Mediaboss Marketing

April 14, 2021

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SEC Division of Examinations Risk Alert Provides a Useful Roadmap on Compliance Issues for Fund Managers

On Friday, April 9, 2021, the Securities and Exchange Commission (SEC) Division of Examinations (the Division), issued a Risk Alert detailing its observations of deficiencies and internal control weaknesses from examinations of investment advisers and funds regarding investing that incorporates environmental, social, and governance factors (ESG investing).[1] This alert follows another recent announcement of the creation of a Climate and ESG Task Force within the Division of Enforcement to focus on ESG-related disclosures by public companies and ESG investment practices by investment funds.[2]

Key Takeaways

The Risk Alert provides useful guidance regarding the types of compliance issues the Staff is reviewing in its examinations of investment advisers, examples of deficiencies the Staff is finding, as well as instances in which the Staff has observed effective compliance practices. Accordingly, the Risk Alert provides a useful roadmap to assist investment advisers in developing, testing and enhancing their compliance policies, procedures and practices.

On the heels of the Risk Alert, Commissioner Peirce issued a cautionary statement to express her view that the alert, should not be interpreted as a sign that ESG investment strategies are unique in the eyes of examiners, but simply that, as with any other investment strategy, [f]irms claiming to be conducting ESG investing need to explain to investors what they mean by ESG and they need to do what they say they are doing.[3]

In sum, the SECs focus on ESG investment strategies heightens the need for investment advisers to make sure their disclosures align with investment practices and that there is sufficient and knowledgeable oversight and review by compliance personnel to avoid a divergence between the two over time.

Concerns Identified by the Division

In the Divisions examination of investment advisers, registered investment companies, and private funds engaged in ESG investing, the Staff observed the following weaknesses:

Guidance for ESG Investing Disclosures and Procedures

The Staff also observed policies, procedures, and practices which were reasonably designed to convey approaches to ESG investing. The Division noted that the following practices may be helpful to address the compliance issues identified above:

Conclusion

In conclusion, the SECs Risk Alert reaffirms the need for firms involved in ESG investing to ensure that their disclosures accurately describe their ESG-related investment practices. Periodic reviews of marketing materials and other investor disclosures against current investment strategy and adherence to stated ESG metrics will avoid the types of deficiencies the Staff has observed in recent inspections, and, in the worst cases, avoid even greater scrutiny from the Division of Enforcement.

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[1] Division of Examinations, Risk Alert, Securities and Exchange Commission (Apr.9, 2021), https://www.sec.gov/files/esg-risk-alert.pdf.

[2] Press Release, U.S. Securities and Exchange Commission, SEC Announces Enforcement Task Force Focused on Climate and ESG Issues (Mar. 4, 2021), https://www.sec.gov/news/press-release/2021-42?_sm_au_=iHVN4cW7DnktSD5NFcVTvKQkcK8MG.

[3] Public Statement, Statement on the Staff ESG Risk Alert (Apr. 12, 2021), https://www.sec.gov/news/public-statement/peirce-statement-staff-esg-risk-alert.

Gibson, Dunn and Crutchers lawyers are available to assist in addressing any questions you may haveregarding these developments.Please contact the Gibson Dunn lawyer with whom you usually work, any member of the firms Securities Enforcement practice group, or the following authors:

Mark K. Schonfeld New York (+1 212-351-2433,mschonfeld@gibsondunn.com)Tina Samanta New York (+1 212-351-2469,tsamanta@gibsondunn.com)Lauren Myers New York (+1 212-351-3946, lmyers@gibsondunn.com)

2021 Gibson, Dunn & Crutcher LLP

Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice.

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Understanding the SEC's Focus on Environmental, Social, and Governance Investing and Investment Advisers - Gibson Dunn

With the COVID-19 pandemic causing various significant shifts in online shopping behaviors, it can be difficult for marketers to keep up with the changes in their niche, and optimize their campaigns accordingly.

