2006 - 4a's

AMERICAN ASSOCIATION of ADVERTISING AGENCIES

YEAR IN REVIEW20

06

4 | Agency Management Issues

6 | Agency Relations & Membership

8 | Conferences & Special Events

10 | Diversity Programs

12 | Media Initiatives

14 | AAAA Technology Initiatives

16 | AAAA Washington, DC, Office

18 | Other AAAA Programs & Initiatives

ON COVER: Gnarls Barkley, performing at the NokiaTheatre, during Advertising Week 2006, September 25,2006, New York; AAAA chairman Anthony J. Hopp, at the2006 Management Conference for Agency CEOs, April 6,2006, Scottsdale, AZ; A group of interns from the AAAAMulticultural Advertising Intern Program class of 2006,August 10, 2006, New York.

Photography by Leah Harris

JANUARY 2007

From O. Burtch DrakePresident-CEO, AAAA

For the AMERICAN ASSOCIATION of ADVERTISING AGENCIES,the past year was filled with many exciting events andimportant initiatives that we sponsored on our members’behalf. Highlights of the AAAA’s busy calendar ofprograms included five national conferences—includingthe highly successful debut of the industry’s first supplierdiversity trade fair—publication of nearly 20 new books,and a successful third year of Advertising Week.

ADVERTISING SPENDING

On the advertising front, 2006 was marked by aprojected 5.2 percent increase in ad spending to$285.1 billion in the United States. Analysts areprojecting a modest 4.8 percent increase in U.S. adspending in 2007, to $298.8 billion.

THE YEAR AHEAD

Many of the same issues that the industry faced over thepast year will continue to take center stage in 2007.Agencies will continue to examine their policies ondiversity issues across a variety of categories, includingworkforce diversity, supplier diversity, and spending inethnic media.

The agency-client relationship, compensation, andownership of intellectual property will be hot topics foragency management in the coming year.

And following the mid-term elections and the switch ofCongressional control to the Democrats, agencies andadvertisers alike will contend with greater governmentscrutiny and calls for federal regulation on advertising tochildren and direct-to-consumer prescription drugadvertising.

The AAAA continues to focus on the concerns andneeds of our membership, and I look forward toworking with you in 2007. As we move into anotherbusy year, I’m pleased to highlight just a few of theaccomplishments of the AAAA in 2006, with a summaryof the Association’s top projects and initiatives.

4 AM E R I CAN AS S O C IAT I ON of ADVE RT I S I NG AG E NC I E S

The majority of AAAA members indicated that 2006was a sound year economically. Agencies from allgeographies, service types and size levels projectedsteady growth in 2006 revenues and profits. Therecovery in agency finances, from the industry’s2001–2003 slump, has occurred in spite of continuingclient pressure on agency compensation and anincreasingly challenging environment for finding andretaining affordable, experienced talent.

CLIENT COMPENSATION

In order to help agencies collaborate more effectivelywith clients, particularly when cost- or labor-basedcompensation arrangements are involved, the AAAApartnered with the Association of National Advertisers,Inc., to produce the 2006 ANA/AAAA CompensationGuide: Understanding Direct Labor, Overhead and theComponents of Cost-Plus and Labor-BasedArrangements, which was released in May 2006.

The 2006 ANA/AAAA Compensation Guide includes arecommended compensation dialogue process to helpfacilitate more comprehensive discussion of relationshipbenefits, priorities, and expectations.

The 2006 Compensation Guide also includes 10 guidingprinciples and 17 best practice suggestions, plusdescriptions of compensation methodologies, definitionsand illustrative templates. The ANA/AAAACompensation Guide is helping agencies with thestewardship of cost- and labor-based compensationapproaches that are being broadly used at this time.

VALUE PRICING

The AAAA expanded discussion and member educationon value-added, benefits-based pricing (value pricing) in2006. The Association’s value-pricing activities included:• “How to Get Paid What You Are Worth” seminars,

which featured Ignition Consulting Group’s TimWilliams. Mr. Williams discussed agency valuecreation, differentiation and articulation, along withpricing expert Ron Baker, who provided informationabout the theory, structure and negotiation of valuepricing models.

• The AAAA completed a pricing consideration survey,which has become a tool to help members evolvepricing as a core competence.

