Tag: procter&gamble

Three Pillars of Procter&Gamble Ad Revolution

The debate about transparency issues in the advertising industry has been gaining momentum recently, largely due to Jon Mandel’s speech at the Association of National Advertisers’ (ANA) annual media conference in 2015. The following year, independent research conducted by K2 Intelligence LLC (“K2”) revealed numerous non-transparent business practices, such as rebates and problematic principal transactions, occurring regularly throughout the media spectrum. Evidence suggested that some advertising agencies had taken advantage of their position, failing to act in the best interests of advertisers. The situation took an unprecedented turn in 2018 when the FBI intervened and requested cooperation from the ANA and its members. Although no conclusive evidence has emerged yet, and no accusations or charges have been made, the FBI believes that potential victims of financial fraud may exist and seeks their assistance in this extensive investigation. This inquiry could uncover offenses far more serious than financial fraud, including conspiracy and even racketeering. Such a scandal could not go unnoticed and naturally led to revolutionary changes in the advertising industry, prompting companies to take action. One of the world’s biggest advertisers, Procter & Gamble, launched a new marketing strategy aimed at reducing spending and enhancing the effectiveness of advertising. The… Read more »

Read More »

#RebateGate. The Advertiser-Agency Disconnect. Conflict of Interest. Part 3: Transparency and AdoptoMedia Platform

As we have previously covered here and here, the 2016 “RebateGate” proved to be a wake-up call for the advertising industry enshrouded in non-transparency, and uncovered the disconnect between the advertisers and their agencies in regards to the very nature of their relationship. The Association of National Advertisers, which commissioned the renowned K2 Intelligence Report, was quick to lend a helping hand to advertisers who found themselves at a loss as to how to cut their losses and recuperate. Published in July 2016 and updated to version 2.0 in July 2018, ANA’s template Master Media Buying Services agreement is part of the overall set of ANA’s Guidelines for best practice. It is meant to serve as a blueprint for transparent regulation of the Advertiser-Agency relationship, ultimately aimed at rebuilding trust and confidence between the two parties. The advertiser-agency media management practices require full disclosure as their cornerstone principle. Seeing how many agencies have blurred the lines, the contract between the parties has to precisely define the nature of their relationship. Whether it be that the agency acts as the client’s agent or the principal in its own right, there should always be a contractually prescribed ability for the advertiser to… Read more »

Read More »