How Media Agencies Can Evolve Their Business Practices in 2017

In 2015, the media agencies world saw over $30 billion up for grabs from the largest brands in the world. While 2016 has been much quieter than 2015’s “Mediapalooza,” 2017 could be another story, as a great deal of advertisers signed one-year contracts while they waited for the results of the ANA Media Transparency Report (which found anything but transparency).

With an eye toward 2017, media agencies need to brace themselves for the potential of another “Mediapalooza,” leaders need to start thinking about evolution.

Pundits have been shouting about “the death of the media agency” for years or even decades (usually during recessions or groundbreaking technological advances), but in reality, media agencies—at least the ones that can evolve with the times—have survived.

The key point, of course, is that successful media agencies were able to adapt, reinvent themselves, and offer a wider range of services that kept clients on board. They brought themselves up to speed with the latest technology, hired the right people, and implemented the right processes to weather the storm and prove the naysayers wrong.

The Shifting Sands of the Media Buying World

Noting this, David Beale of Mediacom recently talked about how change could be on the horizon once again for media. He notes that among the biggest threats to media:

• Big data owners are engaging with other big data owners directly, circumnavigating media agencies
• Self-service media optimization is proliferating
• Nimble, purpose-driven agencies work smarter and offer more transparency than their bureaucratic counterparts

Six Opportunities to Build Your Next Generation Media Agency

It’s not all “doom and gloom,” for the traditional media agency. Mr. Beale, who’s in charge of redefining the Mediacom’s data and analytics strategy, also saw opportunity for media agencies to embrace challenges, and to brace for “the next earthquake.”

• Define Yourself: What will be the top focus? Will you remain a pure media company? Will you move more into the tech space? Being able to set and focus on a mission in the media planning world will help to position yourself to clients as a trusted partner.
• The Great Data Grab: You can see, based on recent acquisitions, that organizations are focused on acquiring and using data. Microsoft’s purchase of LinkedIn and Salesforce’s acquisition of Krux, among others, show that it’s all about having the most complete view of the customer.
• Get the Skills: With big data comes big responsibility. Having data is only the first step—the next step is to have the people, processes, and technology to manage and extract insight from it.
• Show Clients How You’re Different: You can go out of your way to communicate how much you differ from another agency, but the reality is that you need to prove it. With the right data, and the right people, media agencies can show current and potential clients why they will be the best option now and in the future.
• Be Transparent: The ANA Transparency Report created immense distrust between advertiser and agency, and in 2017, pitches will be won by the agencies who can prove transparency both in data and in pricing. Armed with the tools needed to measure and extract data, marketers will expect unprecedented amounts of transparency, per recent research from Forrester.
• Embrace Creativity: New targeting, new media, and new formats mean that the ‘cutting edge’ will require a ‘creative edge.’ Dynamic creative optimization will provide new ways for media agencies to match user preferences while thinking of new ways to work with creative to build better, more well-placed ads.

The Leaner, More Agile Media Agency Runs on Virtual Card Numbers

Many of the aforementioned strategies that allow media agencies to brace for the future rely on the ability to choose a more innovative, streamlined, secure and cost effective form of payment. Virtual Card Numbers, or VCNs, help leading media agencies to overcome some of the biggest challenges that plague them. VCNs are single-use card numbers that allow media agencies much needed control, analysis of spending, agility, and overhead reduction.

By their single use, data-robust nature, VCNs offer media agencies unique advantages that they can in turn provide to clients:

• Simplified Payment, Matching, and Reconciling: When using traditional payment methods, matching and reconciling transactions can take longer than anticipated due to the amount of manual intervention required. Thanks to the single-use nature of the VCN, matching and reconciliation is much easier.
• Drill down into spending data: VCNs provide a level of detail that isn’t available for traditional transactions: data captured through the VCN transaction includes company-specific information like cost center and project code, and administrators can set specific parameters for each VCN (e.g. dollar amount and timeframe) which makes tracking and reporting on payments easier.
• Pay Suppliers Faster: Because they’re processed digitally—and sent directly to suppliers’ bank account—VCN-based payments are faster than the more traditional forms of payment and an improved cash flow at a lower cost than wire/bank transfer or ACH transactions.
• Save Money while Paying International Suppliers: If you’re in charge of buying global media, you know the challenges that persist in FX mark-ups and cross-currency fees. By their nature (and our partnerships), VCNs allow suppliers to be paid in their currency of choice while allowing your agency to pay in its currency of choice.

These are just a few of the ways that media agencies can improve their access to payments data, demonstrate to clients what makes them different from other agencies, and reduce overhead spent on manual management of supplier payments. Learn more about how WEX media works.