• Member case studies, the AAAA compensation

Agency Management Issues

2006 AAAA YE A R I N RE V I E W 5

TOP: 2006–2007 AAAA Board of Directors at the 2006 AAAAManagement Conference for Agency CEOs, April 5, 2006, at The Phoenician, Scottsdale, AZ.

dialogue process, and the AAAA pricing continuumprovided context and support to help membersexplore value approaches that are relevant to theirspecific client relationships.

• The concept of value pricing was introduced toadvertisers at selected ANA events and a “ThoughtLeader Workshop” expanded discussion of valuepricing to industry search consultants.

• An “Agency Value Creation Center” was launched asa daily feature in the AAAA’s SmartBrief daily e-mailnewsletter.

INTELLECTUAL PROPERTY

In 2006, the AAAA addressed the critical subject of“Ownership of Agency Ideas and Work.” Legal expertsand intellectual property specialists conductedworkshops to help members understand the legal andcontractual parameters associated with ownership,license, assignment, and monetization of agency ideas,plans and creative executions in both new businessreviews and existing client relationships. The workshopsincluded survey data, illustrative contract forms,negotiating suggestions and examples of intellectualproperty business models from other creative industries.

AGENCY TALENT

The relative strength of the U.S. economy, over the pastseveral years, has resulted in a shrinking pool of availabletalent in virtually all professional service sectors.Concurrently, the demand for talent in media andmarketing services industries has been exacerbated byfragmentation in client media budgets, micro-targeting ofconsumer messaging and client marketing accountabilitymeasurement. This perfect storm has resulted in ashortage of communications planners, digital creatives,data analysts and interactive technologists.

In order to help members deal with both current andanticipated talent challenges, the AAAA Human

Resources Committee is evolving talent initiatives in fivecritical areas:• Recruiting talent to the industry• Recruiting talent by individual agency members• Training and development of talent• Retention and enrichment of talent• Diversity of talent.

To help members recruit talent, the AAAA designed andlaunched a Career Center for job seekers to postrésumés and agency employers to post jobs openings,http://advertisingjobs.aaaa.org. This job and résuméposting site will be expanded in 2007 to include morerobust content pertaining to careers in advertising.

To help agencies retain talent, the AAAA expandedsalary survey information to encompass an expandedarray of jobs in a convenient online data collectionformat. The Association has also initiated acomprehensive battery of benefit plan surveys to helpmembers’ benchmark industry practices.

AHEAD IN 2007

AAAA Management Conference for Agency CEOsApril 18–20, 2007The Ritz-Carlton, Naples, FL


NEW MEMBERS

Two dozen agencies were elected to AAAA member in2006, bringing the total number of member offices theAssociation serves to approximately 1,200. AAAA staffvisited more than 150 members to insure that theymake maximum use of the Association’s many services.Of particular significance is an increase in the numberof applications from interactive agencies.

FORUMS

The AAAA Forum program continues to be one of themost vibrant and valuable benefits for agency leaders.Thirteen forums are now meeting in the fall and springeach year to discuss a host of issues relevant to runningstrong and financially profitable agencies. In addition toroundtable discussions, many meetings includepresentations by outside speakers, as well as visits toother member agencies.

Some of the groups have begun to include gatherings ofother disciplines, such as executives from agencies’creative, finance and media departments. Withapproximately 150 CEOs participating, the averagenumber in each AAAA Forum is 11, with five in thesmallest network and 15 in the largest, and turnoutaverages of 75 percent. The “Eagle Forum” is theAssociation’s newest and conducted its first meeting inNew York in October; another new group is currentlybeing formed and will hold its inaugural meeting inspring 2007.

INSTITUTES OF ADVANCED ADVERTISING STUDIES

The Institutes of Advanced Advertising Studies (IAAS),now in its 43rd year, provides an intensive andcomprehensive training environment for young,promising professionals in the business. Notably, theprogram delivers this training in the context of a “live”marketing challenge from an actual client marketer.IAAS instructors are drawn from the ranks of leadingagency professionals and the curriculum is continuallybeing updated to reflect the evolving skills and practicesof the agency business.

