ANA Board approves contract extension with SAG/AFTRA.

At the Association of National Advertiser‘s Annual Meeting, the Board of the ANA unanimously approved a two-year extension of the Commercials Contracts with the Screen Actors Guild and American Federation of Television and Radio Artists (SAG/AFTRA). The agreement provides for a joint study that will examine alternative methods to compensate performers for their participation in commercials appearing on television, radio and the growing array of new media.

The Board‘s action, which follows approval by the SAG/AFTRA Boards and ratification by union membership, represents the final step necessary to authorize the agreement and implement its terms.

“We now look forward to engaging a qualified independent consultant to conduct an in-depth study over the next two years to rethink the economic model under which actors are fairly paid, and advertisers achieve an appropriate return on their investment,” said Bob Liodice, President and CEO of the ANA.

Added Jim Stengel, outgoing Chairman of the ANA and Global Marketing Officer of Procter & Gamble, “In conducting the joint study, we plan to engage all constituents in the advertising industry in a transparent, thoughtful, inclusive manner.”

The results of the joint study will form the basis for renegotiating new Commercials Contracts in 2008. “Great challenges lie ahead,” said Douglas Wood, lead negotiator for the advertising industry. “Ensuring that talent payments in the rapidly changing marketing environment are handled in a mutually beneficial way will require all parties to act with a great spirit of collaboration.”