WHY, ACTUALLY … ?


Issue 5: Why, actually … do some still want transparency?

It's amazing how many media people still emphasize the importance of "transparency" in media relations. Most of the time it means the traditional transparency in media conditions, so as in the past, when everyone knew on what terms publisher sells inventory to the media agencies, and at what premium - actually the agency fee - the inventory was sold to the advertisers, the customers of the agency. Anyone who calls for transparency today has not really shown much transparency himself in the last few years in media market deployment!

 

So much has changed. After investigations of the anti-trust authorities at IP, 71Media and the media purchasing officers in the agencies in 2007, the world has completely changed in he contractual relationships in the media market. In effect, the Cartel Office has indirectly ensured that there is no longer any transparency today, and the advertisers have to pitch so often. The media agencies no longer have long-term customer relationship security, and they even have a considerable effort with the pitches that arise due to the lack of transparency in the market.

What happened there? In 2005, Axel Springer AG conducted a due diligence on SAT.1 to acquire the TV station. The Kirch group had fallen in 2002, Haim Saban had rebuilt the group and wanted to start the worthwhile exit. When the CFOs had finished, they filed a petition for takeover and sent it to the Cartel Office. And diligent as the cartel officers are, they even read the attachments carefully. And discovered something pretty what they did not like: The discount scales of IP and 71M, which held a dominant position - they've done a very good job! - no longer complied with german antitrust laws. They included a contracting function, in particular for advertisers budget increases during the year, and prevented the market-oriented participation of the smaller TV stations. So much at this point - more about it personally if you like.

 

Later, the TV marketers paid a hefty fine, and "we" media agency bosses had accountants in our offices. And have learned that our contracts with our customers and the media were not correct. The system "Free Spots" became the Casus Knacksus. And we got to know the § 667 BGB (duty of surrender). It had to go into our contracts - but negative, so as exclusion criterion! In the following episode, we then understood that we previously had quasi-escrow contracts with our customers. So all contracts were reformulated and resigned. In the later episode, it became clear to everyone that the contracts between publisher / sales house and media agency and between media agency and advertiser had nothing to do with each other, and had been decoupled. Two very different contracts with completely different content. Since then, an advertiser is no longer interested in the conditions on which his media agency buys TV commercials. It was the system of the so-called "own economic level", that's what they liked to call it. Today it is easier: a media agency buys and sells in its own name and for its own account. Like every dealer. So no one knows who agreed what with whom, everything is very secret. No more transparency. And it is consistently implemented in that way. And at Edeka it does not matter to the customer, on what terms Edeka bought children's chocolate at Ferrero! And Edeka also earns a margin on buying and selling. That's the way it is.

 

All this has developed since 2007. Media revenues, both in purchasing and in sales, are based on this model. So why is anyone still asking for transparency today? Unfortunately, even our beloved (at least german) trade media did not deal with these fairly simple legal relationships, otherwise they would not still make such strange comments about the media business and scream so many alleged protagonists for transparency. The big advertisers have understood and take advantage of it. The little ones are left to their fate - call us, we should talk! It's almost always worth it! And media (publishers) pay the bill, they are performed as in the circus tent by tractors and have to do what the trainer orders. And woe, they want to break out and enforce their own will. And there are so many who are circling ... and everyone wants the largest possible part of the cake. But that is limited. And now it is even (even) smaller - see OWM Symposium 2018.

 

What does it take to be successful in this system? Perspective! Transparency is so from yesterday. Sometimes a good adviser helps you, a professional who is familiar with that game. And knows how to play the game in this round. And knows the manege…

 

Always at your service … Enzenauer Consulting Professional Media Consulting & Solutions


Issue 4: Why , actually … are there still rate cards for media?

