My introduction to the business side of media came when I was a teenager. My dad was a television rep who sold time to ad agencies. Broadcasting Magazine showed up every week and once in a while, he’d have a Nielsen book in his briefcase for me to peruse. From my perspective, the business seemed pretty simple. The seller and buyer agreed on a price based on how many people they thought might be watching and how narrowly defined the parameters were with respect to when the ad could run. In other words, they negotiated and measured based on ratings, rate, and rotation.
When I actually followed my father into the media business, not much had changed. Sure, the numbers were more demographically-based instead of on household counts, but the business was pretty much the 3 R’s. Not anymore. In fact, a recent study by ID Comms found that most advertisers see media as a complex headache. It is pretty overwhelming now, both from the perspective of available media options as well as the addition of digital channels such as social media. The fact that a huge percentage of media is now bought programmatically through systems that are often rife with fraud and lacking in transparency adds to the headache.
I don’t think it’s the complexity of the media world that’s causing the headache. I think it’s a misplaced emphasis on buying efficiency at the expense of both strategic thinking and measuring results on things other than easily-manipulated metrics such as CPM. If a campaign makes the cash register ring, it’s effective. If it doesn’t, what good is it to have delivered something useless in a highly-efficient manner?
I’ve spoken with friends on both the sales and buying side of the equation. There seems to be universal frustration but not much in the way of solutions. It really needs to come from the people who control the purses – the clients. They need to stop thinking about CPM’s as a measure of efficiency (at least when it comes to digital, anyway) and place a lot more emphasis on strategy. Is the register ringing? Is the phone? Are there more interactions on social even if the number of “likes” isn’t rising? Is there a buzz about your brand? Those are the modern metrics that are relevant in the long-term and that kind of thinking can cure a media headache many folks are now experiencing. You agree?