This post is by Darren Woolley, Founder of TrinityP3. With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation.
This is the next in a series of one-minute videos that address one of the many complex challenges facing marketing, media and advertising today.The Golden Minute series is an attempt to prove Albert Einstein right when he said “The definition of genius is taking the complex and making it simple”.
But he also said “Everything should be made as simple as possible, but not simpler”. So we will leave it for you to judge. Please let us know here if there is a topic you would like us to cover in a Golden Minute.
Mega successful investor, Warren Buffet, famously said “Price is what you pay; value is what you get”. But when it comes to media the discussion is almost always about price – price and quantity such as GRP, CMP, Impressions, spots and the like.
These are all measures of quantity of media and quantity of audience delivery, but rarely is there a measure of quality. After all, quality of media is a much more difficult attribute to measure or validate.
But the lack of quality measure or at least the difficulty in creating one should not be the reason not to try. The lack of this quality measure is what contributes to the perception that media is simply a commodity that is to be negotiated and bought by the ton.
In fact it was only recently that a long term marketing procurement specialist tried to correct me on this, saying that media is the oldest commodity in advertising. But there are some major implications if you accept that media is simply a commodity to be purchased as volume at a price.
The first issue, which we are already witnessing, is the treatment of media as a commodity as evidenced by a procurement approach for media based on value and price. I remember the first time I was witness to a procurement process of a reverse auction on media buying with the buyer asking agencies to bid on supplying media with a committed cost per thousand (CPM) with the lowest CPM bid the winner.
Even as recently as the past month we have seen media agency contracts awarded based on a commitment to the lowest cost per volume, without consideration for the performance and relevance of that media being purchased.
Continue reading “Why measuring media value is more important than media cost”