Authors: Neal Deeprose & Sam Tomlinson - PwC
Talking about challenges in society and raising their profile to create awareness only has value if people then take action to solve them. In advertising the talk has revolved around “trust and transparency”, but the good news is that we are now seeing actions to deliver real positive changes.
Globally the issue of transparency made leaps forward with the ANA action of reporting to the advertising industry and hence bringing to the surface transparency issues that affected the global ecosystem. Spelling out how these issues affect the clients whose budgets drive the advertising business helped to start to change the dynamics. Actions were required by all parties to address these important issues, such as the ISBA Media Framework agreement. The ANA then adopted this framework for clients taking action in the US market.
Now nearly two years later a revised version of the ISBA Media Framework is needed. In particular, the digital ecosystem has received much coverage of very real problems. These were clearly articulated by Marc Pritchard, (Chief Brand Officer at Procter & Gamble) who stepped forward in a call for action to drive change by all parties in digital advertising. This call to action for digital media features in the new version of the ISBA Media Framework launched this week. Importantly the development process included consultation with leadership from all six agency groups, a leading independent agency and the IPA to ensure the new version works better for all parties to work in partnership. The consultation process was undertaken by PwC as part of a strategic alliance with ISBA.
ISBA asked PwC, as an independent objective party, to engage collaboratively with network agencies, gather vital feedback on the initiative and allow agency input into the updated version to ensure greater balance. Media agency leadership engagement has been commendably high, with all parties keen to take steps to solve industry problems.
Key to driving this initiative forward is advertisers taking joint responsibility to build sustainable media agency partnerships. Senior client-side experienced media leadership, and in-depth knowledge and appreciation of media agency working practices are essential to navigate the complex media world and build a lasting client/agency partnership driven by value, and not a race to the bottom in cost and quality. Client obligations to have media expertise in-house to drive better understanding and outcomes with agencies, and an annual 360▫ review process to ensure the partnership continues to evolve and develop, are all included in the new framework.
Alongside this best practice framework is a set of guidance notes to help clients understand the issues at play, and to choose the right route forward for their brand needs and agency relationship. A direct advertiser with a cost focus has a very different framework of needs than a brand-building advertiser. The framework should be used to pick the best options, not used as a “one size fits all” arrangement.
In the UK we are seeing competitive pitch processes for two of the very largest advertisers, Government Communications and Sky. They have taken action with their respective media agency review processes to publically declare the need to meet industry challenges in 2018. Both of these major advertisers said they had been inspired by ISBA’s Media Services Framework.
For the current Government Communications (a.k.a Cabinet Office) media buying agency review process, PwC are providing independent support and media expertise led by Sam Tomlinson, leader of PwC’s Media Insight & Assurance practice, and Neal Deeprose, who has 25 years’ experience in media planning, buying and consultancy.
Alex Aiken, Executive Director for Government Communications, summed up the task “We want to play a leading role in tackling the biggest challenges facing modern advertisers”. The media agency review approach developed by government and PwC included a three-month agency and industry consultative process before the RFP was officially launched last week. One-to-one agency meetings and industry discussion groups were held to ensure the direction and approach were seen by all parties as fair and transparent. The focus for media buying agency delivery is on government department campaign outcomes, quality of service and transparency. PwC advice was to demonstrate this focus in a fundamental shift of evaluation criteria with 90% against these quality elements, and 10% against cost (whereas a typical media agency pitch process has the majority against cost elements). In addition, the agency will receive remuneration properly rewarding successful campaign outcomes and quality of service delivery, in recognition of the new service requirements being sought.
Both the government and PwC are looking forward to seeing participating agencies step forward with proposed actions that address these challenges head-on. The opportunity is being offered to take collective positive action – let’s all take it. Agency relationships are fundamental to advertisers because they need to work together to communicate effectively with consumers. Improving trust through better working practices, on both transparency and remuneration, can only help that client/agency relationship.
The hope is that by taking action - engaging with and listening to the agency and advertiser communities will bring about an even more positive adoption of the new ISBA framework, building levels of trust on all sides and creating a positive tipping point. So advertisers and agencies can focus on the real action required to deliver media effectiveness. And why are PwC so well placed to help ISBA media framework and the Government pitch? PwC’s purpose is to “build trust in society and solve important problems”….it couldn't fit better.