The presentation describes TrinityP3's digital media strategy.

1. The Media Value Chain
- Understanding where value is
created, lost and hidden
TrinityP3
October 4, 2012
© COPYRIGHT 2012
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2. Value vs Price
Price is what you pay,
value is what you get”
- Warren Buffett
In media, getting the cheapest price,
isn't always the best result.
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3. What is the media value chain?
A company turns money into business value by investing in the
media placement of their communications messaging.
$
BRAND MEDIA
$
Done correctly, that media placement creates more value for the company
than it cost to buy, making a profit on their media investment.
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4. The complexity of the media value chain
1. Companies usually entrust 3rd parties to manage this investment.
2. It is hard to link the price paid to the value delivered because
the process of investing in media is not transparent making it
difficult to account for what is being bought.
3. It is fragmented with no one person (or body)
having full visibility of the full length of the media
value chain.
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5. The challenges of the media value chain
BRAND $ MEDIA AGENCY $ MEDIA
1. The company decides to spend money to connect its brand to its
consumers via media.
2. The company engages a 3rd party agent (media agency) to plan, execute
and manage the buying of that media, passing on the required funds.
3. This appears to be a very simple transaction but it relies on the company
and media agency having an aligned, transparent process of decision
making and purchasing.
4. It is further complicated by the fact that media audience delivery is an
intangible commodity.
5. Therefore you have to trust the paper trail (audit) to tell you what you
bought…
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6. Media value created, lost and hidden?
If your media value chain doesn't work efficiently
you are potentially losing more value
than you create, resulting in a net value loss
and waste for the company.
The first step in making a (near) perfect
media value chain is to identify what is
creating value, what is causing value
to be lost and where value is not
properly accounted for (hidden)?
Much of the value in the
media value chain is
discretionary on behalf of
the agencies.
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7. How is value created in media?
VALUE CREATED
• Negotiation creates additional value which is normally kept by the
agency.
• Smart media planning minimises wastage making budgets go further,
new value is created.
• A strong media value chain where the company is working with the right
agency and has processes in place to focus and incentivise the agency
to create value.
• A transparent approach to media buying, activated in the best interests
of client and not according to the agency's share deals.
• Full transparency of budget dollars and where they go including full
invoice transparency.
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8. How is value hidden and lost?
HIDDEN
• Lack of transparency in buying, rebate retention, digital trading desks,
media brokering.
• Pressure on remuneration provides an incentive to agencies to be less
transparent.
LOST
• Missed opportunities, sloppy buying, poor planning, bad process, poor
briefing, media bias.
• Paying agency by media commission makes their resource non-
transparent (they can move people on and off your business at will).
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9. The secret to a good media value chain?
Better strategy
Better Client - be the best client you can be
Better structure
Better Agency - work with the right agency or agencies
for your strategic needs
Better process
Have processes between you that are aligned,
accountable and productive
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10. Better Strategy
Media Digital Social Content
strategy Strategy Media Strategy
Strategy
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11. Better Strategy
Customer Data Analytics
Research
Insights
Comms Strategy
Channel Strategy
Media Digital Social Content
Strategy Strategy Strategy Strategy
Planning Planning Execution Concept
Trading Optimisation Execution
Results
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12. Better Strategy
Customer Data Analytics
Research
Insights
Comms Strategy
Channel Strategy
Media Digital Social Content
Strategy Strategy Strategy Strategy
Planning Planning Execution Concept
Trading Optimisation Execution
Results
marketing management consultants

13. Better Structure
Customer Data Analytics
Research
Insights
Comms Strategy
Channel Strategy
Media Digital Social Content
Strategy Strategy Strategy Strategy
Planning Planning Execution Concept
Trading Optimisation Execution
Results
marketing management consultants

14. Better Structure
Customer Data Analytics
Research
Insights
Comms Strategy
Channel Strategy
Media Digital Social Content
Strategy Strategy Strategy Strategy
Planning Planning Execution Concept
Trading Optimisation Execution
Results
marketing management consultants

15. Better Structure
Customer Data Analytics
Research
Insights
Comms Strategy
Channel Strategy
Media Digital Social Content
Strategy Strategy Strategy Strategy
Planning Planning Execution Concept
Trading Optimisation Execution
Results
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16. Better Processes
Aligned
• Align media channel strategies to the communications strategy.
• Align all agency briefs to the comms strategy and specific channel strategy.
Accountable
• Ensure all media briefs have clear, measurable objectives to be delivered.
• Reward the agency (or agencies) for value delivered.
Productive
• Measure all media activities against delivering value.
• Engage the agency (or agencies) in delivering outcomes.
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17. Improve the value in your media value chain
ü Recognise media is a value chain for your company and brand.
ü Define media value in relation to your business, communications and
channel strategy.
ü Look for where media value is being created, hidden and lost
currently throughout the media value chain.
ü Ensure your media strategy is aligned to your channel strategy,
marketing strategy and business value strategy.
ü Review your media value chain structure to ensure you have the right
agencies and suppliers delivering value at each step.
ü Optimise processes to engage and focus the agency on delivering
maximum media value.
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18. For more information contact…
ID Comms Ltd TrinityP3 Pty Ltd
London Sydney
+44 20 7855 7610 +612 8399 0922
Melbourne
+613 9682 6800
Members of the Hong Kong
Marketing FIRST Forum +852 3589 3095
Singapore
+65 6884 9149
info@idcomms.com people@trinityp3.com
www.idcomms.com www.trinityp3.com
TrinityP3’s liability is limited as per our standard terms and condition as approved by the client prior to the project commencing
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