Beating the average - a suicide note
Among the few certainties in life is that “50% are worse than average”
One major media agency group is trying to bust this self-evident truth. It’s created either a ground breaking concept or a short self-inflicted suicide note.
The group has guaranteed – yes guaranteed across 2009, for one of its largest clients, a media buying performance that will deliver prices consistently cheaper than the group’s own average.
Possible? Yes. Media Madness? Certainly
First, what advertiser could accept the buyer being the auditor?
Second, the agency’s average price is meaningless. It could be good, bad or indifferent. The deal is not worth the paper.
Third and the best of all, the agency can only offer this guarantee for 50% of its clients. If you were a client of this media agency how would you feel about being in the bottom half? Very unhappy for sure.
The client may have been duped. Once the news leaks out that this deal has been done, every one of their clients should demand the same. And why not? Then the media agency group will be in serious trouble with its 2009 deals. They can only satisfy half their clients. And then we shall watch the new business pitches. There will be lots about
You couldn’t make it up. Media Madness is alive and well
I am following your media madness blogs with (almost) avid enthusiasm! When we set up our agency - the7stars - 3 years ago, it was in response to so much of the madness that you are now writing about. The good news is that, 3 years on, we can report back that it is possible to run a profitable media company without ever resorting to kickbacks, or over-charging clients for media space. Transparency surely should be more important than ever in the current climate - but if anything, I sense that the kickback culture has become significantly worse in the last few years. Lets hope a few smart Marketing Directors stumble upon your posts!
Keep blogging
Jenny
Reply to this