Life Lessons for Buyers & Sellers - Steve Grubbs - MediaBizBloggers

"You should remember that advertising is a game. It's a very important game, and you must play it well, but it's still a game." This advice was imparted to me during my BBDO orientation (circa 1977). I recall it, whenever I talk about the relationship between agency buyers and media sellers.

There may be a couple of dozen people in our business who truly understand both the agency buyer/media seller relationship AND the dynamics of the media marketplace. And there are another couple of hundred people who believe they are one of those couple dozen. (Quick litmus test… if you're one of the pundits who has proclaimed "the upfront is dead", you're in the latter group).

The media buyer/seller relationship is long-standing, complex, misunderstood and ever evolving. At the core of it, both parties try to INFLUENCE each other to negotiate the best terms for their company or client. Both sides use a combination of carrot and stick with a touch of fear and salvation to achieve their ends.

In some cases there is conflict and in other cases there is partnership. In the easy times some would compare it to a marital or familial relationship with the usual bickering, coddling and negotiations. In the tough times the relationship has been described with a Godfatheranalogy… "We're going to the mattresses". And those outside the industry will sometimes (most disturbingly) liken the relationship to that between lobbyists and politicians.

The most successful negotiators, whether they are a buyer or seller, have one thing in common… they are able to understand and accommodate the motives and goals of the person sitting across the table from them. Or as Sun Tzu (The Art of War) put it, "If you know the enemy and know yourself, you need not fear the result of a hundred battles". It is that simple. In broad terms, the media sellers are focused on maximizing their revenues. The agency buyers are focused on negotiating the lowest possible rates and "beating the market".

What was once a very close knit relationship between buyer and seller based on trust and much personal interaction, is now decidedly more formal. The art of relationship building has been lost. People don't have the time to invest in relationships. They see less value in them. Still others believe these relationships discourage both sides from taking a hard line in their negotiations.

In one of my early "Aha!" moments in the business, I witnessed a network salesman maneuver and grind my then boss through a two hour negotiation to arrive at a CPM guarantee. After much handing-wringing the deal was struck and both sides were satisfied. I watched this process in total awe because that salesman had predicted to me just prior to the negotiation session, exactly where our CPM negotiations would be concluded... to the penny!

In another early "Aha!" moment, I was meeting with a sales exec and his manager. The salesman was grousing about an agency buyer who had beaten him down during an Upfront negotiation in a buyer-friendly market. His manager shrugged and simply said it was ok, because they'd "get even" in the scatter market. He then turned to me and said, "We can stick it to this guy in so many ways, and he'll never even know it."

The upshot of these life lessons for me was 1) Never underestimate those sitting across the negotiating table from you. 2) Figure out who you can trust. 3) Emotions can impact the outcome of your negotiations. 4) If you stick it to someone, be prepared for the quid pro quo. The bottom line… if you don't understand and accommodate the motives and goals of the person sitting across the table … you will not be successful over time.

In an environment where information is critical to making informed decisions, those with the strongest relationships have better access to information. In an environment where there is still not enough cost transparency and where some decisions need to be made quickly without the usual diligence, the need for trusted partners is more important than even before. In an environment where the importance of relationships has been marginalized, those that still respect their value have an advantage over their competitors.

And for those who think it is only a game, the best outcome is still when both sides walk away believing they've won.

Steve Grubbs is President and founder of Second Act Media consultancy. Second Act Media is an advisor to companies working in the media, marketing, entertainment and sports industries. Steve can be reached at steve.grubbs@secondactmedia.com.

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