JOE MANDESE

Articles by Joe All articles by Joe

• Compensation Divide: Agencies Prefer Fees, Clients Like Incentives in MediaDailyNews on 07/21/2017
  

  Agencies and their clients are far apart in terms of what they deem the most fair method of compensation, according to findings of a survey of advertiser and agency execs conducted recently by Advertiser Perceptions for MediaPost. While labor-based fees are the No. 1 method preferred by agencies (45%), incentive methods were the top choice among marketers (40%). After years of erosion, fixed media commissions are once again becoming a popular method of agency compensation, and were cited as the fairest method by about a third of agencies (36%) and clients (34%).

• Only Two-Fifths Of Ad Execs Say Their Agencies Don't Take Kickbacks in MediaDailyNews on 07/20/2017
  

  Nearly one in five ad executives acknowledge that ad agencies now take payments directly from their media suppliers to offset downward compensation pressure from clients, according to results of a survey of advertisers and agencies conducted by Advertiser Perceptions for MediaPost.

• Media Execs Growing More Concerned About Economy, Access To Capital, Travel Restrictions in MediaDailyNews on 07/19/2017
  

  Media and entertainment industry executives have grown less confident about the economy, and cite the volatility of capital markets as their No. 1 concern, according to the 2017 edition of consultant EY's Capital Confidence Barometer. The report, released early this morning, shows a precipitous drop in the percentage of industry execs who believe the economy is improving vs. the same point a year ago: 42% this year vs. 60% last year.

• Sizmek Agrees To Acquire Rocket Fuel, Deal Valued At $145 Million in Digital News Daily on 07/18/2017
  

  In a deal valued at $145 million, ad technology firm Sizmek this morning announced a definitive agreement to acquire programmatic media-buying platform Rocket Fuel. The value is based on a tender offer of $2.60 per share offer for publicly traded Rocket Fuel's common stock.

• Radio Bureau Launches Micro Site, Answers Question: 'Why Radio?' in MediaDailyNews on 07/17/2017
  

  The Radio Advertising Bureau (RAB) has launched a new site extolling the virtues of radio advertising. The "Why Radio" micro site provides easy access to the RAB's library of marketing and research, as well as its "Radio Facts" library The site is part of a bigger "Radio Matters" push by the RAB, which also includes a new blog ("Radio Impact Reports") and podcast ("Radio on Main Street).

• Mobile Poised To Dominate Digital Video Consumption, Loss Of Ad Effectiveness Seen in MediaDailyNews on 07/17/2017
  

  Driven by a surge in mobile consumption, the "online" video advertising marketplace will become "mobile first" by 2018, according to an update of a long-term forecast released this morning by Publicis' Zenith unit. The agency's forecast unit projects the majority of digital video ad spending will shift from "fixed devices" (PCs, connected TVs, gaming consoles, etc.) to mobile in 2018.

• Infogroup Taps Bhalla To Run Constellation Media, Digital Shop Leveraging Big Data in MediaDailyNews on 07/12/2017
  

  "Big Data" analytics firm Infogroup has launched Constellation Media, a full-service digital agency and named Publicis and WPP vet Gayatri Bhalla to run it. Bhalla, who hast served as vice president-advanced solutions & product management for Infogroup Media Solutions, previously was vice president-group director of media at Publicis' Zenith Optimedia Group and previously held a senior position at WPP's Wunderman unit.

• Rodes-Backed ispDigital Expands U.S. Presence, Acquires Performance Shop React2Media in MediaDailyNews on 07/12/2017
  

  ispDigital a primarily ad technology holding company backed by Spain's powerful Rodes Family, has acquired React2Media via one of its companies, Antevenio. ispDigital, which is best known in the U.S. marketplace by programmatic media-buying platform Digilant, will provide a toehold in the U.S. market for Antevenio, which has a major presence in Europe and Latin America.

• Digital Media-Buying Approaching 'Peak Duopoly:' Analyst Cites Amazon, Oath As Potential Relief in MediaDailyNews on 07/11/2017
  

  Are we at peak duopoly? That's the key question posed by Wall Street analyst in a second quarter earnings preview of the major digital media platforms he follows. Pivotal Research Group Analyst Brian Wieser doesn't answer the question, per se, but he says "advertisers certainly want" a new player, what he calls a "third force," to create more competition on what is increasingly becoming a marketplace of two suppliers: Google and Facebook. He speculates on Verizon's just-launched AOL/Yahoo combo Oath and even Amazon as potential players that could ease up an increasingly constrained supply chain of digital audience impressions.

• Analysts Downgrade Entire Ad Sector, Cite Media Fragmentation in MediaDailyNews on 07/10/2017
  

  Days after one influential financial institution issued a "double downgrade" of WPP, another has downgraded the valuations of the entire publicly traded ad sector it covers, including Interpublic, Omnicom, Publicis and WPP. "Ahead of second quarter 2017 earnings. we revise our outlook and valuations on each," Pivotal Research Group analyst Brian Wieser wrote in an advisory sent to investors early this morning.

