{"id":2271,"date":"2020-06-26T12:44:02","date_gmt":"2020-06-26T02:44:02","guid":{"rendered":"http:\/\/www.bprworld.com\/?p=2271"},"modified":"2020-06-26T12:44:05","modified_gmt":"2020-06-26T02:44:05","slug":"media-is-in-the-midst-of-a-pricing-crisis-we-need-to-fix-it-to-be-effective","status":"publish","type":"post","link":"http:\/\/bprworld.com\/de\/news\/media-is-in-the-midst-of-a-pricing-crisis-we-need-to-fix-it-to-be-effective\/","title":{"rendered":"Media is in the Midst of a Pricing Crisis – We Need to Fix it to be Effective"},"content":{"rendered":"\n

Henry\nInnis thinks we’re pricing media in a way that’s ineffective, and bad for\nclients. As he asks: You wouldn\u2019t buy cheap steel to build a bridge, so why are\nyou buying cheap media to build a brand?<\/em><\/p>\n\n\n\n

It starts with a\npitch.<\/p>\n\n\n\n

We\u2019ve all seen\nthe story. Media agencies go into a pitch. Many of them have wonderful\nthinking. But when push comes to shove, the criteria used more often than not\nis the cost of media that agency is able to commit to \u2014 the effective price\npaid.<\/p>\n\n\n\n

Publicly,\nagencies have complained about it, some of them vocally.<\/p>\n\n\n\n

Clients,\nparticularly marketers, seem to also admit it\u2019s a problem. But with procurement\nand finance departments asking for clear KPIs, it\u2019s not always a problem simply\nfixed. There are myriad reasons why. But fundamentally, it comes down to how we\nview and price media.<\/p>\n\n\n\n

How do we do\nthat?<\/p>\n\n\n\n

Largely, it\u2019s\nbased on cost to reach someone. Most channels have a variation on that metric.\nGRPs [gross rating points], for example, are TV\u2019s way of representing reach. In\ndigital, CPM [cost per thousand impressions] is often the number most are asked\nto focus on.<\/p>\n\n\n\n

That\u2019s a big\nproblem. Mostly, because when you look at the data, not all reach should be\npriced equally.<\/p>\n\n\n\n

Why?<\/p>\n\n\n\n

Reach doesn\u2019t\nequate to impact. If you\u2019re on a shitty site for two seconds riddled with bots,\nit doesn\u2019t really matter how many bots or how much \u2018reach\u2019 you get. You\u2019re not\ngoing to see a sale.<\/p>\n\n\n\n

Issues like brand\nsafety, ad fraud and ineffective marketing are largely a consequence of a race\nto the bottom on price for the supply of media, without considering the\neffectiveness of that media in models. It\u2019s like buying low grade steel for\nhigh grade construction.<\/p>\n\n\n\n

You wouldn\u2019t buy cheap\nsteel to build a bridge, so why are you buying cheap media to build a brand?<\/p>\n\n\n\n

That\u2019s why I\nsuspect the next big issue for our industry to solve will be building a more\nefficient and effective view on data to drive a price for effective media,\ninstead of just efficient media. The good news is it\u2019s now possible with a\ncombination of cloud technology, statistical automation and the productisation\nof media analytics.<\/p>\n\n\n\n

More effective\nmarket pricing isn\u2019t without precedent. In the 80s and 90s, the bond markets\nwent through similar issues \u2014 largely being priced on the cost of a bond. It\ncreated an ineffective market, and hedge funds and traders weren\u2019t able to make\neffective decisions on their clients\u2019 behalf because of that market problem.<\/p>\n\n\n\n

Then along came a\ncompany called Bloomberg to solve it. Bonds and the hedge funds that trade them\nowe a debt of gratitude to Bloomberg as a result.<\/p>\n\n\n\n

I think there\nwill be a similar, emerging trend in the media market.<\/p>\n\n\n\n

We call it media\ninvestment analytics, and my suspicion is it will be the antidote to the race\nto the bottom created by the first wave of programmatic.<\/p>\n\n\n\n

And if we solve the media pricing problem, we might come a long way on prioritising effective, rather than efficient, marketing for our clients.

<\/p>\n\n\n\n

Article first published by Mumbrella<\/em>. Read original here<\/a>

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Henry Innis thinks we’re pricing media in a way that’s ineffective, and bad for clients. […]<\/p>\n","protected":false},"author":3,"featured_media":2266,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2271","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised"],"acf":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/bprworld.com\/wp-content\/uploads\/2020\/06\/numbers-money-calculating-calculation-3305-scaled.jpg?fit=2560%2C1696","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/posts\/2271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/comments?post=2271"}],"version-history":[{"count":2,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/posts\/2271\/revisions"}],"predecessor-version":[{"id":2276,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/posts\/2271\/revisions\/2276"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/media\/2266"}],"wp:attachment":[{"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/media?parent=2271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/categories?post=2271"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/bprworld.com\/de\/wp-json\/wp\/v2\/tags?post=2271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}