Why size doesn’t matter
Media agencies, be they independent or multinational, are often very focused on the size of their overall billings. Match Media founder John Preston argues that the industry’s preoccupation with billings is unhelpful, particularly within the independent media agency space.
There appears to be a fair amount of preoccupation at the moment around size… i.e. size of billings rather than the quality of work created. And, the size of billings seems to be a shout-out from some media independents.
The only media independent that had the right to claim the scale argument was Mitchell Media.
Under Harold’s rein he was all about size and I don’t mean that in a rude way. He was a viable contender on scale with the multinationals and that’s how he played to win.
At that time the market thrived on scale and the smoke and mirrors of big buys best. But today’s market is very different.
The relative size of independents and claims of who’s the biggest is old school thinking, which I think could hurt the credibility of the media independents as a whole.
It’s a game the multinationals have to play, but why should independents fall into what the multinationals have to do in claiming scale and rankings to satisfy their global RECMA reports.
Yet it seems we as independents are hooked on the same billings drug.
Some time ago TMS were jockeying to be the biggest with $175m, and yes in the distant past Match too has claimed billings of $160m+. But we’ve moved on.
I believe stating size is pointless in the independent media landscape. More recently Nunn Media claimed to be the biggest with $135m and just last week the agency updated this with claimed billings under management of $150m after a recent acquisition.
What does the biggest independent mean? The biggest indie agency would be the equivalent to a small to mid-sized multinational and there would be a massive amount of daylight between the biggest independent and the biggest multinational.
There are so many multinational agencies ahead of the largest independent. It’s a meaningless exercise. It’s like coming 11th in a race and expecting a gold medal.
In today’s market not all clients buy into the size of an agency, they buy into the quality of service, the quality of thinking and the ability to deliver results.
I’d far rather be measured on our clients’ success than on our own success. Furthermore, clients are looking beyond scale as a measure of success and are willing to put their business with media independents that deliver; they see us as a viable alternative to the multinationals.
The very essence of being an independent in today’s market is to be nimble to adapt to the market and the client’s needs and not to harp on about size because it really doesn’t matter.
You may be the biggest agency for a period of time and hang your hat on that as your agency mantra that biggest is best, but what happens when a bigger agency comes along, what do you stand for then?
The second biggest? So for the old school independent media thinkers out there, stop craving to be the biggest and be the best.
A far better platform than the billings race for competitiveness amongst independents would be in effectiveness, creativity and innovation.
The litmus test is to take on the big guys (multinationals) and win, to enter awards and win, and to contribute to the industry by being progressive.
I’d far rather be known as Australia’s leading independent than the biggest.
John Preston is the founder & CEO of independent media agency Match Media
Well said John. A great article and so true. I’m happy to sing from that same hymn book.
James Fitzgerald
Managing Director
Media Merchants
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Nice one John.
Nic Halley
Mindbox
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yes, well said John. Total billings are to media agencies what awards are to creative agencies – a deceptive, lazy, manipulatible and ultimately meaningless tool used to market services to lazy and manipulatible clients who couldn’t be bothered understanding and articulating their own needs and measures of success
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Age old ‘quality, not quantity.’
Still a pearl.
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Well said. And 100% true. Great stuff.
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John, your argument is logical but limited. How do you measure “best quality”? Sounds like a subjective debate no one wins. And surely billings growth is a strong indicator the agency is doing good work, for their clients. Also, if billings size isn’t important, why did you quote the numbers in your article?
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