Each week, we will look at industry news curated by MediaScope. This week we look at how publishers should focus on what social media doesn’t do, and the ad industry’s existential crisis.
Publishers should focus on doing what Google and Facebook don’t do (Brian Morrissey – The Digiday Podcast)
If Google and Facebook are taking up the majority of digital ad dollars, the growing market means there’s plenty of opportunities for publishers to sell differentiated ad products rather than focus on trying to do what Google and Facebook do well. Publishers often wring their hands over their growing power but this anxiety may be misplaced.
The ad industry’s existential crisis: Rome is burning (Jules Ehrhardt – Medium)
Ad Holding Groups have been going from strength to strength in recent years. With their amassed wealth they have been busily buying up digital agencies. They have done so to cover capability gaps and round out their all-encompassing client offering. This was all about “doing digital” in a world going fully digital and sweeping up any remaining significant non-group affiliated players and their clients/revenue. Through this activity the Ad Holding Groups are now responsible for a huge portion of the digital industry and what happens there affects us all.
The cost of advertising (Sonoo Singh – Campaign)
There has seldom been harmony when it comes to the contentious nature of how agencies make money from clients and the corresponding remuneration models. With bottom lines under pressure, it is inevitable that clients are always demanding faster and better but cheaper. At the same time, agencies have their own reality: requests to deliver more services for sometimes only a marginal increased cost; the agency talent crunch; and procurement concerns. The result? Fewer advertisers (46%) satisfied with their remuneration agreement – the lowest figure since records began in 1997, according to the latest ISBA/Arc Paying for Advertising report. However, the study of 56 of the biggest international advertisers – many of which have budgets of £100-200m – does not paint a bleak picture overall.
The roll of the publisher is changing (Jessica Patterson – FIPP)
Traditionally, publishers are responsible for the overall performance of their publications, for driving growth and strategy, and leadership of the editorial teams. Publishers manage the business and keep their magazine and media brands financially and commercially successful. But, as the business evolves, publishers are increasingly facing challenges. In this digital reality, keeping a global enterprise viable financially is a challenge. Audiences and platforms are constantly changing. Publishers are finding that their job descriptions are changing. In the last two months, there has been a lot of media attention on the role of the publisher, after Time Inc. announced it was phasing out publishers as part of a structural change.
The agency review frenzy shows no sign of stopping: Here’s who’s winning (Patrick Coffee – Adweek)
Last year’s unprecedented string of Mediapalooza agency reviews involving some of the world’s biggest advertisers (Coca-Cola, Walmart, P&G, etc) was not an aberration. According to a new report released by top global consulting firm R3, it was a signal of the new normal on both the media and creative sides of the advertising business.
“Everyone thought that things would slow down, but it seems that’s not really the case,” R3 principal and co-founder Greg Paull told Adweek. “There have been just as many media reviews this year.”
Media agencies: How to be a good partner for clients before it’s too late (Nick Manning – Ebiquity)
Trust is an important component in business relationships, and especially in professional services. The recent report from K2 Intelligence on behalf of the Association of National Advertisers (ANA) in the United States went a long way to exposing the often undisclosed ways that media agencies make additional revenue from handling client budgets, and helped to explain why advertisers feel that there is a growing conflict of interests between their media agency’s duty to them as client and to the agency’s holding company. Media agencies may see new competition for media services if they choose not to embrace the advertisers’ expectations of transparency. The re-establishment of trust will only come if the media transparency issues exposed in the ANA study are addressed by the media agency groups and not swept under the carpet.