Ad 2 Orlando

Legislative Alert: Advertising Tax Deductions

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Washington DC’s government shutdown will be over before you know it and with a $17 trillion debt, tax reform is one of the first things Congress is expected to tackle.

While there are no official proposals on paper, American Advertising Federation’s National leadership and other advertising advocacy groups are proactively speaking out against ANY proposal to eliminate the tax deductibility of advertising.

Here’s why: Advertising grows businesses large and small, generates trillions of dollars in economic activity, and creates millions of jobs. Legislation that eliminates the business deduction for advertising would devastate not only our industry, but nearly every other industry and our national economy as well.
Stay tuned for updates on this important issue and please share your thoughts with your Congressman and Senator. With an issue this big, we can’t afford to be asleep at the wheel.
See below for the full AAF alert by Clark Rector, exec VP for the American Advertising Federation.

“As I am sure you are aware, Congress may soon be taking up the first major reform of the U.S. Tax Code in nearly 30 years.  We have learned that Congressional leaders who are drafting the proposal have heard suggestions that the deduction businesses take for the ordinary and necessary expense of advertising costs should be reduced significantly as a way to generate more revenues to help pay for tax reform. To lower corporate tax rates, “some suggest looking [for new revenues] at the deduction for advertising [costs], a commonly used business write-off.” (Wall Street Journal, August 2, 2013). This would constitute a tax on advertising and increase the cost of advertising for all businesses, as well as the tax liability for major advertisers.

AAF and the advertising industry need your help.  It is very important that you, and other members of the industry, write, email or call your two Senators and Representative and urge them to oppose any tax on advertising in the form of a limit on the deduction for advertising costs. Ask them to communicate their opposition to taxing advertising to their colleagues on the tax-writing committees.  Here is a draft letter.

Advertising – local, regional and national – generates $5.6 trillion in total economic activity for our country and helps support 22.1 million jobs in the U.S. economy. The stimulus generated by advertising brings jobs and sales to every state and to every congressional district. Even a modest reduction that limits the amount a business may deduct of its total advertising spending could cost the nation 1.6 million jobs and $419 billion in economic sales activity.

The critical message to convey to Members of Congress is that the deduction for advertising costs is not a special preference or deduction. Every business in America is entitled to this deduction, which is classified as an ordinary and necessary business expense. Other ordinary and necessary costs that may be deducted include the salaries of employees, rent for office space, utilities and other costs that a business must pay to keep the doors open and to generate sales. This deduction is for core business expenses and has been permitted since the adoption of the Tax Code in 1913. You should emphasize that you are not seeking a special treatment or exemption – you are asking Congress to maintain the business expense deduction allowed for advertising for the past 100 years.

You can find your member of Congress and a link to his or her website, by going here. Senators can be found here.”

Join and sign our petition here.

Diversity in Advertising

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First I’d like to introduce myself and give you a little background information. My name is Fawaz Zakir, I am your Ad 2 Diversity Chair for the 2013-14 board year. I was born in Riyadh, Saudi Arabia to Pakistani parents and moved to Orlando, FL at the age of two. Growing up I was never exposed to advertising as a career, I did not know my fondness of commercials and the message they expressed could actually be a profession until I reached college. Why is that? It could be my roots in South East Asian culture that mostly encourage health/ technology related fields. Although still I was brought up in an American school systems where I still do not recollect ever being taught of the creative field of advertising.

In the Advertising field we have come to understand the beauty of relaying an idea to the masses. Now more than ever we have seen advertising expand to include nearly every aspect of our life. It was not until fairly recently that advertising as a career was brought to pop culture thanks to the likes of AMC’s hit series Mad Men. Whether the show is a good representation of Advertising or not we may disagree on but i’m certain we can all agree that Advertising lacks diversity within it’s foundation. In a field that is based on creativity and the power of an idea more than race or sex why is it still so far behind in representing minorities and majorities alike? The video below is a great look at  Advertising and Diversity.

 

“85% of all advertising and marketing messages are aimed at women, 90% of all communications campaigns are created by men.”   This is why programs such as Ad 2 and AAF are so vital. To display the art of advertising to the masses and create an open discussion to those who already call it “work”. I look forward to a great year with Ad2 Orlando and expanding the conversation started by my predecessor Joel A. Montilla on such an important issue.

