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Over the past 12 months, the production industry has been rocked by serious claims regarding how production contracts are managed and granted by some agencies.
At the heart of the debate is a clear and relevant concern relating to agencies who are responsible for managing bid processes where their in-house production facility is also bidding.
The issue has received significant attention on both sides of the Atlantic, with investigations by US Department of Justice and challenges from the APA in the UK highlighting the gravity of the situation.
The fallout has resulted in advertisers and the industry at large questioning a number of aspects of the competitive bidding process, namely:
While the issue has yet to be resolved, what is clear is the need for more relevant and actionable information.
With that in mind, we have been working closely with our members and producers to understand the issues and provide a platform for both discussion and solutions.
Following a recent ISBA event dedicated to the competitive bidding process, we have produced new guidance, that combines insights from advertisers, producers and agencies and is designed to:
The guide is available for all ISBA members. Contact us now for your copy:
For more information on this issue, please contact Traci Dunne.
Following years of planning, it has finally come to this: just over 200 days to prepare and ensure your organisation is ready for the General Data Protection Regulation (GDPR).
Coming into effect on 25 May 2018, the new regulation will force all organisations to make significant changes to how they collect, process and store consumer data. Given the industry’s reliance on data, and the overwhelming fines for breaches, compliance is the only option for any company offering goods or services to EU consumers.
Despite this, the GDPR shouldn’t be regarded as another onerous chore. Rather than aiming for the minimum level of compliance, aim for the gold standard and use the process as an opportunity to get closer to your consumers.
So, with just six months left to go, what can and should advertisers be doing to ensure they don’t fall foul of the new rules.
Last week, over 90 members packed into ISBA HQ to hear how global organisations such as Google, GroupM, AppNexus and PwC are working towards compliance, both internally and with their clients. We also heard from James Snook, Deputy Director, Data Protection Policy at DCMS, plus while Harpreet Thandi of Ferrero and Jonny Maitipe of Nationwide provided insights from an advertisers perspective.
Insights and Actions from the Event:
Make use of available tools:
There are a number of tools available online to help organisations prepare and ensure their data is adequately protected.
Ensure your contracts are GDPR ready:
ISBA will be re-launching our Creative Services Contract later this year. The updated versions will be amended to include new clauses related to the GDPR and will ensure all relevant services are fully compliant. For more information on this or any aspect of your contracts, please contact Debbie Morrison.
Google has also planned to roll out new contracts relating to GDPR, making their terms consistent across products.
Questions to ask your vendor:
The role of technology cannot be underestimated and the tools you select will play a crucial role in determining whether you remain compliant or risk breaching the rules. With that in mind, six key questions were outlined at the event at all brands should be asking of their technology vendors:
Stay on top of Profiling Issues:
On the issue of profiling, members can keep track of developments by tracking the opinions of the EU Article 29 Data Protection Working Party.
Review the Data Protection Bill:
During his keynote, James Snook, Deputy Director, Data Protection Policy, DCMS, discussed the Data Protection Bill, which confirms a new legal framework for GDPR to ensure that we are aligned with the Regulation in the UK. Further information about the DPB can be found here, however, if you have any specific questions regarding the bill that you would like to raise directly with Mr Snook and the DCMS, please contact me.
ISBA will be following up with a further GDPR event (February 2018, details TBC), by which time Google will have provided more GDPR tools and Google will have rolled out new contracts relating to GDPR. The ICO should, by then, have published GDPR Guidance on Accountability and Consent.
For more information on any of the above, please contact me.
Marketing Services Manager, ISBA
Additional resources on the GDPR can be found here.
Other areas of interest raised during ISBAs GDPR event include:
The full suite of Google’s Privacy tools for both business and consumers:
View AppNexus' presentations slides here.
Today saw the release of 'Advertising Pays: World Class Talent, World Class Advertising' a new report from the Advertising Association.
The report, created in partnership with LinkedIn, highlights just how important a diverse international workforce is for the UK's advertising and marketing industry. Using insights from a pool of 328,000 LinkedIn members working in the UK sector, it provides a detailed account of how 'international talent plays a pivotal role in the UK’s creative success, but also that the UK is a key source of talent for other advertising hubs worldwide'.
The UK's creative crown in jeopardy?
Given the uncertainty around Brexit and how it will be implemented, it is little surprise that many within the industry are concerned about how it will impact the ability to access international talent. As such, the Advertising Association is warning that 'the UK’s creative crown is in jeopardy', calling out the fact that the: proportion of the current advertising and marketing workforce in London that has migrated here from abroad in the last 12 months is three times higher than the corresponding figure in New York; and also higher than in Paris and Amsterdam. More than a third of this talent comes from within the EU, with many others arriving from the United States and Australia.
