The Association of National Advertisers has published a new report looking into the increasing use of Principle Media. To provide a comprehensive overview, Marketing Procurement iQ has published in full, the excellent Executive Summary from the recent ANA Report, ‘The Acceleration of Principle Media’ in which the ANA says that principal media has been getting increased attention, and marketers need to be aware and knowledgeable. The 46 page report can be downloaded in full using the link at the end of this article. Click here to read the full Executive Summary and download the complete report. https://lnkd.in/eB-V_cUc
The Association of National Advertisers has published a new report looking into the increasing use of Principle Media. To provide a comprehensive overview, Marketing Procurement iQ has published in full, the Executive Summary from the recent ANA Report, ‘The Acceleration of Principle Media’ in which the ANA says that principal media has been getting increased attention, and marketers need to be aware and knowledgeable To read the full Executive Summary and download the 46 page report use the link at the end of this post. The ANA says that the purpose of the report is to increase awareness and help educate marketers on principal media — the background, benefits, challenges, and guidelines — so they can make an informed decision about the role of principal media for them. Increasingly, advertising agencies are now acting as principals rather than agents. That means they acquire media — therefore becoming the owner, or “principal,” of that media — and resell the media to their clients. Changes in agency compensation models from marketers as well as pressure from marketers to extend payment terms and “drive media costs down” have led agencies and holding companies to accelerate the use of principal media. Although principal media has been getting increased attention, it has been around for at least 10 years. The 2016 ANA-commissioned report “An Independent Study of Media Transparency in the U.S Advertising Industry” from K2 Intelligence notes it extensively. According to an auditor, in the past 18 months, “it has been seen everywhere.” A fourth quarter 2023 article published by Digiday credits “a robust media buying business” for holding company growth. The article goes on to say, “The key takeaway here is that media often acts as the primary driver of growth for agency holding companies, perhaps because they derive margins from arbitrage around media buying.” To read full Executive Summary and download the full report visit https://lnkd.in/e2ebkzyN Bill Duggan Bob Liodice Peter Kenigsberg, MBA Jason Trubowitz Stephen Broderick Keri Bruce Manuel Reyes
