Current and future challenges of media agencies in Europe”
Jordi Botey Lopez (Blanquerna School of Communications, Ramon Llull University, Spain) Ramon Martin (Faculty of Communication, Pompeu Fabra University, Spain)
Conference Proceedings of the LCBR European Marketing Conference 2011, Frankfurt am Main, Germany July 7-8, 2011, ISSN 2190-7935, p. 60-68.
The technological revolution in which we are immersed is affecting consumers, brands and specially mass media. As a result, media agencies are being forced to re-formulate both their organizational structures and the services that they offer to advertisers. Furthermore, the serious economic recession crisis means that advertising investment has fallen to the levels of five years ago; consequently, the traditional paradigm of communication directed to mass audiences is becoming less efficient. What are the main reasons for this loss of efficiency?
One can guess at several reasons in a complex communication industry, reasons which this paper will try to analyze. Media, advertisers and agencies know it; they are experiencing it and marketing has taken it into account when creating platforms 2.0, products that are only commercialized through Internet, creative formats designed for a digital environment, forums for segments of very specific targets, etc. We are in a moment in which users have the word and this requires that the brands listen to them and respond to their needs.
On the other hand, the current values in marketing are changing (brands, consumers, media and technology are different) and we have to be aware that Internet has more and more power in communication. Most advertising media have decreased their investment and this new scenario forces all business “players” and, specially, media agencies to “reinvent themselves”: they change the services that they offer because the traditional planning services don’t provide enough added value; work processes are modified; innovation and creativity are promoted as a means of standing out from competitors, as well as increasing media efficiency; as a result, the professional profile of those who work there is changing too.
So, what are the present and future challenges of media agencies? In our proposed paper, we are going to try to explain some relevant aspects of this matter.
Keywords: Advertising. Communication. Media agency. Internet. Advertising saturation. Advertising effectiveness. Digitalization. Audience measurement.