Ad Groups Say Mars' 120-Day Payment Scheme Will 'Decimate' Industry

Well, it's about time someone stood up to this idiocy. The Association of Independent Commercial Producers and the Association of Independent Creative Editors have sent a strongly worded letter blasting Mars Inc.'s new 120-day payment policy. The AICP said the practice would "simply decimate the way the industry operates" and the AICE called the policy "patently unfair." Defending the 120-day policy, Mars spokesman Ryan Bowling said that it will be gradually put in place and with gleefully noncommittal, mealy-mouthed blather, added: "We are looking at all categories but I can't confirm what industry or what suppliers, due to confidentiality." And then with complete disregard and insanely twisted logic, Bowling added: "We look at what is mutually beneficial. That's our No. 1 priority with each supplier." Mutually beneficial? Exactly how is making a partner/suppliers wait 120 days to get paid mutually beneficial? Who in their right mind can sling this bullshit with a straight face?

So who won what in Cannes last night? Norwegian agency Anti Bergen won the Design Grand Prix Lion for its Bergen International Festival brand campaign. adam&eveDDB London won the Press Grand Prix for the Harvey Nichols "Sorry I Spent It on Myself" campaign. The agency also won the Promo & Activation Grand Prix for the same work. G-Star Raw Amsterdam and FHV BBDO Amsterdam won the Product Design Grand Prix for "Raw for the Ocean." Ogilvy Johannesburg won the Radio Grand Prix for its Lucozade "Give Me Strength" campaign. Dentsu Tokyo won a Gold Cyber Lion for Honda's "Sound of Honda." CAA won a Cyber Grand Prix for Chipotle’s "The Scarecrow." Forsman & Bodenfors Gothenburg won a Cyber Grand Prix for Volvo Trucks’ "Live Test Series." Iconoclast Paris and Pharrell Williams won a Cyber Grand Prix for "24 Hours of Happy."

McCann has announced the promotion of John Mescall to the new role of global executive creative director. Mescall is currently executive creative director of McCann Australia, a position he has held since October 2011. Mescall will relocate to New York in the coming months and join recently announced Global ECD’s James Dawson-Hollis and Bill Wright as part of McCann Worldgroup Global Creative Chairman Rob Reilly’s initiative to strengthen the agency’s creative leadership. Of the move, Reilly said: “John’s all talent and no ego and he has helped lead McCann Australia to become one of the best agencies in the world. John now has the opportunity to magnify what he does on a global stage. I am certain that John’s reputation for delivering stellar work will be a magnet for recruiting the best and brightest to McCann." A writer and creative director, Mescall has won more than 30 Cannes Lions, including 5 Grand Prix for Metro Trains “Dumb Ways to Die” and in 2014 1 Grand Prix for Creative Effectiveness for V/Line. His other awards include: Black and Yellow Pencils at D&AD, Best of Show at The One Show, and multiple Clio and Webby awards.

Jared Leto had all kinds of things to say when he was on stage with Benjamin Palmer of The barbarian Group. But when it came to advertising, he couldn't contain his excitement and offered up a bit of existentialism, saying: "I actually love advertising. I rail against it sometimes, because I don't think the world can be solved by advertising alone. I think that's a bad mission. I also think that if it's creative, it's not advertising. If it's creative, it's entertaining and informative. It's a conversation. When advertising is great, it's transcendent. It's art."

