The complexity of the media landscape has increased dramatically over the past decade, and the pace of change is accelerating. Agency trading practices are evolving, principal buying is becoming more prevalent, and new tech platforms are emerging, bringing with them new costs, possibilities, and risks.
The challenges of maintaining cost-efficient media buying and achieving effectiveness targets related to your sales and your brand are growing.
The value of renegotiation and improvement, according to the list below, when followed up, is usually above 10% of the media budget.
1. Agency Steering and Remuneration Model: Design a mutually beneficial model with a base fee and a success fee related to your targets.
2. Agency A-Team: Ensure you have the best team from the agency.
3. Workflows and Roles: Clearly define workflows, roles, and responsibilities between the Media Agency, Marketing, and Procurement to lay the groundwork for great teamwork.
4. Insight-Driven Media Buying: Ensure media buying and strategy are driven by insights and cost efficiency and align with your brand's target in every campaign.
5. Trading Practices and Transparency: Agree on transparent trading practices.
6. Savings Definition and KPIs: Define savings and KPIs to follow, such as like-for-like savings and/or strategic savings.
7. Control Over Online Buying: Establish clear and up-to-date guidelines for buying and KPIs reported ongoing.
8. Data Ownership and Reporting: Ensure proper data ownership and reporting mechanisms.
9. Exploring New Media Channels: Wisely explore new media channels, such as retail media.
10. Integration of All Media Channels: Integrate all media channels into the agency contract, including typically non-integrated channels like retail media and search
Applying the mentioned strategies doesn't always require a lengthy pitch process; often, it's feasible to renegotiate the media agency contract.
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