 

-Fawaz Zakir, Diversity Chair

 

Source: Institute of Practitioners in Advertising (IPA) Report 2011

 

Digital Media from All Angles

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Our Digital Media From All Angles program was a success! With more than 100 attendees, four Orlando-based digital experts as our speakers and huge support from our sponsors, this was one of our biggest events of the year and in Ad 2 Orlando history.

The event took place on Thursday, February 21st at the new office of Purple, Rock, Scissors in the heart of downtown Orlando.

Our panel of experts included:

Michael Parler, Chief Strategy Officer, Purple, Rock, Scissors
John Payne, President, Monster Media
Mark Unger, Partner/Director of Interactive, Push.
Ted Murphy, Chairman & Chief Executive Officer, Izea

Our Programs chairs, Jeff Malczyk and Chris Merritt, asked a variety of questions which garnered interesting responses. Notably, digital advertising is only going to continue to grow, content is key, and it’s OK to advertise national campaigns in smaller markets.

We’re proud to host programs and feature guest speakers for the enjoyment of young professionals in the advertising industry. Ad 2 Orlando is composed of forward thinking and forward moving people looking to make a difference professionally, personally and throughout the community. It’s always great meeting people who have been members of Ad 2 Orlando for multiple years as well as non-members who are attending an event for the first time.

We would like to once again thank our sponsors: Macbeth Photography, Black Leaf Signs and PRPL. Check out the event photos from Macbeth Photography here.

*images featured in this post provided by Macbeth Photography.

Happy Community Manager Appreciation Day!

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This past Monday was Community Manager Appreciation Day, which is celebrated on the fourth Monday of every January. Founded in 2010 by Jeremiah Owyang (@jowyang, Partner at the Altimeter Group), #CMAD is a time to appreciate and celebrate the hard work of community managers not only nation-wide but also around the world.

Let’s take a step back. This job didn’t exist ten years ago, and barely existed 5 years ago. In case you don’t know what a Community Manager is or what they do, I’ll tell you.

Community Managers are the people who spend their day managing online communities. They’re the bridge between the brand and everyone else in social media. They create and schedule content, monitor social networks and generally serve as the voice of the brand. Community Manager’s often wear many hats, at times being the PR, sales, customer service, marketing and voice – sometimes all at the same time.

Have you ever tweeted or wrote on a brand’s Facebook wall? The Community Manager was the Oz-like being who saw your post and replied to it. They see it all.

Working in social media isn’t like a normal 9-5 job. People will send tweets and Facebook messages at all hours of the day. A Community Manager would never say, “Oh, it’s 8:30pm on a Saturday? That can wait until Monday.” They will start working on a solution as soon as they see a problem.

So hopefully you gave thanks to someone who’s a Community Manager. Maybe it’s a favorite brand you follow. Or maybe it’s a colleague or friend who works in the industry. Send them a tweet or Facebook post.

It doesn’t matter what time you send it. They’ll still see it.

Media Auction Success!

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This year’s Media Auction was a huge success! For those of you who don’t know what the media auction is, it’s a fundraiser for our club, but also a way for us to give back to the community. We work as a club to solicit donated media space (print ads, billboards, radio spots) and business services (printing, web or design services) and auction them off at 10-20% of retail value to local small business and non-profits. We like to think of this as a win-win-win. Non-profits and small businesses have access to discounted items, donors get access to new customers and Ad 2 is able to keep profits from the auction.
The live portion of the Media Auction was held at The Other Bar on Wall Street in Downtown Orlando, and was followed by an online auction, open to the general public. At the event, members who are media experts were on hand to offer advice and answer questions on any of the available items, which was a really great way for us to make sure that the businesses know what they are buying and how to use it.
The auction raised over $8,000 for the club, a portion of which will be used toward our Public Service Campaign for Informed Families, which is set to launch in March. What’s more important, however, is that we were able to auction over thirty very beneficial goods and services to local business and non-profits, all while supporting our industry.
Many thanks to all of the media outlets, vendors and members who donated, volunteered and helped promote the media auction to make it such a huge success.

