establish that such incentives belong exclusively to the advertiser. Our committees are steered by chairs who are senior leaders from ANA member companies and experts in their respective fields. We view our committees and committee chairs as extensions of our board of directors. Committees are key originators and advocates of industry leadership initiatives. Recent examples include: • Advertising Financial Management Committee: Released the white paper “Elevating the Role of Marketing Procurement,” which focuses on procurement success metrics. Founded the ANA Procurement Task Force, a group dedicated to elevating the role of marketing procurement. • Agency Relations Committee: Released the white paper “The Rise of the In-House Agency” to shed light on the penetration of in-house agencies, the services that these agencies handle, the degree to which external agencies are displaced by in-house agencies, the advantages and disadvantages of in-house agencies, and the internal costs to companies of employing in-house agencies. ANA committee members consist of approximately 3,000 individuals from more than 400 companies. Bill Duggan | Group EVP “Participating in ANA committees provides the opportunity to discuss relevant topics with industry colleagues to get a broader perspective and gain insight on emerging trends.” — Sal Vitale, category leader, media procurement, at Johnson & Johnson ANA 2013 Annual Report — Leadership and Marketing Excellence | 29 Committees Committee Chairs Advertising Financial Management Michael Thyen, director of marketing and sales procurement at Eli Lilly and Co. Agency Relations Eve Reiter, vice president of marketing category management and agency relations at American Express Co. Brand Management Roger Adams, senior vice president and chief marketing officer at USAA “The Advertising Financial Management Committee is a wonderful point of connection between the marketing community and the procurement community. Those involved understand the needs and requirements of a robust creative environment. They also understand the business imperative of ensuring all investments (including those related to marketing activities) have a positive return for the organization.” — Terri Burns, strategic sourcing consultant at Aflac Business-to-Business Bill Stabile, senior director of brand and marketing communications at Siemens Corp. Digital Marketing Tom Cunniff Legal Affairs Christopher Sloan, assistant vice president and senior corporate counsel at Liberty Mutual Media Leadership Mark Kaline, global director of media, licensing, and consumer services at Kimberly-Clark Corp., and Colleen Milway, media director at JPMorgan Chase Mobile Marketing Edward Martin, director of mobile marketing at The Hershey Co. Multicultural Marketing & Diversity Gilvert Dávila, president and chief executive officer at Dávila Multicultural Insights Production Management John Lick, executive producer of broadcast production at Target Corp., and Valerie Light, advertising production manager at Verizon Communications Social Media Michael Donnelly, senior vice president and group head of global digital marketing at MasterCard Worldwide Regional Committee Chairs Advertising Financial Management West Coast Chapter Ron Jensen, national manager of financial synergies at Toyota Motor Sales U.S.A., Inc. Agency Relations West Coast Chapter Kellie Krug, senior vice president of enterprise marketing services at Wells Fargo Bank, N.A. Media Leadership West Coast Chapter Alison Fowler, managing director of brand strategy and activation for digital channels at Charles Schwab & Co., Inc. Social Media West Coast Chapter Christine Morrison, Turbo Tax social media marketer at Intuit Inc., and Diane Ueberle, brand and social leader of marketing excellence at Intuit Inc. Integrated Marketing (Chicago-based) Sponsorship & Event Marketing Julie Koewler, global advertising director at Accenture Gerald Johnson, chief diversity officer and executive vice president of marketing at the American Heart Association, and Brian Maynard, director of marketing at Whirlpool Corp. Midwest Digital & Social (Chicago-based) 30 | www.ana.net Stevie Benjamin, director of media at MillerCoors LLC Committees ANA/4A’S WHITE PAPER LEADERSHIP INDUSTRY THOUGHT Agency Selection Briefing Guidance 2013 ANA/NIELSEN SURVEY What’s Inside? Background Guidelines for Agency and 4A’s published the In October 2011, the ANA for both clients and publicize best practices Search to document and selection process. Those the agency search and agencies to consider in and 4A’s websites. on the respective ANA guidelines can be accessed 4A’s believe there is an guidelines, the ANA and As a follow-up to those of the agency search/new improve the productivity opportunity to further by developing specific advertisers, agencies and business process, for both agency selection briefing around the subject of best practices guidance process. selection throughout the entire agency Agency Selection Briefing Guidance.... 3 ................. 3 » 1. Initial List/RFI Phase ........... 5 » 2. Semi-Finalist/RFP Phase ... 10 » 3. Finalist Phase ...................... . 12 Guidance Summary ......................... ............... 13 Task Force Members.......... ANA Elevating the Role of Marketing Procurement Objective • The metrics, both current and ideal, used to measure the success/contribution of the marketing procurement organization. • The importance, both current and ideal, placed on each respective metric. • Alignment of success metrics between procurement and marketing. » Current Importance of Metrics ............................. 4 » Ideal Importance of Metrics ................................. 5 a thoughtful briefing that search,»requires Metrics with Greatest Ideal Increases ................... 6 phase of a review, or agency escalating information to the agencies as that every 2013believes SURVEY RESEARCH REPORT should provide » Aligning Success Metrics for Marketing strategic The ANA/4A’s task force process phases (including any to the agency. The review to the later Procurement and Marketing ................................. 6 provides specific direction (e.g., RFI, RFP, credentials) from the initial phases the review progresses Results By Procurement Maturity ............................. 7 and finals presentations). and/or speculative work » Improve Marketing ROI ........................................ 7 information. and levels of client briefing types different » Innovation ........................................................... 8 Each review phase warrants Sponsorship and Event Marketing Measurement » Agency/Supplier Performance Improvements list of agencies and Internal aSatisfaction from Marketing............... 9 you preliminarily qualify information that will help » Process Improvements and Industry Intelligence .... 10 as the ability to collect Think of the RFI phase don’t meet your criteria. eliminate agencies that » Sales/Market Share Increases and Improve for the final selection and Brand Health Metrics........................................... 11 about many agencies. is to gather basic information »introducing Cost and Risk Metrics .......................................... 12 themselves. • The purpose of an RFI any customized work beyond to make »to allow Aligning Metrics for Marketing asking the agencies to do agencies theSuccess • At this point, you’re not expectations as a client Procurement and Marketing ................................. 13 about the search and your • Share enough information fit. whether this is a good Qualitative Perspective ............................................. 14 an informed decision about » Risk Mitigation ..................................................... 14 Second Edition The specific metrics explored in this survey (and corresponding definitions provided to respondents) were: • ANA• Agency/Supplier Performance Improvements Cost Avoidance: reduction of a price that would have otherwise been paid if not for the direct intervention of procurement Brand-Specific Commercia l Ratings Benefits and Solution Provider s » Innovation/Process Improvements and Agency/Supplier Performance Improvements ......... 15 • Cost Reduction: typically, savings year over year (paid $100K for X last year and $95K this year) • Improve Brand Health Metrics: could include awareness, Net Promoter Score, purchase consideration, etc. • Improve Marketing ROI • Industry Intelligence: awareness of benchmarks and best practices Conclusions & Perspective ....................................... 16 Attracting a Crowd Innovation: identify emerging trends and bring new ideas ANA continues to advocate for increased granularity of commercial ratings, and notably for brand-specific commercial • Internal Stakeholder Satisfaction from Marketing ratings. ANAand member interest in brand-specific • Process Improvements:1 both internally with suppliers Benefits ...................... .................. commercial ratings In a 2011 survey, 82 percent of Respondents .................................................... 