Advertising Trade Groups 4AS & ANA Split Over Transparency Guidelines | WSJ

Advertising Trade Groups Split Over Transparency Guidelines; Nathalie Tadena; In The Wall Street Journal (WSJ); 2016-01-28.
Teaser: American Association of Advertising Agencies and Association of National Advertisers didn’t agree on language

tl;dr → there may or may not be buying incentives (kickbacks, rebates, bribes) from media sellers (publishers) paid to agencies for representing their material,forcing advertisers to pay more; buyers (advertisers) want to know & believe there are latent sales terms in place; sellers (agencies) represent that there is nothing untoward going on and nothing ot see here, please move along.

Mentions

  • American Association of Advertising Agencies (4As)
    represents agencies (hence the name)
  • Association of National Advertisers (ANA)
    represents advertisers (ahem, hence the name)
  • The 4As Issues Transparency Guiding Principles of Conduct; press release; 2016-01?
    Statement: Transparency Guiding Principles of Conduct
  • ANA conducts an investigation into transparency in the industry
    • In 2015-10
    • Commissioned a Study. That. Shows.
    • contractors
      • K2 Intelligence
      • Ebiquity/FirmDecision
    • Issues
      • kickbacks, rebates, bribes → <quote>agencies may have arrangements in place with media sellers that reward the agencies for spending more</quote>
  • Transparency Guiding Principles of Conduct” lays out nine principles.
  • Occasion
    • 2015-03
    • Jon Mandel, former CEO, Mediacom.
    • alleged
      • rebates, kickbacks
      • from media sellers (publishers) to agencies (buyer agents)
      • at the expense of buyers (advertisers)

Who

  • Nancy Hill, Chief Executive, 4As
  • Bob Liodice. , Chief Executive, ANA
  • Jon Mandel, ex-CEO, Mediacom

Exemplars

important advertisers

  • Bank of America
  • L’Oreal
  • MasterCard
  • Procter & Gamble

Previously

In The Wall Street Journal (WSJ)

‘Ad Tax’ One Step Closer to Reality With Baucus Proposal | Ad Age Mobile

; ‘Ad Tax’ One Step Closer to Reality With Baucus Proposal; In Ad Age; 2013-11-21.
Teaser: Industry Groups Sound the Alarm

Original Sources3

  • <quote>In a piece written for Ad Age earlier today, 4A’s President-CEO Nancy Hill called any such proposal “the equivalent of an advertising tax,” adding that “changing or removing the advertising deduction is also contrary to more than 100 years of business history.”</quote>