During 2006, the Institutes of Advanced AdvertisingStudies ran courses in eight cities across the UnitedStates, attracting 229 students from 100 agencies.

Agency Relations & Membership


Atlanta: February 21–May 2324 students from 12 agenciesClient: Arby’s Restaurants

Boston: January 27–May 228 students from four agenciesClient: Ocean Spray Cranberry Juice

Chicago: September 26–November 2121 students from 14 agenciesClient: Sears Craftsman Tools

Los Angeles: January 30–May 1542 students from 17 agenciesClient: Pedigree Dog Food

Minneapolis-St. Paul: January 31–April 424 students from 9 agenciesClient: AirTran

New York: January 30–May 344 students from 17 agenciesClient: Hershey’s PayDay Bar

Philadelphia: January 9–April 2526 students from 10 agenciesClient: Turkey Hill Iced Tea

San Francisco: February 13–May 1520 students from 17 agenciesClient: State Farm Auto Insurance

COUNCIL-SPONSORED ACTIVITIES

In addition to the eight IAAS programs, more than2,100 staff from member agencies attended localcouncil sponsored events, including creative summitsand senior management dinners, as well as professionaldevelopment seminars covering diverse topics such asnew business, selling creative work, accountmanagement training and presentation skills.

AHEAD IN EARLY 2007

New York Institute of Advanced Advertising StudiesJanuary 22, 2007–May 7, 2007

New England Institute of Advanced AdvertisingStudiesJanuary 26, 2007–May 8, 2007

FAR TOP: Joe Carlucci, vice president, agency relations &membership, AAAA, far left, and Marc Stephenson Strachan,director, New York IAAS, center, with the winning team from theNew York Institute of Advanced Advertising Studies, graduationceremony, May, 5, 2006, in New York.

NEAR TOP: Harley Griffiths, senior vice president, agencyrelations & membership, AAAA, top row, third from right, with theparticipants in the Gold Forum, at The Martin Agency, May 4,2006, Richmond, VA.

Near Top

Photo: M

ichele Barker


The AAAA successfully hosted a wide array of annualand inaugural national conferences, as well as numerousseminars, in 2006. These offerings gave members theopportunity to learn best practices from their peers andother experts working in the business.

ANNUAL AAAA CONFERENCES HELD IN 2006 INCLUDED:

The 13th Annual Media Conference & Trade Show,March 1–2, Orlando, FLThe Conference theme, “Now. Soon. And the Future,”tackled hot topics ranging from nontraditional media tobranded entertainment to advanced communicationsvehicles. Featured speakers included:• Former Vice President; and chairman, Current TV, Al

Gore, discussed the environmental issues close to hisheart and depicted in the documentary “AnInconvenient Truth”

• A panel of media services agency leaders featuredIrwin Gotlieb, GroupM; Jack Klues, Publicis GroupeMedia; Mark Rosenthal, Interpublic Group; CharlieRutman, MPG North America; Joe Uva, OMDWorldwide, Inc.; and David Verklin, Carat Americas.

Conferences & Special Events


The 2006 Management Conference for Agency CEOs,April 5–7, Scottsdale, AZThe Conference examined the multiple facets of ROI,and featured a roster of speakers who offered theirunique perspectives on how advertising is evolving.Featured speakers included:• Andrew Robertson, BBDO Worldwide• A panel discussion on “New Compensation Models,”

featuring Mary Baglivo, Saatchi & Saatchi; BradBrinegar, McKinney; Eric Lear, Crispin Porter +Bogusky. Moderated by Tom Finneran, AAAA

• Linda Kaplan Thaler, The Kaplan Thaler Group.

Account Planning Conference, July 24–July 26, MiamiThe Conference theme “Spark” worked to captureattendees’ imaginations while training them for today’snew business realities and possibilities. The AccountPlanning Conference grows in scope and attendanceeach year, speaking to the vitality of the accountplanning community. Featured speakers included:• Chuck Porter, Crispin Porter + Bogusky• Ann Hand, BP• Andrew Deitchman, Mother• Richard Tait, inventor of “Cranium”• Dr. Bob Deutsch, founder of Brain Sells• Jon Bond, kirshenbaum bond + partners• Nick Barham, TBWA\China.

