The Why
Marketing and Advertising professionals clamour to expose their brand of products and services to an increasingly younger, mobile, technologically exposed and educated populous in an increasingly fragmented and specialised media environment. But, although the marketplace today abounds with opportunities, the information landscape is constantly changing and evolving, requiring these professionals to constantly stay abreast of developments and technology, in order to make better returns on media purchases and more informed media decisions.
In recognition of these opportunities, The Caribbean Media Conference and Exposition was created to provide vital information and direction to those within the industry: bringing the two groups together- media sellers and buyers. The 2007 Caribbean Media Conference and Exposition was advertised and promoted throughout the region and selected markets in the US and the surrounding region, and is expected to attract over 300 participants each day.
The theme of CMCE 2007: Consumer Engagement--- key for media success.
As marketers begin to structure their 2008 marketing budget the media landscape will continue to see major changes and challenges. What is available? What are the options and how best can they be used? What are the latest trends and developments taking place in Jamaica, the Caribbean and around the world? What about the emerging role of new technologies and its effect on the media and marketing industries?
This year’s conference will see the Telecommunications sector and the Mobile/cell phone technology playing a major role. The developments taking place in this industry will continue to have a profound impact as it continues to change the face of media, as we know it. To some extent last year’s topic, “Is the telecommunications industry the new mediascape & the new frontier?” set the stage for this year’s theme. This year more time will be spent looking at these developments.
So where are we going? Let’s consider some of the perspectives taken from local and international media headlines over the past year.
The Empowered Consumers Perspective
“In an age of fragmentation and user controlled media, even door-to-door salesmen have to adjust their pitches. Consumers are increasingly less willing to open the door or their e-mail inboxes to even highly targeted and personalized pitches,”
“Marketers are chasing audiences across multiple media platforms, and even when they succeed in getting consumers' attention, it's getting harder to finesse a response. "People are saying, 'No more!'" says Michele Fitzpatrick, chief marketing officer, Harte-Hanks Direct. "They don't want to be bombarded with messages."
The discipline best known as "direct marketing" needs a new approach that takes into account media-averse and empowered consumers. "You can't think of them as a target," says Kathy Sharpe, CEO, Sharpe Partners. "If anything, we are the targets." In a world of increasingly personalized digital media, where consumers are accustomed to TiVo, RSS feeds, podcasts, wireless data on their cell phones, and customized home pages, people don't want to be pushed into anything.
The Advertisers perspective
In the estimation of marketers, it's no longer enough for new media to attract large numbers of users -- they also must be engaged, according to media buyers on a panel organized by the International Radio-Television Society. "The new ROI, is ROA: return on attention," said Anita Newton, VP for marketing at Kansas City, Mo.-based Sprint.
Advertisers are now employing highly skilled and trained marketing professionals who are able to do many of the account and creative servicing and coordination functions that traditional agencies are set up to do. But, should the client really be doing these things? Why not?
Many clients, dissatisfied with the level of creativity from their agencies are refusing to pay for creative output, preferring to develop their own creative message and contract a production company for its execution rather than going through an agency. For many, this is a result of the agency failing to live up to its mandate and so becoming less critical to the client’s operations.
The agency-client relationship was recently described as a relationship in which the agency is prevented from flirting with a competitive client, but the client was free to flirt with, and even engage with another agency, in other words the agency of record was in name only.
The advertising industry perspective
Buffeted by a changing media environment, the advertising industry is being forced to re-evaluate its entire approach to doing business. Some observers say the gray flannel suits and three-martini lunches are giving way to enormous institutional changes focused on cost-cutting, consolidation and a growing aversion to risk-taking.
Are you just running a business, or are you leading a crusade? Does your agency have a sense of purpose that transcends making money? Do you have a company of workers or a company of believers? Purpose is about moving beyond success to significance. Remarkable agencies aren't just trying to create advertising, but in some small way, change the world. Thoughts from Tim Williams, Ignition Consulting Group, and author of "Take a Stand for Your Brand."
An excerpt from "Why Agencies Should Put a Price on Ideas," by Claire Beal, appearing in Campaign magazine in 2006 comments, “Until agencies manage to charge for ideas, the whole pitch process will continue to see agencies squandering their most valuable assets. And business will continue being won on rates that fail to recognize the value innovative creative ideas can add to a client's stock."
"I believe we should be paid by the idea. If we spend four hours and the idea is worth $50 million, it doesn't seem right to just be paid for four hours. I think it's the compensation model that really should be looked at." David Lubars, chairman and chief creative officer, BBDO, quoted at the 2006 ANA Agency Relations Forum in New York.
The Media Industry Perspective
And as debate and opinions rage on, the media fights to stay relevant and profitable as it faces declining revenues, demands for lower ad rates in line with reduced audiences, increased competition, audience discontent with advertising overload, increased convergence and expansion as technology drives the form and nature of this competitive field.
Media managers are questioning the sanctity of the media commission. They understand why it was put there at the inception of the industry, but cannot understand what agencies are doing today to earn it. In an environment of shrinking margins should we as media be giving up as much as 18% of our revenue to an entity that just sits between us and the advertiser?
The need to make direct pitches to agency clients is becoming more and more a requirement for media to meet revenue targets. Agencies can no longer be depended on to sell airtime and space.
Should media be involved in the production of advertisements in direct competition with advertising agencies? Does this represent a conflict or simply the media seeking to ensure that it has commercials to fill air time and space.
