Comments on: Time to Blow the Whistle

By: Brian Jacobs

Brian Jacobs — Mon, 20 Apr 2015 18:35:19 +0000

Thanks Jacques – some interesting points there. Do you remember this post: http://www.bjanda.com/blog/time-to-split-planning-from-buying/?

By: Jacques Lehodey

Jacques Lehodey — Mon, 20 Apr 2015 09:39:55 +0000

A number of years ago, there was much talk within the industry about the separation of planning and buying which was quashed by agencies using three arguments: First, planning costs alot and if seperated from buying will need to be remunerated seperately. By keeping buying and planning together, the costs of doing business are greatly reduced as Media agencies will give the planning away for free (or at at a very low cost).
Second, given that the agency recommendations are unbiased, there is no reason to seperate the two.
Third, keeping the Planning and the Buying functions in one agency ensures much better coordination and the ability to make instant adjustments in the plans to take into account shifts in target media usage.

Given the sismic shifts in the landscape, the above arguments seem no longer valid or at a minimum much less solid. As such,does the true “independance” of the planning function mean the rise of players that till this day have not been central players due to their at times hostile relationship with the agencies such as Media Auditors, Consultants, Media Research agencies etc.

Taking the Planning function away from large Media groups will have a ripple effect on many other functions. For example, who and how will research be payed for. Until now, major agency groups and Media owners have agreed to fund research other than strict viewing research as it was a key need to work on the business. If it is no longer needed, why should they pay for it? The questions are not simple and have many repercussions. Blaming it all on the Media Agencies is wrong but the Mea Culpea has to start somewhere…

By: Steve Grubbs

Steve Grubbs — Fri, 17 Apr 2015 13:55:12 +0000

Love your comments as always. Somehow people have misinterpreted my blog as supporting illicit behavior. Not so. As i state “a) agencies must not violate any laws, b) they must be honest in their contracts and transparent in their fees, and c) they must be very clear about conflicts of interest. All else should be fair game.” This agency behavior was born the day client procurement officers began making unreasonable demands and agencies refusing to just say, “No!”

By: Brian Jacobs

Brian Jacobs — Fri, 17 Apr 2015 13:13:09 +0000

I’ve banged on about what I think they need to do before…

1. They need to return all discounts generated by their clients’ volumes to their clients as a matter of course.
2. They need to empower their media agencies (i.e. Mindshare) over their traders (i.e. GroupM/Xaxis). Actually GroupM is already starting to do this; so is Publicis. The client relationship sits with the likes of Mindshare, not with the likes of Xaxis. The traders work for the planners and can only negotiate what is planned. Plans of course can change – and if some super deal turns up (super as defined by what’s best for the client I mean) then of course they should go to the client and seek approval to change things.
3. They need to demonstrate the value of great planning. Most clients don’t understand what that term means, and most agencies have never bothered to demonstrate the value attached to it. They should learn from the creative agencies, on whose behalf the IPA does a shedload of work on the business benefits of advertising. I would get the media agencies to do this as a group, as all would benefit (in fact they could do through the IPA, but they don’t or won’t). Once they’ve demonstrated the business value they bring then they are in a far better position to charge.

By: Jeffrey merrihue

Jeffrey merrihue — Fri, 17 Apr 2015 12:50:56 +0000

You end talking about bad people being the problem rather than a good or bad practice? I would like you to get off the fence and address the real question.! Can / should media agencies stop the practice and if they did how would they make money!? If they don’t how do you protect plan integrity?