18 of members surveyed expressed is high. • Risk Mitigation: typically either (a) ensuring the financial interest. Providers » Appendix III: Survey Questionnaire .......................Solution 19 stability of a supplier and/or (b) having appropriate contract These findings are consistent with other surveys language to protect the organization/company ANA has done over the years, including those Procurement Task Force Members ........................... in 2004 » 21comScore...................... and 2006. 4 • Sales/Market ................. Share Increases Appendix .................................................................. 17 » Appendix I: Summary of Current/Ideal Use • to the organization What’s Inside? and Current/Ideal Importance .............................. 17 » Appendix II: Procurement Maturity » INVIDI Technologies 6 ..................... Elevating the Role of Marketing Procurement REPORT 2013 SURVEY RESEARCH SURVEY RESEARCH Payment Terms — Current Practices for Marketing Services » Kantar Media ...................... 8 ......... » Nielsen ...................... .................. 10 » PrecisionDemand ...................... 13 ... » TRA ............................................ 19 Appendix ...................... ..................21 ANA surveys are based on topics identified by the ANA and its membership as critical issues and emerging trends that nearly all marketers face today. Access all ANA survey reports at: Not Interested 5% Neutral 13% 2013 ANA SURVEY REPORT 15 17 ............ The best-attended committee meetings in 2013 were: Interest in Ratings for Individual Commercials » Rentrak ...................... .................. » Simulmedia ...................... Number of committee meetings held in 2013 3,200 ANA members, from more than 400 companies, joined a committee in 2013, compared with 2,865 in 2012. There were 113 responses, and virtually all respondents were marketing procurement professionals at ANA member companies. Information (RFI) Phase Initial List/Request for 70+ That’s a Fact ANA fielded a survey in December 2012/January 2013 to better understand the metrics used to measure the success/ contribution of the marketing procurement organization. The survey focused on: of Marketing Procurement .................................... 2 » Ideal Metrics........................................................ 3 SURVEY RESEARCH Benchmarks and Trends Background the fundamentals What’swith Inside? for clients who are unfamiliar in agency selection briefings is to provide basic guidance The intention of this document agency selection process, and give clients experienced Key Findings ............................................................ 2 the of briefing an agency during to consider. » Metrics Currently Used to Measure Success additional best practices Executive Summary SURVEY RESEARCH REPORT Optimizing Integrated Multi-Screen Campaigns Interested 82% SURVEY RESEARCH Benchmarks and Trends The Rise of the In-House Agency • Sponsorship & Event Marketing at SeaWorld in Orlando, Fla. 78 attendees • Shopper Marketing at Walmart in Bentonville, Ark. 51 attendees Q7. Currently, ratings for individual the average of all the commercials commercials are not available. Nielsen provides ratings for in a program. How interested available for each individual would you be in having commercial? ratings Source: ANA 2011, Leveraging TV for Growth Survey The Benefits of Commercia l Ratings www.ana.net/surveys ANA members and other industry experts have identified numerous benefits for brand-specific commercial ratings. Accountabilit y Commercial ratings would provide more granular data to better inform the • Marketing mix models decision-making process. could be or may not reflect the delivery input with brand-specific commercial metrics rather than for that specific brand) to provide increased accountability. averages (which may Better Knowledge/Increased • Brand-Specific Commercial Ratings the ANA and its membership on topics identified by face today. ANA surveys are based trends that nearly all marketers as critical issues and emerging Access all ANA survey reports at: www.ana.net/surveys ANA surveys are based on topics identified by the ANA and its membership as critical issues and emerging trends that nearly all marketers face today. Access all ANA survey reports at: www.ana.net/surveys “The ANA Media Leadership Committee has been of particular value to me. It allows me to stay connected with the latest developments on innovations in media and measurement, and it provides a regular opportunity to connect with peers to discuss open issues and obtain input on solutions. Finally, it allows me to stay connected with the client-side media community so that I can have ongoing informal communication with other companies as needed.” — David Dobbins, director of global media and sourcing at Boehringer Ingelheim Pharmaceuticals, Inc. ANA 2013 Annual Report — Leadership and Marketing Excellence | 31 Training 2013 Overview The ANA School of Marketing (SoM) experienced another year of record growth by all key measures: number of workshops, members engaged, satisfaction, and revenue. This was due to our innovative learning solutions, which feature a unique combination of real-world experiences and best practices from top client-side marketers and industry thought leaders. Demand for marketing skills development from ANA members has grown consistently over the past few years. In response, the School of Marketing has evolved its business system and is poised to be the go-to resource for the training needs of client-side marketers. To meet increased member demand for training regionally, the SoM successfully expanded its seminars outside of New York City, to Chicago and San Francisco. We will continue to test new markets in order to bring more training opportunities to our members across the country. In 2014, the ANA will introduce new training formats and content to address the needs of senior marketing executives. Nick Primola | SVP Marketers’ roles are transforming at an unprecedented pace. More than ever, it is critical that the ANA help to ensure that the talent pool has the necessary skills and experience to lead this transformation. “I believe career development is one of my key responsibilities for Aflac. How do I help our team work more effectively, stay relevant, and improve their careers? I asked the ANA School of Marketing to work with us to produce a four-day ‘Mini-MBA’ curriculum. The ANA SoM team did a fabulous job with our marketers, and we are ready to get the next program started.” — Michael Zuna, senior vice president and chief marketing officer at Aflac 32 | www.ana.net Training Top Accomplishments in 2013 • • • The ANA School of Marketing provided marketing skill development to 196 member companies, a 31 percent increase in member utilization over 2012. Moreover, 231 workshops were held, a 22 percent increase over 2012. 3. Elevating Your Creative (22) 4. Assignment Briefing (19) The School of Marketing generated $549,000 in revenue, a 52 percent increase over 2012. The money will be reinvested to serve our members’ ongoing training needs. 257 250 200 2. From Insights to Great Messaging (28) Almost 400 members enrolled in one of the 25 individual training workshops. The workshops had an average rating of 4.27 for content and 4.67 for faculty (using a 5-point scale), as well as an average Net Promoter Score of 48. 300 209 5. Optimizing Agency Relations (15) 15 percent more members engaged Unique engagement 4,000 97 percent revenue increase Revenue (in thousands) 3,804 $600 $549 3,590 3,500 165 150 (number of sessions) 1. Integrated Marketing Communications (43) Almost 3,900 members experienced an ANA School of Marketing onsite workshop. The workshops garnered an average rating of 4.27 for content and 4.54 for faculty (using a 5-point scale), as well as an average Net Promoter Score of 42. 