According to a new global media trading report from media and marketing consultant ID Comms, the industry largely agrees — 92% said so in an underlying survey — that advertisers that treat media as a quality buy (and not a commodity purchase) are at an advantage.
Per the report, people who think otherwise are out of touch. As one anonymous executive quoted in the report, stated: “Media has moved well beyond its legacy baggage as a commodity buy.”
That said, there’s less agreement on whether media buying within agencies is driven by strategic planning or if channel and vendor biases tend to dictate buying decisions.
Per the report, about 38% believe the media buy dictates the plan, while 40% believe the media plan dictates the buy.
Advertisers are generally more pessimistic than agencies, with nearly half of respondents implying media-buying considerations take precedence over media-planning decisions. Interestingly, 38% of agency folks surveyed feel the same, “reflecting the intense commercial pressures and constraints that many agency trading professionals are operating under.”
Tying media purchases to business results and ROI, the report found, is the biggest indicator of success in media, followed by better targeting and financial transparency.
According to the report, more in the industry (86%) now believe auditing is a critical component of good media stewardship. However that’s truer of advertisers than agencies. Some 67% of advertisers “strongly agreed” that’s the case, compared to just 29% of agency respondents.
As to in-house trading operations, finding the right talent remains the biggest challenge to expanding, followed by access to quality data.
The survey was conducted in December. The 162 respondents were comprised of media, marketing, and procurement pros with a range of global, regional and local market responsibilities. The breakdown: 62% were based in Europe, 27% were from North America, with the remaining participants scattered across the Middle East and Africa, Asia Pacific, Australia and New Zealand, and Latin America.
The respondent advertisers represented companies with combined global media spend in excess of $20 billion. All major agency holding groups and some independent media agencies were represented.