Effective marketers approach us for our media experience and confidential counsel. Below are some of their most frequently asked questions. If you have a question that isn’t covered here, feel free to call us or complete the Contact form.
A typical pitch process can run between six to twelve weeks. No two pitch processes are the same and it will vary based on client requirements. Ignite Media Consulting contributed to IAPI’s Media Pitch Guidelines and supports the efforts of IAPI, the AAI and the M.I.I in raising the standards around agency search and selection.
A PRIP payment is a mechanism widely used by clients to evaluate and reward their agency partner(s). It essentially aligns agency performance with a company’s marketing objectives. Payment is normally subject to achieving pre-agreed targets/criteria. They are done on an annual basis and generally cover all aspects of the agency relationship from planning/buying to team performance etc. A PRIP shouldn’t be agreed without FULL disclosure of other commercial opportunities for an agency to make money Two distinct parts make up a PRIP:
Commonly referred to as AVBs, this is simply another name for rebates. These deals typically take the form of cash incentives media owners offer to media agencies to encourage them to spend more with them. The value of AVBs, which vary by media and by spending level, typically range between 2.5% -8% of an advertiser’s net media spend. In digital media channels, the range band can be significantly higher. AVBs can come in many forms, for example:
Value pots refer to the bank of free ad inventory media buying groups accrue as credit once they reach an agreed level of spend with a media owner. Also known as ‘value banks’, they are a contentious practice in the marketing industry. Practices can include ‘on selling’ to clients by agencies at a higher rate or creating fictitious discount scenarios – an agency might claim it secured the advertiser a 70% discount, when in reality it was given free to them anyway. It’s not unusual for such deals to be included in annual reviews in order to secure bonus money for attaining ‘cost savings’ for clients. There are concerns amongst marketers that agencies are spending their budgets with media owners simply to meet the value bank agreement they have in place, rather than investing money in the brand’s best interests. Having independent oversight in this area keeps everyone in check.
A DMP is a platform that allows advertisers, agencies and publishers to control their own first-party audience and campaign data and compare it to third-party audience data. A DMP lets you make more informed media buying and campaign planning decisions via behavioural targeting or extending audiences via lookalike modelling. Advertisers and agencies generally use DMPs to buy more effectively while publishers typically use them to segment their audiences and sell more effectively.
The science of assigning credit to each digital touch point (publisher, Ad Network) of the customer journey based on that touch point’s influence on the ultimate conversion decision. The ‘last touch’ model is most commonly used today. There are some major shortcomings with this model in that it inherently assigns far too much value to the bottom of the purchase funnel and is highly susceptible to attribution fraud. Also, it doesn’t consider factors outside of digital such as TV, outdoor, press, radio, so as a result it doesn’t give you a complete picture.
A critical metric that determines the level of a brand's market share growth is its excess share of voice (ESOV), defined as share of voice (SOV) minus share of market (SOM). In other words, if you want to grow your market share you need to overinvest.
If you have a question that isn’t covered above, please call John or email your query to email@example.com
In house of pain
Technology is tempting some big names to do media buying themselves and cut out agencies, but it’s not a binary decision.