Are big media agencies serving their clients or the media owners?
In the aftermath of the revelations about media agency practices 303Lowe CEO Nick Cleaver questions whether big media agencies have forgotten what business they’re in?
The recent exposure of murky practices and less than savoury activities within media agencies has raised a lot of questions about the legitimacy and responsibility of media agency practices.
However there is a bigger question worth posing: have some big media agencies simply forgotten what business they’re really in?
If we “follow the money”, are media agencies actually hostage to media credits and concealed margins? Are their most important clients, as in the ones that remunerate them most generously, the media publishers and not their advertising clients?
Well said. Although there is a touch of irony in his concern that media agencies are clouded by vested interested, and yet the solution he proposes is in his own best interests!
It’s unlikely that many people would suggest that the status-quo is fine and dandy, including most senior media agency types. But this article has been written by someone who has just as much skin in the game as any media agency CEO, it’s just a slightly different shade.
This is the equivalent of a turkey suggesting that Xmas would be much more fun if it were a vegan festival.
At the end of the day clients and the legions of pitch consultants and procurement teams they employ are all professional adults. Most of them go into media agency relationships with their eyes wide open and choose the big agencies exactly because of the price guarantees that those mega television share deals bring. Those who don’t want that, don’t choose them.
There are undoubtedly things that need to be fixed in the media agency world, just as their are in the creative shops as well. Perhaps Mr Cleaver could write several hundred words next week on how ad agencies justify charging thousands & thousands of dollars for resizing international creative and whether the fact that clients are getting wise to practices like this is the reason he’s now so committed to bringing media back into (his) fold.
This very thought is an indicator that the industry is coming to a full circle. It was the full service agencies who were blamed when clients moved to media agencies. The unholy alliance between media agencies and media owners is a well known secret in the industry circles. Even the so called research data is tuned to suit the deals.
However, the question is, is it going to benefit the client if advertising services are consolidated in to a single agency? I don’t think so.
The big media agencies don’t give a hoot about their clients, other than how their billings are the enabler to how they really make their money
When media buying was deregulated in 1997 and the “groups” were born, it was my colleagues at the time from the UK who foretold the challenges we are now experiencing. Took, nearly twenty years, but they may have been right – and Nick might be too.
Spot on Nick.
What goes on behind the scenes in the Australian media landscape is outrageous.
I can only hope that one day soon the likes of ICAC take a good look at media practices in this country.
@NoelMagnus – what would ICAC have to do with this?
If you have corrpution to allege, please share – I’m sure Mumbrella would be very happy to publish details of corruption
@ client side.
If you really are a client, I recommend you read through the past few months of articles regarding unreliable reporting, kickbacks and so on – in Australia and around the world.
Don’t you think ICAC or similar (as mentioned in my initial commentary) would find much of this activity less than squeaky clean?
If not, that’s fine – I’m sure quite a few media agencies would like to talk to you about your media requirements..