#MediaSnack Ep. 33: Brands preparing 2017 media pitches - a podcast by ID Comms

On this week’s #MediaSnack we provide a little update on the 2016 media agency pitch market. As you will recall it was a busy 2015 with fun-sounding MediaPaloozas and scary-sounding MediaTsunamis at every turn. This year has been a little quieter so far, perhaps because brands have been holding back a little to see how big events like the ANA #RebateGate reports resolved and if #Brexit would materially change the UK and global economy. Now those events are passed, but the implications still becoming clear, we expect more brands to be preparing to launch media agency pitches in Q4’16 or Q1’17.
We have seen this week IKEA announce the conclusion of their global framework pitch with Diageo and BT are still in progress. We encourage ID Comms clients to consider pitches carefully and try to avoid pitching solely with a financial objective to cut costs, this is typically a short-sighted tactic which affects business performance in the longer term. A race to the bottom on costs and pushing agencies just to save money creates many of the transparency issues we have been discussing for years. We find these days marketers are more keen to discuss their own behaviours and how they can evolve their media management processes, which deliver better value for their media investments.
Next, we report on some highly-charged accusations by Sir Martin Sorrell, CEO of agency group WPP. His target today is ‘media auditor’ Ebiquity and their contract compliance division called Firm Decisions. Sir Martin’s accusation is that there is a conflict of interests for the same company (Firm Decisions) performing forensic financial audits of agency book and then reporting back to clients who could (in theory) instruct Ebiquity to pitch that agency. It is a logical conflict of interest potentially but in practice it is probably low risk. SMS taking time out to raise this is probably another indicator of the tense relationship between agency and auditor; the two companies were featured on last week’s Episode because they’re currently battling in the High Court in London. As a client of WPP, Ebiquity or Firm Decisions you’d be right to be growing a little impatient with the pettiness of these fights and wondering why these smart companies can’t collaborate their resources to tackle marketers’ many challenges and stop briefing against one another.
Whilst Sorrell's conflict of interest accusation may be overblow, we do think that a potential conflict of interest lurks within the ‘auditor and advisor’ industry though, which Sorrell doesn’t highlight, and that is where auditors are receiving income from agencies and vendors. We think it is critical for marketers to be assured that they know exactly where their auditor, consultant or advisor has ANY commercial relationship with media agencies or media vendors because any preference this creates could affect their objectivity and advice, especially with regard to guiding complex, high-profile media agency reviews.

As you know, at ID Comms we are very proud of our 100% neutrality and objectivity - we have zero commercial relationships with agencies or vendors anywhere in the world. This keeps us 100% focused on what’s right for our clients' businesses, not ours. Can you say that about your current auditor or advisor?

Finally, we report on the launch of "Digital/McKinsey" - the management consultant has packaged up its digital assets under a new (cleverly titled) brand. Another step into the agency domain, surely now any remaining aspiration that the agency groups may have had as being the go-to for digital transformation is stunted by the total dominance of the consulting groups to own deep digital scope for the world’s leading CEO's?

Further episodes of #MediaSnack

Further podcasts by ID Comms

Website of ID Comms