CROSSMEDIA USA’s Post

Do you understand  principal-based media buying, also known as "arbitrage", a practice in the ad industry where agencies buy media in bulk from owners and resell it to clients at a markup? In the evolving landscape of media buying, the concept of Principal Media has gained significant traction. Here's a breakdown of what it entails What is Principal Media? Principal Media refers to a model where agencies buy media directly from publishers and then resell it to their clients. This model can potentially offer agencies higher margins and more control over the media buying process. However, it also raises concerns about transparency and conflicts of interest since the agency acts as both buyer and seller of media. Key Considerations: Transparency: One of the primary concerns with Principal Media is the lack of transparency. Agencies might not disclose the actual cost of media to their clients, leading to potential conflicts of interest and a loss of trust. Control: While agencies benefit from greater control over media buying, clients may worry about whether the best interests of their campaigns are being prioritized. Audit and Compliance: Ensuring thorough audits and clear contracts is essential to mitigate risks associated with this model. Clients should demand detailed reporting and transparency in pricing. Important resources ANA - The Acceleration of Principal Media: https://lnkd.in/dJAHftRY Digiday - WTF is principal media: https://lnkd.in/dwwPBhgy AdAge - When Agencies Become Media Sellers—Inside The Industry’s Controversial Growth Engine https://lnkd.in/dD42aFrB AdWeek - Media Agencies Profit From Arbitrage, But Some Brands Benefit, Too, ANA Finds https://lnkd.in/dzKg4ACa #MediaBuying #DigitalMarketing #GMP #Transparency #AdTech

🗞️ New Report Alert! The Association of National Advertisers has released its latest report shedding light on the rapidly accelerating trend of principal media adoption within agencies. Principal media, where agencies act as media owners, reselling to clients with varying levels of transparency, is gaining momentum. While principal media promises reduced expenses and access to exclusive inventory, it comes with its set of challenges regarding transparency, conflicts of interest, and media quality. 👉 What's the game plan for advertisers? Here are some actionable steps: 1️⃣ Set clear guidelines and agreements on principal media usage. 2️⃣ Ensure media plans prioritize advertiser objectives, not just agency profitability. 3️⃣ Ask the tough questions during negotiations: What's the agency's stake in principal media spending? 4️⃣ Ensure protocols in contracts for principal media approvals (including penalties for non-compliance). 5️⃣ Conduct regular audits to catch any discrepancies. Principal media may be lucrative for agencies, but it demands diligent oversight from advertisers to safeguard their interests. A member of the ANA Board of Directors put it this way in the report: 💬 “While principal media can indeed provide the benefit of cost savings, marketers need to go into such deals with their eyes wide open.” At ID Comms, we help brands get the highest possible value from their media investments💰 We can help navigate agency agreements, measure value, and ensure contracts address principal media concerns. Brands deserve better media! When brands get more value from their media investments, they grow. And when brands grow we all win! You can get the ANA’s Acceleration of Principal Media Report here: https://lnkd.in/gGgEg-2i #BrandsDeserveBetterMedia #IDComms #PrincipalMedia #MediaTransparency

One Strategy Group has been called the next-gen disruptor strategy firm. Said Differently is our kindred spirit on the creative and digital transformation side and who we want to be when we grow up. This is a great story of how you build a company by refusing to assume that what worked yesterday will keep working tomorrow.

It’s time for transparency with principle media. Less than half of in-house advertisers consider themselves “very familiar,” and 13% are unfamiliar with principle media. There’s a lot more to it than lower CPM’s. For better protection with your contracts with media agencies you should consider the following: 1. Require explicit opt-in approval for each use of principal media. The contract should stipulate that the agency must get written approval from a designated senior executive (e.g. CMO or Head of Marketing Procurement) each time before purchasing any principal media. Blanket approvals should not be allowed. 2. Mandate clear identification and details of principal media buys. The contract should require the agency to specifically call out principal media buys on media plans and provide key details like cost, impressions, performance metrics, and any terms that differ from the overall contract. Vague references like "principal media may be included" should not be accepted. 3. Allow auditing of principal media buys. While costs paid by the agency may not be accessible, the contract should allow auditing of principal media buys in terms of proof of performance, delivery, and adherence to the marketer's standards at the same level of detail as transparent buys. Audit rights should not be waived. 4. Consider limits on principal media. The contract could specify a maximum percentage of the total media budget that can be allocated to principal media buys to limit potential overuse by the agency. Requiring frequent reporting on principal media spend is also advisable. 5. Address conflicts with bonus/rebate agreements. The contract should require the agency to disclose if use of principal media will negate rebates or incentives the marketer would have otherwise received, so the full financial trade-offs are clear. Impact on any agency performance bonuses should also be considered.

