‘Golden time’ ahead for media agencies
Media agencies are entering a “golden time”, Mitchell Communication Group’s director of digital John Murray told yesterday’s NineMSN summit.
Speaking to around 650 industry people at the Sydney event, Murray said that agencies will find themselves working in a new way, and with different media outlets.
He said: “The big changes are about to come. We are moving to a point where we need to work with amateur content creators . The biggest challenge for us is going to be how to negotiate that space.”
He later added: “It’s a golden time for agencies. There’s never been a better time to work as a media agency.”
And he called for a move away from negotiations based on price alone. He said: “My hope is that in the years to come we concentrate on the value coming out rather than the price going in.”
Fellow panellist Richard Dunmall, Microsoft’s advertising sales boss for Greater Asia Pacific and Americas, said: “Whatever we we look at it, there’s a remodelling about to happen.”
And he warned that the rapid growth of the size of the internet means that the media model of charging for advertising based on scarcity does not work. He said: “The supply of inventory will forever more than outweigh demand.”
However, Tony Faure, a former boss of Nine MSN and board member of online site Business Spectator, said: “That’s only true in aggregate. Demand for specialist audiences outstrips supply.”
And he predicted: “The future of a media agency is not to be a media agency. An awful lot of media buying can be done by technology.”
*cough* bullshit *cough*
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interesting sentiment seeing media agencies love doing these group deals which concentrate spend into 3-4 large players and make it extremely difficult for smaller content plays to have a go.
plus agencies aren’t resourced to interface with smaller content plays – to do this effectively you need competent people in volume.
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Ironic isn’t it that your most discussed story is about the media agency that doesn’t have time to see sales reps.
Just sayin….
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media agencies do share deals with media outlets to obtain higher discounts and play off media vendors against each other.
Are they delivering best advice to Clients given the above known scenario? I don’t think so.
Long live the Independent planners.
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golden time sounds good to me.
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Even when smaller platform are more cost effective and relevant to the client, they still dont get a look-in becuase the group deal has already been done a million years ago…….
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so that’s where Richard Dunmall has gone (a very smart operator).Moved from media agency to media entity, his transition alone pretty much substantiates Faure’s final quote.
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mmmmm.
Not so sure.
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Microsoft have a long legacy of not understanding advertising. Their “execs” have no clue and no accountability.
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I do not visit any ninemsn products. Does that make me a bad person?
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Negotiating the space with amateur content creators is a big challenge. U.S. media site Vimeo being sued for fixing results of Vimeo + Awards Festival on basis of not being able to clarify even one vote from a distinguished and supposedly bogus list of official judges.
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It’s always a ‘golden time’ at emitch. Look no further for your quality, independently minded digital media planners.
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