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.”
Last week I made note of Alex Bogusky launching a start-up that that would focus on doing social good and that it would be called Spiffly. The first part was right. The second part was wrong. The
new entity will be called Fearless and "will help socially-minded corporations, foundations and non-profits develop 360° campaigns while providing the added value of a built-in millennial audience
through Fusion's television, social and digital platforms."
Fearless will be a division of Disney/ABC/Univision's cable network and digital platform Fusion and run in partnership with Bogusky, former CP+B'ers Dagny Scott and Lelsie Freeman. Fearless will "enable clients to engage with an ultra-connected audience in all of the places they consume media. The agency will develop multi-platform content spanning video, art, text, comedy, documentaries, television, events, and sharable content, all with an eye toward raising awareness and moving millennials to action on key issues and ideas that encourage positive change in the world."
Of the launch, Bogusky said, "Mashing up agency and media solves a huge problem for socially-minded clients who have incredibly compelling messages but no way to find their audience. Fusion is striking the right tone. Although millennials are more interested in doing good, they aren’t motivated by the same old dry boring, righteous approach. They have the attitude that changing the world can and needs to be fun. And I happen to agree with that.”
Fusion will be opening an office in Boulder, Colorado where Fearless will be based.
Are you going to SXSW? Do you want a new job? Then, it appears, you might want to hook up with Saatchi & Saatchi, which is opening up a Dallas office and will be trolling the streets of Austin
during SXSW for new hires.
The new office is for the agency's Team One unit, which focuses specifically on the Toyota and Lexus accounts. The agency's move to Texas is in reaction to Toyota moving its U.S. sales and marketing operations to Plano, Texas.
And so between barbecue and overcrowded sessions, head over to the SXSW Job Market at the JW Marriott (Floor 2). The hours are Friday, March 13 from 10 a.m. to 6 p.m. and Saturday, March 14 from 10 a.m. to 6 p.m.
While every morning she's grateful her clients haven't become part of some social media disaster and Twitter is her go to outlet for news, Huge (no, she isn't huge -- that's the name of the agency)
Director of Earned Media Alyssa Galella says that if she weren't working at Huge, she'd love to be "a detective. Or work in an animal shelter. I would basically be Ace Ventura, Pet Detective."
That's an interesting goal for a woman who was recently named one of PR Week's Innovation 50 or who accomplished a killer social media stunt by sending 99 boxes of Cap'N Crunch cereal to Jay-Z who later mentioned the stunt on the radio. Of course, yes -- she's just kidding, but Ace Ventura who certainly was a character. And I like people who aspire to be interesting characters.
But what's most interesting about Galella, who is far from being an old timer, is her wise view of social media today. She says, "There's no longer a dividing line between 'media' and 'social media.' You need to be fluent in both traditional media relations and social media to do your job most effectively. Most of what I've learned hasn't been on the clock, either -- take the initiative to read a ton, be active on social media, attend events, and take classes you're interested in." You know -- become educated in the ways of life.
Thank God. Someone who doesn't think Facebook, Twitter and Snapchat are the only valid forms of media in existence.