Marketing Procurement iQ’s Post

My latest article for Marketing Procurement iQ examines the detail of how Principal/Proprietary/Inventory (PM) media works in real life and how remarkably small the benefit is for advertisers compared to the process behind it. And assuming that the various inherent pitfalls are avoided. This is quite a big assumption when the conflicts of interest are unavoidable. Not to mention a study showing that two thirds of post-campaign audits revealed non-compliance with agreed protocols for PM as well. The only certain aspect is that the agencies earn more and advertisers won't know how much. Everything else is vague at best. The surprising thing is that any advertisers do it. Media Marketing Compliance Stephen Broderick Elliot Sherrington Fiona Foy Tony Whittingstall David Reid Jane Dormer Sharon D'Cruz Molly S.

Has your media agency ever approached you about buying proprietary/inventory media? How do you feel about it as an advertiser? Are you familiar with the pros and cons of purchasing media bought by your agency and re-sold on to you, as opposed to doing it through conventional channels? With global advertising spend reaching $1.631 trillion in 2023 and projected to grow by 7.7% in 2024 (PQMedia), the importance of rigorous contract compliance auditing has never been clearer. This article by Adrian Jenkins and the team Financial Progression hits the spot nicely and comprehensively articulates what to watch out for 😀 👌 🌍 💻 💰 https://lnkd.in/eEugAicF #marketingprocurement #agencymanagement

Do you understand how your agency's business model could impact your media investments? Founding Partner Nick Moretta provides an overview of the things you may (and may not) know about media agency business models and how to bring transparency forward in your agency relationship. Read the full article here 👉 https://bit.ly/3vSdO8q #raisethebar #cmo #marketing #transparency #performancemarketing #brandmarketing

While many advertising industry bodies, such as the Media Federation of Australia and AANA - Australian Association of National Advertisers, support using the Media Pitch trading exercise template, Stephen Wright at Trinity P3 Global Marketing Management Consultancy argues convincingly why it needs to go in this article published today in AdNews Australia. What do you think? Should agencies be asked to commit to media rates as part of a competitive tender? Or does it drive the wrong behaviours?

Agencies must balance their ledgers—but how ethical are pre-negotiated publisher deals? “You can’t have every client be your ‘lowest cost,’ because then you can’t get the savings,” An anonymous source said. “You have to decide where the savings is going to go. You can either spread it evenly across all clients or bring more savings to a smaller group of clients.” Even smaller clients might secure below-market rates, but some marketers benefit more than others. According to Belsky, clients spending $50 million or less on media are more likely to pay higher rates than marketers with larger budgets.

We believe the principle approach causes doubt and mistrust in media with clients. The doubt restricts media investment as this arrangement benefits only the agency. It extracts value from the real media owner and muddies the ROI for clients on campaigns. That’s why we operate in a fully transparent model exposing all fees and media costs and charge for work the old fashioned way. A great look at this important issue from Ad Age. https://lnkd.in/gpk99mbY

The latest IPA (Institute of Practitioners in Advertising) Bellwether report highlights a “solid expansion” in total marketing budgets in Q1. David Grainger our senior vice-president and head of planning told The Media Leader that the “optimism” in the latest report showed “the resilience of the UK marketing landscape”. 🚀 He said: “It also points to how brands are beginning to adapt to the new communications economy.” Read more from David and other industry experts here 👉 https://bit.ly/44a5EoO #UKMarketing #MainMediaAdvertising #MarketingTrends #BreakthroughThinking #NewCommunicationsEconomy

For the first time in a decade, advertising is no longer the least-trusted industry, according to an Advertising Association report. The Value of Trust report, by the AA’s think tank Credos - Advertising's think tank, found advertising has leapfrogged government and media to third from bottom in a ranking of trust by industry. Almost a third (30%) of survey respondents trusted advertising, placing it above government and the media, which were both trusted by 26%. This is the first time since 2014 that the ad industry has moved off the bottom spot. People’s enjoyment of advertising remained the biggest single factor affecting whether they trust it or not, the research found, while being bombarded by ads was the largest driver of distrust. The research uncovered a “generational digital divide”, with half (50%) of young people trusting the ads they see or hear, compared with just 22% of the over-55s. Online ads were also more trusted by younger audiences, who were four times more likely to trust online advertising than the over-55s. https://lnkd.in/egunbEPX #digitalmouth #onlineadvertising #adbestpractices

Four years ago, I wrote an article titled, There isn’t traditional or digital PR, there’s just PR - read it here: https://lnkd.in/dCkSi48E. It received a lot of attention. Many of those who read it said that it was thought-provoking. Still, some believed there was a place for differentiating between traditional and digital PR.   This Wall Street Journal piece, Will 2024 Mark the End of the ‘Digital Agency’?, see here: https://lnkd.in/dFjuUYBE, makes a similar argument.   In my opinion, keywords that will define marketing and communications agencies in 2024 will be #integrated, #adaptable, #scalable and #strategicpartner. #Marketing #Communications #IMC  

Should marketers be okay with non-transparent agency revenue practices, as long as they are acknowledged? When it comes to principal-based buys the marketer bears all of the risks for the potential to "improve efficiencies" that cannot be wholly substantiated. Can a marketer ever really know the impetus behind an agency's recommendation for principal-based media decisions and whether or not it is in the client's or the agency's best interest?