#MediaSnack Ep. 46: A Great Media Agency Pitch!
On this episode of #MediaSnack Tom and David are reflecting on some of ID Comms experiences in recent media pitches. Compared to the last year’s pitch market, 2016 was relatively quest. However, the quality of media of agency performances in major reviews this year increased significantly, and Tom and David explain how this has led to an impressive level of commitment from participating agencies. As a result of this, the advertisers found it very hard to make a final decision in most cases, which is the sign of a great pitch process because agencies are hungry, competitive and committed to win. There is a clear correlation between those advertisers who make good pitch preparation including a clear vision for the role of their media agencies and the level of commitment from participating agencies. Agency CEO’s will tell you that they compete hardest for the best-prepared pitch briefs because they lay out a vision the agency can hang on to and work towards. These are far more fulfilling than a complex spreadsheet simply asking for cheaper media prices. Nobody enjoys a race to the bottom because ultimately nobody actually wants to win it.
Recent research in US suggests that 64% of US media spend is going to be reviewed next year. We question the maths on that: This means that over $120bn of media spend is going to be in review. When compared to the $30bn that formed the MediaPalooza from 2015 you can see this is an extreme scenario and one which would terrify agency CEO’s.
Tom and David also look into The Guardian’s recent experiment with its own inventory, that led to some fascinating results. The press reported that The Guardian set up an experiment to purchase its own inventory in order to follow the supply chain. This allowed them to see how much money as a publisher they get from the investment they made as an advertiser. The results of this experiment were fascinating, as according to their new Chief Revenue Officer, The Guardian was receiving only 30% from the initial investment in a worse case scenario. #MediaSnack encourages more media vendors and media publishers to conduct similar experiments as this gives as greater insights into media supply chain for all advertisers.
Finally, the guys review some great comments made by Ben Jankowski, global media director of MasterCard at Advertising Week. Ben strongly advocates that brands should invest in senior media talent.