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
  • This Agency's Santa App Aims to Bring Christmas Magic to Children

    Agencies, it seems, are really amping up their holiday card efforts this year with many going the mobile route. Spanish agency Shakleton Group has developed SantApp, a mobile app which creates the illusion that Father Christmas or the Three Kings are moving around in one's living room to enchant the little ones. To get it to work, you enter the name of the child or children, place the phone in the room with the presents, close the door, turn off the lights.

    According to Juan Silva, executive creative director at Shackleton: “People say that technology is robbing children of their innocence. We believe that, for once, we are actually helping to give it back to them.” That's all well and good -- but a video explaining the app leads on to believe all it does is play various Santa voice and flash light. But, hey, sometimes that's all kids need.

  • AKQA Creates Awesome 3D Snowglobe For Your Phone

    AKQA decided to go mobile with its holiday card this year. The agency has introduced Winterlands, a mobile messaging site that lets you send this season’s greetings in a 3D snow globe experience.

    If you visit snow.akqa.com on any mobile device running iOS 8+ or Android 4.3.3+ and choose one of the snowscapes and write your personal message that when opened by a recipient will reveal a message inside a virtual snow globe. And shaking the phone will make it snow. The experience is really quite cool and makes use of the phone's gyroscope and accelerometer.

    Winterlands launches with one wintery and five city-inspired snowscapes including London, Paris, Portland, Tokyo and Washington DC, more cities to be added in the coming days. So grab your phone, head over to the Web site, create your own snow globe extravaganza and shoot it over to a friend.

  • Creative Agency Wants To Know Whether Or Not You Eat Reindeer

    Hanson Dodge Creative has stepped up the holiday card/video/charity thingamajiga with the launch of Global Gift Project, Inc. Its mission is to bring complete joy and wonderment to every child in the world by providing each child with a gift. And the agency is asking for the industry's help.

    Explaining the efforts, the Web site reads: "Trying to give a gift to every single one of them [kids] is really freaking difficult. And it gets harder every year. That's why we've started our ‘Yes, I'm Officially Representing Santa, He's Real and Gave Me the Power to Give You a Gift’ Team. We call it Team "YIORSHRGMPGYG" for short." YIORSHRGMPGYG aims to entrust the non-elven population with the power of good ol' Santa Claus and empowers people to become official members of the Global Gift Project Team.”

    If you click the Apply Now button, you are whisked away to a virtual human resources department where Helen will administer an interview to see if you're up to holiday snuff. The choose-your-own adventure-style questions begin simply enough and then progress to such oddities as how crying babies make you feel and whether or not you like to eat reindeer. It's amusing enough to click all the way through at which time you can download your YIORSHRGMPGYG membership card.

  • Study Predicts Increased Creative Hires in 2015

    Well, here's some good news regarding the outlook for 2015. The Creative Group is out with a piece of research that takes a look at what 2015 has in store in terms of employment. According to the research, one-third of advertising and marketing professionals plan to expand their creative teams in the first half of 2015. That's up 21 percent from six months ago.

    In addition, 56% plan to maintain their current level of staffing within their organizations with just 5% planning to freeze hiring. Forty-one percent of advertising and marketing executives noted that it is challenging to find creative professionals today and hiring managers at large advertising agencies expect the greatest difficulty, with 59% of respondents reporting it will be somewhat or very challenging.

    In terms of the areas which marketing organizations plan to expand, web design/production, social media, content marketing and brand/product management top the list. The Creative Group has produced an infographic summarizing this outlook with addition data points as well. You can access that here.

  • MUH-TAY-ZIK | HOF-FER Solves Oxford Comma Conundrum With Browser Bookmark-Let

    In an ingenious, holiday-themed effort designed to call attention to the importance of the Oxford comma in certain situations, San Francisco-based MUH-TAY-ZIK | HOF-FER has launched a browser bookmark-let that will automagically add missing Oxford commas.

    A video accompanies the effort with clear examples as to why you really should employ the Oxford comma at times. The video says "Missing Oxford commas ruins Christmas." It then cites some unintended results such as "I was shopping for your Christmas presents, toilet paper and prunes," "We went caroling with our dogs, grandma and grandpa" and "Merry Christmas from your parents, Santa and Rudolph." Images accompany the statements to illustrate just how wrong those sentences are without the Oxford comma.

