October 2012

Data, data, data.  Advertising Week was buzzing with chatter about data – its importance for the advertising industry, future implications, how to improve and maximize data, privacy and security issues… The list goes on.  So it was only appropriate for Ogilvy & Mather North America Chief Creative Officer Steve Simpson’s keynote address at the National Advertising Division’s annual conference on Monday of Advertising Week to be focused on big data.  Adweek reporter Katy Bachman put it well in summing up the key takeaway from Steve’s address: “In the age of big data, advertisers need to get their act together when it comes to online privacy.”

The Way I See It

  • I see a boom in online behavioral advertising and interest-based advertising, which has given rise to the need for stricter consumer data protection standards for the industry.
  • I see a number of challenges and potential pitfalls that advertising agencies and brands need to be cautious of in order to be able to reap the benefits of all of the data that is becoming available.
  • I see the need for increased transparency across the industry in order to educate consumers about privacy policies and the data that is being collected from them.

The Way the Industry Sees It

I had the pleasure of speaking with Steve Simpson, Ogilvy & Mather North America Chief Creative Officer, after Advertising Week to further discuss his NAD keynote address and his thoughts on data, privacy, creative, and more.

During your keynote, you said that this is a “massive creative issue.” Can you elaborate on this point? What steps should the advertising industry take to address this creative issue?

For marketers, privacy is an ethical issue, it’s a legal and regulatory issue, but it’s also a respect issue. This is to say, the new issues are the old issues.  It could be argued that the old days of one-way communication didn’t respect the consumer in the broadness of the messaging or bluntness of the media.  It intruded on your time with messages for products or services in which you often had no interest and for which you had no use. But the difference was the consumer knew what was what: the rules of the game were well known, transparent, and pretty much invariable.  The message was honest about its intent and succeeded by the power of its proposition or the force of its charm.  And when you turned the TV off, the TV didn’t rise from its stand, follow you about, and note all your doings.  It stayed shut off, because the “off” switch was a simple unambiguous technological act: “off” meant “off,” it didn’t mean “not apparently on, but watching you all day to see how you like it.”  While many in the industry declare with dewy eyes and a catch in the voice that the “consumer is now in control,” they are telling only half of the truth.  Because while the consumer can with high dudgeon tell a company exactly how to make a product better according to his own exacting personal standards—“Who’s in control now, you corporate hacks!!!!”—ending his tweet or review with a flurry of exclamation points, and moves on—he doesn’t move on, because the company he’s engaged isn’t ready to move on from him, but is only beginning to track him relentlessly in return for his “valuable inputs and collaboration.”

You said that if an advertiser is not respectful of its consumers’ privacy concerns that the job to be done by advertising, and the role of the creative director for that account, is very difficult.  Can you explain what you mean?

If consumers feel that marketers have relied solely on technology to track and target them, without openness and transparency, or without their knowledge or consent, then we have put the consumer into a state of alarm, resentment and even active resistance to our message.  Hence, the “massive creative issue.” What kind of ad can we create that is so wonderful it can overcome this?  Dear consumer, you feel violated—ready for a funny ad?

Continue Reading Data: A Creative Director’s Perspective

Ask anyone in Ohio what they’re least excited for during the home stretch of this year’s Election season, and I bet you they’ll say the non-stop television, print, and online advertisements from Obama, Romney, and other Ohio politicians trying to win the battleground state. At the Democratic National Convention in August, the crowd cheered and laughed when Obama said he was even tired of saying, “I’m Barack Obama and I approve this message.”  Election season always means a surging tidal wave of political advertising. The 2012 elections are expected to break records for ad spend – after the 2008 elections hit a new record as well. According to Kantar CMAG, the United States will see 43,000 political spots a day until Election Day. We know what all of this means for the average American voter preparing to go to the polls, but what does it mean for the advertising industry?

The Way I See It

  • I see a surge of revenue for local television stations, especially in battleground states, and online ad networks with spots from politicians and campaigns, as well as business groups, interest groups, and think tanks.
  • I see a promising surge in activity for the advertising industry that should have a positive overall impact on advertising spending – perhaps enough for the rumored recession ahead to be postponed.
  • I see an election season that may spell change for the future of political advertising and advertising in general – with a potential shift from traditional, local TV spots commandeering political ad spend to more innovative online, social media, and mobile advertising claiming more of the ad dollars. What has a greater impact on voters?

The Way the Industry Sees It

I sat down with Steve Farella, the founder and CEO of TargetCast, to pick his brain on this year’s political ad spend and what it means for the advertising industry as a whole.