56 percent more workshops Total number of events Most Popular Classes 3,299 In Thousands • 3,000 100 2,500 $359 $400 $279 $200 50 0 2011 2012 2013 2,000 2011 2012 2013 $0 2011 2012 2013 Instructor Spotlight Rod McNealy Area of Focus: From Insights to Great Messaging One of our most highly rated faculty members, Rod McNealy has been teaching courses at the ANA School of Marketing for more than four years. His engaging, educational workshops help marketing teams understand the true essence of their brands in a customer-focused way. McNealy’s 38-year business career has centered on the fields of marketing and advertising. He worked at Johnson & Johnson for 31 years, following a stint at Procter & Gamble in brand management. Both organizations are long-time ANA members. As director of the Johnson & Johnson Marketing & Advertising College until his retirement, McNealy directed global marketing training across all three of the company’s business sectors: pharmaceutical, medical devices/diagnostics, and consumer. ANA 2013 Annual Report — Leadership and Marketing Excellence | 33 Marketing Knowledge Center 2013 Overview The mission of the Marketing Knowledge Center is to offer members a rich suite of high-quality, relevant, and actionable content that covers the entire marketing spectrum and positions the ANA as the undisputed center of marketing knowledge excellence. The Marketing Knowledge Center is comprised of: • • • More than 8,000 marketing insights available via our website, sourced from ANA committees, conferences, and webinars; ANA’s proprietary survey research program; and prominent third-party industry partners A qualified team of resourceful information experts dedicated to responding to ANA members’ unique marketing challenges with customized research that is trusted, timely, and tailored to their needs A survey research community of marketers contributing to the ANA’s overall thought leadership on topics identified as critical by the ANA and our members Our best-in-class portfolio of products and services makes the ANA the trusted source for marketing information and the first place our members turn to for insights that can help them make better marketing decisions faster. To meet the growing interests and needs of the membership, marketing content leadership is a critical objective of the Marketing Knowledge Center. We began our “Knowledge Partner Program” three years ago and have curated contributions from more than 100 organizations. In 2013 we strategically strengthened our portfolio with several major content additions, including: • Marketing toolkits, tools, and templates to help members expand their marketing know-how and complete projects effectively • Award-winning Effie case studies and videos from industry-leading brands, highlighting the most effective marketing strategies • Award-winning case studies from the Mobile Marketing Association Smarties, the world’s only global mobile marketing awards program recognizing outstanding achievement within the industry In 2014 we will continue to substantially enhance the ANA’s intellectual capital base by expanding our content offerings so members have access to the cutting-edge insights and intelligence they need to grow their business. Kathleen Hunter | SVP 2013 SURVEY RESEARCH REPORT SURVEY RESEARCH Payment Terms — Current Practices for Marketing Services Surveys 2013 SURVEY RESEARCH REPORT • • • There were more than 8,300 downloads in 2013 (a 39 percent increase over 2012), on topics ranging from agency compensation to sponsorship measurement to real-time marketing. Second Edition 2013 ANA SURVEY REPORT The April survey on the rise of in-house agencies was downloaded by 1,200 members. The Rise of the In-House Agency SURVEY RESEARCH Benchmarks and Trends ANA surveys are based on topics identified by the ANA and its membership as critical issues and emerging trends that nearly all marketers face today. More than 900 marketers make up the ANA survey community, with more signing up every day. “I like that the ANA is thinking about what’s on the horizon and taking the pulse of my peers so that we can see the trends.” — ANA Member, MKC Satisfaction Survey 34 SURVEY RESEARCH Sponsorship and Event Marketing Measurement | www.ana.net ANA surveys are based on topics identified by the ANA and its membership as critical issues and emerging trends that nearly all marketers face today. Access all ANA survey reports at: www.ana.net/surveys ANA surveys are based on topics identified by the ANA and its membership as critical issues and emerging trends that nearly all marketers face today. Access all ANA survey reports at: www.ana.net/surveys Access all ANA survey reports at: www.ana.net/surveys Marketing Knowledge Center Content • More than 2,250 pieces of new content were added in 2013 (a 71 percent increase over 2012), including 18 toolkits, 342 tools, and 743 case studies from the Effies and Mobile Marketing Association’s Smarties Awards. • Fifteen Insight Briefs covered hot topics, including sports marketing, marketing to Hispanic consumers, local marketing, green marketing, out-of-home, affluent and luxury markets, social media, music in advertising, content marketing, big data, and branded entertainment. • More than 400 snapshots were created from ANA events. • Ninety-seven percent of ANA member companies engaged with ANA content. • • • • • “I really love your marketing tools! Incredibly useful.” — ANA Member, MKC Satisfaction Survey FOCUS: FOCUS: Sponsorship and Event Marketing INSIGHT BRIEF Sharing Marketing Excellence Total readership of ANA content grew 50 percent, compared to 2012, with more than 127,000 pieces of content viewed. Multicultural Marketing INSIGHT BRIEF Sharing Marketing Excellence What’s Inside? What’s Inside? » Secrets to Successful » AT&T Woos Multiculturals with Celebrities ........................... 2 Experiential Marketing ................. 3 Viewpoints » Know Your Rights ........................ 4 New Research » Intrigued by Newer Media ............. 3 » Growth Opportunity ..................... 4 Trending » Cause Marketing Draws Consumers.. 5 Trending Best Practices » Five Sponsorship Hot Buttons ....... 6 COMPLEX CHALLENGES REQUIRE NEW TOOLS Making Sponsorships Work The new marketing tools were downloaded more than 12,000 times by members. Case Studies » Norwegian Cruise Line Gets Leg Up from Rockettes ................. 7 Dress for Success ...................... 10 Source Information ........................ 11 T than not measuring at all, as they lead INSIGHT BRIEF But when it comes to measurement, First, brands must incorporate deep knowledge false deductions, decisions, ofto how sponsorship works in wrong shaping perceptions and poorchanges results. and driving in attitude and behavior into each step, ensuring the right partnership is Rathertothan invent targeted the right group solutions, and activatedoften in the right ways. marketers can better apply existing Focus: I s it worth devoting precious New Research » Collecting Data Is Not Enough ........ 3 time and resources to reach niche markets? Don’t general-market campaigns already appeal to audiences Trending of every stripe? Do multicultural audi» Delivering Data-Driven Messages .... 5 ences represent enough buying power to warrant targeted outreach? Best Practices media campaigns — should be applied to close the loop and determine return on investment. The metrics, models, and analyses used by brands to determine the effectiveness of their advertising can be adapted and scaled for partnerships of all types, including sports, entertain‑ ment, events, and causes. Marketing Put Big Data to Work Organization methods. First, brands should develop Second, marketing science—which already a deep understanding of how spon‑ determines results for traditional media sorship worksbeinapplied shaping perceptions campaigns—must to close the loop and determine The metrics, andand and drivingROI. changes in models attitude analyses used by brands to determine the part‑ behavior. This ensures the right effectiveness of their advertising can be adapted nership is targeted to the right group and scaled for partnerships of all types, including and activated in the right ways. sports, entertainment, events and causes. ANA Survey Findings 8 While measurement may prove 8 challenging, an ANA survey of 78 client‑ side marketers in companies involved in sponsorship and/or event marketing Delivering fresh insights to decision-makers found that most of them actively ismeasure the real attempt to thepurpose return fromof customer data What’s Inside? these initiatives. And they are spending ig data seems to be the buzztools to collect, store, search, or analyze. Trending more — an average of 5 percent of the word oftothe But what rights — Some of the most tangible examples » Achieving Digital Excellence ......... 3 moment. cost acquire sponsorship BETTER And what does it mean for include the terabytes of user data that ResearchRESULTS is it, exactly? to measure effectiveness. According to Google ExecuFacebook acquires or that Walmart » Thinking Differentlymarketing? ...................... 4 tive Chairman Eric Schmidt, every two collects about the millions of transactions Continued on Page 2 » What’s Changing in days the world produces the equivalent it conducts hourly. Big data is defined B-to-B Marketing ......................... 