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2019

Chairman’s Letter Q2

This issue of the Front Foot Quarterly comes at a time of huge change for the UK advertising industry, particularly how it positions itself on the global market. There’s a lot of work still to do - but as the features in this issue demonstrate, I’m confident the industry is taking the necessary steps to protect our interests in the future.

March was Export Month, during which members of the Front Foot network were busy promoting the value and expertise of UK advertisers at events as far afield as Shanghai and Austin, Texas. We’ve known for years that the UK outperforms other countries’ advertising industries per capita, but we haven’t always shouted about it as loudly as we could have. Events like the Shanghai International Advertising Festival and South By Southwest give us the opportunity to do just that. You can read all about our efforts on pages 4-5.

Domestically, the advertising industry is making strenuous efforts to rebuild public trust. March saw the publication of a new report at the ISBA conference, ‘Addressing

the Decline of Public Trust in Advertising’, based on research by Credos. Key points from the report, as well as the industry’s response, can be found on pages 10-11.

On a personal note, I’d like to extend an invitation to every Front Foot member to get involved in Campaign’s Sprintathon, a competition to find the fastest team of runners in the ad industry. It’s in aid of Stand Up To Cancer, and you can find more information on the Sprintathon below. I hope to see you all there!

Mark Evans, ChairmanFront Foot

Want to help raise money for Stand Up To Cancer and get fit in the process?

On 25th July, ad land is getting its own version courtesy of Campaign. Even if you don’t think you can run a marathon, the

industry can do it together - in 100m bursts per person.

For more information or to enter your team, visit standuptocan-cer.org.uk or search for ‘Campaign Sprintathon’.

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We’ve always known that the UK punches above its weight when it comes to exporting advertising services. We win more Cannes Lions for our creative efforts per capita than any other country, and that we attract an incredible amount of overseas talent to work in UK advertising as a result.

But ahead of Brexit - and as a useful bellwether in the long run - the Advertising Association has launched an annual series of Exports Reports to keep track of the value of our advertising experts in tangible terms. Among other pieces of information included in the first report is that the UK exported £6.9 billion worth of advertising services to the year ending December 31, 2017.

The first ever Exports Report was launched during Advertising Week Europe in March, at a packed-out Ronnie Scott’s Jazz Club breakfast. Its Global CEO Matt Scheckner explained why the UK is seeing such buoyancy ahead of challenging political times:

“Without question the creative industries… [are] a vital part of the pathway going forward for this country’s economy, no matter what the rules of the road are.”

Other findings from the first annual Exports Report, building off work from Credos:

• 80% of businesses surveyed employ non-British nationals, supporting the findings of previous Credos research which has shown the UK advertising indus-try to be a magnet for global talent. The figure rises to 90% for businesses in London.

• 24% of businesses surveyed are owned, either in ful or in part, by an overseas company, reflecting the popularity of the UK as a destination or global

• businesses looking to expand into Europe.• 87% of businesses surveyed generate income over-

seas, with overseas clients accounting for an average of 31% of revenue where known

More information and a copy of the report can be found at adassoc.org.uk

Exports Report Digest

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Shanghai International Advertising Festival

As part of our Export Month endeavour, we have had a team of Advertising Association, Department for International Trade and other professionals out extolling the virtues of British creativity in China. Advertising Association Chief Executive Stephen Woodford said:

“UK/China trade is booming and Chinese advertis-ing has high regard for the UK’s creativity, effective-ness culture and global outlook. The presentations and meetings at SHIAF showed all these strengths and more. Inspiring creativity, powerful case histories and the factors that drive successful international campaigns, new technology and best practice in evaluating advertising effectiveness all featured, with a mix of UK practitioners and their Chinese colleagues sharing the stage.”