4A's President and CEO Marla Kaplowitz returns to #LegendsandLeadership with Jack Myers for an in-depth discussion on the trends, innovations and growth opportunities in the ad-supported media industry. Watch their full conversation below!

Even if you have a low number of audience Whatever you say, Whatever you utter, Whatever you write, Whatever you show, Whatever you display, gets you either one of this Trio. Revenue 🔄 Authority 🔄 Influence But Here’s the thing → You can own this all🔥✅ And that all comes down to → How well you position yourself Whatever value you provide could be ⤵️ 🟠→ transformative for one 🟠→ informative for another 🟠→ and empowering for a third 💰→ One will get you Revenue 👑→ Other will get you Influence 💪→ Third will get you Authority So you have to hit the nail on the head. Your words do this all for you. Make them sharp enough 🗡️ They should be your arrows 🏹 And they should hit the target 🎯 That’s how you win this game 🔥 ____________________________ P.S: If you are a busy CEO wanting this trio, let me give you an orangy slice that will own you this Trio in no time 🧡🍊 📌 Just 2 slots open for now. 📌 Hurry up! Drop me a DM before someone else fills it ⏳ —————————————————-

Love this perspective on generational profiling from our Chief Strategy & Planning Officer, Elliott Millard. Older audiences are more progressive, valuable and influential than we think. They're green too, which makes me happy :-) Check out his article in The Media Leader.

🟠 Be more magpie.   The advertising industry creates extraordinary work, and unique ideas when we radically rethink and collide different perspectives. According to Senior Strategy Partner, Emily Fairhead-keen, "mashing up" is integral to our thriving industry, and why brands find new chapters in lives.   In this brilliant piece for MediaCat Magazine, Emily highlights how brands can pioneer new strategies and tactics by playing in diverse mash-up spaces across typology, culture and category. Read the full article below 👇 https://lnkd.in/ewcMaeDG

🧠 You need this newsletter if you work in marketing 🧠 Trusted by marketers at top leading brands and agencies around the world including: ➡️ Apple ➡️ Nike ➡️ Netflix ➡️ VaynderMedia ➡️ Uber Growth Strategy from 8 years of hands-on experience growing some of the best brands. 🧠 Real Systems. Real Strategies. Proven Results 📩 Delivered directly to you every Sunday ⏱ Actionable Insight & Analysis 📈 Industry Leading Tactics to help grow your business Join 10,000+ CEOs, founders & marketers - Learning every week on how to grow their business 👉 https://lnkd.in/g2H8PRp5

A vibrant community of passionate brands is gathering together, are you coming? 🙋🏻♀️ If so, prepare to connect and experience unprecedented business growth at Elevate: Elite Communications Strategy! Form partnerships with other purpose-driven brands to discover more ways you can communicate your unique mission with your audience. You’ll also walk away with: ✔️The tools that can allow you to achieve groundbreaking business growth through proven communication frameworks and strategies. ✔️A comprehensive plan tailored to your brand’s purpose to captivate your audience and make a lasting impact. ✔️Strategies to amplify your brand’s authority and credibility. ✔️More confidence in becoming a thought leader in your industry. ✔️The secret to integrating and monetizing your publicity into the market. So if you’re eager to expand your brand with individuals who share your vision and passion for success, click below to save your seat and we’ll see you starting October 11th, 2023! 🤩👇 https://lnkd.in/gPzQpsDf