5 of all the data created from the beginby its volume, velocity, variety, and Best Practices ning of civilization up to 2003, or almost value to the organization. » The Five Ways Companies exabytes. vast ocean of data • Volume. The terabytes of data that Organize for Social five Business ..........This 6 containsan valuable insights, but marketers most large companies regularly » Eight Essentials to Building 3 must sift through7irrelevant information acquire are too large to process with All-Star Social Media Team ............ conventional means. As technology » New Bedfellows: in order to find them. Finding value is what big.......... data is all penetrates more aspects of society, Marketing and Procurement 8 about. the information generated from ANA Member Case Study Big data refers to the extremely large and about those devices is rapidly » Brown-Forman Raises dataItssets that organizations acquire, expanding. 8 Digital Game ............................... 9 typically in the terabytes to petabytes • Velocity. Modern businesses may range, as well as 11 the applications needed Source Information ......................... place more importance on the time What it takes to survive in the C-Suite to analyze and evaluate all of it. This characteristic of big data than any Where you see8, click for additional content. continuous, exponential growth in internal other dimension. Rapid or real-time and external data gathered from and s organizations continually strive acquisition of data is critical to many “Inspiration is making people do the impossible. It is the ability to showcustomers exceeds the ability about to set themselves apart from time-sensitive operations and provides people where you want to go and giving them the confidence to getofthere.” competitors, and marketing takes on conventional database management a competitive advantage. new prominence throughout the busi— Ann Lewnes, senior vice president of global marketing at Adobe Systems Inc. ness process, the role of chief marketing officer grows in significance — and pressure. The days when marketing simply innovation cycle. As a result, compathe potent combination of energy built brands, created above-the-line nies looking for a truly successful and to attack everything and focus to programs, and targeted customers are transformative CMO, and marketing keep an eye on the bottom line. over. Now marketing, and more specifiexecutives who aspire to be CMOs, They must be unafraid to initiate cally the office of CMO, must transform must focus on acquiring three core action based on incomplete data, business itself. competencies: then drive to the finish and honestly well-intentioned attempts that don’t ask the right questions, or fail to analyze research outputs The two most popular content products in 2013 among ANA members were snapshots and associated speaker presentations, followed by toolkits and tool templates. completely, tools can be have more dangerous evaluation not keptthan upnot with Sharing Masterful Marketing measuring at all, as they lead to false deductions the pace of change. Well‑intentioned and wrong decisions. attempts that don’t ask the right ques‑ tions, or fail to analyze research outputs BETTER QUESTIONS BETTER ANSWERS Second, marketing science — which already determines results for traditional BETTER CONCLUSIONS BETTER New ACTIONS B Making It as CMO The MKC partnered with 32 new third-party companies, increasing our Knowledge Partners to 113. A A total of 216 pieces of content were added by Knowledge Partners. Marketing executives have always leveraged their creative, analytic, and tactical skills, and served as the longstanding “voice of the customer.” To move beyond that, CMOs today provide strategic leadership, drive organizational change, and achieve quantifiable business results. And they are doing so in an increasingly complex business environment with expanding consumer expectations and a changing communication landscape and • Create the new and different. The ability to generate new ideas and breakthroughs requires vision, creativity, and broad interests and knowledge. Leaders must be able to speculate about alternatives, manage the innovation process and teams, and bring their ideas to market. • Focus on action and outcomes. Transformative CMOs must possess assess results. • Inspire others. Building motivated, high-performing teams — or even moving an entire organization to perform at a higher level — demands a compelling vision, commitment, and superior communication. Inspiring others is the foundation for all CMO success. » A Plan with Staying Power ..............Marketers 7 still asking those questions today might want to check out the results of the 2010 Census. Hispanics » Gilt Groupe: Know Thy Customer ....make 8 up 16 percent of the U.S. population, African-Americans account for 13 » Allstate Gets Smart with and Asian-Americans comprise Artificial Intelligence ......................percent, 9 5 percent. Every ethnic group experiSource Information ......................... 11 Sharing Masterful Marketing enced double-digit population growth in the past decade, with Asian-AmerWhere you see8, click for additional content. icans leading the way at 43 percent. In four states, including California and Texas, non-Hispanic whites are no • Variety. Information may be collected in a number of forms, including longer text, the majority. Even more striking, the combined buying power of the audio, video, statistical data, or sensor Hispanic, African-American, Asian, information. and Native American communities • Value. The real impact of big data stems from the insight that is gleaned from the raw input. Case Studies INSIGHT BRIEF Multicultural Marketing ................. 8 ANA Member Case Study now exceeds $1.5 trillion a year, according to the Selig Center for Economic Growth. Few experts would disagree that, in the years to come, building a deeper relationship with multicultural segments is the key to growing brands and increasing revenue. But simply marketing in another language or trying to appeal to another culture in English can be a minefield of potential hazards. To avoid costly or embarrassing missteps, consider these five secrets for effective multicultural marketing: » Heineken Scores with Soccer ....... 10 Source information ......................... 11 Where you see8, click for additional content. growing part of The Home Depot’s business. Not only does the company advertise in Spanish, its stores feature Spanish signage and Spanish-language self-checkout machines. 2. Culture is more important than language. Simply translating a general-market campaign into the target’s language “is like going into a gunfight with a switchblade,” contends Roberto Orci, CEO of Los Angeles, Calif.-based Acento Advertising. “It’s not enough.” He says it’s vital to ground multicultural 1. Watch your language. Companies campaigns in the values and mores shouldn’t advertise what they can’t of the target culture so that deliver. Therefore, never advertise in consumers see themselves in a language the company isn’t fully the message. prepared to do business in. This is Who’s Getting it Right ................... 2 a lesson»The Home Depot under3. Mix multicultural into mainstream stands. Because the Latino commuNew Research marketing. As ethnic communities nity is heavily invested in the » That’s a Fact ............................... 3 Continued on Page 2 building trade, they are a vital and Focus: Content Marketing Big Data to Big Analytics What’s Inside? Trending » Empowering Brand Advocates ....... 4 Best Practices » Fulfill Your Content Needs ............. 