The value of the UK’s creative heritage cannot be overstated when it comes to explaining China’s de-sire for closer collaboration with the UK. The coun-try is positioning itself as a creative powerhouse in its own right under its Belt & Road Initiative. Consequently, the appetite for British advertising talent and expertise is at an all-time high. Woodford explains:

“The UK delegation made valuable business contacts and impromptu follow-up meetings were held all week, both in Shanghai and others made quick trips to Beijing. For several businesses in the delegation, SHIAF was the catalyst to opening up new ventures in China and many of the Chinese companies present were looking to expand in and through the UK to other international markets.”

South By Southwest

Austin, Texas saw a huge contingent of UK creative talent and media descend upon it for its annual celebration of creative living, South by Southwest.

The Promote UK team had been doing active out-reach to UK firms in the months in running-up to the event, asking them to consider putting them-selves forward for panel discussions and presenta-tions. The Department for International Trade with support from Abbey Road Studios, took an Advertising sector mission and an Interactive/Im-mersive mission to SXSW from 8 -14 March 2019 led by DIT’s Creative Industries Sector team.

In addition to the wealth of British organisations that went out to represent the country, SXSW also saw a number of panels on the topic of closer col-laboration between agencies and clients. Technology is frequently mooted as the connective tissue between the two, so it was only natural that British firms with their expertise in adtech and be-spoke solutions should have a presence there.

March was Export Month for the advertising industry, a chance for industry practioners to shout about our expertise and long history of creative excellence.

With delegations to China, Japan and the United States, the month saw members of the Promote UK team and wider industry forging new relationships

that will bear fruit over the next few years. The key takeaways from each mission can be found below, but the campaign to champion Britain’s advertising

expertise is ongoing.

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Tokyo Advertising Forum

From the 11th - 14th of March a delegation led by the APA were in Tokyo for Advertising Forum 2019. Given that Japan is the third largest adver-tising market in the world, it was vital that the UK have a strong presence. The delegation, led by the APA’s Steve Davies, was designed to act as a cultural exchange between UK delegates and their Japanese counterparts. Promote UK Chair Janet Hull explains:

“The way forward for UK companies is to market themselves to the in-house production companies of the major agencies, and to a couple of sizeable independents, and to work in their supply chain. To succeed in Japan will take stamina; regular communication, on the ground representation, bi-lingual (Japanese/English) staff and an authentic appreciation of Japanese culture. It will require a long-term commitment and is not for the faint hearted.

“Nevertheless there is a huge appreciation of the quality of the UK’s advertising craft and creativity and a new understanding that the APA can act as a gateway to the UK market. There is no scarcity of opportunity either. Over 15,000 commercials are made a year in Japan, 60% through Dentsu, 20% through Hakuhodo, and 10% through ADK. If UK production companies can be accepted by any one of these three they could be in line for a steady stream of new work.”

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Front Footmembers’ profile:

Lisa Morgan is Managing Director of Generation Media, the number one indepdent specialist agency for connecting brands with children, young people and parents. In this Front Foot Member’s Profile she explains why the children’s entertainment space is a rewarding one in which to work, how changing tech trends have helped Generation Media to grow its in-ternational presence, and what the future of children’s media looks like.

Given that it was Generation Media’s 10th anniversary last year (congratulations!) how has the industry and the role of children’s media within it changed over that time? It is obvious that a great deal has changed in the last decade. Let’s look at 5 key areas that have, and are still, impacting our business and marketplace… Economic climate:Generation Media launched in 2008, just as the UK hit the heights of the recession, not generally a great time to start a business one would think. However, with a focus on the Toys and Games market, and a knowledge that parents would not let their children ‘go without’ during financial hard-ship, we encouraged our founding clients to invest through the recession. This ‘paid off’ providing them with a competitive advantage against the com-petition who ‘pulled back’ during times of austerity.

