A question of media value
Here is a question:
If I gave you 1,000,000 YouTube/social media video plays, 100,000 qualified names for your e-CRM databases, 50,000 followers and friends on social media, 200,000 impressions of editorial coverage, some amazing research into advertising effectiveness, low cost video production of sponsorship idents, an amazing host for your annual sales meeting, what would you say and what would you pay? Probably quite a bit.
All these things, and more, are assets that media owners have at their disposal, or are available indirectly through them.
Your media agency has the leverage with your media budgets, and with their group trading portfolio, to get these valuable assets for you, for no or low cost.
But, by and large media agencies do not deliver this for clients consistently.
Is it that agencies are largely bonused on cash savings, not value enhancements? Or, is it that media auditors measure only the cash savings and do not “count” the additional value? Or, that clients do not ask for it, or measure it, or incentivise agencies to deliver additional value?
What would happen if media agencies were paid a percentage of the value they created, as well as bonused on cash savings? Would clients get better overall value for the money they spend? Would media agencies be more likely to use their trading power to deliver value for clients, rather than “grey income” for themselves?
So, lots of questions for clients prepared to ask them, if you need a quiz master, you know who to call.