Here’s the response from the company to our IPG tax item that ran in the last column:
“IPG pays income taxes all over the world. In 2013 alone, IPG paid $21 million in U.S. income tax to state and local governments. Also in 2013, we paid $91 million in income tax outside the U.S. – so we paid $112 million in income taxes just last year. And over the last five years, IPG has paid approx. $400 million in income taxes, and significantly more if you include the individual, employee and VAT taxes we also pay in the markets where we operate.
“We are an extremely responsible tax citizen of the world and our 2013 effective tax rate of 39% is higher than our peer group – Omnicom’s hovers around 34%. The fact our tax rate is higher than our peers is not necessarily a good thing, but to call us out without doing any research about our peer group is not cool… For the specific band of U.S. federal tax purposes – which is the data the Institute on Taxation and Economic Policy covers – IPG has a tax loss from 2004 to 2006, which has been carried forward (U.S. tax law permits losses to be carried forward for 20 years) to offset taxes in the past number of years – hence we do not pay U.S. federal income tax.
“I don’t think that warrants a blanket comment like ‘Yup, that big ass agency holding company headed by Michael Roth. And we wonder why people perceive advertising professionals as highly as car dealers.’ Especially when our effective tax rate is 39%, and when we paid $400 million in income tax over the past five years, and significantly more if you include all the other tax buckets. The headline is flat-out wrong. You could correct it by saying ‘IPG Paid No U.S. Federal Income Tax,’ but even then, I don’t think the post is fair, based on the above.”
Points well taken for the most part, although we tend to be somewhat snarky and that won’t stop. But now you have the facts on IPG’s tax-paying status straight from the horse’s mouth so to speak.
In an effort to celebrate the often time stellar work agencies do for non-profits and other causes,
ACT Responsible, in partnership with the Gunn Report, is launching The Good Report, an annual collection and celebration of innovative
cause-related campaigns. The Good Report honors the Top 30 Campaigns for Good, the Top 20 Agencies, the Top 10 Networks and the Top 5 advertisers.
You've probably heard the "agencies must change or die" mantra before. It rears its head about every three years or so. Its latest incarnation involves the gyrations and machinations holding companies must go through to streamline the cobbling together of disparate services into one cohesive offering that can serve the wildly varying needs of today's brands. Mixpo CEO Jeff Lanctot, an agency veteran thinks he has some direction and has shared his ideas is a Wall Street Journal piece. His four points cover the need for agencies to master un-siloed mult-screen, multi-channel planning, to offer managed services through partnership with software companies rather than competing with them, to eliminate the games played when it comes to the buying and reselling of media and, unsurprisingly, a collection of expertise that's relevant to the ever changing needs of today's brands.
Bonfire Labs, a growing content marketing agency, has made three new hires. The agency has brought in former Google Brand Studio executive producer and Goodby, Silverstein & Partners producer Tim Pries as executive producer. Also joining the agency as producer is John Hunt, former live action producer on Discovery Channels' MythBusters and Judy Leung, formerly with Hyphen magazine, will join as designer. Of the hires, Bonfire Labs Managing Director Jim Bartel said, “We are pleased to add these uniquely talented individuals to the roster of talent already at Bonfire Labs. Each of them will make a valuable contribution as we continue to leverage our unique position in the industry.”
The latest intern recruitment stunt has Havas Boondoggle Amsterdam offering interns a gig in exchange for a free stay in the agency's loft or, more specifically, the couch in the agency's loft.
Rather than offering pay to the interns, the agency believes a one to seven night stay in Amsterdam, and all the excitement that goes along with that, is payment enough.
Of recruiting interns through Airbnb, Havas Boondoggle Amsterdam ECD Menno Schipper told AdWeek, "Airbnb attracts the more adventurous kind of people. That's exactly the energy we're looking for in ad students."
After contacting the agency through Airbnb, potential interns are asked to send in their portfolio for consideration. Once and intern is selected, there are a few rules which must be followed. Interns are asked not to drink all the beer in the fridge, not to feed the agency dog and, OMG, not to touch the other interns or employees.
This year, as it has done for many, Wieden+Kennedy is joining Oregon's Bike Commute Challenge month, an effort which encourages more people to commute to work on a bike.