The Latino Vote

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As we head into elections, we’re sure you’ve seen the intense advertising push by politicians who are desperately trying to gain your vote.

It comes as no surprise that understanding the diversity of specific demographics is important for advertising companies who work with these politicians to reach out to the important voters and influence their vote – one of which is the Latino (or Hispanic) vote.

We wanted to take this opportunity to provide a bit of stats in order for our profession (i.e. you) to better understand the approach and trends that surround us heading into elections.

The Latino Vote is described as the following: “The Latino vote or the Hispanic vote is a catchphrase that in American culture and American politics refers to the voting trends during elections in the United States by eligible voters of Latino or Hispanic background. This phrase is usually mentioned by the media as a way to label voters of this ethnicity, and to opine that this demographic group could potentially tilt the outcome of an election, and how candidates have pandered or not to that specific ethnic group.” -Wikipedia.org

“16 percent of all registered voters in Florida are Hispanic, just 6.79 percent of the total spent on local TV political ads has been on Spanish language media. And the Democrats have a huge edge: $4,260,740, compared to the Republican at  $2,118,750 on the President, U.S. Senate and U.S. House races. Nationally, in 10 large states, spending on Spanish-language ads totals just $16.4 million, or 4.57 percent of the nearly $359 million total spent on local political advertising in these races.” -Orlando Sentinel

As we wind down the final days before elections, take a look around and notice how advertisers and marketers are and are not taking on this challenge of reaching out to this demographic and let us learn from the successes and failures that continue to mold our future. For a trend that is described as “potentially tilting the outcome of the election,” the small percentages of overall advertising against this demo could still mostly be considered as ignored.  Our generation should be learning from this and continuing to demand that our profession better understand this culture and stress why it is so important to reach them.

Let us continue embracing the value in the diversity which makes us all who we are and who we will be.

This is our profession. This is Our Culture.

 

Joel A. Montilla – Ad 2 Orlando, Diversity Chair

2: http://blogs.orlandosentinel.com/news_politics/2012/10/spending-on-spanish-language-ads-doesnt-track-rise-in-hispanic-registration.html

Tired of Political Ads Yet?

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Getting tired of seeing political ads on TV? Well, get used to it. The Orlando market was #2 in the nation for total dollars spent on TV political advertising last month. And there’s a lot more to come. I’m sure you’re noticing that most of the ads are negative and some are positive. I bet you’re wondering how these political media gurus come up with the ad content and what other ways they use to get their message out. I sat down with Beth Watson, Account Manager for Ron Sachs Communication to answer some of your questions. Ron Sachs Communications specializes in both political and business advertising in Orlando and Tallahassee

Q: What would you say is the biggest difference in political advertising now compared to what you saw in 2008?
A: I would say this year, in all arenas; the negative campaigning has hit an all time low. And based on comments now appearing in social networks, the public is fed up with it. This is a finely balanced issue that social networking could easily impact in the future. It remains to be seen, however.

Q: What would you say are the biggest pros and cons about negative ads?
A: The biggest pro about negative advertising is that it brings out issues that the public might not have been aware of. Hopefully, the public will look into the issues and do their own research to determine their truths. The cons about negative ads are that it often makes the attacking candidate look petty, mean and too aggressive. It can easily backfire and turn the public against the candidate. And if the negatives are false, they most definitely will.

Q: When does a political ad become “false advertising”? There are obviously standards that advertisers have to follow, does that not apply to political ads when some are blatantly lying?
A: It seems that in political advertising, “all is fair in love and war” and the public takes much of the false statements with a grain of salt. However, if a candidate is lying, and the opponent can prove it, it becomes an ethics and integrity issue that can kill the lying candidate. Lying or false advertising is something that the public will not tolerate, particularly in an election. The public expects and holds their leaders to a high standard.

Q: How are campaigns these days incorporating social media?
A: The current campaigns have incorporated the various social media to highlight their messages, their visits to communities, to spread the messages of their stances, and to get past media, which traditionally, didn’t cover everything a candidate wants to address. It has also proven that they can overcome their opponents’ issues concisely. It does make it a bit harder to criticize an opponent badly because social media can be traced. YouTube played an integral role in the overthrowing of government in Libya and Egypt – a prime example of social media changing the way the world works.