INAUGURAL AAAA CONFERENCES AND EVENTS HELD IN

2006 INCLUDED:

Consumer Engagement Conference, September 28–29,during Advertising Week 2006, New YorkThe first-ever AAAA/ARF Consumer EngagementConference offered attendees the opportunity toexamine the beliefs, understandings and tools requiredto develop marketing communications programs thatcan turn on a consumer’s mind to a brand. Featuredspeakers included:• Lisa Baird, National Football League• Mike Hughes, The Martin Agency• Jim Taylor, Mediaedge:cia• Mark Tutssel, Leo Burnett Worldwide• Alan Wurtzel, NBC.

AAAA/AAF Supplier Diversity Trade Fair, November 3, New YorkA sold-out event, this first industry-wide trade fair gaveminority suppliers the opportunity to meet buyers ofgoods and services from the country’s premieradvertising agencies. Twenty-two top Americanadvertising agencies exhibited, including Arnold, BBDODetroit, Campbell-Ewald, Leo Burnett, McCannErickson, MediaVest, Ogilvy & Mather, Saatchi &Saatchi and TBWA.

In addition to national conferences, the AAAA heldmore than 50 programs via regional seminars andmeetings, including:

Management-Oriented Seminars:• Value-Based Compensation, May and June,

Chicago and Los Angeles• Ownership of Agency Ideas & Work Seminar,

September and October, Boston and Chicago• Thought Leadership Workshop, October, New York

Account Planning-Oriented Programs• Quantitative Research for Planners Workshop,

May 7–9, Boston

Professional Development Programs• Executive Leadership Program, January 30–February

3, Los Angeles• Agency Management Development Program,

October 25–27, New York• Account Management Seminar, featuring Sheila

Campbell, June, St. Louis and Rochester, NY;October, Austin, TX; and November, Atlanta andKansas City, MO

• Selling Creative Work, featuring Toni Louw,December, Kansas City, MO, and Winston-Salem, NC

• What Separates the Best From the Rest, featuring Tim Williams, March, Cincinnati; June, Minneapolis;and November, Chicago

• New Business Seminar, featuring Robb High,February, Chicago; March, San Antonio; andNovember, Dallas

AHEAD IN 2007

Executive Leadership Program, January 22–26, Key Biscayne, FL

Media Conference & Trade Show, February 28–March 2, Las Vegas

Management Conference for Agency CEOs, April 18–20, Naples, FL

AAAA Digital Conference for Agencies, June 14,New York

Account Planning Conference, August 6–8, San Diego

Finance/HR Conference, during Advertising Week2007, September 26–27

Visit www.aaaa.org for the latest news on upcomingAAAA conferences and special events.

LEFT: Robin Hafitz, founder, Big Picture Strategy, at the 2006Account Planning Conference, July 24, 2006, Miami.


Perhaps the single most talked about issue for theindustry in 2006 was diversity. In 2004, the New YorkCity Commission on Human Rights requestedinformation from New York agencies to examine theracial and ethnic composition of selected advertisingcompanies in the city.

Since the inquiry began, and over the course of 2006,the AAAA played an integral role in helping ourmembers tackle the very important issue of diversity.With guidance from the steering committee anddiversity advisory board of Operation Success, theAAAA’s industry-wide diversity initiative, and theposition paper, “Principles and Best Practices forInclusion and Diversity in Advertising Agencies,”AAAA member agencies were able to develop strategicplans for integrating diversity programs into theirbusinesses. This helped to create a roadmap thatresulted in the signing of agreements with the NewYork City Commission on Human Rights in September.

Although different for each agency, diversity goalsincluded the promotion, retention and recruitment ofpeople of color and women, with a focus onrecruitment of African Americans, to professional andmanagerial positions. In return for signing theagreements, the Human Rights commission haspromised not to bring any new action against theagencies during a three-year period.

MULTICULTURAL ADVERTISING INTERN PROGRAM

Through the AAAA Multicultural Advertising InternProgram, also known as MAIP, the Association placed103 students in 10-week paid internships at nearly 50member agency offices across the United States duringthe summer of 2006. Of the 33 interns in the MAIPClass of 2006 who were eligible for full-timeemployment (meaning they were not returning tocollege or entering graduate programs), 23 haveaccepted job offers and are working in the industrytoday. Since the program’s inception in 1973, morethan 1,500 students from ethnically and raciallydiverse backgrounds have graduated.