5 To drive new waves of productivity, growth, and innovation, companies know they must tap the massive and growing volumes of data. Adobe views big data as the collection and analysis of large amounts of data to create a competitive advantage. The real purpose 8 of big data is to enable big analytics, where businesses derive new meaning Fivenew Tips Building anis Effective Content Marketing Program from datafor sources. Big data all about delivering fresh insights to decision-makers, but many marketers are any marketers misunderstand Research by the Content Marketing Page 2 the difference Continued between on content Institute shows that while 91 percent and content marketing. Content marketof marketers use content marketing, ing involves owning media, instead of only 36 percent believe that their prorenting it, to attract and retain customgrams are effective. The biggest chalers. Changing or enhancing a customer lenges to effective content marketing behavior requires creating content that is are producing enough content and compelling, consistent, and curated. The producing the kinds of content that will true value exchange is found in the stories promote increased engagement. Marthat brands tell, and storytelling is crucial keters should ask themselves why they to successful search engine optimization, are interested in executing a content lead generation, and social media. marketing plan before they look at what Bring Your Story to Life M Social Media Search Engine Optimization Content Marketing Mission Lead Generation Continued on Page 2 » Cross-Cultural vs. 8 Five secrets to more effective multicultural marketing What’s Inside? Where you see8, click for additional content. It also reveals that the solution does not need to be invented, merely applied. completely, can be more dangerous a series of interconnected variables Marketers long ago recognized that the to sponsorship meet theequation partnership’s goals. is not a simple one.Real‑ They izing the sponsorship equation not a responded by reinventing the way they is activate and execute programs, developing simple one,partnership marketers have responded new ideas andthe using the they latest technology to bybig reinventing way activate and make sponsorships more relevant and engaging. execute partnership programs. They developed big, new ideas andevaluation used the But when it comes to measurement, tools technology have not kept up the pace of change. latest towith make sponsorships As therelevant case studyand on the following pages shows, more engaging. Big DataReaching Diverse Audiences 9 Herbalife andMarketing LA Galaxy Sharing» Masterful 8 Viewpoints Focus: » SAP Runs Better with Sports ......... 8 » Con Edison BRIEF Inspires Students FIRST . INSIGHT Align measurement with objectives for greater satisfaction Sponsorship’s impact is not one-dimensional. A partnership’ s abilityoftosponsorship meet its goals depends he impact is on a series of interconnected variables. multi‑dimensional, relying on » Does Blending Work? ................... 5 » The Truth About Beauty ............... 6 Source: Content Marketing Institute, 2013. » What to Measure ......................... 6 ANA Member Case Studies » Charles Schwab Delivers Value ...... 7 » Cleveland Clinic Plays to Strengths . 8 » Kraft Uses Multiple Channels......... 9 » Schick Soars with Sharp Strategy ... 10 Source information ......................... 11 Where you see8, click for additional content. they want it to do for them. The Content Marketing Institute offers five actionable tips for building a content marketing program within an organization: 1. Create a mission statement. Defining the mission of the content marketing program is the first, most important step. Use the statement as a guide to filter content and determine deliverables and outcomes for the core target audience. The P&G website homemadesimple.com, for example, targets women with a mission statement to “enable women to have more quality time with their families.” 2. Repurpose content. Before setting out to create new content, assess what existing content could be reworked. Press releases, blog Continued on Page 2 Research • In 2013, ANA’s team of five researchers answered more than 2,300 questions from members, a 31 percent increase over 2012. • Members’ usage of the MKC’s LiveChat offering — submitting their marketing questions in real time via the website — grew 30 percent versus 2012. • “I needed fast information on how to better justify advertising investment. The ANA team quickly provided multiple resources to help make my case. Senior management thought my summary of the materials created a compelling argument for increased investment.” — Steve LeVeau, director of marketing at Central Garden & Pet Company The five most-requested topics were: Social Campaign Success Agency relations Digital, social, and mobile marketing Designing a Hit Casual Game Brand building Research • The casual gaming space is a way to get your brand onto other sites and get people to create an affinity to that brand that will then drive them to you online Increasing Brand • Make it easy, encourage participation, and provide novelty Awareness & • Create a series of short session times so that players will come back For more information, see: How Social Media Influences Consumer Behavior, For more information, see: Trends Every Marketer Needs to Know, comScore, 2011. for multiple visits comScore and Buddy Media, 2011. Sales Through • Games should appeal to both novices and experts Social Media – Offer simplicity and complexity Marketing financial management and procurement • 73 percent of ANA member companies engaged with the ANA research service. Most Engaging Destinations • Use content to engage fans and expand your reach – success will not happen automatically! ANA Marketing Knowledge Center May 26, 2013 Prepared exclusively for: (ANA Member) Brand and Creative Strategy Coordinator – Encourage friendly competition – Take advantage of tactile features such as sounds and animations to captivate people and touch their senses For more information, see: Presentation Summary: How Chicken of the Sea Engages Moms Through Gaming and Social Media, ANA, 2011. (Slide Deck). ANA 2013 Annual Report — Leadership and Marketing Excellence | 35 Marketing and Communications 2013 Overview The mission of the Marketing and Communications group is to provide our members with the information and insights that drive marketing excellence. We accomplish this by utilizing a broad array of touch points and programs, including email, our website, our newly redesigned and award-winning magazines, social media, direct mail, and PR. • Redesigned and expanded the print and digital versions of our award-winning ANA magazines to provide members with more in-depth articles on relevant topics of the day • Increased social media outreach by more than 18 percent on Facebook, 15 percent on Twitter, and 42 percent on LinkedIn (ANA Marketers group) As the demand for timely and relevant marketing information increases, our primary communication vehicle, ana.net, offers our 30,000-plus members access to thought-leading content, tools, and information on a 24/7 basis. Members have access to case studies, best practices, more than 300 marketing tools, and marketing insights, as well as information on events, training opportunities, and legislative and leadership initiatives that affect every marketer. • Received nearly 800 mentions across print, digital, and broadcast media • Generated more than one million website screen views • Established a global alliance with The Internationalist 1000 • Conducted 14 Q&As with top CMOs for publication in MediaPost and leading vertical trade publications • Conducted nearly 50 Onsite Insight video interviews with featured speakers at ANA national industry conferences • Launched the “ANA Multicultural Marketing Series” with DiversityInc • Reached our most senior marketers 36 times through the distribution of our print publications Our best-in-class email program has expanded. Based on a member’s individual interests, we can deliver customized insights and information on more than 20 topics, up to seven days a week. During the past year the ANA’s Marketing and Communications team has also: • Provided members via daily emails with more than 600 pieces of proprietary marketing content, including case studies, best practices, and marketing tools • Launched the ANA’s new brand positioning: Leadership that advances marketing excellence and shapes the future of the industry Duke Fanelli | EVP ANA Magazine Pearl of Marketing Wisdom ANA Magazine, which reaches more than 10,000 CMOs and senior-level marketing executives, received the Custom Publishing Council’s Silver Pearl Award for Most Improved Publication. The magazine moved from a bimonthly to a quarterly publication in 2013, allowing for a fresh design and more in-depth articles on key marketing issues. 36 | www.ana.net Marketing and Communications Email 600 Number of marketing insights delivered via email to members in 2013 14.9% The average open rate of an ANA Brief email, a 13.7 percent increase over 2012 6,475 Number of ANA members who have set their email preferences, including 2,253 in 2013 New Offerings Highest-Rated Topic Areas • The Internationalist: This bimonthly digital magazine is dedicated to the needs of the international marketing professional, with global marketing insights, award-winning case studies, and more. • FYI: This periodic email offers the latest marketing news and information from the ANA. 1. 2. 3. 4. 