Looking beyond London
London has long been a hub for advertising and marketing talent, but despite the fact that 6% of LinkedIn members in the London area work in the industry, 57% of the industry’s UK workforce is based outside of the capital, with Manchester as the largest of the city hubs. The UK is the number one source of international advertising and marketing talent in New York, Paris and Amsterdam and has provided more than a third of recent migrants to Sydney’s advertising sector.
Chairman of the Advertising Association and CEO of adam&eveDDB James Murphy
commented that the "UK ad industry is a world-leader because we’re open to the world. It will be catastrophic to the long-term success of the sector if we can’t access the right talent quickly and easily. Global brands want to work with the best talent and the UK has it. As an industry that delivers £120bn of GDP per year for the country, anything that knocks advertising will dent the economy.” Josh Graff, UK Country Manager at LinkedIn, added “I have experienced first-hand what makes the UK such a creative powerhouse – the people. We’re a wonderfully diverse and international workforce that enables brands and their agencies to create campaigns which resonate across international, cultural and socio-economic boundaries. I hope that this report, informed by LinkedIn’s powerful data, can not only help employers make better decisions about their talent pipelines but that it will also inform policy makers and educators on what’s required to ensure the sector continues to thrive.”
A Great Advert For Britain - championing access to global talent
In an effort to protect the sector post-Brexit, the Advertising Association are also running the ‘A Great Advert for Britain’ campaign, which champions access to global talent and celebrates 'the immense contribution of international talent to the UK'.
Stephen Woodford, CEO of the Advertising Association said:
“Our new report, informed by LinkedIn’s powerful dataset, highlights immigration as the most important area for Government support to maintain the UK’s position as the world’s leading global advertising hub and drive growth domestically. Our new campaign, ‘A Great Advert for Britain’, brings this important issue to life. We have been working closely with the relevant Government departments on measures to safeguard and promote UK advertising internationally, as well as stimulate further growth in the regions among SMEs. We will continue to make the case to Government for funding and
support in these areas.”
The full report is available to download here.
Picture the scene, you’ve been working with your agency on a production. You’ve reached the point where the details (shoot date, location, specifications etc.) have all been agreed and you’re ready to push the button!
Once the agency has been instructed to proceed, the wheels that have been set in motion may be apparent to many, but as has become clear, there are certain elements of the approval process that clients may not be aware of, specifically regarding what happens once approval has been given.
Enter the PIBS Contract. Once a production partner has been selected, your agency will most likely complete and sign a Production Insurance Briefing Specification (PIBS) contract. But what is it and what does it mean for advertisers?
THE ROLE OF THE PIBS CONTRACT
PIBS has long been the industry standard production contract, sitting between the agency and the production facility, its main function is to agree the various details of the shoot including date; location; specifications; format and instructions regarding filming equipment; insurance and, importantly, the cancellation terms that will kick in should the client instruct the agency to cancel.
PIBS CONTRACT UPDATES
While cancellation provisions have always existed within the PIBS document and clients have always had to pay cancellation fees, the existing PIBS contract was unclear and ambiguous. A number of updates have recently been made to the terms that all advertisers need to be aware of, specifically where cancellations and the related fees are concerned.
Although considered as standard within the industry, ISBA research suggests that 77% of our members are not aware of the PIBS contract, while over 80% do not believe those involved in the approval process are aware of the cost implications of cancelling a production.
In light of this, and given the importance of the contract and the financial ramifications involved, below is a summary of key updates to the terms where cancellations are concerned:
The updated PIBS Cancellation Policy is available to view here > The updates now make it clear and transparent as to what cancellation fees clients are liable for and when they kick-in.
LAUNCH OF THE NEW TERMS
Although not yet in place, now is the perfect opportunity to ensure you and anyone in the team involved in commissioning such projects are fully aware of the importance of a structured production approval process to ultimately avoid unnecessary production cancellations.
The new PIBS contract has yet to be launched officially. ISBA will provide a full update as to the official launch date once agreed and will advise you when the new terms kick in. You will also be able to request a copy of the full PIBS document once available.
AMENDMENT TO CREATIVE SERVICES CONTRACT TEMPLATES
To add further weight to the importance of embedding a firm process, ISBA and the IPA have also amended the clauses relating to production and cancellation in the ISBA/IPA Creative Services Contract Templates.
