American Association of Advertising Agencies

American Association of Advertising Agencies (AAAA) is a management-oriented business that provides a number of important services for its members. It was founded in 1917 and is actually the "national trade association" that is the most visible advocate for and representative of the advertising business in the United States. This paper delves into what the organization does, its mission, its services, and why it is important in the field of advertising.

The Association's Mission and Purpose

The AAAA members produce an estimated 80% of all the advertising that is placed in the United States, which is an enormous amount of advertising. That said, there is evidence that the majority of members are not huge agencies at all; "…more than 60% of our membership bills less than $10 million per year" (AAAA). It is apparent that AAAA members are loyal and receive worthy services because on average, an AAAA member has been a member for over twenty years. A few members have a long-standing relationship with AAAA because twelve members can trace their relationship back to the origins of the organization -- 1917.

The mission of the AAA is clear from its "Mission of the AAA" statement: "To improve and strengthen the advertising agency business in the United States." But how does the AAAA do that? It provides counseling on operating an agency, managing an advertising agency, and by offering to members the "collective experience of the many to each" (AAAA). Moreover, the AAAA mission is to: a) foster professional development among its members; b) "encourage the highest creative and business standards"; c) bring talented people who have "excellent" reputations into the business; d) work with governments at all levels to achieve "…desirable social and civic goals"; e) "resist" legislation that is unfair or attempts over-regulate the industry; f) be the principal advocate of all advertising and to provide the most pertinent advice vis-a-vis advertising; and g) disseminate the results of studies which show the positive impact that the AAAA members have on the economy.

Moreover, the AAAA is very active in using its experience and know-how to work with new members and other agencies that need help in solving problems as single agencies. The AAAA is obviously not afraid to go directly to the media and to "provide constructive suggestions, solutions to problems and technical help"; AAAA also claims in its Mission Statement that it is willing to listen to suggestions from media members.

What did the AAAA accomplish in 2012?

The AAAA held a "Compensation Summit" for its members in 2012, which was the first ever summit of this nature. Making as much money as possible (using ethical guidelines of course) was the nuts and bolts of the summit although the leaders of the summit didn't use the work "money" in its explanation, it is clear this was about "best practices" when negotiating compensation. In addition, the AAAA leaders provided "billing rate data" to its members so that information was clear on what the market value is in any specific region of the country. The AAAA provided a "billing rate survey report" for its members which helps individual advertising agencies see what other agencies are billing for their services.

Important to new agencies and for agencies undergoing major changes, the AAAA in 2012 worked to train members on ways and means to "…attract, develop and motivate agency talent"; there are few things an advertising agency that are more important than bringing in new energetic, talented and creative young people, and AAAA knows this and thus helps its members with the strategies to find those most creative people to fill pivotal spots in agencies.

Legislative and advocacy activities in 2012

Last year the AAAA lobbies the U.S. Congress in order to preserve certain tax benefits for advertising agencies; the AAAA also worked hard to preserve those tax deductions that are available for agencies. The AAAA also pushed hard to put forward a series of "best practices" in order to curtail the revenues of those individuals and groups who engage in "fraudulent online operations." The point pushed by the AAAA is that fraud on websites that is passed off as legitimate advertising must be stopped; illegal and scam advertising hurts the legitimate industry and hence it must be shut down, according to the AAAA.

Also in 2012 leadership in AAAA visited 250 member agencies to update those agencies on industry changes; also the AAAA continued its training programs by offering "…webinars, full-day seminars, and multi-week evening training programs" (AAAA).

It is clear that the AAAA is an advocate for diversity in the industry, and in 2012 the AAAA offered an intern program for college graduates (and undergraduates) that reflect cultural and ethnic diversity. The 103 students selected were all given "10-week paid internships at 70 agencies in 15 U.S. cities"; hence, over 400 hours of industry experience was gained for each of the 103 young people in that program. Diversity is not just a cliche or a buzzword for the American Association of Advertising Agencies; advertising that reflects the "…changing ethnic and racial balance" of the consumer population of America is the goal of the AAAA.