Background
Mega media buying shops are in the news for a lot of reasons.
Welcomed by many, feared by a few, the reality is that they
are here to stay.
The MediaTrends Team thought that this is the right time to
meet the industry and record
the view points of various segments.
To begin with, we had to decide on the list of “interviewees”.
After much consideration, we decided the following-
• We wanted raw reactions, without any cosmetics
• So, we would not disclose identities of interviewees
• And we would NOT interview Chairmen, M.D.s & CEOs
as they are too prone to making
the “right” statements (too much
at stake!)
• To get a complete picture, we would divide the industry
into 9 segments and collect
feedback from around 25 experienced persons representing
these segments
• Each of these 25 persons would have a minimum of 10 years
experience along with
a reputation of a strategic thinker
This is how we divided the industry into 9 segments-
1.
Large advertisers
CLIENT
2.
Medium-sized advertisers
3.
Small advertisers
4.
Large media buying shops
MEDIA
BUYER / AGENCY
5.
Media-savvy agencies (incl. media consultants)
6.
Small agencies
7.
Established Media Bouquet Owners
MEDIA
OWNERS
8.
Strong Regional Media Owners
9.
Second-line Media
Finally
we designed individual questionnaires for each segment in association
with industry experts and started meeting people.
The response was collated, analysed and is presented below for
the reference of the industry.
All feedback is welcome.
- MediaTrends Team
SMALL AGENCIES
"We
do not have the tools nor large clients."
"We
cannot match the low rates & professional service of large
media shops."
"Or
offer extended credit period to clients."
"Discount
culture has negative impact on scientific media planning.
"
"
We negotiate client-specific rates."
"
No plans to invest in media properties."
"
Small agencies
will have to align with large media shops. "
"
Large clients will buy media from organised media shops."
MEDIA SAVVY AGENCIES
"
We can give clients the same low rates & professional service
"
"
Major
rate negotiations are client specific, resulting in a level
playing field."
"
Agency specific rate negotiatons can be squeezed by media
savvy agencies "
"
Discount culture has negative impact on scientific media
planning. "
"
We negotiate client-specific rates with bulk incentives which
arte passed on to client."
"
No
plans to invest in media properties."
"
Competing brands are handled by separate divisions / groups.
We sign non disclosure agreements."
"
Small agencies should become media savvy, invest in tools
& human capital if they want to stay in media.Else they
will have to align with large media shops."
"
Large clients will buy media from organised media shops."
"
No plans to invest in media properties ."
LARGE
MEDIA BUYERS
"
We ensure that clients get lower rates & better service "
" Media
sellers get single point contact for bulk sales "
"
Discount culture has negative impact on scientific media planning
"
"
But clients are responsible for 'Savings Report' syndrome."
"
We negotiate client-specific rates with bulk incentives which
arte passed on to client."
"
We lack skills to invest in media properties."
"
Competing brands data is not an issue. We manage by implementing
'China Wall' like security concepts. We sign Non Disclosure
Agreements."
"Small
agencies will align with large media shops. "
"Large
clients prefer to buy media from large media shops."
"We
may invest in media properties in future . "
Large Media Buyers
see advantages
•
Clients get lower rates & better service • Media
sellers get single point contact for bulk sales
Agencies
see more disadvantages than advantages disadvantages
•
Threat of losing media accounts to large media shops
• Weak in agency specific rate negotiations
• Large clients prefer to buy media from large media
shops
Advantages
•
Media savvy agencies see an opportunity to spin
off media buying shops
• Pure creative agencies can align with a media
shop for mutual benefit
Most Media Owners
see more advantages than disadvantages advantages
•
Single point contact for multiple clients
• Dealings with skilled professionals
Disadvantages
•
Discount culture & savings reports
• Value & scientific planning taking a backseat
• ‘Superpower’ behaviour, delayed payments
SECOND
LINE MEDIA
"Large media shop provides single point sales contact
and dealings with skilled professionals"
"But
too much rate squeezing. And a 'super-power' syndrome results
in value & scientific planning taking a backseat"
"We
negotiate client specific rates with agency specific commissions
over & above 15%. "
"Nobody invests in media properties."
"Clients
prefer to buy media from large media shops."
"Small
agencies will become creative shops."
Strong
Regional Media Owners
"Large media shop provides single point sales contact
and dealings with skilled professionals"
"But 'Savings Reports' syndrome focusses excessively
on difference between card rate & negotiated rate."
"Too
much rate squeezing. And a 'super-power' syndrome."
"Value
& scientific planning take a backseat "
"We
negotiate client specific rates with agency specific bulk
incentives. "
"Nobody
invests in media properties."
"Clients
prefer to buy media from large media shops."
"Small
agencies will become creative shops."
"We
schedule the low value spots from mega media shops last -
after placing the higher value spots in prime positions. Naturally."
Established
Media Bouquet Owners
"We
schedule the low value spots from mega media shops last -
after placing the higher value spots in prime positions. Naturally."
" Large
media shops provide single point sales contact & dealings
with skilled professionals."
" Along
with an opportunity to bundle weaker offerings."
" But 'Savings Reports' syndrome focusses excessively
on difference between card rate & negotiated rate. "
" Value & scientific planning take a backseat "
"
We negotiate client specific rates. No agency incentives."
"
Nobody invests in media propoerties."
"
Clients prefer to buy media from large media shops."
"
Small agencies will become creative shops."
"
Small agencies will align with large media shops."
Most CLIENTS see
advantages
"Lower
media rates "
"More
value added services"
"Single point
contact for multiple media"
"Dealings
with skilled professionals"
LARGE
ADVERTISERS
"We
buy media from large media shops because we get lower rates
and value added services"
"Discounts
have negative impact on scientific media planning"
"We insist on
client-specific rate negotiations & bulk incentives
to be passed on to us"
"We
may audit our media buyer's books"
"No
plans for investing in media properties"
"We
insist on non-disclosure agreement. May impose non-competing
brands clause"
"We
use small agencies for creative/strategy "
MEDIUM-SIZED
ADVERTISERS
"We
prefer to buy media from large media shops because of lower
rates and value added services"
"
Discounts have negative impact on scientific media planning
"
" We insist
on client-specific rate negotiations "
"No
plans for investing in media properties"
"
We may ask media buyer to sign non-disclosure agreement
"
"We
may use small agencies for creative/ strategy "
SMALL
ADVERTISERS
"Not
approached by large media shops."
"Discounts
have negative impact on scientific media planning"
"Rate negotiations
should be client-specific "
"No
plans for investing in media properties "
"May
buy media from large media shops in future"
Note : See summary information of segment on mouseover. For detailed
report, mouseclick on a segment.