Screen technology:In 2010, two years into our trading history, the iPad was launched and we correctly predicted the impact this would have in terms of children’s media consumption and play habits… boy, were we right! No longer were we talking about Gen Z but focusing on Generation Alpha and predicting the challenges and opportunities that this market will have for our Business, clients and the world as a whole. Now known as the ‘Glass Generation’, screen technology has revolutionised our children consumers of today. Clients and prospects:Our target audience of today are the children of the millennials. This has had 2 major impacts on Generation Media as a Business… Firstly, with children actively impacting and driving many household decisions, we are widening the net in terms of clients and prospects. We are not con-strained to working with brands overtly communi-cating only with children and can advise brands on their plight to appeal to a wider family demograph-ic. Secondly, with our first generation of millennial children now entering the youth and young adults audience, who better to lead on communications to them than the agency that has grown up alongside them?

“One trend that will not change is the fickle nature of children, so the million dol-lar question in the industry is what will be the next big thing?”

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Professionalism:One of our original missions and an ongoing focus is to champion professionalism within our sector. Ensuring our clients’ business is given the deserved care and attention from agencies and supplier part-ners alike in a sector previously overlooked. Our scale and success has stimulated market awareness to better understand and serve children’s audiences and advertisers. International:With the rise of programmatic buying we now have an international audience at our fingertips. In line with this our clients and prospects were increasing-ly demanding a global offer. Our centrally managed international solution “The Next Generation Media Exchange” was born. 5 years in and we can now provide our specialist media planning and buying service on a global scale making us a leader in Chil-dren’s advertising around the world. What ongoing trends around entertainment, parent, child and youth focused brands and prod-ucts do you see continuing over the next few years? We often read about the death of TV amongst our core target but for young children (under 9) there is still very much a viewing ritual surrounding live linear content consumption. Our market has been able to benefit from efficient entry points for TV advertising over recent years. Whilst this is still the case, combined with a large engaged audience and high return on investment, we will continue to strongly invest in children’s commercial TV for the foreseeable future. Our research partner Giraffe Insights conduct an ongoing stakeholder study into cross platform video consumption amongst 2-9 year olds ‘Kids and the Screen’ (KATS). This helps us fill the gap of the tra-ditional measurement platforms that have struggled to keep pace. What we are observing is the increas-ing time spent in You Tube.

Be it TV, influencer or gaming content it is clear You Tube’s dominance is here to stay. With im-provements in tech surrounding optimisation and brand safety we would expect spend in this area to continue to grow. Product wise we are seeing a rise in time spent video gaming which aligns with our movement into this sector and focus on our first generation of con-sumers that are now young adults. One trend that will not change is the fickle nature of children so the million dollar question in the industry is what will be the next big thing? What is the value of being a member of the industry network Front Foot to Generation Media? Generation Media strive to be an active member of our industry and Front Foot gives us an opportuni-ty not only to be part of the conversation but also have a role in guiding it. We value the work of the AA in informing, repre-senting and promoting the advertising industry. Be it briefing breakfasts, Parliamentary Receptions or The Media Business course, the events allow us to raise the profile of both our agency and our people. The under 16 market is often at the centre of pub-lic and political controversy in advertising so the lobbying, research and advice the AA can supply on these issues is critical. We are also proud to be investors and advisors to The Media Smart pro-gramme, the advertising industry’s corporate social responsibility programme that educates young peo-ple on media and advertising literacy. As we look to our own expansion across the globe we also fully support the AAs “A Great Advert for Britain” campaign.

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Each year the Cannes Young Lions competition is an opportunity for the cream of young British advertising between the ages of 18 and 30 to strut their stuff in the beautiful surroundings of Cannes.

As the UK rep for the Cannes Lions, the Advertising Association has spent the past few months arranging and managing the initiative for this year’s crop of entrants.

In January, following our annual LEAD conference, we ran two events at King’s Place – the first for over 200 young people aged 16-24 who are interested in pursuing a career in the advertising industries, and the second for under 30s currently working in UK advertising who believe they have what it takes to represent the UK on the world stage of advertising.

In June, together with our partners Channel 4, Clear Channel, the Department of Inter-national Trade, Framestore, London & Part-ners, M&C Saatchi and Newsworks, we will be flying 12 of those under 30s to Cannes to compete in the global Young Lions competitions.

