If you thought the media owner commission system ensured the advertiser got the best, impartial advice, look at this horror story.
A well-known advertiser approached me recently, seeking a second opinion.
He wanted as continuous as possible presence across 2009 for his National consumable brand. The target audience was housewives with young families. His media budget was £1M. He already had a proven 30 sec TV commercial.
I ran the numbers and reached the solution was the sustained use of Breakfast TV. This delivered the cheapest cost per audience, which accumulated over time to deliver high target audience coverage.
The advertiser liked that conclusion, but advised it was at variance with his media agency. They had recommended selected regional ITV airtime as their optimum solution. This route came some way down my ranking list
The advertiser played a hand on role when at his request, in his presence; I took the agency through my solution. They responded to the advertiser. “We couldn't’t buy that. Our agency arrangements make it impossible. We need to get all possible monies into ITV to meet the deals”
“We would prefer to resign the account rather than buy what you propose. We stand to lose more money from not making the deal than the fees you pay us.”
Impartial advice has got lost in trading practices where the agency’s income takes precedence over advertisers’ best interests.
This media madness resulted in new business for another media buyer.
Nice post,
Thanks for sharing this is some great information,
Keep up the good work
Reply to this
That was inspiring,
Really interesting,
Keep up the good work
Reply to this
But the reason the agency is able to offer the client the discounts they can is due to the deals they have in place with the media owners.
Reply to this