Today sees the release of a significant report by the US Association of National Advertisers (ANA) on principal media, a subject that has been gaining increasing attention. Media Marketing Compliance was one of the independent contributors to the 47-page report entitled: "Principal Media: What Marketers Need to Know."
Principal or inventory media, where media agencies buy media or other services and resell it to clients, on a non-transparent basis and often without their knowledge, is not new. However it is on the rise and is driving holding company profits. The ANA report, which includes results of a quantitative survey carried out with client-side marketers, is designed to increase awareness and education on the background, benefit, challenges and guidelines so marketers can make an informed decision about the role of principal media for them.
As a media compliance auditor and report contributor, Media Marketing Compliance was invited to supply an independent perspective on principal media:
“We believe that it is up to advertisers to decide whether to allow their media agencies to resell media to them at an undisclosed markup. We strongly advocate that advertisers be fully aware of the reality of what they're buying. Too often this is not the case.”
“Media agencies are adept at positioning principle media as a benefit, so we strongly recommend you ask the tough questions beforehand and require the agency to verify the benefits immediately after a campaign ends. It is only an advantage if the media in question is precisely the same as you would have bought anyway but at lower cost. That is rarely the case” (Section VIII, page 36.)
"Principal Media: What Marketers Need to Know" is available to download by clicking the link below, or from the ANA website. The MMC team is running free individual client workshops on this subject. Please contact us to arrange a confidential 20-minute session.
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