Over the past 10 years, the rate cards of many publishers have become thinner bit by bit. First, the big TV marketers had to change the scale of rebates at the instigation of the Antitrust Office in 2006/2007; they simply eliminated them from the public. And individualized all rebates. Because they have to close a separate contract with each customer at the beginning of the year for the year, so it was the Antitrust Office. Later, other media have discovered the benefits of that discretion. For radio the RMS made the beginning, and suddenly renounced on discount scales in their rate card. And also the magazine publishers have looked at this game, and pulled along. Many, anyway. Although they do not have to. At the time, the Antitrust Office turned its decision to the TV stations on the attraction of additional investments during the year, which should also be of benefit to smaller market participants. Why are the other media doing that? Quite simply, they've learned that it's so much easier to make a voluminous deal with the media agencies, the Chief Investment Officers. If you already have a lot in your bag, will get even more. If you have less in their purse, even that few will be taken away. (according to Heinrich Heine "Weltlauf") - Continued: "But if you have nothing, lump, let yourself be buried, because only those who own have a right to live." How fitting!). And nobody knows anymore what the other parties negotiate with each other - concerning your own campaign. Now you ask yourself: Is that awful? No, not at all. Because the final media costs have decreased. The Antitrust Office is pleased about that. Not only does the publisher or his sales house negotiate with the media agency, but the media agency today also deals with every single one of his customers. Individually. And everyone has an advantage. Except sales houses and publishers. But they seem to have earned far too much in the past, so it is logical to strengthen this system in the market. PS: At the end we can always employ workers cheaper! One question remains at the end: Why do you still need rate cards? Because the terms and conditions only apply between the direct contractors, ie sales houses/publishers and agencies. As a gross price, so before deduction of discounts and commissions, etc. And it's just a virtual, so symbolic value anyway. Who cares? The advertisers? Not really, because he just wants to know what they really pay. The Agency? What for? The agency defines the media price individually to its customers. The media itself? Probably. Because they want to show how strong they are. Ask yourselves why you still need a rate card. Wouldn´t it be easier, cheaper and more consistent to simply forego the rate cards where third parties can only look up on what basis two others trade with each other? That's none of their business. And we save even more. Thanks to the Cartel Office, which has significantly promoted this (in) transparency and the further concentration of the big ones.

 

 

Always at your service … Enzenauer Consulting Professional Media Consulting & Solutions


Issue 3: Why, actually … is Programmatic the Holy Media Grail?

At the moment everyone in media is busy with programmatic, a buzzword that creates awe and seems to be the final solution of all media planning. But you really do not read too much about it in detail. It rather takes place in silence. Are the creators afraid to talk about it? Are they afraid that mistakes will become known - or the competition - that's today also their own customers! - give away know-how for free again? Or is it too easy to have to say something? Or just too early?

 

Programmatic is the most sophisticated level of media planning! With integrated purchasing. The All-In-One package. With the highest perfection for addressing potential customers. And certainly soon including AI (Artifical Intelligence). Real-time advertising, automatically planned, designed and billed! What a dream! It would also save a lot of money, because only a few media planners or media agencies would be needed any more. The formula for media has always been and still is: To reach the right person at the right time with the right message via the right channel. We already learned that as media youngsters decades ago. And we tried to make it as good as possible with the analog data. In the digital world this is now done with absolute perfection. The right person can be identified and addressed with Big Data etc. At a reasonable time, depending on how well you can really plan the time. This is different for cars and real estate financing than for cosmetics and mineral water. Let's leave the discussion about brand building and brand positioning away, it just distracts here.

 

For the channel, it still hangs a bit, because not all media channels media are digitized yet. Internet is easy because you know the customer data before you can read it. That's how fast it works. Even sales people long after this speed, which is very spoiled compared to media people´s speed in former data measurements. Television just conquered Programmatic Advertising with Addressable TV - quite rudimentary, but at least. Indirectly, some commercials can really improve placement. For a long time, OOH has tried to be very constructive about the timely approach of target groups. With DOOH that works in parts, with classic posters this is rather difficult because the poster fitter is not that fast and the target is already gone when the poster fitter comes. Print is not quite right yet. Or only indirectly, then we are back to online media. But that will be fine in some time. Because the world needs programmatic. It is the incarnation of media par excellence! After that, which we have always striven for. Then Media is suddenly very simple and always right. And in connection with Blockchain completely transparent. And the messages are individualised by chatbots. Then one day media planning and buying goes nearly completely automatically: The more data I have, the more I know about my consumers, the better I can define the algorithm. With a supra-exact planning of all contacts, independent from device and platform, across every device and every domain. Even across online and offline! Even instore and sampling can be integrated! And POS! Advertising companies now think: Great, I need that machine - now! Then I can eliminate my media agency in the future. And maybe even my creative agency, at least partly. Hmm, it's not that easy. And then the simplest barriers are added. Who has data? Due to the DSGVO, 2nd and 3rd party data are more difficult to generate and to use. 1st Party Data can be collected and used by everyone himself. But then there are the advantages of a company group that can gather 1st Party data for many brands within the company group and use the data across all brands in the group. A smaller company with just one or two brands is having a harder time and urgently needs partnerships. So also his agency. And who actually bundles the media buying then? Compared to an agency groups buying volume, every advertiser is a drop in the ocean. Who builds the system for the computer? Who defines the algorithm? Who organizes the brand firewalls and procurements? My conclusion: We need a world programmatic agency! Whoever gets all these requirements under one hat has found the holy grail. He wins all customers who need media and communication. And solves all the problems media ever has had. Or don´t you believe it?

