Change Can Undercut an Advertiser’s Media Optimization EffortsDecember 14, 2006
The rate of change within the advertising and media industry is incredibly dynamic, presenting advertisers and agencies with a myriad of opportunities to better plan, invest, steward and account for the client’s media investment.
Unfortunately, the media marketplace has not kept pace with these changes, which include, but are not limited to, expanded media channels, on-demand media consumption, content aggregation, consumer control, and improved media consumption measurement tools and techniques. The fact is there are more tools at the agency’s disposal than ever before yet, statistics show that they’re not taking advantage of them to make better decisions for their clients.
One very simple tool for maximizing a client’s media investment is to monitor television media delivery back to the client approved media plan, using Nielsen’s overnight ratings to assess audience delivery relative to goal and to the final buy. If the media buyer notes deviations from goal, they can take action to secure compensatory media weight in-flight to deliver the plan…rather than reporting on audience short-falls during a post-buy analysis generated 90 – 120 days end of quarter. Agencies have access to the tools; the question isn’t whether they’re able to provide this level of stewardship it’s whether or not they have made it a priority to optimize the client’s media investment.
The issue of “time” can pose the same problem when looking at an even larger challenge facing the media industry and one that is resulting in increased risks for advertisers….turnover. At the very least, turnover related changes impede efficiency and increase risks due to learning curve issues and process gaps. Turnover in conjunction with changes stemming from media agency account losses, holding company restructuring or client-initiated fee reductions can be particularly troubling because these actions typically lead to agency staffing reductions and increased workload. The result is decreased responsiveness, limited media stewardship and increased potential for mistakes.
Turnover at the client level is a factor that can contribute to the erosion of brand identity and awareness. According to Spencer Stuart’s 2005 tenure survey, the average CMO’s (Chief Marketing Officer) time in position is 23.2 months. This frequent change is especially problematic when it comes to cross-platform marketing, leveraging target audience insights and marketing/ media accountability initiatives.
Whether it’s the fast-paced rate of change influencing the media industry as a whole or the rippling affect of turnover at the agency and client levels, the industry if facing big challenges when it comes to achieving media optimization.
Rupert Murdoch, the oft quoted Chairman of News Corporation, recently said that, “The world is changing very fast. Big will not beat small anymore, it will be the fast beating the slow.” If as an industry, we give any credence to this perspective, then we must commit ourselves to building stable, efficient and collaborative relationships with each stakeholder group if the goal is improved media optimization.