Which is why Google is adding new emerging trend insights within Google Ads, based on Google search activity, which will alert marketers to relevant shopping and discovery changes in their sector, enabling them to update their ad strategy in line with demand.

As you can see here, the new trend charts will highlight rising search interests in your field, along with additional details of more specific elements, which could help you capitalize on the latest opportunities.

As explained by Google:

"Consumer demand continues to change, and it's more important than ever for marketers to keep up. For example, at the start of the pandemic, searches for curbside pickupincreased by over 3000%. Earlier this year, we saw a surge for staycations,and now, were seeing a surge for watch party.We've heard from many of you that you need more insights like these to inform your business and marketing decisions. That's why we rolled out theInsights page (beta)last year in select countries to help businesses stay on top of emerging trends. Starting today, the Insights page is available to all advertisers globally."

Various advertisers saw success in the initial beta test of the new insights, which has prompted Google to push forward with a broader launch of the tool.

Based on this, Google recommends that marketers:

In addition to this, Google's also adding a new process which will enable marketers to automatically apply optimization recommendations to their campaigns, based on emerging trends and behaviors.

As you can see here, the new process will enable marketers to choose from a range of automated optimizations, which Google will then apply to your campaigns.

"This means that every time our algorithms detect an opportunity to improve a campaign, brands can implement these recommendations instantly, enabling them to be fast and helpful for their consumers and save time."

How effective that will be will really come down to experimentation, and will vary by campaign, but Google's systems are always improving, and are able to identify a range of key elements that could provide new opportunities.

It's likely worth testing at the least, while the new insights will provide new, potential opportunities for your marketing efforts, which could help you tap into entirely new audience subsets.

See more here:
Google Rolls Out New Insights into Rising Consumption Trends Within Google Ads - Social Media Today

Working in partnership with Schwartz and the agency's executive leadership team, Reyes has led the agency through a resurgent period, growing more than 180% in five years. She has been instrumental in generating new business that leads to enduring client partnerships, such as with Hilton, TD Bank, Facebook and PepsiCo, and in elevating the agency's creative product. TBWAChiatDay New York was the TBWA collective's top performing agency at the 2019 Cannes Lions Festival of Creativity and the #5 individual office in the world at the last Lions festival. Reyes was named a "Woman to Watch" by Advertising Age in 2019.

Amid the pressures of 2020, TBWAChiatDay New York grew, winning new assignments from PepsiCo (bubly, RISE and lays), Facebook Oculus and Abbott, and adding more than 60 employees, as the agency helped its clients navigate an unprecedented year and prepare for recovery.

Troy Ruhanen, CEO, TBWAWorldwide said, "Nancy is an exceptional leader, business partner to our clients and developer of talent. She understands the power of creative ideas in driving unreasonable growth and the importance of empathy in motivating people. Her impact on the New York agency and on our collective has been undeniable. I am confident she will lead our team in New York to an exceptionally strong next chapter."

Reyes added, "The past five years have been an incredible journey that's only possible through partnershipwith our leadership team, clients, and every person who works at the agency. I am so proud of the creative ideas we've brought to life together, the growth of our people and the talent that is making beautiful ideas a reality on behalf of our clients. I'm excited for this next step and for what we will achieve together."

Schwartz, a 20+ year veteran of TBWAChiatDay, and CEO of TBWAChiatDay New York since 2015, is moving into a newly created role as Chair of the TBWA New York group, which includes TBWAChiatDay New York, Lucky Generals New York and 180NY. His role as Chair comes with the remit to market and grow the three TBWA-affiliated agencies, serving as a resource to their leadership, bringing to bear his knowledge of the TBWA collective, the agencies' distinct offerings and the synergies between them. While stepping away from day-to-day leadership of TBWAChiatDay New York, he will continue as an advisor and cultural resource for the agency and will also continue to host the award-winning Disruptor Series Podcast he created.

