I had the pleasure of coordinating GT1 formed from ABA’s invitation letter to the market, published in March 2021. The idea, centered on fostering discussions that contribute to free, vibrant, transparent, ethical and responsible advertising, led us to creation of a movement in favor of good practices and, consequently, the formation of WGs.
Among the fronts mapped as fundamental to the discussion, WG1 adhered specifically to those linked to the themes of free negotiation and business models. Initially, we directed the group’s actions in rounds of conversation, ecosystem perceptions, analysis of existing models in light of in-depth reflections and discussions on ethical, transparent and responsible business models.
Mainly because we understand that this agenda has proved to be one of the main needs of the market to achieve the necessary transformation, approaching what is considered ideal, efficient and fair in the area of free negotiation aimed at the public and private sectors.
To delimit the approach, we seek to base the discussions on four main pillars: defense of free market negotiation, transparency between trading parties, establishment of long-term goals and new business models. Our object of study was based on existing structures in the advertising ecosystem, including representatives (volunteers) of the most diverse participants in the sector, in order to value those that provide transparency to the entire chain.
As a result of these reflections, the suggestions were presented in light of what was considered the most suitable practices for the contemporary market, with emphasis on the premises for the existence and applicability of free negotiation and transparency as pillars of the relationship between the agents of the marketing ecosystem in Brazil and the main prerogatives about current business models and their evolution within the Brazilian market.
The list of suggestions for best practices in the relationship between agents in the marketing ecosystem considered the importance of transparency in the operation costs throughout the chain, the need for clarity on the existing revenue sources in the ecosystem for contracting the service, education of the market, freedom to choose the best investment management model for the purchase of media and review of obligations by agencies (data research, checking, etc.).
Regarding current business models and their evolution, the proposals follow the line of the need for more efficient solutions and increased productivity in the business chain, with global reach, prioritizing current regulations and transparency between partners.
These solutions include: freedom of choice in the search for the best model for managing advertising investments; possibility of contracting the media, directly or via partners; establishment of different remuneration models among agents; Clear KPI’s shared at predetermined periods; and transparent legal contracts in line with this new standard, providing for possible audits to be carried out between partners.
These proposals tend to benefit the entire advertising market, ensuring the sustainability of the marketing ecosystem and promoting greater freedom for innovation and the development of new business models that can be established in the local market, generating more investment opportunities and heating up the sector.
Sheila Vieira is president of the ABA Sourcing Committee and manager of Indirect Supplies – Marketing and Retail at Grupo Boticário