OPERATION JUMP START SCHOLARSHIP PROGRAM

In 2006, the AAAA Foundation, Inc., launched thethird round of Operation Jump Start, a scholarship

Diversity Programs


program that was established in 1997 to providefinancial assistance to aspiring multicultural artdirectors and copywriters. The program is funded bydonations from AAAA member agencies, which haveeach committed $25,000 over a five year period(2006–2010). The AAAA has matched the agencies’contributions, and beginning in 2007, $1,033,000 willbe available for Operation Jump Start III scholarships.

More than $2.6 million has been raised to date sincethe program’s inception, and 153 students have beenawarded Operation Jump Start scholarships. EachJump Start scholar receives $10,000—paid in twoannual installments of $5,000—to put towardeducational expenses. All students who havecompleted the program have obtained jobs in theadvertising industry.

RECENT ACTIVITIES IN OTHER SCHOLARSHIP PROGRAMS

Advertising Age announced that it will earmark anannual $10,000 scholarship to the Foundation for aminority student studying media planning at TheAdCenter at VCU, beginning in 2006.

The Victor Ornelas Scholarship has been re-focused tospecify that the University of the Pacific (Mr. Ornelas’salma mater) will receive the scholarship money for aHispanic student studying marketing communications.

PARTNERSHIPS WITH CREATIVE PORTFOLIO SCHOOLS

Scholarships administered by the AAAA Foundationare awarded to multicultural students pursuingdegrees in advertising and design at participatingportfolio schools, which include: The AdCenter atVirginia Commonwealth University; The Art Center

College of Design, Pasadena, CA; The CreativeCircus, Atlanta; The Miami Ad School; MinneapolisCollege of Art & Design; The Portfolio Center inAtlanta; Pratt Institute, New York; and the Universityof Texas at Austin.

AAAA LAUNCHES MEMBERS-ONLY DIRECTORY OF

MINORITY SUPPLIERS

In March 2006, AAAA launched a Web-based searchtool to help members find certified minority- andwomen-owned suppliers and vendors. This newservice was developed in partnership withDiversityBusiness.com, a leading national supplierdiversity database. This service is available to AAAAmembers, 24/7, at no cost.

This online directory is a convenient way to search fordifferent categories of minority- and women-ownedsuppliers. Members are able to search by productdescription, NAICS code or SIC code. To helpagencies navigate the database, AAAA members wereprovided with a list of NAICS codes that seem to bethe most relevant to agencies’ supplier needs.

INAUGURAL SUPPLIER DIVERSITY TRADE FAIR

In partnership with the American AdvertisingFederation, the AAAA held the first-of-its-kindSupplier Diversity Trade Fair for minority suppliers tomeet agency buyers. The event was held November 3,in New York, and attracted more than 400 attendeesand 22 agency exhibitors.

TOP LEFT: TOP LEFT: Jeff Thibodeau, 2005 MAIP Intern of theYear, and assistant account executive, Deutsch; Chelsea Cousins,2006 MAIP Intern of the Year, and 2006 MAIP media intern, CheilCommunications America; Angela Johnson Meadows, manager,diversity programs, AAAA; and Chris Canada, president, MAIPAlumni Association, and account executive, Footsteps; at theMulticultural Advertising Intern Program graduation ceremony,August 10, 2006, New York.

TOP RIGHT: Twenty-two agency exhibitors and more than 400minority and women business owners participated in the inauguralAAAA/AAF Supplier Diversity Trade Fair, November 3, 2006, New York.

AHEAD IN 2007

Look for the launch of a new book series, “DiversityBest Practices for Agencies.”


In 2006, the Association’s Media Services Divisiondeveloped programs and acted on the membership’sbehalf in a variety of areas and on various issues. TheMedia Service Division also released and distributednumerous bulletins and books to our members.

The AAAA Media Conference & Trade Show continuesto grow in attendance and importance within theindustry. Held in Orlando, FL, the 2006 MediaConference program featured an all-star roster ofspeakers including former U.S. Vice President, andchairman, Current TV, Al Gore, and the trade showfeatured more than 100 exhibitors.