Kantar CMAG projected the total spending on local spot TV advertising in the 2012 elections will be at $3 billion. What impact will that have on the advertising market as a whole?

At this point in the race, the largest ad spends are anticipated to be in those states that are still considered “swing states” where it is unclear whether they ultimately join with other blue or red states in the election. Those states currently include: New Hampshire, Ohio, Virginia, North Carolina, Florida, Wisconsin, Iowa, Nevada, and Colorado. Generally we see little national advertising and it tends to have only slight or no impact on national broadcast. Most agencies work with their clients to plan their local scheduling and daypart utilization so that, where possible, they side-step the heaviest pre-election weeks based on the clients’ needs. Primetime garners 23% of campaign spend, while combined News dayparts gets 32%. Early Morning saw significant growth between 2008 and 2010 and we expect that trend to continue. Access and Early Fringe also see activity while Late Night, Daytime, and Weekend see less.

In 2008, spending on political ads hit a new record. How does 2012 spending and overall advertising compare with the last election?

The explosion of Super Pacs – 501 (c)(4) organizations, trade associations with political arms – are the biggest development in 2012. For example, advertising weight in the market of Columbus, Ohio for the week of 8/15-8/22 reached 1,842 presidential race spots as compared to 832 spots in 2008. Las Vegas saw its presidential spot count go from 925 in 2008 to a record 2,870 in 2012. Wells Fargo analyst Marci Ryvicker has raised political advertising estimates from $4.9 billion to $5.2 billion by Election Night. So far, presidential candidates have spent more than seven times the amount of money spent in 2008 on digital ads (up from $22MM to $159MM). Online ad spending has doubled as a percentage of campaigns’ budgets over the same time period. Thus far, online ad dollars have mostly focused on emails, display ads, sponsored search terms, and audio and video ads.

Continue Reading Paid for by Ron Urbach: 2012 Election Season for the Advertising Industry

On Thursday during Advertising Week in New York City, I hosted an event called “Mission Impossible: Truth & Privacy – The Future is Now,” featuring Commissioner Julie Brill of the Federal Trade Commission, along with Frank Abagnale, one of the world’s foremost authorities on fraud and identity theft (you may know him best from the film Catch Me If You Can – he was portrayed by none other than Leonardo DiCaprio), and Jonathan Salem Baskin, Co-Author of Tell The Truth. Privacy is an issue everyone is talking about these days, and I wanted to share with you some of the thoughts and issues discussed during the session at Advertising Week. Click here to view a video of Ron’s conversation with FTC Commissioner Julie Brill.

Advertising is a fascinating and complex industry, reflecting the latest innovations, the newest technologies, and, of course, the height of creativity. Advertising is a reflection of the fundamental changes sweeping our society – the transformative effect of digital, the changes in all forms of media, the importance of data and the rise of wireless. Amidst this rapid change, privacy is one of the most important issues in the advertising and media business, and one which demands our attention now, not tomorrow.

The Way I See It

  • I see that digital technology and media has created an unprecedented “Holy Grail” opportunity for marketers to have conversations with consumers as individuals wherever they are on a broad array of devices. The question we must answer is, how do we manage the legitimate privacy concerns?
  • I see the FTC’s role and influence in steering the privacy and data security debate and action rising in importance.
  • I see global marketers and agencies working in good faith either alone or in groups to navigate safely through leading edge issues and the concerns of interested parties – the government, agencies, marketers, technology providers, media and consumers.
  • I see “do not track” continue to be a central issue that focuses many of the important advertising industry and societal issues about both what can be and what should be.
  • I see “privacy by design” being a simple concept, but a difficult concept to execute in real time.

The Way The Industry Sees It

Commissioner Julie Brill of the FTC shared some extremely valuable insights with me and the attendees of our Advertising Week session. I then asked Commissioner Brill some follow up questions that touched upon some of the conversation that we had in our Advertising Week session.

Can you highlight what you see as the role of the FTC in regards to its relationship with the advertising industry’s need to focus on consumer privacy and data security?

