Media auditing in rapid growth markets

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WFA webinar featuring Nick Manning of Ebiquity: focused on auditing in less mature advertising markets.

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Media auditing in rapid growth markets

  1. 1. Media auditing in rapid growth marketsWebinar. 14th Feb 2013
  2. 2. Quick introductions… Robert Dreblow Nick Manning President, International
  3. 3. Questions raised across our membership
  4. 4. Which we have responded to…
  5. 5. Media auditing widely adopted with clear preference for permanent appointment Do you use a media auditor? 64% 27% 6% 3% Yes, we permanently Yes, we occassionally No, but we have No, we do not (and work with a media work with a media worked with one in the never have) worked auditor(s) auditor(s) on a project past with a media auditor basisSource: WFA online member survey. September 2011. Base: 33. The list of WFA company members can be found at www.wfanet.org
  6. 6. Range of services fall within auditing territory, with similar demand by region What do you use media auditors for in your region(s)? EMEA APAC US+LATAM # responses # responses # responses 0 10 20 0 5 10 15 0 10 20 Analyse buying Analyse buying Analyse buying Media inflation est. CPM benchmark Media inflation est. CPM benchmark Media inflation est. CPM benchmark Consult on pitches Consult on pitches Consult on pitches Market insight Market insight Market insight Competitive insight Financial audit Competitive insight Financial audit Competitive insight Financial audit General General consultany General consultany consultancy Training Training TrainingSource: WFA online member survey. September 2011. Base: 33. The list of WFA company members can be found at www.wfanet.org
  7. 7. But auditing much less established outside Europe Do you use a media auditor in…? Nordics Russia UK Germany France USA Turkey China Japan Spain Italy South Korea Mexico India Brazil Do you use an Australia auditor in… South Africa Yes (% respondents) No (% respondents)Source: WFA online member survey. June 2012. Base: 29. The list of WFA company members can be found at www.wfanet.org
  8. 8. With a lower proportion of spend audited in high growth markets (China, India, Brazil…) What proportion of your media spend is audited? 86% 81% 80% 79% 78% 78% 78% 77% 77% 77% 76% 74% 74% 74% 69% 67% 64% Resp 1 2 7 14 14 17 13 17 18 6 2 8 6 11 9 9 6n.b. ranked on weighted average total proportion of media spend auditedSource: WFA online member survey. June 2012. Base: 29. The list of WFA company members can be found at www.wfanet.org
  9. 9. Drop-off in satisfaction rates outside Europe How satisfied have you been with your auditors capability in your regions? (Shows TV only) Europe APAC LATAM Middle East & USA/Canada Africa Very satisfied Somewhat satisfied Neutral Dissatisfied Not usedSource: WFA online member survey. September 2011. Base: 33. The list of WFA company members can be found at www.wfanet.org
  10. 10. Lack of credibility and transparency thought to be key barriers to growth What are the main barriers to entry to effective auditing in your region? APAC Europe LATAM Middle East & Africa USA/Canada 0 10 20 30 40 Lack of credible benchmarks Lack of transparency Established suppliers not ready Lack of competitive client data Pools are too small Lack of reliable auditors Lack of advertiser commitment Lack of reliable metrics Agency resistance Lack of supplier experience Media owner resistance Limited internal resourcesSource: WFA online member survey. September 2011. Base: 23. The list of WFA company members can be found at www.wfanet.org
  11. 11. Send us your questions
  12. 12. Independent marketing and media performance specialists Financial media auditing and contract compliance Reputation research measurement specialists14
  13. 13. Our global footprint Ebiquity Offices Leading Independents15
  14. 14. A range of techniques is needed Availability in Emerging markets Media Campaign performance Year on Year Performance Cost & Quality Tracking Pool Benchmarking Financial Auditing16
  15. 15. Media Campaign performance Independent Process Coaching & Campaign Audit Consultancy Reviews Data sourced Independent feedback Install best practice independently (where on client and agency briefing & available). process. measurement Track agreed cost & Identify issues which processes. quality KPIs. can be resolved. Empower local teams Challenge agency Put best practice to challenge their thinking. processes in place agency.17
  16. 16. Recommended for…. Markets where pool benchmarking data is insufficient Markets where there are problems with process and/or media agency relationship Markets where media targets aren’t clearly defined18
  17. 17. Where is it available? Independent Process Audit Coaching & Campaign Consultancy reviews Brazil China Egypt India Indonesia Mexico Philippines Poland Russia South Africa South Korea Turkey19
