The Case for Sustainable Optimization

Now is the most disruptive and least stable period in the history of media consumption The explosion of technological development over the past five years most notably cloud computing machine learning and connected devices along with a rapidly increasing focus on amp8220UserFirstamp8221 media platforms has fundamentally changed the face of global media habits and therefore how advertisers should approach media opportunitiesIn the face of this disruption weamp8217re witnessing multiple simultaneous phenomena The influence of the CMO is at an alltime high as companies focus on capturing topline growth and market share Procurement departments continue to have an increasing influence on marketing as CFOs look to control costs Data is increasingly a critical asset and battleground for ad buyers sellers and brands And finally thereamp8217s the rapid expansion in methods of purchasing ads guaranteednonguaranteed bulkimpressionbyimpression fixed pricingauction and who purchases the media agencyclientside marketeradtech firmIf youamp8217re not comfortable with change you wonamp8217t like hearing that itamp8217s only going to accelerate from here History has taught us that in periods of revolution the meek and the slow donamp8217t do well Power shifts hands rapidly Opportunities seem everywhere amp160often too much from which to choose Trust gives way to opportunism As much as our industry swooned over Mad Men during its sevenyear run there are more timely lessons to be learned from Game of Thrones Anyone who watches the show knows that what might seem like a tight grip on power one moment is most often only fleetingWhen everyone is looking for an edge the absolute best ROI the absolute most insightful audience insights the absolute right moment to connect with potential customers we should remind ourselves that we work in an advertising ecosystem not a vacuum Your agencybusinessadtech firmmedia company certainly needs to examine broadly and deeply where to optimize revenue and profits to achieve your business goalsThe problem is there are too many examples today of ecosystem players acting greedy selfish and shortsighted in their quest to hit quarterly business goals deliver the appearance of savings or achieve an edge over competitors And thatamp8217s poisoning the trust partnership and wintogether mentality of our businessSo whatamp8217s the alternative Here are four ideas to create better habits1 Regardless of where you sit choose your media client or agency partners as youamp8217d choose a relationship partner not a onenight stand2 Donamp8217t buy on price Buy on value Ad inventory is not a commodity so stop treating it that way The welldocumented 25 billion in media reviews currently in motion threatens to devolve into a game of musical chairs mostly because reviews are too often won on promises of cheap rates which often results in a shell game of hidden profits Sadly most media agencies who get hired based on the promise of lower rates likely wonamp8217t have much time to prove their merit which undermines agencyclient relationships3 Think of optimizing for success in terms of your ecosystem Yes all sides of our business should seek to maximize profit in the nearterm But did your business maximize nearterm profits while not depleting resources including partners that in the future could grow into even greater value Thatamp8217s what matters most4 If we donamp8217t have honesty which increasingly means transparency we cannot have a sustainable relationship This is true regardless of where you sit in the advertising ecosystemSo by all means send your best analysts auditors and data scientists forward at full speed to uncover hidden value new growth opportunities and untapped areas of savings Just think longterm about how you will use that information and what you are asking of your partners vendors and the people who like you will likely be part of this ecosystem for a long timeWeamp8217ve all learned that environmental sustainability within our communities requires foresight and restraint Letamp8217s practice the same level of sustainability in our advertisingindustry relationshipsThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillage management or associated bloggers

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The Case for Sustainable Optimization

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Mike Margolin

"About That with Carl Mayer:" Alaina Donnellon (Episode 6) - By Carl Mayer

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