These have been updated to make it clear that it is the agency’s responsibility to advise their client in advance of any cancellation provisions contained in the PIBS or any other third-party contract. We have also inserted a guidance note outlining the responsibilities of each party (you can view the wording for the new clauses here) and we suggest you ensure your current contracts are reviewed and, if required, amended to include this wording as soon as is feasible.
ISBA will be re-launching the Creative Services contracts later this year, the updated versions will include this amendment and some new clauses related to GDPR compliance, but please do feel free to request a copy of the contract now which will contain the new cancellation clauses mentioned above with immediate effect.
1. Firstly, talk to your agencies about the production process and specifically around approvals and cancellations, and review if necessary.
2. Secondly, ensure that all who commission productions understand the process; the cancellation provisions and the consequences of cancellation.
3. Ultimately, it is now more important than ever for clients to review and embed strict production approval process guidelines to ensure that everyone involved in the process is fully briefed.
ISBA, the IPA and APA have issued joint industry guidance to provide further clarity on the responsibilities of each party within the approval process. View the guidance here >
For more information on any of the above, please contact Traci Dunne.
Over the last 18 months, much of our time has been focused on helping members drive new standards of practice in media agency contracts and building member confidence that new terms can be agreed with both network and independent agencies.
The new Framework Media Services Contract template we launched in April 2016 was an initiative designed to enhance our members’ ability to trade on a transparent basis with their media agency partners. The terms enable further understanding of the digital ecosystem, ensure digital standards are discussed with the agency and that policy is set and enshrined in contracts. The template contract requires agencies to be clear on their role and responsibilities in handling the media bought and budgets managed on behalf of client’s.
A recent review of how ISBA members are using the contract in practice has revealed some positive details that will boost the confidence of any advertiser looking to use the terms to inform their own media agency negotiations.
Various myths have abounded since the contract was launched like ‘agencies belonging to networks will not sign up to these terms’ and ‘only small advertisers will use the contract’….well these myths have now been busted by our usage review!
Our review revealed £6.1b worth of ISBA member media spend as having either already been renegotiated (27 organisations spending £1.67b already completed negotiations) or that will be renegotiated (18 companies with £4.5b spend) in the near future, the next 12 months. The review indicates that the terms are being adopted by some of the biggest advertisers.
And furthermore it indicated that terms can be agreed with network agencies, the majority of the negotiations reported on were with agencies belonging to major networks, 96% of those who have negotiated new terms already, and 81% of those who plan to renegotiate in the near future. So that’s two myths busted!
As well as being used locally, the contract is being adapted to create terms that are international in scope and not just relevant in the UK; in 50% of cases, the terms had been used, by those who had already renegotiated, to help create contracts that were international in scope. And two-thirds of those planning to use the terms in the future indicated that they were using them to create international terms or MSAs.
Of course, not everything in negotiations was plain sailing and compromises had to be made in just under half of the cases reported on, but this is a scenario to be expected in any commercial contract negotiation.
There were no surprises on areas of contention in the contract, the agency community pushing back on most clauses related to greater visibility and transparency. However, there were also a sizeable number agencies reported on who had no issues with these clauses.
Our review of use of the ISBA framework media contract contains a great deal more insight for anyone interested in using the terms, including make-up of negotiating teams, whether external help was used, time taken to negotiate, contentious clauses, shared learnings and much more, if you’d like a copy and to understand more about how the contract can help you transform commercial relationships with your media agencies, do get in touch.
Significant progress is being made by ISBA members in their conversations on enhancing contracts with their media agencies and your organisation too could be benefiting from more transparent better-managed terms.
Don’t just take our word for it, listen to your peers: “The ISBA template media agency contract was a great checklist to ensure all aspects of the deal were covered. It helped change the way our internal legal team approached the format of the contract and gave additional credibility to the procurement process” Procurement, £46m spend
To request a copy of the review contact me.
Director of Consultancy & best Practice, ISBA
Making on-boarding martech solutions easier - prepared by marketers for marketers
One of the major challenges facing marketers is ensuring their organisation partners with the right people. When it comes to identifying and on-boarding tech suppliers, including ad servers, demand-side platforms and tag management systems, the number available and complexity of companies offering marketing technology solutions makes it that much more difficult, significantly drawing out the decision making process.
So what's the solution? While there are many approaches, the marketing team at Barclays, an ISBA member, have created a simple checklist to provide the information required from your tech vendors. In fact, the document is so straightforward that it benefits both advertisers and tech vendors by reducing the review and sign up process.
