The 4A's Management Services team worked with members to develop strategies and benchmarks to facilitate the effective and profitable management of agency operations.

Client Compensation 

In order to facilitate inter-agency discussion and sharing of compensation best practices, in 2012, 4A's hosted for the first time ever, a 4A's Compensation Summit. The summit featured industry thought leader discussions related to compensation challenges – opportunities and sharing of best practices in the areas of negotiating, performance incentive compensation, benchmarking and agency-client agreements. 

In 2012, the association also conducted several significant benchmarking surveys to help members with client compensation information:

• The 4A's 2012 Labor Billing Rate Survey Report provides the industry marketplace based hourly billing rate data for the currently predominant form of agency compensation, i.e., labor-based compensation.
• The 4A's Digital Operations & Client Compensation Survey benchmarked agency digital operations revenue sources, relationship structures, monetization of I.P. and opportunities for structuring client‐agency digital services commercial arrangements.

Business Development

The 4A's new business community has evolved review trend information, review best practice guidance and the tracking of marketer adherence with industry guidelines:

• The 4A's Accounts-In-Review Analysis and the New Business Activities and Resources Survey information are recognized industry standards for benchmarking both the level and nature of review activity.
• The ANA/4A's Guidelines for Agency Search outline steps to help marketers and agencies conduct effective reviews. 4A's members are adopting the practices of sending the guidelines to marketers at the outset of all reviews as a means to influence the review process, and using the guide to assess the merits of review participation.

Operations Management

The 4A's is providing members with the management tools needed to accommodate the evolution of agency operations:

• Many clients are opting to work on a project-by-project basis rather than via annual retainer relationships. 4A's committees are developing best practice guidance for project-based client arrangements and expanding project management training events and discussion communities.
• Agencies now routinely develop digital software, web applications and tools. These activities entail alternative ownership, usage, I.P., indemnification, warrantee and contractual structures. 4A's is expanding best practice guidance on structuring digital agency-client arrangements.

Talent Management

The 4A's provides extensive information to help members attract, develop and motivate agency talent. 4A's survey, report and publication information includes:

• The annual 4A's Employee Compensation Survey is an iconic industry information benchmark that captures data for 35,000 employees at over 300 agency offices. This information is only available to association members.
• About Employee Benefits Series surveys provide industry trends on agency employee benefit plan structures, training, retirement plans as well as periodic monitoring of healthcare, leave and other employee benefit plan elements.
• Management Services also provides members with talent management information in areas such as planned raises, recruitment best practices, training, structuring executive compensation, payroll administration, bonus compensation and organizational culture

• Advertising Deductibility – 4A's Washington organized local member delegations in the district offices of Congressional committee members who decide tax and finance matters. Part of an ongoing effort to preserve the deductibility of advertising in the tax code by emphasizing the importance of agencies to local economies across the US.
• Anti-Piracy and Anti-Counterfeiting – In an effort praised by the White House and customs officials, 4A's joined with ANA in publishing a set of best practices to restrict the ad revenues of fraudulent online operations. These practices encouraged members of both organizations to voluntarily prevent client ads from being placed on rogue Websites.
• Consumer Data Privacy – As a founding member of the Digital Advertising Alliance (DAA), 4A's shepherded the launch of a comprehensive consumer outreach campaign on the benefits of interest-based online advertising and the privacy controls available to consumers through the DAA program. The "Your AdChoices" ad campaign and Website were created by 4A's member McCann Worldgroup and attracted over 16 million consumers in its first year.
• Patent "Trolling" – Agencies are increasingly becoming victim to random assertions from legal entities seeking royalties for tools and technologies they claim to have patented. 4A's Washington elevated awareness of this threat by bringing 4A's members directly before the Federal Trade Commission (FTC), Government Accountability Office (GAO) and other Federal agencies influential on legislation. 4A's also participated in court cases involving patent threats. All in a coordinated effort to affect patent process reform and protect agencies from frivolous claims.

Through its strategic partnership alliance with IAB and ANA, in 2012, the 4A's helped complete the first phase of the 3MS initiative to change digital currency from served impressions to viewable impressions.  This landmark change in how online advertising will be planned, bought and measured will greatly simplify the supply chain and yield savings to the agency community in excess of $2 billion a year.  It will also facilitate cross platform measurement with legacy media (TV, print, etc.)  by using a currency ensuring all media will be planned, bought and measured only via impressions that have a chance to be seen by an audience. 

Annual Joint Trade Associations Board Meeting

In June 2012, 4A's, ANA and IAB held its first-ever joint board meeting to address issues of common interest and concern. At the event, which will take place annually, the three Associations reviewed major digital initiatives affecting the entire community.

