Other aspects of the study, which was conducted for the first time, include the satisfaction of companies with their media agencies and their own media performance.
Notice: The study was conducted in Germany, so the results relate to German media agencies.
The ongoing discussions about the quality, performance and transparency of media agencies have left their mark on marketing and media managers in advertising companies. Only just under one in three decision-makers are completely satisfied with their media agency. Furthermore, only seven percent of the companies surveyed rated their own media performance as very satisfactory. These are the findings of the first "Media Entscheider Radar 2016" conducted by Brainagency Consulting.
Media agencies with pent-up demand in the digital disciplines
There are major differences between the classic and digital media disciplines. While more than half of the decision-makers surveyed rated the performance of their media agency for non-digital planning as very good, companies' satisfaction with the agency's performance drops sharply as the degree of digitization and specialization of the tasks increases. Only just under 30% of marketing and media experts are very satisfied with their agency's performance in the area of search. In the growth market of real-time advertising/programmatic buying (RTA/PB), the figure is already just under a quarter. Bringing up the rear in the digital disciplines are social media and data ownership: according to the "Media Decision Makers Radar 2016", the vast majority (around 60%) of the companies surveyed are not satisfied with the implementation by their agency.
Top topics of the companies: Real-time advertising and data sovereignty
At the same time, 40 percent of decision-makers believe that search and real-time advertising/programmatic buying will become increasingly relevant in the future, followed by data ownership (37 percent). In contrast to search, however, there is a great deal of uncertainty in companies when it comes to dealing with data-driven disciplines: over a third of respondents state that they have an increasing need for advice on RTA/PB and data ownership and would like support from a neutral consultancy with in-depth expertise. "The topic of data requires detailed specialist knowledge. Only a few companies can master these complex technological and legal challenges with in-house expertise alone," says Oliver Mohr, Managing Director of Brainagency Consulting, commenting on the results.
Companies are still in the early stages of handling data
Despite the high relevance and sensitivity of the topic of data, companies are still at the very beginning in terms of their data management: only one in five companies plans to anchor its data management in-house and thus have complete control over the data. These 20 percent expect in-house data management to be more effective and to eliminate hidden external value creation, for example by the media agency.
82 percent of companies do not carry out any quality assurance measures
Another topic of the qualitative study was the satisfaction of companies with their own media performance and the use of quality assurance measures. Although two thirds of decision-makers in the companies attach great importance to the topic of media, only a fraction (6.7 percent) are completely satisfied with their own performance. In particular, almost 60 and 47 percent of marketing and media decision-makers are not satisfied with the effectiveness and efficiency of media activities. One reason for this dissatisfaction may be a lack of control and a lack of targets: 82% of companies do not carry out any quality assurance measures to check the performance of their media agency. Furthermore, only one fifth use ROI calculation models, statistical modeling or business analysis models as a basis for their media decisions. Again, only 15 percent of decision-makers stated that marketing controlling has a great or very great influence on media decisions. Oliver Mohr: "An astonishing result. After all, media is one of the largest cost blocks in many companies alongside personnel, research & development and production. However, anything that is not validly measured can only be poorly assessed and managed - and this in turn leads to uncertainty."
Basic trust in the media agency is there - but only a third are very satisfied
As the study also shows, the cooperation between companies and media agencies is characterized by basic trust: 58% are somewhat satisfied with the performance of their media service provider - but only 30% are very satisfied. Mohr: "The increasing complexity, especially when it comes to the digital topics of the future, is increasingly leading to unanswered questions and uncertainty within companies." Nevertheless, only 22% of companies have so far relied on external support, e.g. media auditors or management consultancies specializing in media and communication. However, some companies are already rethinking their approach: While only a few decision-makers have used the services of independent consulting firms with in-depth media and communications expertise to date, five times more of them can imagine working with external consultants in the future.
Conclusion:
"The study provides a comprehensive market picture of the cooperation between companies and their media agencies. We wanted to find out in a neutral and quantified way which topics are relevant for decision-makers now and in the future and in which areas there is a need for action or dissatisfaction with performance," says Brainagency Consulting Managing Director Oliver Mohr, and continues: "The study clearly shows that the need for consulting in companies will increase massively in view of the continuing rapid progress of the digital transformation. Consulting firms that support companies with in-depth expertise both in the development of a cross-disciplinary digital strategy and in the operational implementation in the individual sub-disciplines will become increasingly important," summarizes Mohr. (pd)
About the study:
For the "Media Decision-Maker Radar 2016", 60 marketing/media decision-makers from 14 sectors (including automotive, financial services, FMCG, tourism, healthcare/pharmaceuticals, logistics and shipping) in Germany were surveyed. All of the companies surveyed employ at least 300 people and generate an annual turnover of at least 200 million euros. All companies work together with a media agency, advertise in the B-to-C sector and have a media budget of at least two million euros per year. The qualitative study (CATI survey) was conducted by the market research institute Mindfacts, Munich, on behalf of Brainagency Consulting in November/December 2015.