2012 MediaSense media industry survey
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The survey found that: 1) The biggest challenges facing the media industry are the relevance of current metrics, business profitability, pressure on fees, and digital disruption. 2) Respondents believe that measurement techniques are becoming less reliable and that most client/agency contracts are built on irrelevant metrics. 3) There is a need for the industry to move beyond legacy business models and metrics and develop new skills and ways of working focused on outcomes rather than inputs to drive innovation.
2012 MediaSense media industry survey
- 1. 2012 Media Industry survey 1 May 2012
- 2. Background • 2012 Media Industry Survey Client commissioned by MediaSense to Media agency assess the industry’s thinking on Media owner 100% key issues that define the media industry 75% • Survey conducted online March- April 2012 50% • 255 responses from media 25% agencies, media owners, and client-side marketers 0% Series 1
- 3. Key findings • The data issue is now the issue • A set of business models being reinvented • Partnerships are moving front and centre • A time to be brave
- 5. The biggest challenges facing the media industry 1.Relevance of current metrics 29% 2.Business profitability 24% 3.Pressure on fees 24% 4.Digital disruption 22% 5.Skills gaps 19%
- 6. The biggest challenges facing the media industry Media Owner Agencies Clients 17% Business sustainability 11% Unlocking creativity Current metrics 37% Digital Disruption 35% 0% 10% 20% 30% 40%
- 7. The future role of Media Agencies All responses Clients Agencies Media Owners “The media agency’s role will become more important over the 3.8 3.9 4.3 3.2 next 3 years” “Media agencies make neutral media recommendations to clients” 3.0 3.1 3.7 2.3 “Media trading will split off from media planning” 3.8 3.9 3.5 4.1 “Media owners will form more direct relationships with clients” 4.3 4.5 3.8 5.1 Responses scored on a range of 1 (strongly disagree) to 6 (strongly agree)
- 8. Media Agencies at a crossroads Media agencies are uniquely placed to play a Media agencies will split into vital role in guiding and educating their clients, consultancies and trading points Media agencies have a key role in facilitating Media Agencies will be no more the development of communications around relevant than bowler-hatted content and participation. stockbrokers and travel agents “It can only be described as a rollercoaster, but the challenges are making agencies stronger..”
- 9. The measurement challenges All responses Clients Agencies Media Owners “The way media performance is measured will change significantly 4.6 4.7 4.6 4.2 over the next 3 years?” “Audience measurement techniques are becoming less and less reliable” 4.5 4.8 4.4 4.3 “Most client/agency contracts are built upon irrelevant metrics” 4.2 4.0 4.2 4.3 Responses scored on a range of 1 (strongly disagree) to 6 (strongly agree)
- 10. The data challenges All responses Clients Agencies Media Owners “Industry lacks the refining skills to get value from data” 4.7 4.8 4.4 4.7 “A major media company will soon be found in breach of data privacy laws” 4.5 4.4 4.4 4.5 “a data driven naked” Responses scored on a range of 1 (strongly disagree) to 6 (strongly agree)
- 11. Future Scenarios
- 12. Media agencies disintermediated? “Media agencies blew it when they got too greedy and saw the opportunity to generate super-profits through exchanges and trading desks. From that point on clients lost trust in them and treated them as suppliers rather than partners, and looked for alternative ways of working. Creative agencies, tech companies and media owners now have the brainpower and offer more objective and innovative communications guidance to clients.”
- 13. Media agencies disintermediated? “Media agencies blew it when they got too greedy and saw the opportunity to generate super-profits through exchanges and trading desks. From that point on clients lost trust in them and treated them as suppliers rather than partners, and looked for alternative ways of working. Creative agencies, tech companies and media owners now have the brainpower and offer more objective and innovative communications guidance to clients.”
- 14. Things change slowly “It’s actually amazing how little has changed. Greater volumes of data failed to generate additional anticipated insights and a series of expensive privacy lawsuits made the practicalities of audience re-targeting too cumbersome. Traditional TV companies were also very smart in keeping hold of their content assets, which starved online platforms (status quo) and kept eyeballs on the TV screen. Realising that the development of addressable advertising would also threaten their business models in the longer term, the broadcasters continue to trade GRPs successfully..”
- 15. Things change slowly “It’s actually amazing how little has changed. Greater volumes of data failed to generate additional anticipated insights and a series of expensive privacy lawsuits made the practicalities of audience re-targeting too cumbersome. Traditional TV companies were also very smart in keeping hold of their content assets, which starved online platforms (status quo) and kept eyeballs on the TV screen. Realising that the development of addressable advertising would also threaten their business models in the longer term, the broadcasters continue to trade GRPs successfully..”
- 16. The Big Issues
- 17. Legacy business models are creaking “It is headed into extremes of commodity and expertise, with trading talent at one end and communication specialists at the other.” "If I want a great ad I'll go to Mother, if I want someone to buy some radio I'll go to Carat, if I want a great idea I'll go to Google and if I want great content I'll go Simon Cowell" ”
- 18. Demand for new skills and ways of working “We will need to move away from traditional cultures to allow creativity..” “Talent is key. Yet the media industry is just not putting out the right noises to the incredible talent out there , and is not going wide enough to find the talent that can be unlocked from unexpected quarters of our society
- 19. Desire to move from inputs to outcomes “For media agencies the control over data and metrics is ending, clients will have direct data insights that will allow them to plan, execute and alter campaigns in real time. Anyone working for BARB,TGI, etc. better start looking for new roles..” “Finding agencies and clients brave enough to look beyond a CPM and understand and appreciate ideas enough to be willing to pay for them..”
- 20. Still many hurdles in the way of progress “More complexity, more staff, more data, more competition” “Satisfying the growing number of audited clients who miss the point entirely that cheapest is not necessarily best..”
- 21. Summing up • Acknowledging the problems is the easy bit • Change requires disruption, bravery and clarity of vision • Is there a new business out there?
- 22. Thank You Get in touch at theresahoulihan@mediasenseinternational.com or call us on +44 203 005 6002 22