"The turnaround that Rob initiated in 2015 set the foundation for the agency's success today. He's been a tremendous mentor and partner to Nancy and the New York agency leadership team. As he steps into this new role, he is uniquely positioned to guide our New York group with his blend of experience as a CEO and CCO, his marketing savvy, mentorship and connectivity in the New York market. He will be invaluable to the agencies and leaders in our New York group," continued Ruhanen.

"Nancy has been a true partner in rebuilding the agency and she has earned this next step to lead TBWAChiatDay New York. I could not be prouder and more confident in the team we have in place to take the agency to the next level," said Schwartz. "As I look to new challenges, I am energized about the potential within our New York Group. Now more than ever, brands have a choice in the agencies they work with and three of the best are right here."

Schwartz continued, "We offer a wealth of talent in different agencies of different size, scale and expertise and in this new role, I'll be positioned to bring these resources to lots of different clients."

Reyes joined TBWAChiatDay New York in 2016 and has been instrumental in its turnaround. Her impact on talent and culture within the agency has been equally profound. She has led TBWAChiatDay New York's Diversity, Equity and Inclusion efforts, which treat diversity as an agency roster client, with budget, time and talent allocated. In 2018 she created a mentorship and leadership program called Circle of Women, aimed at building a pipeline of women leaders within the agency by offering executive coaching and mentorship to a high potential group of women on the cusp of leadership. Half of the program's participants are women of color.

Reyes joined the agency from Verizon, where she was VP of Marketing Creative, responsible for 360-degree creative product for the wireless business, which included advertising, retail and social marketing. Prior to Verizon, she was Managing Director of Goodby, Silverstein & Partners' New York office, though much of her advertising career was spent in GS&P's San Francisco office, where she worked on a variety of accounts, including Adobe, HP, Frito-Lay, Google and Comcast. A graduate of Harvard University, Reyes began her career in New York City at Ogilvy & Mather.

About TBWAChiatDay New YorkKnown as the Disruption Company, TBWAChiatDay NY is the New York office of the TBWA global collective. Named to AdAge's A-list in 2019 and 2020 and recognized as one of the World's Most Innovative Companies by Fast Company, we help brands find strategic and creative white space through the power of Disruption. Clients include abbott, adidas, bubly, Brooklyn Film Festival, Columbia Journalism Review, Dial, Facebook, got2b, Hilton, lays, Mayo Clinic, Mountain Dew, Nissan, One Love Foundation, RISE, Schwarzkopf, Snuggle, TD Bank, Thomson Reuters and Travelers. Follow us onTwitter,LinkedIn andInstagram. TBWA is part of Omnicom Group (NYSE: OMC).

About TBWA New York Group The TBWA New York Group of companies is designed to help brands of all sizes and stripes grow. Each agency in the TBWA New York Group is creatively-driven and built to solve business problems. From the iconic, full-service TBWAChiatDay New York, to Lucky Generals, a creative company for people on a mission, to 180NY, which is reinventing brand building for the modern age, each agency operates independently and charts its own course, while making the most of the power of the TBWA collective.

SOURCE TBWAChiatDay

View post:
Nancy Reyes Elevated to CEO of TBWAChiatDay New York - PRNewswire

The following is a guest post by Brian Dolan, CEO of WorkReduce. Opinions are the author's own.

The advertising industry is experiencing a talent crisis of immense proportions that's likely to continue unless changes are made now.

Amid the growing migration from agency to in-house advertising teams, the market has ignored the essential role that agencies have traditionally filled. Agencies have typically been the talent "farms"for our industry. They've owned the fundamental role of finding, nurturing and growing entry-level talent across all aspects of the advertising business.

The shift of these responsibilities to in-house brand teams is choking the pool of top advertising talent,making it difficult for both in-house and agency teams to fill open roles with candidates who have the right skill sets.