 

 

Always at your service … Enzenauer Consulting Professional Media Consulting & Solutions


Issue 2: Why, actually … doesn´t Parship also mediate agencies?

Somebody has set his/her mind on pitching for his budget. Because the relationship with today's agency is not as good any more. Or because the uncertainty has become so great, whether the pricing of media is on market level. Or a new idea must come across. Anyway, it's time again. And that mindset comes more and more often! Then he or she gathers his courage, announces prophylactically to his agency, announces a pitch and seeks out a consultant to organize it all. The first consideration is: Who actually does that? And what is the difference between the consultants? Well, then you get recommendations, often even from your agency or the media, and meet with such a consultant to get to know each other. And if the chemistry is right, then you strike. Quite often, the first question is: "How does a pitch work?" A professional consultant of course has processes, charts and answers. And clearly shows the way, the phases and the goals of the individual steps. And ask questions about the clients organization first. But on the way home, the consultant wonders why this question keeps coming back. Pitches happen over and over again, since you have already had experience with it. And today's calamity is to be turned into happiness for tomorrow and the day after tomorrow. So you have to have clear ideas and goals about what to expect from your future agency. So it seems such a pitch is pretty clear. But in reality  it is not! Why is that? Do the responsibles have not enough imagination? They have, and they know exactly what is wrong. Do they not have the courage? They have, otherwise they would not be in position. Do they not you think far enough? They do. An agency evaluation is just a structure to follow. Do they not have the experience to run a pitch? In fact, the search for a new friend by his side has nothing to do with the daily life together. There you are actually insecure. The success of Parship is not surprising, otherwise it would be easy to find a new partner. And an agency relationship is similar to real life: Nice and pretty are many - and the facts, figures and supplies are mostly very equal -, but who really addresses my soul? Pitches also shows that the solutions and offers are often very, very similar. And do you really take the most sensible solution? The heart is playing along, and you want to feel well in this relationship. And want to feel confidence. So do not be cheated. Parship does not do it all alone. A pitch is a bit like a therapy, you have to listen to yourself first. A therapist is very helpful. A media therapist also knows the knots he needs to find deep inside of his patient. This is different from everyday business. It's all about root cause research and re-structuring. And that's why the question "How does a pitch work?" is very legitimate. And great honest! The truth is too: the heart and empathy play a big role in an evaluation. Parship also values. So why not looking for a new agency as well?

 

Always at your service … Enzenauer Consulting Professional Media Consulting & Solutions


Issue 1: Why, actually… knows advertising on Youtube no limits?

It is amazing how faithfully the communication community follows the big platforms. With almost blind trust! That did not exists in this form before. 

 

A good example of this is Youtube. There are so many spots and videos. Also from brands. Also from very large, professionally managed brands. There is a video of a car, it is a teaser campaign for a product launch of the new Peugeot 3008 SUV. The video has 2.2 million views! That's how it stands under the video. Madness. That costs a small fortune on linear television! 2.2 million active calls from people looking for it. Or at least choose the video. And that on a single platform is an incredible achievement. The only fool is that the car came on the market two years ago. And the teaser campaign for the product launch was planned. Of course, there are a few questions. How many of the 2.2 million views came about in the first four weeks or the first three months? How many views came together in the first year? How did the clicks develop after that? No idea. This information is not so important on Youtube. 2.2 million, this number seems to speak for itself. You will now say that the marketing department or the agency has certainly supervised the clicks. But is it really known when exactly the performance took place? For entrepreneurs and agencies, it would be exciting to know how many Likes arise in which week or in which month. Or in what context with other media investments. There used to be a GRP, with GRP per week and so on. That does not seem to be important anymore. At least not on Youtube. But only a total range of KPIs for two years (as in the car, see above). Exciting, how the communication planning has developed. More and more global. Always bigger. Then you only need global, big numbers. Youtube, Facebook and Co. are therefore permanently effective long-term advertising, right? Why do you still have to plan and optimize? 2.2 million clicks in two years speak for itsself. Or?

 

 

Always at your service … Enzenauer Consulting Professional Media Consulting & Solutions