Comments by Joe All comments by Joe

• Only Two-Fifths Of Ad Execs Say Their Agencies Don't Take Kickbacks by Joe Mandese (MediaDailyNews on 07/20/2017)
  

  @ Ed: I think that's a legitimate question. I think kickbacks are in the eye of the beholder and fall somewhere between prevailing industry practices, client agreements/contracts, and the law. Some years ago, I broke a story that then GE-owned NBC was sending 1099 forms to agencies and marketers that took their Olympics junkets, because they believed it was reportable income. Those forms of kickbacks are implicit. But when suppliers pay agencies a direct percentage based on volume purchased, that is an explicit form. It's actually a commission system. If those agenices don't disclose that to their clients, then I think that's a problem.

• Only Two-Fifths Of Ad Execs Say Their Agencies Don't Take Kickbacks by Joe Mandese (MediaDailyNews on 07/20/2017)
  

  That's right, Ed. That is another way of looking at it. Or you could say, 100% of those who said they knew their agencies were accepting kickbacks said their shop was accepting kickbacks. Not sure what your point is, but we were expressing the total findings. I think it's just as interesting that 42% of respondents don't know one way or the other too.

• Radio Bureau Launches Micro Site, Answers Question: 'Why Radio?' by Joe Mandese (MediaDailyNews on 07/17/2017)
  

  Nice, PJ. That's what radio really needs. Great creative, personalities and theater of the mind.

• Unilever Is Right, You're Already Running Your Best Ad by Sean Hargrave (London Blog on 07/12/2017)
  

  Interesting insight, Sean.   I'm not sure I know what the solution is, because the real problem has less to do with individual brands and agencies than the world. There are just too many brands, ideas (big and small) and information of all sorts assaulting people that it's hard to break through with anything. Unless you've got something that can break through.   I think the safe bet is consistently and continuity, because, after all, that is fundamentally what a brand is, right? Something you can depend on being that brand over time.   The problem is new brands are being created every day (more than 5 million worldwide by my estimate), and both new and old brands are constantly creating new messages, and sometimes new campaign positions.   My recommendation would be close to the net finding of this report: That unless you have something truly new -- and importantly, meaningful and relevant to your target -- don't say it. Just keep reminding folks what you stand for. Keep awareness up, reinforce your brand.   The downside, is other new ideas -- big and small -- will be marginalizing your share of voice. That's just a fact of the new life of brand marketing.

• TV's Next Big Show Is Shaping Up To Be Media-Buying Workflow by Joe Mandese (TV Watch on 07/06/2017)
  

  Ed, just to clarify, Fox and NBC U, were both at the meeting. - Joe

• The Violent World Of Prestige TV by Gary Holmes (Television News Daily on 07/03/2017)
  

  Great observations, Gary. Especially how quality shows like "Mad Men," "Six Feet," "FNL," managed to deal with emotion vs. physical depiction -- to great affect. I don't know where we are headed, but would like to think that real prestige shows will throttle back to emotion vs. gatuitous violent depictions. But they're competing in a world where consumers are becoming increasingly desensitized to violent depections. As you know (and reference), broadcast and basic cable have been responding to an edginess that began with pay TV shows like the "Sopranos," etc. And now, with the Internet, OTT and real-world violent depictions in news media, well, where will it end?It's all part of a progression, but true progress will come when television storytellers figure out ways to engage us more emotionally than stepping up the gratuitous depiciton of physical violence.

• PR Pros Believe White House Has Tarnished The Industry, Most Would Not Work For Trump by Joe Mandese (MediaDailyNews on 06/20/2017)
  

  This was a survey of industry professionals. Gallup does regular public opinion polls of professions, but not explicitly about the impact the White House communications team has on public perceptions of PR execs.http://www.gallup.com/poll/1654/honesty-ethics-professions.aspx

• Mobile Internet Continues To Expand, Drives Incremental Use Of All Media by Joe Mandese (MediaDailyNews on 05/30/2017)
  

  @ed papazian: There are many more brands in the world that don't do any TV-style ads. I think you're describing the behavior of the ones that do. If that's what they do, they should definitely optimize on it. The point of this article was that people are changing the way they consume media. Within that, it is creating more opportunities for conventional advertising and media too. I don't think these things are mutually exclusive. There are millions of brands in the world. Only a few thousand advertise on U.S. TV outlets.

• Mobile Internet Continues To Expand, Drives Incremental Use Of All Media by Joe Mandese (MediaDailyNews on 05/30/2017)
  

  @ed papazian: re. "most branding advertisers will want to use video ( TV ) commercials in digital media and most will want these ads to appear in some sort of "long form" program content," if you say so. If it were me, I'd want to use the media that is most effective for my brand's marketing strategy.

• Pressure Group Turns Heat On Hannity's Sponsors, As Fox News Retracts Conspiracy Story by Joe Mandese (MediaDailyNews on 05/24/2017)
  

  Thanks for the added perspective.

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