The recent Big Media Debate, hosted by News International in partnership with Haymarket Brand Media involved participants from all key areas of the media business. It centered on a collection of sobering realities that have defined the media arena in 2009 and 2010. In short:

Clients have been forcing media agencies to pitch for accounts based almost solely on the low price they claim they can negotiate from media owners.

Media owners are in turn rebelling and refusing to give extra discounts.
Increasingly clients are able to go direct to data-rich media owners and technology makes this easier.

The debates were heated and few punches were pulled. In conclusion, there were a number of interesting suggested actions put forward by the panel:

1) SET UP A MEDIA REGULATOR

There is a case for setting up a media regulator, with the Financial Services Authority as a model, to monitor media buying and selling. The client body ISBA is the most appropriate organisation to drive the establishment of such a regulator.

2) EXAMINE THE ROLE OF AUDITORS

In tandem with this, the role of media auditors in negotiations needs closer examination to ensure a fair price is being paid for media.

3) AGENCIES NEED TO DEVELOP A SOUNDER BUSINESS MODEL

Urgent action is needed to ensure the future of media owners and agencies, in particular to develop a sound business model for media agencies that are in danger of disintermediation.

4) FIND A CLEAR MEASURE OF MEDIA VALUE

Faced with being viewed as a commodity, the media sector (owners and media agencies) needs to act in unison to redefine its category and develop a clear measurement system of the value it creates.

5) CLIENT EDUCATION

Clients have a role in educating their internal stakeholders on the value of media and to support the development of a more precise measurement and fairer remuneration system.

6) GREATER CLIENT UNDERSTANDING BY AGENCIES

Agencies must realise the time pressures clients are under and make only relevant proposals to experiment with media choices.

All in all a clear clarion call for change in the media industry and a number of areas of significant overlap with our own views on the current status quo.

To read the full report of the debate and view a video clip summarising the conclusions click here

Posted Monday 7th June 2010