Welcome to $30 Billion in Media Agency Reviews

Fewer than 100 marketers dominate network television advertising Many of these marketers are now reviewing their media agency relationships and many others will announce their reviews in the next several months The advertising priorities and focus of these 100 companies and the resources available to fulfill those needs are undergoing a radical shift empowered by technologyMEDIA REVIEW ISSUE 1 TransparencyWhatever the reality of the transparency issue my colleague at MediaVillage Brian Jacobs points out that transparency and rebate issues will inevitably be part of the agencyclient conversation Any media seller that has benefitted from quotunderthetablequot negotiations with agencies will find those conversations are now onthetable and less effective in driving deals Agencies and media companies need to shift from being a service business with predetermined revenues and profitability to having the upside of a share of growth and success This is a radically different business than what39s in place today With all the emphasis on new metrics in this year39s TV Upfront market as explained in detail by my colleague at MediaVillage Charlene Weisler less than 01 of total Upfront investments will have an actual connection to the sales results they generate or contribute to Transparency needs to be a twoway street with a quid pro quo Yes require that agencies be fully transparent in their business dealings impacting directly on their clients39 businesses And let the clients be transparent about the results and impact of their media investments on their business amp8211 and give the agencies an upside when goals are surpassedMEDIA REVIEW ISSUE 2 The 4Cs A Core Corporate Communications CultureMedia companies and agencies have failed dismally at building differentiated brands that clearly define to their businesstobusiness clients their unique attributes and value Like PampampG and Unilever agencies and media companies are struggling with past organizational models that focused on individual divisional PampampL39s with little to no focus on or investment in a core corporate communications culture amp160When any agency pitches itself how do they describe the core values of their firm and how does that description conform to the core values of the parent holding company A quotbrandquot is defined by clear differentiation and value well presented and consistently fulfilled The agencies and media companies that will thrive in the future will be those that clearly define communicate and deliver on unique brand valueMEDIA REVIEW ISSUE 3 Bridges Roads and TunnelsLike our nation39s roads and bridges the infrastructure underpinning the media and advertising business needs to be overhauled and fortified Many current business models simply can no longer hold the transactional weight now required Much of today39s basic ad business foundation was constructed for an industry of three TV networks and a dominant print industry It39s an industry for which the fax machine was a huge leap forward an antique that remains in use in many parts of our business As marketers make decisions impacting billions of dollars in media spend their compensation formulas and the resulting pressures for cost efficiencies placed on media sellers must recognize the investments that will be required to fulfill their demandsMEDIA REVIEW ISSUE 4 Data Data and More DataIntegration of multiple new data streams along with accompanying analytics and interpretation require investments Marketers can make demands that will require new investments by their agencies and media sellers but these agencies and media companies should require a revenue upside before they agree to invest It39s not about the data It39s the analytics interpretation and application Data costs money intelligent analytics purposeful interpretation and effective application of data deserves financial rewardsMEDIA REVIEW ISSUE 5 Innovative Native Content and CauseBased Marketing SolutionsMarketers will seek content solutions creating opportunities for agencies and marketers to partner in new business relationships These relationships will include nontraditional compensation models These compensation models will open the door to new conversations around transparency One of those compensation models will include sharing equity participation in new media and content properties with clients Circles upon circles upon circlesMEDIA REVIEW ISSUE 5 Gender and MultiCultural DiversityMarketers agencies and media companies cannot hope to relate to shifts in media consumption realities unless they hire and empower a young gender diverse and multicultural workforce These young team members need to be quickly elevated in authority and responsibility to have a meaningful voice in decisionmaking Aging white males may be making the decisions that will drive the 30 billion in media reviews but the young employees who will be responsible for implementing the campaigns need to reflect the future not the past The winning pitches will be those that understand and embrace these emerging consumers and audiences and demonstrate in their pitches their understanding of this new realityThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecom management or associated bloggers

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