Tuesday, November 14, 2006

media agency part 3

the crucial question coming from part 2 is: would not be possible to structure the business in a wiser way?
you invest on people and resources and infrastructure and then the client leave and you have to shut premises and loose talents and money.
the entire process involving media agency is in three main steps:

- strategy
- planning (delivering media plan)
- buying

- strategy must remain in house as it is the core of the business
- buying could be appointed to a buying center common for more than one agency (let's consider that today the big players do own at least two media agency each) to exploit any volume benefit, where available
- planning activity could be deployed to separated companies as for the buying.

what if omd built a company for buying and one for planning for all their media agencies?

groups of buyers and of planners, that you can shift from one account to another if you loose a client. on such big numbers of clients, the chance to fire people is definitely lower and this approach makes easier to retain and invest on them.

the other advantage is to change the remuneration structure with a cost per each service and eventually a higher recognition for the most valuable service, such as strategy.

too complicated? or too simple?

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