While it's no surprise that clients and agencies do not see eye to eye on many things, seeing that notion represented in a study takes on an entirely different tone. Conducted by RPA and USA Today, the study -- appropriately released during Cannes Lions this week -- found that 61% of marketers and 70% of agency executives do not share the same vision of creativity. Furthermore, just 25% of marketers believe creative work can make a dent in a brand's business, while 48% of agency executives believe creative can impact business. Most agency executives -- 75% -- say clients are too afraid to take risks, while 56% of marketers claim their agencies are more interested in selling them cool creative rather than solving business issues. And while 88% of clients believe they are open and honest with their agencies, just 36% of agency executives believe this to be the case.
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3 comments about "Ad Groups Say Mars' 120-Day Payment Scheme Will 'Decimate' Industry".
  1. Adam Kleinberg from Traction , June 19, 2014 at 9:34 a.m.
    As an agency guy who has to deal with contracts with procurement groups, I think that the reason this guy would actually be smug about something like this, is that 120 day payment terms are not their end game. It's become very typical to get contracts from big companies that expect a 2% or even more discount when they pay bills within 10 days of receipt. When you are on Net 30, or even Net 60 terms, that kind of discount is not very palatable. We don't generally accept it when we negotiate and I suspect others do the same. That 2% seems a lot more appealing when the alternative is 120 days.
  2. Stuart Meyler from Beeby Clark + Meyler , June 19, 2014 at 10:44 a.m.
    Most clients do this. We had one large B2B conglomerate that had 120 day no penalty terms. In other words, no terms. This is anti-American and hurts the industry as a whole. Clients claim they want "innovation". How many young, entrepreneurial companies can weather 120+ payment terms. When you add in Byzantine PO processes, you aren't getting paid but twice a year in many cases.
  3. Maarten Albarda from Flock Associates (USA) , June 19, 2014 at 2:21 p.m.
    The 120 days is an awful concept which I have argued against here:http://malbarda.blogspot.com/2013/06/the-media-agency-conundrum-advertisers.html#more
  • Lowe Lintas India Wins Warc 100 Agency Ranking

    The Warc 100, an annual list of the best agencies based on an analysis of winning campaigns across 87 different award events or competitions, has named Lowe Lintas India the number one agency on its 2015 list. The agency scored 213 points and was closely followed by AMV BBDO with 191 and Colenso BBDO with 148.

    Of the recognition, Lowe Lintas India CEO Joseph George said: "We have had a terrific run on creative effectiveness this year across the globe; and all the accolades have further reinforced our belief in the type of work we want to do and believe in."

    Chicago's Starcom MediaVest Group Chicago was named top media agency, followed by PHD Mumbai. 360i New York was named top digital agency with R/GA New York taking second place.

    The Warc 100 is a ranking of top marketing campaigns and companies that the organization says is based on their performance in effectiveness and strategy competitions. The organization does not disclose the competitions that it uses to devise the ranking.

  • This Ad Contest Could Get You A Free Trip to Cannes. Just Don't Tell Your Boss

    Here's a semi-hilarious promotion for Canada's National Advertising Challenge that brings to light an all too prevalent problem in the ad industry -- an overzealous focus on awards. But the promotion promotes just that -- an overzealous focus on awards, and in this case, awards for non-client ads developed simply to win those awards.

    Yes, this is what you brands are paying for. Because you know the creatives in the agency you've hired are going to be doing this work in the office, conceivably on your dime. But, hey, when you dangle the chance to win a trip to Cannes as the prize for this contest, you're going to have creative salivating like dogs in heat.

    Of the Challenge, NAC Marketing and Communications Manager Ellie Metrick said: "We have big aspirations for the NAC, but we were facing a serious comprehension issue within the creative community. This year's online video goes a long way in explaining that we offer creatives an opportunity to do original work in exchange for a chance to go to Cannes."

    But because I know all you creatives are just jonesing for this, the briefs go live March 2 and the work must be completed by March 30.
  • Havas Chicago Ignores Disastrous Effects of Open Office Space, Spends $10 Million Creating One

    Clearly Havas Chicago hasn't been paying attention to recent research that found open office space to be decidedly less productive than that of the old school office. The agency recently completed a $10 million renovation of its 81,000-square-foot River North office space transforming two floors of office space into a wide open, unproductive free-for-all.

    And get this. The agency used to occupy three floors. Now it occupies two. They say that's because the new office design uses space more efficiently. Translated into English, that means stuffing the same amount of bodies into a smaller space to save money.

    The new design has done away with all offices and added all the usual distracting crap you'd expect to see in an advertising agency: graffiti, a soda fountain and a bubble hockey table. They've even added bicycle racks and a "town hall" meeting area with bleachers. Oh, and they've given the new space a cute new name; Havas Village. Because yeah -- it takes a village to raise children and, well, that's pretty much what ad agency people are; spoiled little brats who prefer a playpen instead of an office in which to "work."