In a blog post, the agency explains further, writing: "The Bicycle Transportation Alliance, a non-profit bike advocacy group based in Portland, puts on the Bike Commute Challenge every September, during which businesses compete to have the highest percentage of commutes by bike. W+K is always a front runner in the competition (we’ll catch you this year, Reed College!)."
How many miles will the agency log this year? More than last, we hope -- but we're all just going to have to wait until the end of September to find out.
Good luck, W+K!
A while back you may have heard about the South African ad couple who quit their agency jobs and decided to travel the world and keep a journal of their adventure. As is usually the case with these "find yourself" journeys shared on
social media, activities and adventures almost always fall into the "damn, I wish I were them" category. Except for Chanel Cartell and Steve Dirnberger -- and likely, most others who just aren't
honest -- not every aspect of their travels has been epically spectacular.
In fact, they now clean toilets to help pay for their travels. In a recent blog post, the couple shared the fact that traveling the world isn't always roses or peaches and cream or whatever metaphor you want to apply. No, sometimes the money runs out and you've just gotta do what you've gotta do to make ends meet. And that's exactly what Cartell and Dirnberger have had to do.
In a blog post entitled We Quit Our Jobs In Advertising To Scrub Toilets, the couple share the less than glamorous side of world travel.
The couple write: "After being gone exactly 6 months, I feel it necessary we share the uglier side of our trip. Browsing through our blog posts and Instagram feed, it seems like we’re having the time of our lives. And don’t get me wrong -- we are. It’s bloody amazing. But it’s not all ice-creams in the sun and pretty landscapes. Noooooo. So far, I think we’ve tallied 135 toilets scrubbed, 250 kilos of cow dung spread, 2 tons of rocks shoveled, 60 meters of pathway laid, 57 beds made, and I cannot even remember how many wine glasses we’ve polished."
And of the notion that we are often fooled by social media into thinking everyone's life but our own is spectacular, they add, "So don’t let the bank of gorgeous photography fool you. Nuh uh. I am not at my fittest, slimmest or physically healthiest. We eat jam on crackers most days, get roughly 5hrs of sleep per night, and lug our extremely heavy bags through cobbled streets at 1am, trying to find our accommodation (because bus fares are not part of the budget, obviously)."
And so when you think your life sucks because everyone on social media seems to have such a perfect life, remember, social media favors the more positive aspects of life.
Following its new decentralized managerial model, Crispin Porter + Bogusky has hired a second managing director for its Boulder office. Devin Reiter, who previously worked with the agency on the
Microsoft account before leaving for a year-long stint at McCann Erickson New York, has returned and will work alongside the office's other managing director, Danielle Whalen.
Of the doubling up of managing directors, CP+B Global CEO Lori Senecal said: "We have small, tight teams of hands-on doers who are in charge of creating the very best work. So when an office becomes too large for one MD to have meaningful personal impact on each and every client business, we need to expand our leadership to deliver this promise."
The move follows -- and is line with -- the exodus of Andrew Keller, a 17-year veteran of the shop. Keller's position as executive creative director, and the oversight that position provided, was eliminated to make way for the new decentralized approach to management.
One wonders how long before the tide turns and the agency realizes the deck hands have taken over the ship and they've got a disorganized mutiny on their hands.
New York-based first-year MRY creative Sam Bartos has unveiled Ad Agency Bingo, a bingo game which
incorporates many of the activities, behaviors and plain old oddities he's witnessed during his first year at MRY.
Bingo squares include such activities as someone blatantly drinking before 2PM, somebody Tindering during a meeting, someone using the word "disruptive," somebody's dog pees in the office, someone says "advertorial," someone takes a selfie, someone you've slept with is in the same meeting as you and more.
In Sam's own words, here's how you sore the game:
“If you get a straight line, you can take it to your boss and ask that he promote you. Art Directors can become Senior Art Directors. Junior Copywriters will become Senior Junior Copywriters. etc.
If you get a diagonal line, you get to raid the office supply closet, Supermarket Sweep-style.
If your coworker gets a straight line, but you contributed by saying one of the things that helps them fill out one of the squares, you can scan their filled out sheet and put it in your portfolio as a project you worked on.
If you give the sheet to an intern to and they get a straight line, you can take credit for it as long as you write them a nice LinkedIn recommendation on their last day.
If you fill in a couple of the bubbles then get bored, fuck it, it’s 11:27. Lunch time.”