INDUSTRY POSITIONS AND INITIATIVES

Broadband Video Guidelines: Members of theInteractive Marketing & New Media Committee andMedia Research Committee provided extensivecomments to the Interactive Advertising Bureau’s“Broadband Video Commercial MeasurementGuidelines” prior to the Guideline’s release in February.

The Need for Audited Circulation for Yellow Pages: InJune, the AAAA Directory Advertising Committee andthe ANA Telephone Directory Committee developedan overview discussing the differences betweendistribution verification and audited circulation. Theeducational piece also included the reasoning behindwhy advertisers need audited circulation. Thedocument was sent to the Boards of the Yellow PagesAssociation (YPA) and the Association of DirectoryMarketing (ADM).

Commercial Ratings: The Association sent a letter toNielsen’s Susan Whiting in August, outlining concernsand requests about Nielsen’s plan to release commercialminutes. The letter was sent on behalf of the MediaResearch, Media Policy, National TV/Radio, LocalTV/Radio and Media Technology Committees.

Media Committees: In April, members of the BrandedContent Committee decided to change the group’sname to the Entertainment Marketing Committee.Also, the Consumer Magazine Committee andNewspaper Committee were merged to form the PrintMedia Committee.

AHEAD IN 2007

AAAA Media Conference & Trade ShowThe Venetian, Las VegasFebruary 28, 2007–March 2, 2007

Media Initiatives

Former Vice President Al Goreat the 2006 Media Conference& Trade Show, March 2, 2006,Orlando, FL.

Photo: A

rt Beaulieu


AD-ID

To date, more than 500 companies are using the Ad-ID advertising identification system for ad coding, a 15 percent increase in new sign-ups in 2006 over2005.

More than 58,000 Ad-ID codes have been generatedfor ads appearing in broadcast, print, Internet, theater,in-store, etc. Broadcast continues to dominate Ad-IDusage, but we hope to significantly boost system usagefor Internet advertising in 2007 through opportunitieswith DoubleClick and Atlas Solutions.

In 2007, the Association will continue to promote theuse of Ad-ID internationally through our partners andsystem users.

This past spring, Microsoft and Ad-ID announced anagreement at the NAB Conference. This will involveMicrosoft’s applications (Xbox Live, Windows,Windows Mobile, Microsoft TV, MSN Search, etc.)placing an Ad-ID code and its metadata into thecontent, making it possible for consumers to searchfor ads and improve the accuracy of consumer referraltraffic to the advertiser’s ad or Web site.

Through the agreement with Microsoft, Ad-ID hasalso joined with ISAN (International StandardAudiovisual Number). ISAN is a voluntary numberingand metadata system for the identification ofaudiovisual work and its related versions, includingmotion and animated pictures, short films,documentaries, trailers, video games, TV programsand productions.

The ISAN number can be used to identify theaudiovisual content, like a motion picture. Havingboth an ISAN and Ad-ID code will provide thegreatest opportunity for cross-promotion later in thelife of the media asset, such as media re-purposing andinternational usage.

EBIZ FOR MEDIA

The AAAA ebiz for media initiative, whose goal is tomove the industry toward full implementation of atwo-way electronic relationship between mediatraffic/sales systems and media buying systems via

AAAA Technology Initiatives


industry standards, made significant progress in 2006.

In addition to the work that the media tradeorganizations have done in creating the XMLstandards, the Association continued to work with themedia agencies and their software providers toheighten awareness and increase involvement in theinitiative.

As a result of the success in this area, the Associationhas worked with its constituents, the media companiesand the software vendor community in 2006 tocomplete the AAAA Global Header, re-launch the ebizfor media Web site to promote participation anddisseminate information about e-business efforts, andobtained commitment (financially and resource-wise)from seven leading software companies to becomeFounding Gateways and create the industryinfrastructure for transmitting electronic messages.

The Association also formed and is running a cross-media invoice committee for the creation of XMLbroadcast invoice standards upon the request of theindustry’s software vendors. In addition, theAssociation has begun the development of one of themost critical components of the initiative—thebuilding of the Registry—with the hiring of Arbinet, aleading technology provider that created the world’slargest electronic marketplace for communicationstrading and has built corresponding registries. TheRegistry will be built for all media, with spot TV andspot radio being the first media to commit to using itupon its completion in mid-2007.