During 2012, 4A's staff visited more than 250 member agencies to brief teams on the latest industry developments and to get feedback meant to ensure ongoing relevance of 4A's programs, services and benefits. 

The 4A's also engaged hundreds of agencies at local events in cities across the country.  From CEO Forums to creative awards shows, training seminars to senior management dinners, 4A's member agencies collaborated to build stronger communities, train staff, attract diverse talent and prepare for the future. 

Training and Education

Training and development offerings expanded via three primary delivery formats: webinars, full-day seminars, and multi-week evening training programs.  More than 2,000 people participated in 20 hour-long webinars ranging from progressive agency business models and emerging revenue streams to how to write a creative brief and communications planning.  The 4A's also offered 48 full-day seminars to approximately 1,700 participants.
 
Additionally, seven multi-week Institute of Advanced Advertising Studies (IAAS) programs were presented in Philadelphia, New York, Boston, Atlanta, Chicago, Minneapolis, San Francisco and Los Angeles last year.  Targeted to students with less than three years of advertising experience, these IAAS programs build advertising leaders through team-based, hands-on, case study centric new business pitch assignments.  For agencies not located in one of these markets, the 4A's held its second annual Virtual Institute of Advanced Advertising Studies with 39 attendees featuring Axe Shower Gel. A total of 326 students attended the eight IAAS programs

In 2012, 103 undergraduate and graduate students participated in the 4A's annual Multicultural Advertising Intern Program (MAIP).  These students were selected from colleges and universities nationwide for 10-week paid internships at 70 agencies in 15 US cities.  Partnering with our member agencies, the interns garnered over 400 hours of industry experience, including specialized workshop seminars in New York City, Chicago, and San Francisco.

MAIP interns were honored at the 4A's second annual Face of Talent in August. More than 240 advertising professionals attended the full-day event, featuring Michael Sneed, Vice President of Global Corporate Affairs at Johnson & Johnson. Since their completion of MAIP, 66 percent of ready-to-hire graduates have accepted positions within the industry.

The High School for Innovation in Advertising and Media (IAM),  established in 2008 as the first public high school dedicated to teaching students skills needed to pursue careers in the advertising, design and media industry and supported by the 4A's, graduated its first class in June 2012 with 47 seniors. Of the 47, 35% received a New York State Industry Certification and scholarship to continue their studies in advertising related fields.

For a complete report of all of the Association's 2012 programs and initiatives, click the links below:

• AGENCY MANAGEMENT SERVICES
  The 4A's Management Services team worked with members to develop strategies and benchmarks to facilitate the effective and profitable management of agency operations.
• ADVOCACY
  The 4A's Washington team provided members with strategic insights on how to prepare for a markedly tight media inventory environment–dominated by an unprecedented volume of negative political advertising during the 2012 general election year.
• RESEARCH SERVICES
  The 4A's Research Services division provides marketing insights, customized research analysis and information access to help members with new business efforts and client growth strategies.
• STRATEGIC PARTNERSHIPS
  Through its strategic partnership alliances, the 4A's teamed with other industry organizations to address important cross-industry issues on measurement, brand valuation and new technology-enabled media buying and billing projects.
• 4A'S BENEFITS
  The success of 4A's Benefits continued in 2012. The Workers Compensation program continues to set records, and many agencies took advantage of the DOL's Fee & Expense disclosure by moving over to the low cost 4A's Retirement Plan.
• AGENCY RELATIONS & MEMBERSHIP AND EDUCATION
  During 2012, 4A's staff visited more than 250 member agencies to brief teams on the latest industry developments and to get feedback meant to ensure ongoing relevance of 4A's programs, services and benefits.
• DIVERSITY & INCLUSION AND TALENT DEVELOPMENT
  As agencies employ increased resources to build a workforce that can leverage multiple perspectives and cultural competency, the 4A's expanded its work to support the industry's efforts by designing, delivering and enhancing multicultural programs.
• CONFERENCES AND EVENTS
  In 2012, the 4A's strengthened its portfolio of conferences and events, especially on a national scale
• CREATIVE TECHNOLOGIES
  CreateTech continued in 2012 for its second year and the group also launched a variety of new websites.
• MEDIA INDUSTRY MATTERS
  In 2012, the 4A's developed several programs to benefit members on a variety of issues.
• PERFORMER UNION MATTERS
  The 4A's-ANA Joint Policy Committee (JPC) facilitates an effective marketing industry working relationship with the commercial performer unions.