The document itself was designed to make the onboarding process more practical, with the brief being to employ the most innovative tech solutions, while minimising business risk.
Working closely with their colleagues in legal, compliance, information policy, data privacy, risk, fraud and information security, the marketing team at Barclays have created a document that reflects the modern industry, ensuring all relevant questions were incorporated and reflecting current developments, including the General Data Protection Regulation (GDPR), with provisions for data protection also included in the brief.
Barclays have made the document available to all ISBA members and as more and more organisations use this document, the bar will be raised within the industry. The longer term aim is to for martech vendors to provide accurate detail at a higher level as standard practice.
Special thanks to Barclays for making this document available to ISBA members and other groups, especially Nicola Shepherd, Head of Media, and David Joyson, Head of Search & Acquisition.
To obtain your free copy of the guidance, please contact Jodie Knight.
I would love to receive your feedback on the guidance.
Marketing Services Manager, ISBA firstname.lastname@example.org
Understanding the facets of any consumer or media journey can unleash a host of insights and ultimately lead to serious business opportunities. Such is the case for programmatic advertising, which has become one of the key areas of investment for advertisers.
As the programmatic landscape continues to evolve, ISBA has been working closely with our members and the industry to gain a clear picture of the journey involved, giving us a real insight into both the challenges and opportunities that programmatic presents, all of which were highlighted at our recent Roundtable event.
Featuring insights from our event partners and programmatic experts The Exchange Lab, plus Nationwide's Director of Digital Marketing and Social Media, Alex Bennett, the three hour event was packed with practical learnings for all stages of the programmatic journey.
Some of the key insights to come from the session are outlined below and can be used to help guide you on your journey to programmatic excellence:
For more information on how The Exchange Lab can assist you and help deliver your programmatic strategy, please visit their website.
If you have any concerns or questions at any stage, ISBA is happy to discuss the realities of programmatic advertising with you and the team, so do get in touch with me.
Although the General Data Protection Regulation (GDPR) continues to dominate most of the headlines, the impending EU regulation on ePrivacy (ePR) deserves just as much attention given the impact it will have on the industry.
1. EXPERTISE AND USER TESTING ARE NEEDED TO ENSURE THAT CONSENT ISN’T JUST A BOX-TICKING EXERCISES
Over the last five years ISBA has been working with the ICO and our members on events and guidance to ensure compliance with the GDPR, due to be implemented in May 2018. ISBA believes that user testing is required to define how, where and when consent should be gathered to give consumers transparency, choice and control over their personal data.
Acknowledging the need for the Regulation to develop principles on consent, the new laws need to incorporate new technology and be future-proofed to ensure that they are relevant in a few years’ time. The best methods to ask for consent will vary depending on the context – prescriptive regulation can’t allow for this. ePR is currently too prescriptive, as it mandates: • How consent should be gathered - via software settings
• When consent should be gathered - during installation
ISBA believes that advertisers are best placed to determine the most effective methods to gain consent from users, within the rules confirmed by GDPR. There are a number of ways to achieve this, including:
• Working with experts in user experience (UX), web design, e-commerce analysis and online behaviour
• Methods for gathering consent must be tested on users in real-life situations to avoid consent becoming a ‘tick-box’ exercise, with users having little or no understanding of what they are actually consenting to.
2.EXCEPTIONS FOR WEB AUDIENCE MEASURING SHOULDN’T BE LIMITED TO FIRST PARTIES
3. CONSISTENCY WITH GDPR IS CRUCIAL FOR LEGAL CERTAINTY
4. A TECH-NEUTRAL, RISK-BASED APPROACH IS NECESSARY TO AVOID UNINTENTIONAL RESTRICTIONS
5. USERS SHOULD BE EMPOWERED TO MAKE INFORMED CHOICES ABOUT HOW THEIR DATA IS USED
ISBA’s work in this area is being led by our Data Action Group. Our next meeting, taking place on 27 July will feature Catherine Armitage, Senior Manager, Public Affairs and Digital Governance Exchange at the WFA. Catherine leads their lobbying in Brussels and will provide an update for members on the latest developments and insights on the ePrivacy Regulation.
If you are interested in becoming a member of this group and contributing to our thinking in this important area, please contact me.
It is anticipated that the ePR might become law by 25 May 2018, when the GDPR will also become law. Find out more about the ePR here.
DPN LEGITIMATE INTERESTS GUIDANCE – GDPR
You may also be interested to know that guidance has been published on how and when marketers can engage with audiences using Legitimate Interest as a basis under the GDPR. The guidance has been produced by the Data Protection Network with the support of ISBA and our members and is available here.
