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The Accelerating Change of the Media Landscape

Media planning and buying is an integral, but increasingly complex, part of advertising. The media landscape is changing faster than ever and so are the choices clients make about who is best to plan and buy it. Client-side leaders and agency executives are increasingly aware that the more they can master (and stay ahead of) the evolving marketplace, the more value they provide to their organizations. 

Historically, agencies have dominated the ad-spend market. Even as recently as 2019, according to media consultant Advertiser Perceptions, marketing agencies accounted for more than 90% of total ad spending in the United States. A large portion of this came from the “Big Six” advertising agencies, which include well-known brands such as Publicis and Omnicom, among others. In 2019, these agencies represented a virtually equal ad buying market share (45%) to independent agencies. In the past five years though, the ad-buying landscape has changed significantly. By the first quarter of this year, the “Big Six” ad spend was down to 30%, while in-house media buying had nearly tripled over that same period, from 10% to 29%. Interestingly, over this time, ad buying from independent agencies has seen only a small dip, from just under 46% to just under 42%.

The significant increase of in-house buying can be attributed to several factors. One major reason is that keeping things in-house can improve ROI.  For example, according to an analysis by Bannerflow, a Swedish software company, 63% of respondents said that their organization’s ROI had improved with the change. This included the sense of additional transparency and control over assets such as data, improved efficiency, and better consistency. Further, in-house agencies have complete control over their advertising, which removes the need for excess communication between a brand and another external stakeholder.  Additionally, to be successful, external agencies must learn an organization’s brand, catching up with employees that already understand and can communicate that ethos. Other factors include reduced costs, and the opportunity to hire new talent, which occurred at more than half of the organizations surveyed.

The strategy of ad buying is also changing. Traditionally broad TV ad strategies are being replaced by more targeted streaming buys. In the past, experienced buyers based their decisions on predictions of what audiences would be watching. Now, buyers are leaning heavily into technology such as AI to develop and execute their plans. AI’s ability to quickly analyze large amounts of information allows organizations to reach consumers efficiently and with targeted, relevant content, no matter what media they are consuming. In a study cited by Advertiser Perceptions, more than half of organizations surveyed stated that AI is currently being used to generate content and creative, as well as identifying partners and platforms to work with. So, what does this mean for clients and agencies? First, it suggests that if your organization is not using available technology, it is likely that your competitors are (and you may be at a disadvantage). Second, while having AI usurp roles that have traditionally been the responsibility of planners and buyers is not ideal, there are opportunities to re-focus responsibilities as a result. Time spent on executional tactics can be repurposed to broader marketing strategies. 

The sheer number of options that exist for viewers to consume media is also an issue for marketers. With consumers fragmented across so many different channels, focusing only on specific shows or content is not the most effective means to reach a brand’s target audience. Instead, marketers are best served by buying across platforms, choosing the best options based on audience data. For example, a 2023 survey of Gen Z consumers between the ages of 18 and 26 showed significant differences between how consumers viewed ads on social media (72% receptive) versus broadcast TV (20% receptive). The time frame in which these ads are purchased is also changing. Instead of buying based on the traditional broadcast year, many have switched to seasonal purchases closer to air date. Further, the traditional broadcast TV platform is becoming less popular, with overall Subscription Video on Demand ad spending having grown to 11.3 billion dollars. However, interestingly, consumers seem to like the traditional TV ad model, as nearly two thirds prefer free, ad supported content over paying more to avoid ads.

So, whether the media planning and buying is done in-house or at an external agency, what is the best way to approach these changes? Make sure you are in full command of consumer media preferences/behaviors and are taking full advantage of the emerging game-changing tools to target and reach them. The stakes have never been higher. 

Written by Matt Burr - Matt has experience in marketing and communications roles at a number of organizations.

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