The AAAA ebiz for media initiative has receivedcontinued support from media agencies, foundinggateways, and media trade associations, and theAssociation looks forward to the implementation ofstandards with the Registry and Gateways in 2007.

AHEAD IN 2007

Look for the implementation and launch of the ebizfor media Registry and Founding Gateways in mid-2007.

FAR TOP: Ad-ID and ebiz for media exhibitor booth at the 2006Media Conference & Trade Show, March 2, 2006, Orlando, FL.

NEAR TOP: Greg Smith, chief information officer, McCannWorldgroup; Marisa Kabasinskas, principal, 4 Strong Consulting;Michael Donovan, founder, chairman and CEO, Donovan DataSystems; David Alstadter, senior director, Microsoft worldwidemedia and entertainment marketing, partners & solutions,Microsoft Corporation; John Shelton, president, Strata Marketing,Inc.; Kathy Crawford, president of local broadcast, MindShare;and David Prager, chief information officer, Katz Media Group; atthe ebiz for media update session at the 2006 Media Conference& Trade Show, March 2, 2006, Orlando, FL.


Dick O’Brien and his experienced staff in the AAAAWashington, DC, office, continued to effectivelyrepresent and advocate on behalf of agency businessesin the Association’s relations with local, state, andnational government.

Mr. O’Brien reports that 2006 was a highly politicalyear, as new candidates and incumbents sought toposition themselves prior to the November elections.Two marketing issues with high voter visibilityprovided a focus for policymakers’ attention:• Direct-to-consumer advertising of prescription drugs• Marketing of food products, especially to children.

The interest in these topics has gained addedsignificance following the mid-term election and thechange in Congressional leadership. Post election, the

AAAA Washington, DC, Office


AAAA Washington, DC, office has increased itsalready active and targeted outreach to decision-makers, meeting with allied advertising groups, keyCongressional and Executive office staff, and themedia.

In addition to their work on Capitol Hill, theAssociation and other advertising and media groupspaid particular attention to the federal regulatoryagencies in 2006, especially the FederalCommunications Commission, which continues topursue a strong agenda on program content,obscenity, and product placement; and the Food andDrug Administration, which is re-examining its policyon drug marketing and drug safety.

Mr. O’Brien also has taken an active role in globaladvertising issues in 2006, most recently representingthe United States in meetings and negotiations in theEuropean Union on marketing to children.

At the state and local level, improving economiesgenerally have reduced efforts to increase businesstaxes. The Association took a leadership role in adebate in Texas concerning changes in the state’sbusiness tax computation. We expect further action inTexas before the tax is fully implemented in 2008.The staff of the Washington, DC, office is available toall our members when you have questions aboutgovernment policy issues.

As an added effort, Mr. O’Brien and his staff alsovolunteer their time to manage the communications andmarketing industry’s only political action committee,Professionals in Advertising (PRO-AD PAC).

This PAC provides one of the most important andeffective areas of outreach for our industry, reachingacross all segments of the business—agencies, clients,media and pubic relations. Funded by individualvoluntary contributions, PRO-AD PAC supportscandidates for Federal office who understand ourindustry’s concerns and priorities. Since its foundingin 1989, the PAC has helped elect to office more than300 candidates from both parties.

AHEAD IN 2007

New Congress, new leadership, new revenuedemands could mean BIG problems for themarketing industry.

Most vulnerable to government threats:

• Direct-to-consumer advertising of prescriptiondrugs

• Deductibility of advertising expenses, both ingeneral and product-specific

• Marketing to children, especially food products.

LEFT: Dick O’Brien executive vice president, director ofgovernment relations, AAAA, Washington, DC, office; SenatorHillary Rodham Clinton (D-NY); O. Burtch Drake, president-CEO, AAAA; and Linda Kaplan Thaler, chief creative officer andCEO, The Kaplan Thaler Group; at an invitation-only PRO-AD PACfundraiser for Sen. Clinton, October 16, 2006, New York.


