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.”
David Murdico, creative director and managing partner of Supercool Creative Agency puts forth a solid argument as to why startups should pay agencies more than brands do for the same work.
First of all, he notes a startup is an unknown entity and no one has ever heard of it before making it all the more difficult to create the necessary marketing program to achieve awareness and sale. He notes startups are generally more demanding than established brand marketers, often times because so much is at stake.
Perhaps the biggest problem area when it comes to crafting marketing for a startup is that up until the point the startup reached out to an agency, everything about the startup has, thus far, operated in an echo chamber with scant few nodding and bobbing their heads in agreement without truly vetting the idea or how the idea will be perceived in the real world.
Another challenge when working with a startup? They tend to change their mind a lot about, well, everything. And that can be a gigantic time suck. Check out Murdico's entire list here and file it away in your back pocket for use the next time you consider working with a startup.
This is gold! Gold, I tell you! And it's arrived just in time. As we all mourn the loss of our beloved Mad Men characters, they have been given renewed life, in the form of a Tumblr blog, as
digital natives spewing all the usual buzzword bingo that's so prevalent in today's marketing landscape.
Taking on the form of animated gifs, we have Don informing his secretary: "The future of advertising is socially integrated digital platforms." We have Peggy commending a co-worker saying: "Nice branded social post, bro." We have Don asking Peggy: "But does it work as a pre-roll." We have Don reacting to a proposed "Tinder-powered drone." We have Pete telling Don: "The CTRs need optimizing for behavioral targeting of Millennials."
And on and on and on. Brilliance.
Oh for f*ck's sake! Stop. Just please stop! Every ridiculous addition to the CxO title space just dumbs down the importance of the core four: CEO, CFO, COO and CIO. Maybe you can add CMO and CCO to
that list -- but chief data officer? Chief customer officer? And now...wait for it...chief native officer?
Yeah. Chief native officer. Or at least that's what Forbes Contributor Daniel Newman would like to see instituted. Newman argues that the merging of paid and earned media requires this CxO style oversight.
He furthers his point, writing: "The biggest reason to get a Native Officer is that while digital agencies and publishers work together, they don’t necessarily do so as a team. In fact, there are instances where they don’t see eye to eye. While publishers are great at creating content, they can treat branded content like a 'second-class citizen.' On the other hand, digital agencies consider themselves star content creators for brands. In such circumstances, there’s a pressing need for a 'dedicated task force' to exploit native ads to their fullest potential. The CNO should lead this pack, guiding the brand towards rewarding native advertising campaigns and best practices."
So what say you? Do we need the chief native officer?
Sort of like food brands still pimping low fat/no fat products when studies clearly indicate the human body needs fat, the office management world is still pimping open office space when many studies have shown it's a less productive solution than
more traditional office space.
That's not stopping the latest trend in office space, the Superwide. Superwide office space is large, one floor office space consisting of 100,000 square feet or more. Of the trend, Brookfield Property Partners Senior VP Duncan McCuaig said: “Large floors are absolutely in demand.” And “right now there is very little of this product in the city,” he added, referring to Manhattan.
Adam Kansler, managing director at financial data company Markit, loves the open office concept and says: “There’s something that gets lost” when a company is on multiple floors. You don’t get the same random moments of seeing someone from across the way, hearing that they’re working on a project, and saying, ‘Oh, I’m going to stop by.’ ”