‘Hit Restart With Your Media Agency’ – Forrester
Sarah Sikowitz says, “In collaboration with Susan Bidel, Richard Joyce and Jim Nail.
Yesterday, the ANA released the findings from an eight month research study into the issue of transparency within the media agency industry. The findings are damning, but not surprising for those who have been following this issue. The phrase in the report that caught my eye was this: “evidence of a fundamental disconnect in the advertising industry regarding the basic nature of the advertiser-agency relationship.”
In other words, it’s the advertising-agency relationship that stinks.
Look past the rebates, the free cash disguised as “research and consulting” and the media mark ups and what you’ll see is the advertiser-agency relationship that has been under strain for years has finally completely collapsed. Three factors have driven the industry to this point:
Agency success metrics tied to an outdated approach. Clients expect high impression levels, high click volume – all at a low cost. This doesn’t allow a lot of room for media agencies to show additional value beyond scale and efficiency. The result is that agencies continue to look for opportunities to drive more impressions and lower CPMs without any accountability for real business and revenue impact”.
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