5. Marketing organization Brand building Multicultural/niche marketing Marketing accountability Agency compensation ANA Website Interested in leading-edge marketing insights? Want to register for the next ANA committee meeting, national industry conference, webinar, or training class? Curious about how our government relations activities support the industry? Looking to review your email preferences or a document saved to “myANA”? All that and more is available with just a click or two of the mouse when members visit the ANA website. Each day, the ANA website provides thousands of members with critical marketing insights and information designed to guide them through the changing marketing landscape. Through myANA, members can bookmark and share content with colleagues, manage email preferences, review and schedule upcoming events, explore our more than 20 committees, conduct a quick search of the Marketing Knowledge Center, and much more. The ANA website is a portal to the latest marketing thought leadership, key marketer-led events, and critical information needed to make effective marketing decisions that drive the bottom line. Blog Posts We let members know what’s on our minds through a combination of print and video blogs. Marketing Maestros is the place for staff and guest bloggers to comment on the latest marketing trends, events, and general happenings in the industry. Regulatory Rumblings, penned by Dan Jaffe, group executive vice president of government relations at the ANA, focuses on legal initiatives that threaten national advertisers’ freedom of commercial speech. Marketing Musings is the playground of ANA president and CEO Bob Liodice, where he addresses the industry’s most pressing subjects via video. ANA 2013 Annual Report — Leadership and Marketing Excellence | 37 Marketing and Communications Social Media Social Media We continue to see a dramatic increase in engagement on our social media outlets thanks to a consistent publishing schedule and a more tightly focused, structured strategy. Our strategy allows us to effectively engage members and nonmembers in the social sphere, raise awareness of the ANA’s products and services, and enhance our leadership position through content. As of mid-December 2013, we had 4,237 Facebook fans, 6,651 Twitter followers (@ANAMarketers), and 2,504 LinkedIn members in the ANA Marketers group. We also have very active (and growing) LinkedIn groups for the ANA Financial Management Conference, the ANA Multicultural Marketing & Diversity Conference, and the ANA Digital, Social Media, and Mobile Marketing Committee. Facebook • • • More than 685 users have liked us on Facebook since Dec. 2012. • Our highest concentration of Facebook fans (10 percent) resides in New York City. Rounding out the top four are Chicago (4 percent), Los Angeles (3 percent), and San Francisco (2 percent). • We have been listed 343 times. • Our potential reach is 2,685,531. • Accounts that influence our reach include AHAA (@AHAA), Karl Greenberg (@tychob17), Barbara Basney (@bbasney), WerbeAgentur Online (@agenturwerbung), and DAAUSA (@DAAUSA). 49 percent of our fans are women, and 39 percent of them are between the ages of 25 and 54. • 37 percent of our male fans are between the ages of 25 and 54. • In November, our most engaged demographic was men in the 18–24 age group. This group (8 percent of our fan base) accounted for 18 percent of our total engagement. • • Twitter Our single most popular post in 2013 was seen by 1,573 people on Facebook. It was a link to a March blog post on Marketing Maestros. Our most actively engaged timeframe was during the 2013 ANA Masters of Marketing Conference. The average daily reach for all content exceeded 5,000 people for the span of the conference. • • Our top two performing hashtags are #ana_masters and #anamarketers. We had 896 tweets retweeted a total of 1,755 times, and we were mentioned more than 800 times in the fourth quarter alone. More than 550 of our followers are classified as “influential.” LinkedIn • More than 1,500 members have joined the ANA Marketers group since January 2011. • 22 percent of members reside in the greater New York area, 12 percent in the San Francisco Bay area, and 8 percent in the Chicago area. • 26 percent of members are managers, 21 percent are senior managers, 20 percent are directors, and 15 percent are vice presidents. • 43 percent of members work in marketing and advertising, 9 percent in consumer goods, and 7 percent in financial services. @ANAGovRel — Making Its Voice Heard Last September, our government relations team in Washington, D.C. launched the Twitter handle @ANAGovRel as part of a larger public relations effort. It will allow the group to boost its visibility as the leading voice for the ad community in D.C., provide breaking news as it happens, and connect with key individuals shaping policy. The handle has the potential reach of 50,265 Twitter users. The top performing hashtags to date are #patenttroll and #taxreform. One Sweet Tweet Our most retweeted (and favorited) tweet was from October 4, 2013: • “Walmart’s Stephen F. Quinn: Protect your mavericks and innovators, encourage them, and have them work on key assignments. #ANA_Masters” 38 | www.ana.net Financial Performance “Our financial success demonstrates we are on the right path — a path defined by strategic intent, a clear sense of purpose, and a strong leadership platform.” — Christine Manna ANA ANA2013 2013Annual AnnualReport Report— —Leadership Leadershipand andMarketing Marketing Excellence Excellence || 39 Financials 2013 Overview 2013 was an exciting year of record financial performance at the ANA, from operating income to net income to revenue. Our financial success demonstrates we are on the right path — a path defined by strategic intent, a clear sense of purpose, and a strong leadership platform. Our growth strategies, unrelenting drive to deliver member value, and wide array of projects and initiatives that help shape the industry are what enable us to continue to deliver solid financial performance. As we closed our year, we are proud to highlight our key accomplishments: In 2013, the ANA posted operating income of $2.9 million, an increase of 37 percent over 2012. It marked the fourth straight year of results exceeding $2 million. Net income grew to $2.9 million, from $2.1 million a year ago, and revenue increased 14 percent, to $24.2 million. The revenue growth supported our business-building operating expenses, which have largely been in human capital. Without great people, value cannot be created. These investments were strategically important to our continued progress and to delivering quality products and services. The ANA’s balance sheet continues to be strong and vibrant. Total assets were up 16 percent over 2012, financial ratios remain healthy, and with the exception of our pension liability, we continue to be debt-free. Our liquidity profile continues to be in superb shape at $10.2 million, up 25 percent from last year. We ended the year with cash and cash equivalents of $4 million, an increase of 32 percent from a year ago, and investments (reserves) were $6.2 million, up $1.1 million from a year ago. Lastly, our financial stewardship and significant surplus cash position enabled us to meet all our financial and capital obligations and to move forward in incrementally funding many of the strategic leadership and advocacy areas noted in this annual report. This strategy, now in its fourth year, provides the resources and flexibility to invest in projects, programs, and initiatives important and relevant to ANA members and the marketing ecosystem. With this available funding, we continue to elevate our role, stature, and relevancy with our members and strategically aligned partners, and within the marketing community. 40 | www.ana.net • A solid, growing membership base, increased member engagement levels, and high satisfaction scores • An outstanding industry leadership profile and recognition • A robust infrastructure, including an abundance of marketing intellectual capital • A strong financial performance, cash-flow generation, and substantial liquidity • Growth in ANA’s human capital • Record attendance at the Masters of Marketing Conference, the premier industry gathering in the U.S. • A dedicated team of legislative and regulatory professionals, enhanced by ANA-led coalitions and consortia The ANA’s forward momentum and progress are a reflection of a simple, understandable business model predicated on a philosophy of expanding membership, relevant products and services, and a comprehensive leadership agenda. Christine Manna | COO and CFO Financials Operating/Net income rose to almost $3 million Operating Net $2,871 $2,931 $3,000 $2,407 $2,500 $1,889 In Thousands $2,000 $2,073 $2,094 $1,500 $500 $0 $867 $818 $1,000 $422 2009 2010 2011 11 2012 2013 ($500) ($667) ($1,000) Net worth topped $4.5 million $5,000 $4,514 $4,000 In Thousands $3,000 $1,845 $2,000 $715 $1,000 $0 ($1,000) $1,582 2009 2010 2011 2012 2013 ($44) ANA 2013 Annual Report — Leadership and Marketing Excellence | 41 Financials Revenue grew to $24.3 million $24,332 $25,000 $21,265 $19,167 $20,000 In Thousands $16,885 $15,000 $13,229 $10,000 $5,000 $0 2009 2010 2011 2012 2013 Investments reached $6.2 million $7,000 $6,167 $6,000 $5,091 In Thousands $5,000 $4,431 $4,067 $4,000 $3,000 $2,962 $2,000 $1,000 $0 42 | www.ana.net 2009 2010 2011 2012 2013 ANA Directory Our membership is comprised of the top marketers and thought leaders in marketing today. We thank our members for their collaborative mastery and desire to move the industry forward. ANA ANA2013 2013Annual AnnualReport Report— —Leadership Leadershipand andMarketing Marketing Excellence Excellence || 43 ANA Member List as of December 31, 2013 # 24 Hour Fitness 3M A A.T. Kearney, Inc. AAA Southern New England Abbott Nutrition AbbVie Inc. Abila Accenture Ace Hardware Corporation ACH Food Companies, Inc. Achievers Acision Activision Adobe Systems Incorporated ADT Security Services Advance Auto Parts, Inc. AEG Worldwide Aetna Inc. Aflac, Inc. Agilent Technologies Air National Guard Alaska Airlines, Inc. Alcon Laboratories, Inc. Align Technology, Inc. Allstate Insurance Company Almond Board of California Altria Group, Inc. AMA Insurance Agency, Inc. American Express Company American Family Insurance American Heart Association American Honda Motor Co., Inc. American International Group, Inc. American Licorice Ameriprise Financial, Inc. Amgen Inc. Amtrak-National Railroad Passenger Corp. Amway Corporation Andersen Windows, Inc. Anheuser-Busch InBev Apollo Education Group, Inc. Apple Inc. Applebee’s International, Inc. Arby’s Restaurant Group ARS/Rescue Rooter ASPCA Aspen Dental Management Inc. AstraZeneca LP Asurion AT&T Inc. Atlas Copco Compressors LLC 44 | www.ana.net Autodesk, Inc. AutoNation, Inc. AutoTrader.com, LLC Avaya Inc. Aviva USA Corporation Avon Products, Inc. B Bacardi U.S.A., Inc. Bank of America Bank of New York Mellon Bank of the West Bankers Life & Casualty Company Bausch & Lomb, Inc. Bayer Corporation BD Becton Dickinson and Company Beam Inc. Bel Brands USA Benjamin Moore & Co. Betterment BIC USA Inc. BISSELL Homecare, Inc. Blackberry Limited BlackRock, Inc. Bloomberg L.P. Blue Diamond Growers Blue Rhino Corporation BlueCross BlueShield Association BMO Harris Bank Boehringer Ingelheim Pharmaceuticals, Inc. The Boeing Company Bombardier Recreational Products Boston Scientific Corporation Botanical Laboratories LLC BP p.l.c. Bridgepoint Education Bristol-Myers Squibb Company Brown & Toland Physicians Brown-Forman Corporation BT Global Services BTC Bahamas Burger King Corporation Bush Brothers & Company C C Spire Wireless California Closets California Lottery California State Automobile Association (CSAA) California Tobacco Control Program Cambria USA Campari America Campbell Soup Company Canon U.S.A., Inc. The Capital Group Capital One Services, Inc. Caravan Tours Cargill Inc. Carhartt Inc. Caribou Coffee Company, Inc. CaringBridge CarMax Auto Superstores, Inc. Carnival Corporation Cars.com Centene Corporation Central Garden & Pet Company Charles Schwab & Company, Inc. Checkers Drive-In Restaurants, Inc. Chegg Chevron Corporation Chicken of the Sea Chiquita Brands International, Inc. Choice Hotels International, Inc. Chrysler Group LLC Chubb Corporation Chumash Casino Resort Church & Dwight Co., Inc. Church’s Chicken Cisco Systems, Inc. CIT Group, Inc. Citigroup Inc. City National Bank City of Hope City Year Inc. Cleveland Clinic The Clorox Company Coca-Cola Company Cognizant Technology Solutions Coldwell Banker Real Estate Corp. Colgate-Palmolive Company Collegiate Church Corporation Colonial Life & Accident Insurance Co. Columbia Records, Division of Sony Music Columbus Foods, LLC Combe Incorporated Comcast Cable Compass Investments LLC ConAgra Foods Inc. Conning & Company Consolidated Edison Co. of New York, Inc. Constellation Wines U.S. Consumer Reports Coty Prestige Covidien Inc. Cricket Communications, Inc. CSA Travel Protection Cuisinart D Darden Restaurants Del Monte Foods Dell Inc. Deloitte Deluxe Corporation Denny’s Corp. DentalPlans.com The Depository Trust & Clearing Corporation DeVry Inc. Diageo North America, Inc. Dick’s Sporting Goods Inc. Discover Financial Services, Inc. Disney Consumer Products, Inc. Disney Theatrical Productions Ltd. Dolby Laboratories, Inc. Dole Packaged Foods Domino’s Pizza, Inc. The Dow Chemical Co. Dr Pepper Snapple Group Dr. Fresh Dunkin Donuts, Inc. DuPont E E*Trade Financial Corp. Eastman Kodak Company eBay, Inc. Edison Electric Institute The Edith Sanford Breast Cancer Foundation Education Management Corporation Educational Testing Service (ETS) Edward D. Jones & Co., L.P. Eli Lilly and Company EmblemHealth Energizer Holdings Enova Financial Enterprise Holdings, Inc. Ernst & Young LLP Essential Accessibility Expedia, Inc. Experian Consumer Services ExxonMobil Corporation F Farmers Insurance Group, Inc. Fastenal Co. FedEx Corporation Feld Entertainment Ferrero USA, Inc. Ferring Pharmaceuticals, Inc. ANA Member List as of December 31, 2013 Fidelity Investments Fiskars Corporation FLOR Florida Power & Light Co. FM Global Ford Motor Company Forex Capital Markets Formica Corporation Franklin Templeton Investments FTI Consulting G Genentech, Inc. General Electric Company General Growth Properties, Inc. General Mills, Inc. General Motors Company Georgia-Pacific Corporation Gigamon Gilead Sciences GlaxoSmithKline Global Experience Specialists Godiva Chocolatier, Inc. Gogo Goldman Sachs & Co. The Goodyear Tire & Rubber Company Grant Thornton LLP Great Southern Wood Preserving, Inc. Green Mountain Coffee Roasters, Inc. H H. J. Heinz Company Habitat for Humanity International, Inc. Hallmark Cards Inc. Hanesbrands, Inc. The Hartford Hasbro, Inc. Healthfirst Heineken USA, Inc. Henkel Consumer Goods, Inc. Herschend Family Entertainment The Hershey Company Hewlett-Packard Company: HP Enterprise Services HHGregg, Inc. Hillshire Brands Company Hilton Worldwide Hitachi America, Ltd. Hologic Inc. Home Depot, Inc. Hormel Foods Corporation Houlihan’s Restaurant, Inc. House of Blues Entertainment, Inc. Humana Inc. Hunter Douglas, Inc. Hyatt Corporation Hyundai Motor America I IBM Corporation IHOP Corporation IKEA North America Illumina, Inc. IMAN Cosmetics InfoComm International ING Americas Ingersoll Rand Intel Corporation InterContinental Hotels Group Intermarine, LLC International Dairy Queen, Inc. Intuit Inc. INVISTA Irish Dairy Board, Inc. Islands Restaurants J The J.M. Smucker Company Jamba Juice Company JBS USA LLC JCPenney John Hancock Financial Services, Inc. John Muir Health Johns Hopkins Medicine Johnson & Johnson Johnsonville Sausage LLC JPMorgan Chase TS Unit JPMorgan Chase & Co. Juniper Networks Just Born, Inc. K Kao USA Inc. Kellogg Company Kennametal Inc. Key Corp. Kia Motors America, Inc. Killerspin, LLC Kimberly-Clark Corporation King’s Hawaiian Bakery West, Inc. Kiss Products, Inc. Knouse Foods Cooperative, Inc. Knowledge Universe KPMG LLP Kraft Foods Group, Inc. L L’Oréal USA La Quinta Inns and Suites La-Z-Boy Incorporated Ladies Professional Golf Association Lam Research Land O’ Lakes, Inc. The LanguageWorks, Inc. Lebanon Seaboard Corporation Legg Mason & Co., LLC LEGO Systems, Inc. Lenovo Group Ltd. Levi Strauss & Co. Liberty Mutual Group LifeLock, Inc. LifeSouth Community Blood Centers, Inc. Limited Brands, Inc. Lincoln Financial Group Live Nation, Inc. Local Search Association Logan’s Roadhouse, Inc. Logitech Lord & Taylor Lorillard Tobacco Company Los Angeles County Museum of Art Lowe’s Companies, Inc. LPL Financial Lucile Packard Children’s Hospital Stanford Lufthansa German Airlines Luxottica Retail M The Macerich Company Major League Soccer Marriott International, Inc. Marriott Vacation Club International Mars Incorporated Mary Kay Inc. MassMutual Financial Group MasterCard Worldwide Mattel, Inc. Mazda North American Operations McCormick & Company, Inc. McDonald’s Corporation McKee Foods Corp. McKesson Corporation MeadWestvaco Corporation Medical Components, Inc. Medtronic, Inc. Memorial Sloan-Kettering Cancer Center Mercedes-Benz USA, LLC Merck & Co. Mercy Health System MetLife, Inc. Meyer Distributing Meyer US Microsoft Corporation MilkPEP MillerCoors LLC MINI Missouri Lottery Mizuno USA Moe’s Southwest Grill Moen Incorporated Moët Hennessy USA Mondelez International, Inc. Monsanto Company Morgan Stanley — New York Motorola Solutions, Inc. N NASA Federal Credit Union NASCAR National Football League, Inc. National Grid The National Theatre for Children Nationwide NAVY Recruiting Command NBA Nestlé Purina PetCare Co. Nestlé USA New York Life Insurance Company New York Organ Donor Network, Inc. The New York Racing Company Newell Rubbermaid Inc. Nike, Inc. Nintendo of America, Inc. Nissan North America, Inc. Nokia Inc Northstar Lottery Group, LLC Northwestern Mutual Norwegian Cruise Line Novartis Consumer Health, Inc. Novo Nordisk Pharmaceuticals, Inc. NVIDIA Corporation O Oil-Dri Corporation of America Old Navy Orange Leaf Frozen Yogurt Orkin Pest Control Outback Steakhouse, Inc. Outerwall Inc. Outrigger Hotels and Resorts P Pacific Life Insurance Company Panera Bread, LLC Pantone LLC Paychex