Digital media is responsible for almost three-quarters of the advertising budget currently and the proportion continues to increase. However, the cost of purchasing and planning tends to be higher per dollar than other media channels. To help brands get the most efficient mixture of content, these variables require a closer look. We collected perspectives from various commentators with the intention of examining the nature of remuneration for media agencies in the digital age.
Valuing Media is a collection of essays that offer views and perspectives regarding the appropriate payment model for media companies…
Google’s Mark Howe believes that If the contribution of each media channel to the bottom line of the media agency differs significantly between media channels this could pose the risk of compromising the overall neutrality of media and advertiser efficiency. He suggests that agencies are paid according to the worth they bring for their clients.
As the lines between different media are blurring, Nick George of TMT Strategy PwC states that now is the perfect time to transition from traditional marketing to become marketing in the digital age.
As a representative of the IPA Media Futures Group, MEC’s Jason Dormieux says that with the importance of cost control for clients and agencies alike, it is essential to keep working together to prove the exact and efficient utilization of media in the role of the source of value.
As per Paul Zwillenberg, Partner and Director of BCG Successful agencies will be able to identify value-creating initiatives which ultimately result in more efficient campaigns, shifting from service providers to strategic advisers and shifting their on the clients’ perspective from the number of impressions to high-quality.
Graham Cooke, Founder, and CEO of Qubit Group predict access to more detailed web data, paired with improved visualization and data processing will lead to the return of business intelligence which will allow organizations to help companies on the web understand consumer preferences purchasing habits, lifecycles and buying patterns.
Mandy Merron from Kingston Smith W1 describes the value that a great creative agency can bring is in determining what the brand stands for and assisting the brand to behave in line with its business goals and helping the client engage with its customers with the best cost-effective method to increase revenues.
Havas Media CEO Paul Frampton believes that purchasing “media” that focuses on price isn’t the way to deliver lasting value. Genuine real value creation that is transparent is based on the return to business, not media metrics.
In the case of Jellyfish MD Matt Owen, it is crucial that compensation is founded on principles of business that encourage trust and collaboration, which includes transparency, fairness, and respect.
Emmanuel Arendarczyk of Netbooster argues that an effective company will always decide to share its fate with the client, therefore incentive-based and performance-based remuneration strategies are two strategies that enable clients to feel secure regarding their investments.
Avinash Kaushik Digital Marketing Evangelist at Google states, “We should take the incredible set of talents that are available in our agencies, and make them an integral part of our success, and then do it with the help of metrics. Because we’re going to need more, we need to be prepared to pay more.”
