Insights

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.

How long does a media pitch process take? More Close

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.

What is a Performance Related Payment? (PRIP) More Close

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:

  1. Agency performance is a qualitative review of agency performance from client team perspective. It can be very subjective and heavily based on key relationships between both parties.
  2. Media performance is a quantitative measure of how an agency performs against predefined media and business metrics. This tends to be based heavily on media buying performance against media ‘quality’ parameters. It can be rendered useless if success parameters are unclear or conditional on too many ‘get out of jail’ caveats.

What is an Agency Volume Bonus? (AVB) More Close

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:

  1. Early payment discount (EPD): A payment or discount for early payment of invoices
  2. Volume rebate: A discount triggered by hitting a specified spend level/tier
  3. Payment from the media supplier to the agency for research, training, or other services
  4. Bonus inventory or value pool where a media agency may be able to ‘sell’ to clients that don’t require an invoice
  5. Media buying for clients from trading desk within their holding company, which may have benefited from volume-based incentives from media suppliers.

What are media value pots/pools/banks? More Close

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.

What is a DMP? More Close

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.

What is Digital Attribution Modelling? More Close

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.

What is ESOV? More Close

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’re spending to equilibrium, then your market share should maintain
  • If you’re spending below equilibrium (negative ESOV) then your share should fall
  • Above equilibrium (positive ESOV) and your share should increase.
Mark Ritson explains this concept further in this video.

Did I answer your questions?

If you have a question that isn’t covered above, please call John or email your query to john.dunne@ignitemediaconsulting.ie

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Time to hit the reset button on dysfunctional media audits.

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Media glossary

A guide to help you understand the most commonly used terms in the media and marketing.