Q: Should candidates be on social networks? If so, what kind of response strategy is suggested?
A: Why not? Social networks have changed the way we live and communicate. Candidates need to find every avenue to reach out to the public AND to get the youthful voters’ attention. If that is a strategy to reach the younger voters, who traditionally have been apathetic, kudos! Response strategy….take a stance and promote it. I wouldn’t say attacking your opponent’s stance is a good strategy on social networking. But being clear, honest, straight forward and concise — that’s the benefits of social networking and communications.

Joe Culotta, Ad 2 Government Relations Chair

Words of Wisdom from an Ad 2 Mentee

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I first signed up for the Mentorship Program in October of 2011, and had no idea what value it would bring, if any. At the time, I was a graduating senior and preparing for my final semester at UCF. Little did I know at the time that the next 11 months would bring me more beneficial feedback that I could’ve ever imagined. There isn’t a category in my career life that hasn’t been improved thanks to my Mentor – from resume critique, career-searching techniques, job banks that I didn’t even know existed, different clubs and organizations chosen by my Mentor specifically to my likeness, interview tips – an absolute wealth of knowledge that has benefited me every step of the way.

If you have any second-guessings about signing up for the Mentorship Program, you really shouldn’t. It will do nothing but help you, both personally and professionally.

– Sir Pritam Shah, 2012 UCF graduate

Getting Social with Latinos

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My name is Joel A. Montilla, born to parents from the Dominican Republic and Puerto Rico.   I serve as your Diversity Chair. This is who I am – this is my culture.

September 15th through October 15th is Hispanic Heritage Month – a time in which we celebrate the history, culture, and contributions of Hispanics and Latinos.

We’ve mentioned previously that Hispanics and Latinos have fast become an important consumer and so is a key objective for many companies, but tapping into this demographic has become a challenge.   (See last year’s blog on the growth rate and increased buying power of the Hispanic Consumer)

And yet still, understanding their behavior to better serve them can prove to be a valuable tool to any company.  Here are a couple of resources that will allow you to gain a competitive advantage:

#latism – Latinos in Social Media

#latism is described as: “a pioneering social media organization, Latinos in Social Media (LATISM) has been hailed as the most influential online movement in the new multicultural Web.”

This is the keyword that provides an inside look into these demographics in the online world. In addition, it serves as a great educational resource for anyone wanting to learn about this trend.

You’ll be seeing more of this hashtag in advertising publications and around you more and more as companies start to hone in on this powerful consumer.

Last, but not least, there’s a publication that Ad Age provides regarding Hispanic marketing and media which includes data and information that is critical to the success of any given advertising campaign aimed at this demographic: Hispanic Fact Pack. This publication contains information that serves as a helpful guide to any and all ad agencies, CMO’s, industry execs, and marketers looking to better understand this consumer.

We’d recommend picking up a copy.

Here’s the link: http://adage.com/trend-reports/

We hope you find the information we provide in the coming months rich in information regarding the overwhelming presence in diversity in our everyday lives, and more importantly, in our profession.

– Joel A. Montilla, Ad 2 Diversity Chair

Get to know Lock Your Meds

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Lock Your Meds®: A Prescription For Safety

Did you know that nearly 4,000 young people begin experimenting with prescription drugs every day? America has a drug problem and the primary source of these abused drugs is not a drug dealer on the streets: its friends and family.

Lock Your Meds™ is a national multi-media campaign, developed by the National Family Partnership and designed to reduce prescription drug abuse by making adults aware that they are frequently the “unintentional suppliers” of prescription medications being misused, especially by young people. Given that 7 Floridians die each day to prescription drug overdose, this is certainly a relevant issue in our communities.

Informed Families is so grateful to Ad 2 Orlando for selecting the Lock Your Meds Campaign as its Public Service Client for this year. We look forward to working together to help the Lock Your Meds campaign put a stop to this very preventable epidemic.

Christine Stilwell

Orlando Regional Director

Informed Families/The Florida Family Partnership

(321) 231-0587(cell)

(407-865-7701(facsimile)

www.informedfamilies.org