    So if you're ever confused as to whether or not the Oxford comma is necessary, you can recall the awkward examples given in the video.
  • Deep Focus Pays Homage to Classic Console Games With Holiday Charity Effort

    Like the holidays? Like games? Then Deep Focus has something you might like. The agency has developed an old school interactive game called #DeepSnow. The agency developed it from scratch using Google Maps, HTML5, WebSockets, SASS, OpenLayers, and custom animations.

    The aim of the game is to steer a snow plow through the streets of New York City and rescue Deep Focus employees and toys spilt by Santa from the grasps of a winter snowpocalypse. In tandem with the web experience, players use their mobile device as a game controller. Data from the phone’s gyroscope is used to power the steering wheel for the snowplow as it maneuvers around angry Yetis and actual NYC landmarks on the computer screen.

    And, of course, there's a charity element to the game. Because, after all, agencies need to somehow make up for their self-centered, egotistical outlook on life they vamp the rest of the year. Virtual points earned during game play will be turned into physical toys donated to Toy For Tots.

  • Digitas Health Turns Mundane Holiday Card Into Charity Extravaganza

    Oh the agency holiday card. Yawn. Oh wait, not yawn! Some agencies actually put some thought into the mundane annual event. One such agency is Digitas Health LifeBrands which has come up with something a little more meaningful. The agency has launched HUG, a social media campaign which aims to generate awareness of charities and provide a monetary donation from the agency to charities which are nominated by employees.

    In its fifth year, the program involves employees from the New York, Philadelphia, London, and San Francisco offices who have nominated 24 charities to compete to win money. Each week visitors to the Group HUG Facebook page will vote for their favorite charity  by “liking” and “sharing” the logos from the charities. At the end of the campaign, which runs through the end of December, there will be four winning charities.

    Check out the Group HUG video trailer here and be sure to visit the Group HUG Facebook page to vote for your favorite charity. After all, what better way to celebrate the season of giving than with a nice big Group HUG?
  • Ogilvy Pitches Christmas to Focus Group Which Interprets Santa As Pedophilic Rapist

    What if you had to pitch Christmas to a focus group? As we all know, focus groups are a disastrous means of coming to consensus on anything. And that's pretty much what happens in this video created by Ogilvy & Mather Paris.

    After explaining some of the elements of Christmas such as a fat old man with a big beard, a little girl asks, "Why do I have to sit on his lap?" Just let that one sink in for a minute. Ick. Another woman offers up, "You know who else sneaks into your house through the chimney? Rapists." Ouch! This isn't going well.

    The confusion continues with focus group members wondering why Christmas is proposed to be in December instead of the much warmer August. And why the fat guy gets all the credit when he doesn't even buy all the gifts. One panelist even claimed proposed Christmas carols make him feel horny. No, not going well at all. And let's not even get into New Year's Eve.

  • Dick Rich, Co-Founder of Wells Rich Green Dead At 84

    Copywriting legend Dick Rich passed away from a heart attack on November 1. He was 84. His daughter, Karen Rich, made his death known last week. Rich, along with Mary Wells and Rich Greene, was one of the founders of the storied Wells Rich Green ad agency and creator of classic 60's work for Alka-Seltzer and Benson & Hedges. 

    He was known for his confident approach to his work telling The New York Times in 1983: “Clients don’t come to me for O.K. advertising. They come to me for great, great advertising.”

    A real man’s man who will be missed.

  • Starcom Just Screamed 'Oh Sh*t!'

    Looking to consolidate its global media planning business with one agency, Mars has handed its $1,7 billion account to MediaCom after a review. In a review that included WPP, MediaCom ousted incumbent Starcom, which was one of 8 agencies handling a (substantial) slice of that $1.7 billion. 

    Of the account shift, a Mars statement read: "With the constant change in the media landscape, this model will allow us to better collaborate across our global business to drive efficiency, effectiveness, and coordination in our media planning. This change brings our planning model in line with our existing global creative agency structure, and will allow us to further focus media as a growth driver."

    The account has been with Starcom since 2010. Just a couple of months ago, Starcom lost the planning portion of the $575 million Anheuser-Busch InBev. It's a sad week for sure for the media-buying shop.
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