Time for a Reset?

But where we are now feels different certainly as far as the media agencies are concerned Putting individual companies aside and making the case as objectively and dispassionately as possibleThe largest media agencies have long promoted their strategic and planning capabilities amp8211 with good reason By so doing they have sought to position themselves as competing in the same highmargin space as the management consultancies This ambition seems no moreAt the same time theyamp8217ve become in effect sales agents for the large platforms and the adtech businesses amp8211 being paid by them under all sorts of labels including consultancy training and in one case apparently selling space for promotional posters on the agencyamp8217s office wallsAnd theyamp8217ve developed their highmargin low risk principalbased buying practices amp8211 seen it seems by some of their CEOs as central to the case for a giant mergerThese are incompatible aimsThe first one relies on an investment in time and resource the growing and nurturing of a group of skilled practitioners who are aware of and absorb the latest research and thinking around how media works and as such are of potentially great value to clientsamp8217 businesses It relies on objectivityThe second and third rely on putting the agencyamp8217s interests first whilst seeking to convince clients otherwise using the argument that what matters is buying the most basic set of media metrics at the cheapest rate regardless of any other evidence This amp8216once in a lifetimeamp8217 offer is available only if the client foregoes any right to audit or thirdparty investigationIn trying to square a circle the largest agencies have managed to lose the trust of their clients cause embarrassment amongst some of their most skilful strategic thinkers and I would argue bring the ad business into disreputeThere is an irony in this obsession with shortterm financials which is what drives this amp8211 without their media arms the holdcos are deep in the mire given all the evidence produced by many of the very same organisations on the value of longterm brand buildingIt39s time to take a breath and resetWhen media agencies first emerged from the old fullservice model they were buyers Thatamp8217s what they did thatamp8217s what they were called still are by many clientsPlanning and strategy stayed within the creative agenciesIt was essential to ensure that what was planned was bought It made no sense to separate the planning from execution and sure enough it changedBut what if the plans and the buys arenamp8217t linked What if the agency plans one thing to suit its clients needs and then buys something else to meet its own commitmentsThat is what happens now in far too many cases It was at the heart of the case made by Jon Mandel to the ANA in 2016 itamp8217s still the caseIt was the basic principle that fuelled the Japanese media industry for years The biggest agencies acted as both buyer and seller plans were more a postrationalisation measurement atrophied based on gross impressionsSound in any way familiarThen Nielsen introduced people meter audience data into the Japanese market bringing target audience ratings TARPs to a market previously limited to gross ratings GRPsSuddenly plans based on target audiences became a thing A planning agency called Strategic Planners International or SPI emergedSPI started using the targeted data to audit actual delivery against plansIn due course SPI started doing the planning themselves for clients with the buying remaining with the giants SPI audited the buys made against their plansWeamp8217ve come a long way from TARPs and GRPs but if plans and buys arenamp8217t linked why do they need to be done in the same houseA specialist comms planning agency could be hired by a client for the quality of its thinking and expertise The planning agency doesnamp8217t buy but it could be made responsible for its plans being executed The client relationship is with the planning team the buying team is accountable to the planners who are held to account by the clientLike most models this will appeal to some clients more than others For some a relationship with a media agency that plans and then buys what it plans openly and transparently would make more senseAlso like most models this needs scrutiny detail and constructive criticism Perhaps this post can start that discussionWhen something isnamp8217t working we shouldnamp8217t be afraid to break things apart before putting them back togetherAs to SPI the business was bought by Aegis way before Aegis itself sold to Dentsu merged then demerged was subject to a management buyout and most recently has been sold again in 2023 amp8211 to DeloittesIt39s Founder Kim Walker created and now Chairs Aprais a business that 39works to build stronger business relationships39Posted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Time for a Reset?

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