  18. 18. Internal tracking and KPI setting Year on Year Cost & Quality Performance Tracking •Track delivery vs. a fixed •Track cost delivery vs. a benchmark fixed benchmark •Can be previous year’s •Assess efficiency of delivery or fixed guarantees campaign through •Normalisation in measuring reach efficiency accordance with specific •Quality performance client / agency contracts tracked vs. a fixed and processes benchmark •Seasonality •Focus on improving vs. •Quality benchmarks •Target audiences •Inflation20
  19. 19. Recommended for…. Markets where pool benchmarking data is insufficient Markets where savings are needed Media agency remuneration setting Pitch KPI setting21
  20. 20. Where is it available? Year on Year Cost & quality tracking/ Tracking vs. guarantees Tracking vs. guarantees Brazil China Egypt India Indonesia Mexico Philippines Poland Russia South Africa South Korea Turkey22
  21. 21. Cost & quality benchmarking Driving buying efficiencies across your media investment Pool Benchmarking 1 2 Cost Performance: Quality Scores: Real transaction costs, Driven by campaign sourced from a local Cost Benchmark Quality Analysis objectives, sourced vs. cost pool from independent Cost Pool data Benchmark versus clients in cost pool Benchmark against tailored competitive Like-for-like basis used panel set by market for benchmarks by each country’s trading Quality elements dynamics weighted to match client priorities 3 360 perspective of Agency performance25
  22. 22. Recommended for…. Markets where pool benchmarking data is sufficient Competitive benchmarking Performance tracking Media market insight Media agency remuneration setting26
  23. 23. Where is it available? Pool benchmarking Brazil China Egypt India Indonesia Mexico Philippines Poland Russia South Africa South Korea Turkey27
  24. 24. Some local guidelines: LatAm Brazil • A difficult market to audit in the traditional manner • Strong vested interests, so best conducted from outside Brazil using panel for quality and discount benchmarking for pricing Mexico • Strong media owner pressure • Pool and Panel benchmarking possible • Pool benchmarking and year on year benchmarks available according to need28
  25. 25. Some local guidelines: India • Strong inflationary pressure: advertising expenditure up 17% CAGR over 5 years; scope for further growth: adex as % of GDP only 50% world average • Channels multiplying, audience fragmentation • Influence of cricket (IPL) helping drive strength of TV, but multi-platform booming • Cost & Quality benchmarking is possible via Spatial Access owing to strong local and international client list • But it’s very expensive owing to scale of market (up to 8m spots!); treat as a region • Only economical for big budgets, year on year tracking a lower cost option29
  26. 26. Some local guidelines: China • Highly fragmented, multi-tiered media market: a region, not a country • Very opaque, hundreds of brokers, sub-contracting of media buying to third parties: more about risk management • Up to 50% of agency profitability estimated to be generated from media cashflow • Huge variables in buying costs (up to 500% on like-with-like basis) • Much bonus inventory, AVBs rife, commissions throughout system • Only significant pool auditor is China Media Consulting Group, who specialise in ‘following the money’ to explain pricing; strong local as well as international pool • Scale makes full benchmarking expensive30
  27. 27. An increasingly untransparent eco-system Agency Trading Desk Media Buying Brand-owner Agency Group Media Financial Media Audit Audit? vendor Right of audit now needs to cover the full transactional cycle31
  28. 28. Financial Auditing Recommended for…. Improving transparency throughout the value chain Ensuring contract compliance Rebate control Available in all markets32
  29. 29. To Summarise33
  30. 30. Which techniques would we recommend Media Year on year Cost & Pool Financial Campaign Tracking/ Quality Benchmarking auditing Guarantee Performance tracking tracking Brazil China Egypt India Indonesia Mexico Philippines Poland Russia South Africa South Korea Turkey34
  31. 31. To summarise • Media auditing in emerging markets requires a range of techniques • The chosen technique should be calibrated to the status of the maturity of the market • Pool and Panel ‘gold standard’ benchmarking is not possible to WFA standards in some markets, but bigger markets such as China and India are now more robust • Yearly improvement targeting available just about everywhere via relevant systems • A rigorous programme of measurement is possible everywhere35
  32. 32. What’s next for WFA members?• MEDIAFORUM • 17th April, London (Nokia) • 29th May, Shanghai (Coca-Cola) • 12th September, Europe • 7th November, NYC• Q3: new media auditing peer research for WFA members
  33. 33. Thank you! Nick Manningnick.manning@ebiquity.com Robert Dreblow r.dreblow@wfanet.org

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