TALENT UNION ISSUES

The ANA-AAAA Joint Policy Committee successfullyreached agreement with SAG and AFTRA on a two-year extension to the TV and Radio CommercialsContracts. The extension will allow both sides the timeneeded to pursue a joint investigation of alternatemethods of compensation to performers that will moreaccurately reflect the present-day media landscape andadvertisers focus on ROI.

AAAA BENEFITS, INC.

AAAA Benefits, Inc.’s Workers’ Compensation programcontinues to insure 70 percent of AAAA membership.The 2005 dividend declared and returned to memberswas 35 percent of the $25 million of premium.

In 2006, AAAA Insurance Programs have introducedimproved Group Life, Group Long-Term Disability andShort-Term Disability coverages.

Plus, AAAA Retirement Plan Services has expanded itsWeb site to graphically depict participants accountinformation and investment options. For moreinformation, visit www.AAAABenefits.com.

AAAA COMMITTEES ACTIVITIES

In 2006, two new committees were created to betterserve our members’ needs:

Print Media Committee: The Print Media Committeewas formed by merging the AAAA NewspapersCommittee and AAAA Consumer MagazinesCommittee. Part of the mission of the newly formedcommittee is “to review industry procedures involvingmagazines and newspapers, and to makerecommendations for changes/improvements that willmake our system work better or are mutuallybeneficial.” The Print Media Committee is co-chairedby Harlan Schwarz, TargetCast tcm, and RobinSteinberg, MediaVest USA.

Broadcast Traffic Committee. The Broadcast TrafficCommittee was formed in order to review and discusstopics that affect industry broadcast traffic proceduresand systems; to research and investigate new processesand technology by meeting with various industry-related

Other AAAA Programs & Initiatives


companies and groups whose work and business impactthe broadcast traffic function. The Broadcast TrafficCommittee is chaired by Adrienne Toma, JWT, NewYork, and vice-chaired by Deborah Murray, Y&R,New York.

ADVERTISING WEEK 2006

Advertising Week 2006 raised the bar and reached newheights across the board. The Week began with a bang,as Martha Stewart hosted a Kick-Off LeadershipBreakfast. Ms. Stewart narrowly defeated BBDO’sGlobal CEO and Advertising Week Board memberAndrew Robertson in a hotly contested “Waffle Off.”

Advertising Week thought-leadership programmingfeatured luminaries such as NBC chairman Bob Wright,Omnicom chairman John Wren, movie mogul HarveyWeinstein, and others such as Robert F. Kennedy Jr., Dr.Jeffery Sachs, Newark Mayor, the Honorable CoreyBooker and Microsoft’s Joanne Bradford. More than8,000 registrants attended Advertising Week keynotesand panels.

The evening events were a big hit beginning with theOpening Gala at Bryant Park, which attracted more than700 industry leaders. The inaugural edition of AOL’sAMP’D UP, featuring a live performance by Grammynominee Gnarls Barkley, was standing-room only.Tuesday evening featured the third edition of Yahoo!Music Upfront Live, presented in partnership withBillboard, another sold-out crowd and a night of terrificmusic by emerging artists. Wednesday night featured the2nd annual Advertising Week Texas Hold ’EmInvitational and the first-ever CEO Comedy Stand-UpShow Down, hosted by HBO’s Susie Essman. The Week

was capped off Thursday night with GeneratioNext heldat Tribeca Cinemas, which generated $100,000 to funddiversity programs in New York City under the aegis ofthe AAAA Foundation, Inc.

The Week concluded with Advertising Futures, which isthe beacon of our youth outreach program. AdvertisingWeek is deeply committed to helping ensure the futureof the business by exposing and attracting young peopleto advertising. Nearly 40 New York City high schoolsworked with agencies large and small to create anoriginal campaign based on an Ad Council Brief.

AHEAD IN 2007

Advertising Week 2007 will take place in New York,September 24–28.

TOP LEFT: Students and facilitators from the 2006 AdvertisingFutures final presentations, during Advertising Week 2006,September 29, 2006, New York.

TOP RIGHT: Martha Stewart, Martha Stewart Living Omnimedia;and Andrew Robertson, CEO, BBDO; during the Week’s openingbreakfast and “waffle off,” September 25, 2006, New York.

Photos: S

teve Maller

2006 - 4a's

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