There is so much new media agency business around this
summer that everyone and his dog thinks this is once-in-a-lifetime moment. I
beg to differ.
3 Reasons Why 2016 Will Be Just As Busy as This Year
1. Competitor response to reviews
We've seen this pattern before. A big blue-chip client opens
up a review. The company secures additional media value. That gives it
competitive advantage over its competitors, which then decide they too need a
better deal to level the playing field. Reviews, like London buses, tend to
come in threes.
Traditionally, this pattern occurs in one sector at a time,
spreading the new-business load. But this summer, major players looking for new
agencies in every sector, from automotive to packaged goods, health care to
beauty.
The competitor response will be as much of a major event in
2016 as the initial round of reviews has been in 2015. These companies will
have started to see the impact of their new agency deals by early next year and
will be eager to take action.
Last year, MasterCard launched a review of its global media;
this year, Visa is looking for a new agency.
2. Securing resources for digital, data and content
The second-, third- and fourth-placed brands in each
category to consider opening up reviews next year is that the challenges they
face are no different from those the category leaders are trying to address.
Every single marketing organization in the world is looking to deal with the
same issues: They want to secure the right agency resources and expertise to
address the challenges of digital, data and content.
Just as in 2015, many of these "next-tier" reviews
will be driven by strategic reappraisal of media agency resource requirements,
concerns over transparency, and desire to implement new procurement standards
across the marketing roster. None of these factors are exclusive to the
category leaders. In fact, the trickle-down effect could run into 2017 as every
media-savvy brand works through the same process.
Many advertisers are still operating with outdated agency
contracts and will need to review their media agency scope of work in light of
the new communications environment. Some will do this behind closed doors with
existing partners, but many will seek to open up reviews to better assess the
value that exists across the market.
3. Factoring in the three-year contract cycle
The normal round of reviews still needs to be factored in.
Many companies still operating on a three-year cycle, so the base level of
media pitches will still be keeping agencies busy.
We have clearly moved on from the era when brands and
agencies worked together for decades. While there are a few such partnerships
that do exist, the traditional approach today is to head for the open market.
The bottom line is that 2015 is not a blip -- it's a trend.
The media agency pitch market will be very busy for at least 18 months.
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