Inc. ANA 2013 Annual Report — Leadership and Marketing Excellence | 45 ANA Member List as of December 31, 2013 PB Teen and PB Kids Peet’s Coffee & Tea, Inc. Pegasus Capital Advisors, L.P. Pella Corporation Pensco Trust Company PepsiCo, Inc. Perfetti Van Melle USA, Inc. PerkinElmer, Inc. Pernod Ricard USA PETCO Animal Supplies, Inc. PetSmart, Inc. Pfizer Inc PGA TOUR, Inc. Pharmavite LLC Phillips 66 Company Plantronics, Inc. PNC Bank, N. A. PNM Resources, Inc. Popchips, Inc. POPSUGAR Post Holdings, Inc. Prager Metis CPAs, LLC PricewaterhouseCoopers The Principal Financial Group The Procter & Gamble Company Prudential Insurance Company of America Pulte Homes, Inc. Q Qatar Airways QBE Qualcomm, Inc. Quicken Loans, Inc. Quickie Manufacturing Corp. R Random House Randstad North America Rawlings Sporting Goods Co. Raytheon Company RBS Citizens Financial Group Reckitt Benckiser Regions Financial Corp. Reynolds American Inc. Robert Bosch LLC Robert Half International Rockettes Rovio Entertainment 46 | www.ana.net Royal Neighbors of America Russian Standard Vodka Rust-Oleum Corporation Ryder System, Inc. S S&P Capital IQ S.C. Johnson & Son, Inc. Safeway Inc. Salesforce.com Sallie Mae San Antonio Convention & Visitors Bureau Sanofi-Aventis Sartori Cheese SAS Institute Inc. Science Applications International Corporation Scottrade, Inc. The Scotts Company Seacoast National Bank SeaWorld Parks and Entertainment See’s Candies Inc. The Seed Company SEI Service Experts Inc. Seventh Generation Shell Oil Company Shire Pharmaceuticals Inc. Siemens Corporation Six Flags, Inc. Sleep Innovations, Inc. SourceAmerica Southern Company Sprint Corporation SRP Standard Pacific Homes Stanford Hospital and Clinics Stanley Black & Decker, Inc. Starr Companies Starwood Hotels & Resorts Worldwide, Inc. State Farm Mutual Automobile Insurance Co. State Street Global Advisors SteelSeries Sterling Jewelers, Inc. Stroz Friedberg Stryker Orthopaedics Subway Sun Life Financial Sun Products Corp. Sungevity Inc. SunTrust Banks, Inc. Susan G. Komen for the Cure Symantec Corporation T T-Mobile USA, Inc. T. Rowe Price Group, Inc. Talent Partners Target Corporation TD AMERITRADE Holding Corp. TD Bank Teradata Operations, Inc. Tervis Tumbler Company Thomson Reuters TIAA-CREF Tiffen Time Warner Inc. Tomy International Touchstone Energy Cooperatives TouchTunes Music Corporation Tourism Ireland Toyota Motor Sales U.S.A., Inc. Toys ‘R’ Us, Inc. TracFone Wireless, Inc. Traditional Medicinals, Inc. Transitions Optical, Inc. TransUnion Travelers Insurance Tree Top, Inc. True Value Company TXU Energy Retail Company LLC Tyson Foods, Inc. U U.S. Cellular Corporation UBS Financial Services Inc. Under Armour Inc. Underwriters Laboratories Unilever United States, Inc. Union Bank United Airlines, Inc. United Parcel Service, Inc. (UPS) United States Olympic Committee United States Postal Service United States Tennis Association Universal Music Group US Bank USAA USG Corporation V Valspar Corp. Vanguard Group, Inc. Verizon Communications Vertex Pharmaceuticals Inc. Viacom, Inc. Visa Inc. Vision Service Plan, Inc. Visit Florida, Inc. Visit Philadelphia Vistaprint W W.W. Grainger, Inc. Wahl Clipper Corporation Walgreen Company Walmart Stores, Inc. Walt Disney Parks and Resorts Weber-Stephen Products Co. Weight Watchers International, Inc. Welch Foods Inc. WellBiz Brands, Inc. WellPoint, Inc. Wells Fargo & Co. Wendy’s International, Inc. The Western Union Company The Westfield Group Whirlpool Corporation White Wave Foods Company William Blair & Company, L.L.C. Wilsonart International Wm. Wrigley Jr. Company World Wrestling Entertainment, Inc. (WWE) Wyndham Worldwide Corporation X Xerox Corporation Xilinx, Inc. Y Yodlee, Inc. Z Zep Inc. 2013 Strategic Partners and Thought Leaders 2013 marked the fourth year of the ANA Strategic Partner program and the third year of our Thought Leader program. Revenues from these programs have allowed us to not only keep registration costs affordable for attendees at our national industry conferences, but also offer such complimentary member benefits as members-only conferences and webinars. What’s more, our members benefitted from the intellectual capital of our partners throughout the year. ANA Staff as of December 31, 2013 Chief Executive Officer Bob Liodice Marketing Knowledge Center Mareena Apostolos Andrew Kritzer Joanne Forbes Janine Martella Jillien Gittens Michael Berberich Kristen McDonough Chief Operating Officer Christine Manna Amanda Crowley Meghan Medlock Lauren Dzura Yasmin Melendez-Matthews Mary Anne Farrell Shannon Scanlin Jesse Feldman Christopher Scirocco Kathleen Hunter Leigh Walczak Executive Assistant Patricia McNeal * Caitlin Nitz Edward Berg Irene Pantazis Lynn O’Donnell Brian Davidson Mark Galliher Shepard Kramer Washington, D.C. David Buzby Christine Manna Andrew Howell Clarissa McKellar Sponsorship Bill Duggan * Tracy Owens Meghan Salome Keith Scarborough Michael Palmer Information Technology Julia Chan John DeCecco Rolando Mendoza Carlos Renoj * Robert Rothe James Tarleton Nina Hajakian Marketing and Communications Ken Beaulieu Mark Liebert Erin Becker Nicholas Primola Andrew Eitelbach Lisa Guhanick * Human Resources Balbina Calo Kristina Sweet Training Vivian Frouxides Daniel Jaffe Robert Starzee Amber Mundinger Arthur Tharpe Jamie Favata Barbara Markfield * Sara Stein Samantha Falk * Michelle Lazarus Membership Julie Abraham Heidi Ho-Chang * Andrea Kislan Jolie Roberts * Duke Fanelli April Rueppel Barry Garbarino Brayan Zambrano Frederick Knecht Meital Rofe Conferences and Committees Carissa Bailey Charles Sweeney Bill Duggan Finance and Office Administration Frank Flagello Lan Phan Peter Tsigrikes * Marni Gordon Urey Onuoha * Department Head ANA 2013 Annual Report — Leadership and Marketing Excellence | 47 Officers and Board of Directors as of December 31, 2013 Officers General Counsel Board of Directors 48 | Stephen F. Quinn Chair Michael Palmer Executive Vice President Marni Gordon Vice President Robert D. Liodice President and Chief Executive Officer Robert Rothe Executive Vice President Shepard Kramer Vice President Mark R. Baynes Vice Chair and Treasurer Brian Davidson Senior Vice President Mark Liebert Vice President Christine Manna Chief Operating Officer and Secretary Kathleen Hunter Senior Vice President Kristen McDonough Vice President Bill Duggan Group Executive Vice President Andrea Kislan Senior Vice President Tracy Owens Vice President Daniel L. Jaffe Group Executive Vice President Nick Primola Senior Vice President Lan Phan Vice President Duke Fanelli Executive Vice President Keith Scarborough Senior Vice President Kristina Sweet Vice President Roger W. Adams USAA Paul Edwards General Motors Corporation Tony Pace Subway Franchisee Advertising Fund Mark W. Addicks General Mills, Inc. Alicia Enciso Nestlé USA Marc S. Pritchard The Procter & Gamble Company Paul Alexander Liberty Mutual Group Andrew J. England MillerCoors LLC Stephen F. Quinn Walmart Dana Anderson Mondelez International, Inc. John Harrobin Verizon Communications Karen H. Quintos Dell Inc. Mark R. Baynes Kellogg Company Brad Jakeman PepsiCo, Inc. James D. Speros Fidelity Investments Kevin Burke Visa Inc. Kimberly Kadlec Johnson & Johnson Robert Tas JPMorgan Chase & Co. Paul Chibe Anheuser-Busch InBev John Kennedy, Jr. IBM Corporation John Travis Adobe Systems Incorporated Joan Chow ConAgra Foods, Inc. Esther Lee AT&T Inc. Meredith Verdone Bank of America Lisa D. Cochrane Allstate Insurance Company Robert D. Liodice ANA Deborah Wahl PulteGroup, Inc. Eduardo Conrado Motorola Solutions, Inc. Rob Master Unilever Verchele Wiggins InterContinental Hotels Group Marie T. Devlin American Express Company David J. Mondragon Ford Motor Company Douglas J. Wood, Esq. Reed Smith LLP Recreate PMS www.ana.net Lead the industry and advance marketers’ success by: Championing marketing excellence and collaborative mastery • • Shaping the future of marketing Agency Compensation | Agency Relations | Brand Building | Business-to-Business | Digital, Social, & Mobile Marketing | Integrated Marketing | Legal/Regulatory | Marketing Accountability Multicultural Marketing | Media | Marketing Organization | Marketing Financial Mgmt & Procurement | Production Mgmt | Research | Shopper Marketing | Sponsorship & Event Marketing Founded in 1910, the ANA (Association of National Advertisers) provides leadership that advances marketing excellence and shapes the future of the industry. ANA’s membership includes more than 570 companies with 10,000 brands that collectively spend over $250 billion in marketing and advertising annually. The ANA pursues “collaborative mastery” that advances the interests of marketers and promotes and protects the well-being of the marketing community. ANA | 708 Third Avenue, 33rd Floor | New York, NY 10017 | 212.697.5950 | www.ana.net