Previous winner of the Young Lions competi-tion Tom Wordley explains why he entered:

“It’s tremendous fun, costs nothing, is over as quick as it starts, and if you’re lucky enough, you get a free trip to Cannes.”

In order to qualify for the prestigious honour, the young hopefuls needed to complete a creative brief under a tight deadline.

In teams of two the competitors were given a few short days to match the brief, coming up with advertising campaigns innovative enough to impress our group of judges, all of whom are themselves veterans of the creative industries.

Previous briefs for the on-site Young Lions competition have been set by NGOs includ-ing the United Nations, Save The Children, Greenpeace, Global Citizen, WWF, Amnesty International, UNHCR and UN Women.

Each and every pair will have their work cut out for them to defeat their rivals at the finals of the Cannes Young Lions competition. On behalf of the Front Foot and Advertising Asso-ciation teams, we wish them the best of luck.

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“Not only does Cannes set the bar for creativity and for effectiveness......it makes your work better, and that’s got to be a good thing”

Vicki Maguire, Chief Creative Officer, Grey London

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In March, the Advertising Association and Credos published an exhaustive report into UK public trust in advertising. ‘Arresting the Decline of Public Trust in UK Advertising’, takes a look at the long-term causes of a decades-long decline in public trust in UK advertising.

Among other findings, the AA’s tracking research shows that public favourability towards advertising has been in decline for decades, from around 50% favourable in the early 1990s to just 25% in 2018. Additionally, the research demonstrates the favourability and trust are highly correlated.

The research for this latest report, undertaken by independent research agency Craft, was comprised of two stages. The first involved qualitative anal-ysis of small groups exposure to advertis-ing, while the second took the form of a nationally representative sample of 2,021 people.

The results identified six overarching factors that shape the public perception of advertising:

• Effective communication of advertis-ing’s benefits

• Seeing ads targeted at sensitive and vulnerable groups

• Perception of advertising bombard-ment

• Concern over advertising unhealthy products

• Intrusiveness of advertising• Suspicious advertising techniques

Crucially, the report also sets out five actions that the entire industry should undertake in order to restore the public’s trust in advertising, and a checklist of

criteria to measure the success of those actions as they are deployed.

It builds upon the calls from Advertising Association president Keith Weed and Front Foot chairman Mark Evans for a cross-industry response to the trust crisis. Weed has previously said: “Ultimately, advertising does good but with trust in decline, we risk it losing that positive influence. A brand without trust is simply a product and advertising without trust is just noise. It’s trust or bust and I choose trust.”

The launch of the Trust report received widespread attention in trade and mainstream press, drawing attention to the fact that the industry as a whole is committed to solving the public’s con-cerns over the behaviour of advertisers and the technology that underpins it. Our comms team were kept busy with appearances across broadcast, news and trade media, to outline the core findings and next steps of the plan.

In 2018, the Advertising Association set up a working group under the joint chairmanship of Paul Bainsfair, Director General of the IPA, and Phil Smith, Direc-tor General of ISBA, to determine the way forward around trust. It has broad support from industry bodies including the NME, PPA, DMA and IAB as well as ITV, Channel 4, Sky, Google, Facebook, Royal Mail and the ASA. The Trust report is the fruit of that effort, and it is only with the collaboration of the entire indus-try that we will achieve our goals.

To receive your own copy of ‘Arresting the Decline of Public Trust in UK Adver-tising’ visit adassoc.org.uk.

Restoring Public Trust in Advertising

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“The time for action is now, whilst advertising is still seen as a ‘good thing with downsides’, rather than a ‘bad thing with

upsides’”

Stephen Woodford, Chief Executive, Advertising Association

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Honing the Art of Debate at WestminsterCrafting an argument and defending it from detrac-tors takes a varied skillset and hours of practice. It’s easy to set out a position; it’s very difficult to defend that position when an opponent deliberately sets out to reduce it to nothing.