In-house ad agencies have been on the rise for more than a decade. Procter & Gamble led the charge by in-housing media to minimize its number of vendor relations and create greater cost efficiencies, with the goal of wresting more control over its brands. It's a strategy that's proved successful: Since then, P&G has expanded its in-housing ambitions to other aspects of its advertising operations, and inspired many large brands to follow suit.

As of June 2020, 83%of marketers were managing their marketing mostly or completely in-house, according to a Digiday survey. A successful case is Draftline, a New York-based ad agency created by AB InBev that has quadrupled in size sinceit was launched two years ago to develop an overarching content strategy for the brewer's social, digital and outdoor advertising. Now, more hires are on the horizon.

Not every brand has the scale or manpower of a P&G or AB InBev, but their strategies could serve as a model to build off of to achieve a more balanced mix.It's interesting to note the difference in team structure and division of labor between in-house and traditional agencies, where each can play to their own strength. For example, in-house teams have an advantage over agencies by being much closer to the brand and their customers. This has created a strong data-collection focus for in-house agencies.

Ally Financial, which claims to be 25%more efficient since having taken programmatic in-house, said it wants to understand customer interactions at every touchpoint to determine what project it should be talking about next. And nearly half of the Draftline agency team is charged with gathering consumer data to inform the creative work, not only for the agency, but also its outside partners.

This has opened up the possibility for a number of in-housed brands to begin partnering again with outside agencies, predominantly on a project basis. But even with this hybrid approach, there's a growing shortage for talent with highly specialized skills, especially in data and analytics.

Consider the traditional agency structure. Agencies would hire bright young people straight from school, with freshly printed communications degrees. These new agency recruits were trained from scratch to learn all parts of the agency business. They may start with more repetitive tasks from ad trafficking to pulling pacing reports and analytics before being trained in strategic or client-facing aspects of planning and account management.

This would create skilled media planners and strategists who not only understand the data, but also the impact it has on all aspects of the brand. Without this training structure, we have data and analytics teams who lack the contextual experience to make sense of campaign numbers. Additionally, we have bright and eager college graduates who can't get hired because they don't have practical experience.

According to Marketing Week, eight of the most in-demand marketing skills are related to highly specialized expertise including paid social media, ad serving, analytics and social media advertising. Many of these roles require a breadth and depth of knowledge that is in short supply.

This issue isn't confined to the ad industry. Companies across industries are at risk of missing out on crucial digital transformation opportunities because they lack digital skills, according to a Gartner study. Even more troubling, most companies don't really understand which skills they need.

Forty-four percent of in-house agencies say they've struggled to attract top-tier talent, according to the Association of National Advertisers. Additionally, 79% cited a need to hire more specialty talent related to video, digital, social media and analytics in a survey released last year by the In-House Agency Forumthat was conducted with Forrester.

Given the direction of the industry, wild swings in consumer behavior and rapidly growing software capabilities, it's clear that the demand for specialized skills will only increase. With the growth of in-house agencies added into the mix, the industry will need to rethink how it finds, trains and recruits the right talent to meet that insatiable need.

Continued here:
Are in-house ad agencies choking the talent pipeline? - Marketing Dive

PHOTO:Krisztian Matyas | unsplash

Over the last 10 years, companies have embraced social responsibility as part of their mission. For some, it is core to what they do. Bombas, for example, donates socks to help the homeless for every pair they sell. Others have made the decision to align themselves with one or more causes that reflect the values of the brand and/or executive team. Wendys has long been a supporter of foster care adoption and have now expanded their social mission to also include environmental sustainability.

For the most part, social responsibility and values-driven initiatives enhance brand perception and the customer experience by delivering a "feel good" element to the purchasing process. But what happens when values become entangled in politics?

Weve recently seen Delta Airlines and Coca Cola take a stand against the new voting laws in Georgia. In response they were labeled "Woke Corporate Hypocrites"and people quickly took sides for and against. With the polarization of politics over recent years this should come as no surprise. Along with polarization has come a new political awakening with more public discourse about political topics, driven by 24/7 media outlets and social media.