Recent studies have shown that young people are now spending more and more of their time online, rather than watching TV. While the desire for internet access has more than surpassed the need to look for the remote, the shift in platform preferences needed to be addressed from a regulatory point of view.
While existing BCAP codes governed how HFSS products were advertised on TV, they did not translate to the digital environment.
All that is to change however, as on 01 July, the CAP Code on advertising food and soft drinks to children will be brought into line with existing rules on TV advertising. This now means that ads that ‘directly or indirectly promote an HFSS product cannot appear in children’s media’, be it print, cinema, or digital – and that includes social media and advergames.
As on TV, advertisements for HFSS products can no longer appear on children's media and cannot rely on licensed characters or celebrities popular with children to promote them, regardless of the platform used.
While generally welcomed by the industry, the ‘tough’ new rules do present a challenge for advertisers and as the Code comes into effect, here are some useful tools to help ensure you comply:
As the advertisers’ representative on CAP, ISBA had significant input into the direction of the new rules, taking the concerns and needs of our members into account.
We fully support the new rules, designed as a means to protect children and ensure that 'advertising regulation plays its part in tackling the public health challenges related to poor childhood diet and responds effectively to fundamental changes in the way children consumer media.' We will continue to ensure the needs and concerns of our members are met in all future developments.
Key elements of the code for advertisers:
Have you ever wondered what keeps your marketing peers awake at night? How other organisations are approaching the marketing transformation that’s sweeping our industry? Or even how other CMOs are preparing for a future media ecosystem?
ISBA sits in a privileged position, in a constant dialogue with and surveying the behaviours of the biggest brands in the country, this gives us a unique perspective on what’s exciting and worrying our marketers and enables us to track key trends and activities.
This week we are thrilled to share some brand new insights from a tracking study, Media 2020 on which we partnered with MediaSense and IPSOS Connect. The study explores how ISBA members are organising themselves to meet the challenges of the rapidly evolving media ecosystem.
With over 260 senior marketers and media decision makers taking part, the report is one of the most comprehensive surveys on marketing change management to date and builds on trends we identified in a similar study in 2015.
The report indicates that ISBA members are a progressive bunch, leading the way in reconfiguring themselves into more data driven, customer centric businesses.
All interviewees agreed that organising resources around customers also means owning customer strategy and customer data. Over three quarters of respondents (78%) rate data analytics and data insights as a critical media capability (vs. 67% in 2015) and over half (54%) see data management as an in-house capability (up from 42% in 2015).
Marketers told us they felt empowered by data, that it enables them to be more accountable and drives more authority for marketing at board level. For all, insight from data, not the data itself, was absolutely crucial to driving growth of their organisation and controlling that customer data, allowing greater visibility of the customer journey, was critical.
In-sourcing data management activities, data modelling and data activation is increasingly common amongst brands as they build their confidence. This is having an interesting effect on agency relationships, with over half the respondents in the survey claiming they would seek strategic advice on data management not from their agency partners but from their own internal teams, or as one senior marketer put it:
“As a result of the new insight performance teams, we have taken back strategic control of our brands from agencies”
And this charge to in-house activities is being led by the c-suite, over two-thirds (68%) of directors agreed that marketers will do more in-house. Amongst more data- driven businesses there is an imperative to bring in new specialist talent with distinct skill sets, especially around data science.
Marketing is broadening its scope and taking control with the emergence of new super integrated marketing teams including data scientists, marketing scientists, analysts and engineers working seamlessly together to drive growth. Agile ways of working are breaking down organisational silos.
Agility of operating models is now a prerequisite, both internally and externally, in order to achieve this data driven, customer centric nirvana. Key requirements of new operating models highlighted were flexibility, adaptability, scalability and iterative thinking over rigid process.
Agency partners are now expected to present more flexible, varied and agile models, to experiment and change as their client needs evolve BUT many felt agency models were not evolving quickly enough and are hampered by legacy structures and processes. And in a watch out for the agency community, 62% of respondents said they will be using fewer agencies in the future.
In essence this study affirms that marketing will continue on its road to transformation, many are already on the data delivery superhighway, but many more are yet to progress. There is only one certainty in this current environment and that is that more change is to come, a fact echoed by the 80% of respondents who indicated that further organisational change is required if they are going to develop and deliver dynamic creative.
Get your copy of the full report
Media 2020 is rich in insight and I have only touched on a tiny part of what we discovered here, for further insights you can request a copy of the report from me.
Director of Consultancy & Best Practice, ISBA