Advertising Compensation and Benchmarking, Contract Compliance and Risk Assessments are vital services for large corporations with tens of millions, if not billions of dollars of marketing spend. Advertising Audit International (AAI) provides exactly these services to a broad range of Fortune 500 brands. Adding BriefLogic’s new “agency input audit” to the mix gives corporations a first-ever 360 degree view of their agency engagements.

In the complex and often confusing world of client-agency transactions, AAI’s standard review techniques are cost-effective methods to ensure the accurate and timely review of advertising costs and expenses. While most financial review firms, auditors and CPA firms typically use sampling techniques, AAI examines each individual invoice and its related line item costs for accuracy and contract compliance.

However, as AAI CEO Michael Lay states, “all of the costs we help recover for our clients, and it is a staggering figure, may be just the tip of the iceberg as we go to market with our new BriefLogic partnership.”

According to some industry analysts, total communications spend worldwide, across all marketing disciplines will exceed one trillion dollars in 2010. Currently, the corporate side of the industry is focused on the outcomes of that spend. Marketers are constantly interrogating the output of their agencies, their creative ideas, or the “stuff that sells.” According to co-founder and CEO, Casey Jones, BriefLogic has proved conclusively that someone has to think more deeply about the quality of the direction that sets these billions of dollars in motion. In a recent survey conducted by Greenberg Brand Strategies, it was determined that 30 percent of all agency time and energy is wasted or made inefficient due to poor input from marketing and brand managers.

Where AAI has experience in making sure that every single dollar that a marketer’s agency spends is accounted for, BriefLogic makes sure that it is directed properly at the front end of the process. AAI provides comprehensive audits of agency spend after-the-fact, and BriefLogic provides briefing tools, audit services, and agency input training to give marketers and agencies confidence that waste and inefficiency don’t occur on the input end.

To help you understand the concepts we are presenting here on this site and in our forthcoming book, please consider the following definition of ‘brand.’

A brand is the sum of perceptions any given individual or target audience has about the object you are striving to market.

These “objects” can be products, services, concepts, theories, ideologies, candidates, nations, institutions, or even yourself. For the moment, when we use the term ‘brand’ we mean “perception of a product” and when we use the term ‘product’ we mean all objects, services, concepts, ideas, ideologies, candidates, nations, institutions, etc., to which an audience can assign a label and which they perceive as having either a positive, negative or even uncertain value.

Brands can be influenced by marketers, but three things about them are vital to understand:

• A brand, your brand, is owned by your audience.  They determine its value. It lives in their hearts and minds and not, as many suppose, on a piece of paper in an office or an artistic rendition of your logo, company or product name. A brand name, like a logo, only means what you can persuade someone to believe, think, and feel about it. Names, like words and symbols, are carriers of meaning, containers for meaning, and proxies for the meaning that resides in an audience’s mind. You, your CEO, your fellow employees, and your board of directors are one audience that has some common agreement on what a brand means to them and how much they value it. That meaning is never the same as the audience perception.  Your relation to the object differs from that of the audience.  If you forget that, you’ll rue it later as you waste marketing spend.

• Pre-commoditization of your product category, the primary source of brand perception is the merit of the product. Does it deliver at above or below the expectation of the audience? David Ogilvy was on to something in talking about the brand as including “the nature of the product.”  There is often conflict between the different individuals and organizations who contribute to the development of a brand, i.e. marketers, brand managers, agencies, product engineers, designers, on the one hand, and line management on the other. Lack of clarity and agreement results in poor performance. Yet only after a brand becomes completely commoditized—only after there are a multitude of options, all of which deliver exactly the same functional and emotional benefits—does perception based on non-functional attributes alone become the primary driver of branding. Sheery’s “emotional, subjective” understanding of a brand makes sense only at that advanced stage, and takes for granted the understanding of the nature of the product that is the primary content of the brand at earlier stages.  Unless we as “brand” managers can understand and appreciate that our role is complementary to our teammates’ roles on the product side, we will be too blinded by our own brilliance and biased by our own bullshit to see the truth: that a brand is developed in an interdependent partnership with product development and that neither group alone can claim complete responsibility for its health, success or failure.

• Great brands are built by teams that include marketers. At times however, they are incidental to the effort. A marketer’s success is often assured by a great product. Since the human mind nearly always assumes that correlation equals causation, many “great” marketers have had their reputations made because of association with great products. The converse is also true. Marketers are often blamed for brand failure, when in fact the product itself has failed: failed to deliver equivalent or higher value than competing products or failure to be relevant in a world that has evolved beyond its need or usefulness.

A brand is made up of perceptions. A brand perception is any brand claim or promise held in the mind of the audience. The claim may be true or false and the promise may be real or hyperbole. In either case, it is the perception that determines individual or group reality. Perception then determines action, purchase, recommendation, etc.

But perception doesn’t float free from reality.  The nature and quality of the product matters.  Marketing isn’t magic.  If you want to pull a rabbit out of a hat, it helps to have a rabbit.

That which we can create and then market or communicate to others may be called products, services, ideas, ideologies, religions, or concepts. This category includes anything that can be created and to which we can attach a label. We can define these things universally as “objects.” They are different from and not to be confused with the concept of “brands” which are how each of these objects is perceived by its intended target audience. Brands are subjective. Objects are, naturally, objective.  -From the upcoming “Jones&Bonevac on Advocacy”