MediaSense co-founder Graham Brown and Stack I/O managing partner Ryan Kangisser were invited to speak at Liberum’s expert lunch on media agencies and their relationships with advertisers.
“We are seeing brands renegotiate contracts and reset their relationships with their agencies, equally agencies are beginning to respond with a more open way of working.”
On the topic of the ANA report and what it means for agencies, Graham felt there will be a short-term impact for US agencies due to rebate declarations alongside contract re-negotiations by clients, which will close loopholes on practices. “It will have a short-term effect, potentially on revenue, but that is more than likely to be compensated with the fees associated with the management of digital assets over time.” Ryan added, “We are seeing brands renegotiate contracts and reset their relationships with their agencies, equally agencies are beginning to respond with a much more open way of working.”
Ryan stated that the acquisition of ad-tech companies by agencies is to cover the expertise they don’t have and would not be able to compete against. “As brands move towards a more data driven world and a single customer view, agencies need execution partners and strategic partners who offer that deep seated expertise, without which it will be difficult for these holding companies to compete.” Graham added that holding agencies are rushing into acquiring adtech companies. “There are many, many technology companies and consultancies out there and the holding companies don’t want to be caught short.”
Graham reflected that management consultants pose a very real threat to agencies as “not only do they have privileged C-Level access, they also operate in a very transparent way, contrarily to most agencies”. Ryan also believed the jury remains out on whether the consultants “will be able to integrate its data capabilities with creative work” but it was felt that these firms could well do so.
On the subject of brands taking agency operations in-house, MediaSense expected ‘clients to take more control of the value chain’ going forward to ensure greater transparency and effectiveness related to their digital advertising.
The video in full is available above. MediaSense are global media advisors, helping brands take control of their media.
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