Replacing Media Buying Agencies
In his white paper, Darren Herman suggests that the better networks will become data providers and cites the superior data on the automotive vertical captured by SpecificMedia. In our opinion, this is exactly why SpecificMedia will be able to replace relationships in the supply chain that many agencies fill today by providing directly to clients the data, analysis and delivery they need without the agency mark-up.
And, SpecificMedia can still sell the data separately on the exchange, too. Ch-ching.
The account management side of ad networks will no doubt grow in response to the steady migration of marketers working directly with networks who are using the latest technology and the ad exchange to implement efficient, digital strategies. Also, marketers will begin hiring in-house ad exchange managers who can interface between the "exchange agency" (the ad network) and creative.
Most media buying agencies will respond to the continuing advancement of technology and advertising exchanges and fall into two buckets:
- Reject technology advances and/or move way too slowly to take advantage of it.
- Try to build their own own proprietary system a la WPP Group, Group M and 24/7 Media.
Both are closed paths traveling in the opposite, open-to-all direction of the ad exchange model that provides unparalleled insight on media and improves ROI for all parties. By not partnering with technology and members of the exchange, many "closed path" agencies will not have time on their side.
For networks, a natural transition is ahead as the disintermediation of agencies brings networks - the super traders of the exchange - and clients together.
We welcome your comments.
Final tally of "Who will be disintermediated?":
- Agencies (49%, 24 Votes)
- No one (27%, 13 Votes)
- Networks (24%, 12 Votes)