Old Media Versus Amvc Media

PREDATOR DIGITAL [email protected]

Auction-Mediated media buying is the new way of buying advertising.

It is fundamentally different and more complex than old-media buying in many ways.

It is now confined to advertising that appears on the World Wide Web, but will gradually extend to other media like TV and Radio.


OLD MEDIA

What is bought are units of Exposure, also called OTS

A newspaper advertiser sells ads based on how many people theoretically would have the opportunity to see the message.

What is bought is units of consumer response.

A response could be consumer action that results in perceived value to the marketer. It could be a visit, a lead, or even a sale.

AMVC MEDIA


Costs are typically fixed.

The advertiser needs to commit to a fixed spend, usually large, and guarantee that spend, and cannot change his mind once the deal is signed.

Costs are typically variable

The advertiser does not need to commit to a fixed spend. Spend can be scaled up or down based on results.

OLD MEDIA AMVC MEDIA


Buying is a human-mediated process

A media sales rep meets with the media agency who buys media for the client, and a deal is struck. The bigger the spend and quicker the decision, the better the deal.

Buying is an machine-mediated process done on a computer browser

The advertiser “competes” with other advertisers for the consumer’s response that is being auctioned by the media owner



Buying power is very important to getting good deals. The sole metric to evaluate a buy is gross cost.

Hence the consolidation of buys in the form of companies like Group M, which call themselves “Media Investment Management companies”.

Buying power is irrelevant.

More important are consultative skillsets to define what the advertiser wants and be able to measure these.

Thereafter, it is intelligent buying, creative and continual optimization that counts.



Consumers are targeted by the content the consume.

Consumers can be targeted by their intent.

Consumers can also be targeted based on their previous behavior



Creative Quality and Media Cost payouts are not correlated

Whether the creative is good or bad has no impact on the media cost paid to the media owner.

Creative Quality is inversely related to Media Cost

The more creative the advertiser in eliciting consumer response, the less money paid per unit of response to the media owner.



Creative is judged by the “experts” – ex. Cannes

There is no standard or unifying metric for what is considered to be creative. A general rule in old media buying is intrusion.

Creative is adjudicated by the “crowds”, that is the consumers themselves.

One standard metric for assessing creativity is the Click through Rate or Clicks divided by impressions served. The rule for new media is relevance.



Metrics, if available are expensive to get.

Metrics, if available are time delayed,

They are the result of a sampling process

Metrics are in general fuzzy

Metrics are visible in real time on a web-interface

Metrics are captured easily and cheaply, and can be as granular as the advertiser wishes to get



Metrics are typically nominal or non-numeric in nature.

If a survey asks a respondent if they recall Brand X more often, the answer can be Yes or No. Such a value is called a nominal variable

Nominal variables are the lowest form of data and lend themselves to minimal analysis.

Metrics are typically Ratio Scaled.

A boy whose weight is 100 cm is twice as tall as a boy whose height is 50 cms. Height, weight , Length are all Ratio Scaled.

Ratio scaled variables lend themselves to sophisticated statistical analysis



What business objectives are you (the client) responsible for?

What consumer actions are valuable to you as a marketer given your above business objectives?

What are your historical attempts at buying such units of consumer response?



Business

Old Media Versus Amvc Media