That’s why the Advertising Association has been a long-term member of The Debating Group which has held debates in the House of Commons on the contentious political issues which surround market-ing since 1975.

It is the perfect arena to let selected participants test their ability to perform under pressure. The last event, which took place on April 1st, saw par-ticipants debate the motion: ‘Despite Brexit, the UK will be the pre-eminent advertising hub on the world stage for years to come’.

The exclusive event was chaired by Ian Lucas, MP while Steve Davies, Chief Executive, Advertising Producers Association and Sarah Jenkins, Chief Marketing Officer for Grey London, argued for the motion. On the other side of the podium, Mat-thew Bloxham, Head of EMEA Media, Technology & Telecom Research, Bloomberg Intelligence and Sarah Taylor, Client Partner, Finch Factor provided counterpoints.

One previous debater - our chief executive Stephen Woodford - says:

“There is something very special about being part of a debate in Westminster. If the grandeur of the rooms, the surroundings and sense of the history don’t make you raise your game and deliver your best, nothing will.”

While primarily a fun exercise in the art of debate, the skills gained through contesting and defending points are more vital than ever for ad industry prac-titioners. The industry is having to stand its ground

on issues around HFSS, gambling advertising, and openly debating the need to take action to address a historic lack of public trust. Representatives of the Advertising Association alone have variously appeared on stage, on television and the radio over the past month to represent the industry on a wide range of issues.

Practice, then, makes perfect. IAA UK Chapter President Fredrik Borestrom, another previous participant, explains why the skills learned during the debating group have applications far beyond play fighting:

“I think it’s crucial in both your professional and personal armoury but especially in business as you’ll always need to debate or negotiate with part-ners, clients or suppliers.

“You will often be on different ends of the spectrum and you’ll need to hear their points of view, argue your own and make your case, in a calm, structured and collected way.”

For Woodford, the ability for the advertising indus-try to work collaboratively to advance an argument is paramount:

“At the AA we’re in the thick of arguing the case for current rules on HFSS advertising being main-tained and on the evidence we’ve assembled, the case is strong. But the 9pm watershed and other restrictions have become totemic targets for NGOs and some MPs: it feels that many are unable to see correlation does not mean causality.”

While the Debating Group events are meant to be fun - ending with some informal drinks in a Westminster bar - the skills set to be demonstrated there might ultimately end up being used in service of the whole industry.

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Your head of Credos,Karen Fraser MBEKaren Fraser is Director of Credos, the indus-try’s think tank. Over the course of its existence Credos has produced reports and factsheets on issues that directly affect the ability of the industry to perform its work.

It has been instrumental in producing research around the value of the UK’s advertising exports, the benefits the UK ad industry receives from international talent, and most recently around what can be done to restore public trust in advertising.

What was your path in the industry to Credos?

I was always fascinated by human behaviour so I did a psychology degree at university . My final year thesis was on advertising. I knew that I want-ed to work in an advertising agency. I didn’t have any contacts but I created a list of top agencies and I wrote 100 letters, got about 10 replies, three interviews, and one job offer.

I worked my way around the agency until there was only one department left, research and plan-ning. 30 years later, I’m just as fascinated by people and their motivations as I was back in the beginning.

What are the biggest issues facing the industry over the next few years, and how is Credos helping practitioners prepare for it?

Machine learning. Talent. Trust. And I hate to say it, but possibly recession. Despite that I believe that UK advertising can build on a strong culture of creativity, freedom of expression, culture, tech and hub effects in order to thrive.

What work as director are you most proud of?

I’m proud of all the work we’ve done in Credos for our members. We created it in 2010, and with Credos chairman James Best we’ve since produced some world-firsts in the form of Advertising Pays, Pretty as a Picture, and timeTo among them. In that time MPs’ trust in advertising has risen from 52% in 2011 to 72% in 2016.