The Commission has developed a set of best practices, as outlined in the agency’s March 2012 final privacy framework, for companies that collect and use consumer data. (“Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers,” An FTC Report (Mar. 26, 2012) available at http://www.ftc.gov/os/2012/03/120326privacyreport.pdf.) Because the advertising industry is among the heaviest users of such information, these best practices can be useful to the advertising industry –including ad networks, individual advertisers, and all other players in the advertising eco-system—as they develop and maintain processes and systems to operationalize privacy and data security practices within their businesses. In addition to our policymaking role, the Commission takes action against companies—including those in the advertising industry—that do not treat consumer data in accordance with the laws enforced by the agency. For example, we took action against several advertising networks that misrepresented their practices involving consumers’ ability to opt-out from online behavioral advertising. (See press releases, “FTC Puts an End to Tactics of Online Advertising Company That Deceived Consumers Who Wanted to “Opt Out” from Targeted Ads” (Mar. 14, 2011), available at http://www.ftc.gov/opa/2011/03/chitika.shtm; “Online Advertiser Settles FTC Charges ScanScout Deceptively Used Flash Cookies to Track Consumers Online” (Nov. 8, 2011), available at http://www.ftc.gov/opa/2011/11/scanscout.shtm).

In the fast paced world of marketers and agencies where they must implement “privacy by design”, what is the biggest issue confronting the industry?

Well, there are a lot of big issues. One of the biggest issues is the rapid pace of today’s technological advances. Companies are bringing products and services to market as quickly as they can—and the advertising and marketing have to keep up with that pace. As a result, companies may not be employing a methodical process to consider all the privacy and data security issues that could arise with the product or service, or with an advertising or marketing campaign. I think one of the most important elements of Privacy by Design is for companies to take the time to thoroughly examine the consumer information they are collecting, what is being done with that information, and how it is being safeguarded. In our privacy report, we stress the importance of operationalizing these processes, which will help companies conduct these analyses in an efficient and timely fashion.

Continue Reading Privacy and the FTC: Inside Perspective from FTC Commissioner Julie Brill

Advertising Week is in full swing and is already full of surprises. On Monday, the Federal Trade Commission (FTC) released the details of its updated Green Guides to attendees of the National Advertising Division (NAD) Annual Conference, before even announcing it to the press – talk about a scoop! It was exciting for all who were there and who work in developing environmental marketing claims. We have been eagerly awaiting the new Green Guides for over 2 years. With thousands of comments from industry groups, environmental advocates, academics and others during the review process, there were certainly a lot of people watching and waiting. The FTC is trying to put out guidance that set a balance between the firmness needed to help reduce “green washing” and the flexibility needed to allow advertisers to develop new and novel claims as environmental sciences and technologies advance in ways we cannot yet anticipate.
Continue Reading New FTC Green Guides Signal Change Ahead for Marketers

Davis & Gilbert may be the preeminent advertising law firm, but we still can’t read minds. This week during Advertising Week, I’ll have the opportunity to speak with industry leaders and top executives about the future of advertising and some of the BIG issues our industry is facing, but I want to know what you…

Advertising Week is to the advertising industry and brands what the Emmys are for the television industry and what the Oscars are for the film and entertainment industry. I’ve had the honor of knowing the brainchild behind Advertising Week since its inception. Now in its ninth year, Advertising Week is bigger than ever – with five days of high-level programming hosted by and featuring some of advertising’s biggest names, including those agencies and brands who are leading the charge in innovation and creativity in our industry.

The Way I See It

  • I see the industry’s biggest leaders gathering in New York City to share and discuss the latest ideas, creations, and technology that is shaping the future of the industry.
  • I see a broad representation of an industry that has spread its web far beyond Madison Avenue. A map of the venues and the packed agenda reminds us of the growth and innovation that the industry has adopted and achieved.
  • I see an annual opportunity for the most creative and innovative minds from across the industry and across the world to gather in one place and focus on the industry’s hottest topics: mobile, data, social media, privacy, creative, technology, and the future of advertising as an industry.

The Way The Industry Sees It


I sat down with Matt Scheckner, the founder and creator of Advertising Week, to give you the inside scoop on what Advertising Week 2012 has in store for attendees, what is different this year than in the past, and what is in store for its upcoming Tenth Anniversary.

It’s hard to believe Advertising Week is in its ninth year. How has the program changed since its inception and how has it stayed true to the foundation it was built upon?

We’ve changed just as the industry has and continues to change. That’s the great constant and we work very hard to not only address what’s going on in the industry now, but we try to look to the future.
Since we think this way, we’ve stayed very true to our foundation of being an advocate for the industry and its wonderful people. We’re about education, inspiration, connection and celebration.

There are many industry hot topics that are the focus of numerous programs throughout the week. What topic do you think will define this Advertising Week?

We’re seeing this in the specific tracks that we’ve created. Mobile, social, education diversity and the convergence of Madison Avenue, Silicon Valley and Hollywood (which we call MASSIVE) are all on the tops of minds.  Additionally, with The Advertising Week Experience (AWE), we’re realizing that there is some profoundly important technologies that marketers really need to know.

Continue Reading Backstage Pass: Advertising Week 2012