First there was convergence (which didn’t immediately and automatically reap the anticipated exponential booty), and now media suppliers have set themselves up with a brand new bag – full-service marketing solutions groups – resulting in direct relationships between sellers and clients.
These units can handle client needs from research and segmentation, strategy and planning, to creative concepts and production, all the way through to post-campaign analysis. Suppliers are integrating and co-ordinating multi-media efforts that use all of the media owner’s properties appropriate for each client as well as going beyond to other media such as direct mail and in-store.
Bob Reaume, VP of media and research for the Association of Canadian Advertisers in Toronto, says that some clients have always gone – in partnership with their agencies – directly to the media owners because they wanted to be involved in some of the larger purchases.
Reaume says this activity could be increasing because of the growth of cross-platform programs and tailored content and the need to be closer to the creative process. In addition, he says, these enhanced marketing services would assist clients in leveraging media to their best advantage and in quantifying return on investment. Those are areas that require direct client involvement.
While some clients are bypassing agencies and going directly to suppliers, most of the work being done brings the media sellers, buyers and clients together as a team. In many cases, the client and vendor become much cosier later in the process when it comes to developing and executing creative, usually encompassing combinations of advertising, promotions, and tailored content.
While a typical advantage of the one-stop shopping model is to bypass the middlemen, media sellers say they are not trying to cut the media agencies out of the equation.
Tim Cormick, director of co-marketing for Toronto-based Corus Entertainment’s television properties, says clients are getting more involved in the media relationship than they ever have before but that doesn’t eliminate agencies; it just means there is one more person at the table.
Cormick credits this trend to clients having a better understanding of media, which makes them more comfortable dealing with broadcasters and other suppliers. Clients, he says, also know that suppliers have capabilities that can take advertisers way beyond placing media and better connect with their consumers.
‘We’re doing things an agency could potentially be doing but because it’s so much a part of the knowledge base we have, who our viewers are and what our research is about, they’re coming to us to help them – not to preclude anyone else.’
Cormick says this closer relationship has been facilitated by the separation of media-buying operations and creative agencies. Most of the time there’s a media agency at the table but he says, not a creative agency because it’s an unnecessary cost for the client when the media supplier is handling the creative development and execution.
Corus television has developed a number of interesting projects with clients involving its YTV and W Networks. Anything that goes on air, says Cormick, also goes on the appropriate Web site, whether it’s content, advertising or promotions.
Home Depot and Procter & Gamble have tied their brands closely with W programs such as Decorating Challenge, Divine Design, and Me, My House, and I – an upcoming program that Home Depot will be the category exclusive partner on for all 52 eps. The show entails content segments featuring Home Depot ‘how to’ seminars and a contest promoting Home Depot services is planned.
At YTV, which has its own commercial production house called Pester Productions, Parmalat recently linked its CheeStrings brand with the hot, animated series from Nelvana, Beyblade, based on competitive, spinning tops that are the rage with the younger set today.
This was a fully-integrated program that included on-air segments and advertising as well as a Beyblade flash on CheeStrings packaging, P-O-P advertising, a promotion and Web site involvement.
Media agencies, says Cormick, are an important part of these projects because of the advice, planning and creative input they bring to the table – as well as for the ability to purchase media at more competitive rates than the client, no matter how big an advertiser it is.
Steve Meraska, SVP director of business development at Starcom Worldwide in Toronto, thinks the majority of the broadcast business is probably still through the agency, but with ‘creative’ media initiatives – no matter what media – the vendor, client and agency have to come together. It makes everyone more comfortable with the approval processes and timelines.
This is typically the way that Meraska works, particularly through Starcom’s Imprint division which has a mandate to develop innovative media properties built around brandcentric media strategies and consumer insights.
Working closely with vendors, he says, also helps agency and client make tight or stagnant budgets go farther.
‘A lot of initiatives don’t necessarily require a full-scale production as would be required for a 30-second TV ad, so you don’t have to spend from $200,000 to $500,000 on a crew, a set, etc. A lot of time what these initiatives require are smart strategic thinking, a creative idea, and some good-quality production, which is what the broadcasters can supply.’
Meraska has heard of a few cases of clients bypassing agencies and going directly to media vendors but it’s not an epidemic. He says media agencies do two things for the client – ensure that whatever is being discussed works strategically within the client’s overall communication plan – and then put a value on it.
Most media owners are involved in marketing solutions to some degree. At CanWest Media Sales, this falls under the purview of Toronto-based Rosanne Caron, VP integrated business solutions.
Caron says, unlike other media suppliers, CanWest hasn’t set itself up as a creative shop, but it is big on research and helping clients and agencies utilize the CanWest properties more effectively.
CanWest has developed a lot of cross-platform programs, tailored content, television vignettes featuring CanWest talent, and even published a magazine for L’Oréal for International Women’s Day.
‘I think what is different on the media sellers’ side is that we definitely know better what we can do and cannot do with our properties, and where there are opportunities coming in the future that buyers and clients might not be aware of.’
Rogers Media, Toronto, set up The Women’s Group marketing solutions division about five years ago to extend and leverage its publications for women – Chatelaine, Flare, and Glow as well as Today’s Parent.
Heather Lielmanis, senior account manager for the marketing solutions group, says there are often print and Web components to these programs but that they’re trying to take the communications to other channels as well – in-store, direct marketing, events, along with partnership and promotions.
Lielmanis says the demand for the marketing solutions capabilities has been growing steadily and she has found that the packaged goods and automotive categories have been pretty strong over the past few years.
Corus Entertainment’s radio division got into the marketing solutions business last October with the launch of Deep Sky, a unit that does customized creative and production that take advertisers well beyond 30- and 60-second spots. Unlike individual, local stations that do most of their work directly with clients, Deep Sky is dealing with national clients, larger advertisers that usually have an agency.
David Huszar, Deep Sky’s GM, says it provides a single point of contact for those looking at national radio and wanting to leverage Corus’s strength in its various radio formats across the country. Deep Sky can simplify radio buys and production with in-house talent and facilities, he says, as well as offer customized programming, consumer segmentation and targeting, scheduling and buying services all under one roof.
Some of the programs Deep Sky has developed include a two-hour music program that didn’t have commercials but rather brand mentions tied into the programming. For the launch of a new vehicle the marketer was skewing to a younger consumer, Deep Sky brought in a Canadian band that was spokesgroup for the launch, voiced the radio spots, and integrated into station programming in addition to a concert and on-air promotion and contest.
For these less traditional campaigns, where it might be harder to evaluate from purely a media-efficiency point of view, Huszar says it’s important to have both client and agency participation.
He adds, ‘(Advertisers) have a need for innovation, to be a little bit more thoughtful about finding better ways to ensure the communication is there versus purely a brand sell. Celebrity tie-ins, customized content, features, and brand features are working well. It’s much more integrated.’