As a result of this awakening and heightened sensitivity theres now a natural tendency to view values and causes through a political lens. By default, that ends up encapsulating corporate social responsibility. Ive lost count of the conversations Ive had with friends over the last four years that begin with I wont buy from Company X because they support Cause Y, or I only buy from Company A because they support Cause B. Today, corporate social responsibility programs and cause alignment have the ability to both positively and negatively impact brand perception.

I hope that our current political climate doesnt dissuade companies from social responsibility initiatives. They are a much-needed source of support for many causes. But with the enhanced sensitivity around issues and causes, as companies think about impact on brand perception, its also important to consider how a social responsibility decision factors into the customer experience.

Related Article: What Corporate Social Responsibility Looks Like in 2020

First, how widely are you planning to communicate your commitment to a cause or initiative? Is it something that could be perceived in a political or polarizing fashion? Is it something that will be publicized externally or only communicated internally? If it is going to be publicized externally will that be in the form of a page on your website in the About Us section or will it be integrated into corporate and product messaging?

The louder you are externally, the more aware your prospects and customers will become of your cause alignment which may be your goal. If your cause has the potential to be controversial or politicized it is important to arm your customer-facing functions with messaging relating to the why and how of the causes you support so they can consistently and articulately communicate this externally and answer questions in the appropriate way. In creating your plan consider both positive and negative reactions. A well thought out communications plan ensures that social responsibility initiatives will enhance and solidify a brand with its key constituents.

A more difficult challenge is aligning the values of individual employees with the values and mission of the corporation. What happens when personal political positions collide with business?

Our working environments have become more informal, with companies encouraging employees to engage on their behalf on social media. Its not unusual for work colleagues and customers to connect on various social media platforms. In the early days of social media, when everyone was sharing pictures of kids, dogs, cats and vacations, it was a nice way to create a human connection between a company and its customers, and to strengthen relationships. Most companies created social media policies and guidelines to ensure that employees were posting appropriately about the company and for a while that worked well. You cant, however, separate the perfect company posts from the personal posts in a social media environment. As politics and personal political views invade social media, individual values and political positions become visible to customers and have the potential to impact a customers view of the company.

Related Article: Social Media Hashtags: Protecting Your Brand's Reputation and Trust

As it turns out, this is not a one-way issue. Customers have their own social footprint which have the potential to negatively impact key relationships within the companies they do businesses with. I decided to write this article after a conversation with a sales colleague from another company who told me that his customer Zoom interactions were becoming challenging because of political issues.

Over the last year as weve all gotten used to living in a small bubble, both our social and professional connections have come through video sessions. Weve become increasing informal in our business interactions in both attire and style and those initial how are you?" conversations have become more than a fine, how are you? response. My colleague told me that his customers now want to chat about politics which he finds really uncomfortable since his views frequently differ from theirs. His way of dealing with this is to say Id be happy to chat about politics with you over a beer when its safe to do that but for right now lets move on to . This is a good situational response, but it doesnt really address the issue at the corporate level.

All of this makes me think that we need to expand our social media and communications guidelines to include directions for navigating political discussions in a business environment. I know that some people have personal and professional social media accounts and dont mix the audiences, which makes sense. Im not sure what the right answer is, but I do know that this environment is most likely here to stay, and that we need to have guidelines that frame these issues and provide direction on how to engage and not engage.If any of you have made progress in this area Id love to hear about it.

Anita Brearton is Founder/CEO and Co-CMO of CabinetM, a marketing technology discovery and management platform that helps marketing teams manage the technology they have, and find the technology they need. Anita is a long time tech start-up marketer and has had the great fortune of driving marketing programs through the early stages of a startup all the way to IPO and acquisition.

Originally posted here:
When Politics and Corporations Meet, What Happens to the Customer? - CMSWire