    Okay, that's harsh, but I can say that because I've been there. 

    Of the new space, Havas Chicago CEO Paul Marobella said: "The big part of this space, outside of how cool it is, is that it's really built for utility and built for a purpose. Creative, media, strategy and account all sit together, organized by account. What's different about us is we can make a decision on Monday and it will be implemented by Friday."

    Oh, really? How is making a decision on Monday and implementing it on Friday any different than any other agency that decides to do that?
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    Penning a piece for The Chattanoogan (what the hell kind of name for a news outlet is that?), Connect Marketing Head Honcho Clint Powell has some advice that really shouldn't be the kind of advice that actual adults need. Kids, maybe, but actual adults? No. In any event, he wrote the piece and if you've worked in the ad business for any length of time, you know full well there are, unfortunately, plenty of people who need this advice.

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  • Jordan Zimmerman's Muscles Win Him Men's Fitness, Muscle & Fitness Accounts

    Have you seen Jordan Zimmerman's biceps? The man is ripped. Ripped, I tell you! And here I struggle to do 5 sets of clean and jerks at 85 pounds in CrossFit class! Now, whether or not Zimmerman's muscles had anything to do with the fact that he just snagged an interesting assignment -- without a pitch -- from muscle magazine-heavy publisher American Media is unclear. What is clear is that the win would appear to be a perfect match for the agency.

    Zimmerman's agency, Zimmerman Advertising, won't be doing ads for the magazines, though. The agency will work with American Media to explore partnerships with other entities such as the National Basketball Association All-Star event AMI sponsored with Macy's a couple weeks ago. 

    The agency will take a close look at events like this and others to determine appropriate fits that match well with AMI titles which include Men's Fitness, Muscle & Fitness, and Flex as well as National Enquirer, Star and OK. 

    Of selecting Zimmerman, American Media CEO David Pecker said he sought and agency that "reflects the aggressive growth strategy of AMI and has a proven track record of driving growth in multiple sectors and is a true strategic partner."
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    Of joining the agency, St. John says, “I feel that john st. has done some of the most innovative digital work in the country for some time now, but I believe that there is room for them to lead the broader digital discussion with clients. Analytics, social ROI, branded content, mobile advertising, online video -- these are just some of the challenges our clients are facing, and we can help them maximize those opportunities.”

  • Is Your Creative Director A Douchebag? You'll Know After They Take This Test

    Ah, you've got to love one thing about the ad business. As self-centered and as egotistical as many in it can be (hey, I know, I worked in it), it's also refreshingly awesome to witness just how much those in the business like to make fun of themselves. 

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    Here's how to use the device: "Adjust the dials and toggle the knobs to the exact specifications you are looking for in said Creative Leader and….Beep! Boop! Beep! DING! You will know with 99.997% accuracy whether the Creative Leader you want to hire has real potential… to be a complete Dill Weed.”

    I'm sure they meant to say something far more derogatory than "dill weed."
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    Vucko explains the project, which began as something completely different, saying: "Eventually, I took a step back and chose to build something on the very topic that was plaguing me -- the theme of originality. From there, I searched for references and inspiration, coming across all of these interesting quotes on the subject. While at first each quote felt like a separate idea, as I continued to read, I realized that they could be combined into a single narrative."

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    Headlines to the ads read: "Nisha, Strategist. Has dedicated seven loyal years to your agency. With very little to show for it" and Samuel, Producer. You fought hard to hire him. Responds to every suggestion with 'It can't be done.'" The ads are signed off with "Buy her/him a delegate pass. Cheaper than severance."

    Of the approach, McCann London CCO Rob Doubal said: "Although our campaign is humorous, it makes a very sensible point. Why should being a Cannes Lions delegate be the preserve of the already excellent? If we really want a more creative world, as we all profess, we should also be encouraging the not-so-excellent performers to be inspired by Cannes Lions."

    Funny stuff, this campaign. Trouble is, now everyone that is sent to Cannes by their agency is now going to have a gigantic inferiority complex along with nightmares about whether or not agency management thinks they’re up to snuff. 

    Oh, and the poor people who had to pose for the campaign -- branded losers for life!

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