If I had to choose just one that I am most proud of it would be our timeTo campaign to help stamp out sexual harrassment in the industry. People need working environments where they feel safe, valued and free to express themselves.

What is the value of a Front Foot membership, and how can members reach you?

Members of Front Foot get access to all our work, and they provide ideas for future reports. They can reach me via karen.fraser@adassoc.org.uk and I’d be delighted to hear from anyone interested in our groundbreakingv work on public trust in advertising.

“I love everything about human behaviour, with all its quirks, contrariness, manifestations. I hope I’ll never run out of

interest and intrigue.”

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If our delegations to Tokyo, China and Texas proved anything it’s that there is still huge cachet to Brit-ish creativity. British intellectual property is still among the most valuable in the world, with fran-chises like Bond, Mary Poppins, The Lord of the Rings and Doctor Who still dominating the box offices and TV screens.

Beyond those obvious franchises, the video game and virtual reality industries in the UK have out-sized influence globally, with some of the bigger interactive experiences of the past two decades coming from British studios. As a result, when international firms need the best of the best for an upcoming high profile campaign, they most often look either to the West coast of America or to studi-os in the UK.

Philip Milton is Senior Policy and Public Affairs Manager for Channel 4, which as a UK-based public service broadcaster is in the privileged position of having creativity as part of its mandate. Between its terrestrial broadcasting, work for Film4 and other endeavours, it has launched the careers of artists like Steve McQueen and Yorgos Lanthimos. He believes that has led, in turn, to the vast array of creative outlets we have in this country:

“That kind of certainty of investment has allowed the production sector in this country to kind of just bloom and flourish and become the success story that it has become, and when we look across at other European countries and outside of Europe, there’s nowhere that really replicates that system of kind of PSBs that compete with each other over quality and not always necessarily over audiences.

“What that means is that you get more and more investment into this sector. The rising tide raises all boats, basically, and I think that’s probably re-sponsible for a lot of why we have ended up in this position, where we have this kind of massively suc-cessful production sector in the UK. That has then blurred into the wider creative economy I think.”

As a result of that, the value of the creative indus-tries to the UK is up from £94.8 billion in 2016 to £101.5 billion in November last year, according to figures published by the Department for Digital, Media, Culture and Sport. That means the creative sector has grown at nearly twice the rate of the economy since 2010.

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Karl Woolley is Head of VR for Framestore, which among other campaigns has created a number of VR marketing experiences for HBO’s Game Of Thrones, including ‘Ascend The Wall’ and ‘Defend The Wall’. He believes that the UK’s pre-eminence in creativity around new technology is a natural extension of our longstanding history of tech invest-ment:

“We invented the internet. There’s a lot of innovation in London… there’s just a lot around so VR and AR is a natural thing in our space. It’s not oversized any more than technology in general.”

The creative industries are all currently trying to prepare for more restrictive recruitment rules that could have a deleterious impact on our global standing. Both UKIE and the Advertising Associa-tion, among others, have called for the Government to protect our ability to hire and retain talent after Brexit.

However, while there is still no certainty, Milton is confident that UK creative industries will retain their reputation for creative excellence. Further-more, he notes that most of our most celebrated directors have go their start in an unlikely place - advertising:

“The UK’s creative excellence is a direct result of people’s experience in the advertising industry as a whole. It’s about telling stories and resonating with an audience, and in advertising’s case it’s normally ‘can you do that in 30 seconds?’

“If you just Google ‘directors who have worked in advertising,’ there’s everyone from Sofia Coppola down to Jonathan Glazier, who obviously is famous for doing Sexy Beast and Under The Skin with us. Both obviously critically acclaimed, won loads of awards, but also of course he did the greatest advert of all time: the Guinness advert with the surfer and the horses etc. So he got his stripes in advertising, and could experiment with the ways that he wants to make film.”

Framestore’s ‘Game Of Thrones’ VR experiences put players in the role of characters from the show

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“Without question the creative industries are a vital part of the pathway

going forward. No matter what the rules of the

road are”

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