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Cthe Future of International Media Representation… The Future of International Media Representation… Change will never be this slow again… Moore’s Law, named for Intel Founder Gordon Moore, tells us that processing power doubles every two years. It also seems that his law could apply to the current evolution of marketing, advertising and media. There’s little question that our industry is given the increased complexity of the international transforming quickly and radically. Media, a key media scene. component of marketing, has experienced some Yet, some talk of being “caught in the middle” of the most profound change—from consumer of such dramatic industry change at a time when reading and viewing habits entirely altered by publishers as well as agencies are operating leaner enhanced technology, to new all-digital players than ever. The livelihoods of representatives who compete without the cost of printing or a depend entirely on successful campaign execution, large staff of full-time journalists, to perception so they often find they’re doing more work for shifts regarding content and “native advertising.” less compensation. Plus, digital advertising does The result has been evolving media business not always conform to exclusive representation Cmodels, as well as consolidation, closures, and agreements. In an age that emphasizes data and sometimes surprising purchases. Perhaps of accountability, more advertisers are relying on greatest concern to the representation community, third-party ad servers, which can mean another who largely built their companies on personal layer of adjustment and even uncertainty for service when selling media, are the new ways of publishers and their reps. purchasing media like programmatic buying. Nonetheless, all are adapting, many are Independent media reps, particularly international optimistic, and some see new ways forward. ones, have historically generated significant In light of the recent acquisition of Publicitas— advertising revenue for many media organizations the largest and oldest global representation throughout the world. Few groups have a better ear for network—by The AURELIUS Group, a Munich- market intelligence as they interact with advertisers, a based private equity firm, The Internationalist wide variety of agencies, and the media owners who requested the views of representatives around are also their clients. In fact, many would argue that the world to gauge how their businesses were the expertise of representatives is more necessary now changing. Background: The Internationalist surveyed independent representative companies and several Publicitas executives across 10 cities who locally represent some of the world’s top publishers—largely those with historic origins in print as newspapers and magazines—including such renown titles and companies as O Globo (Brazil), Editora Abril (Brazil), FAZ (Germany), Handelsblatt (Germany), The Guardian (UK), The Telegraph (UK), Groupe Les Echos (France), Le Monde (France) Unidad Editorial (Spain), Dagens Industri (Sweden), Il Sole 24 ore (Italy) Nikkei Business (Japan), The Yomiuri Shimbun (Japan), South China Morning Post (Hong Kong), The Times of India (India), The Straights Times (Singapore), People’s Daily (China) and The Washington Post (US)—to name just a few. 42 THE INTERNATIONALIST www.internationalistmagazine.com 43 inter-2014-70indd.indd 42 10/3/14 2:36 PM PERSPECTIVES PROGRAMMATIC BUYING Interestingly, the issue of programmatic buying reflects less emotion than originally anticipated; however, representatives’ attitudes are mainly influenced by the progress of programmatic by market. For example, the UK and large European countries like Germany and France have been working with programmatic issues for some time. These reps have either realistic or balanced views based on acceptance of the trend. The US is currently seeing less automation in the international media sector, as reflected in their perspectives. Publicitas is creating its own programmatic solution to bridge a technology trend with in-person service. Advance International, a young UK company started by Peter Mason, shares an interesting view of programmatic as part of the evolution of digital. According to Sabine appointing and working with a quality such issues of editorial environment Fedrowitz of Mercury media representative for international or indeed relative efficacy of specific Publicity in Germany, “Today sales. They (and the client) still need creative units, both of which factors we can expect that a portion of the an in-person communication to are vital to a campaign’s success.” advertising budget will be allocated to properly explain, position, answer Publicitas, on the other hand, programmatic advertising, meaning client or agency questions, and add is embracing the programmatic that the available budget for the value to the proposition. Programmatic trend, and are taking advantage representative will be decreasing. buying certainly has its place, but like of their broad network of global Already, it is becoming much harder digital marketplaces or search, it only media properties to provide their to sell premium positions and accounts for a portion of the overall own solution. Bruce Brandfon, solutions at decent prices as networks market.” Vice President & Managing or “blind buys” are much cheaper He adds, “There is still plenty Director of Publicitas North options and affect the average CPM of print volume around, and we deal America, explains: “Programmatic also for a premium product. On in some TV, radio, events and lead buying is an increasing factor in the other hand, in-person sales will generation, so it’s absolutely not all the way we do business-- for the become more and more important for about digital-- even if it sometimes simple fact that clients are expecting the promotion and sale of individual seems that’s the only trend in town!” accountability and efficiency in their products and solutions.” Fernando Mariano of media buys. While programmatic Frédéric Lahalle of Multimedia, based in Florida, buying has had an impact on the AFFINITY MEDIA in would agree: “It is my belief that true frequency and the perceived value Paris echoes Sabine’s thoughts: international advertising sales cannot of in-person sales calls, we believe “Programmatic means that a large be an automated process. In the last in the added value inherent in the part of budgets is no longer available 15 years, I have seen a number of “human element.” Publicitas can now for classic media buying. A rep ventures that failed to deliver and combine programmatic and “human” company’s market share will be ended up closing their doors. In by offering our advertising client shrinking.” my opinion, in the long term, the carefully managed programmatic David Oliver of OSP programmatic buying concept reflects solutions that rely on our sales experts in London is also realistic: “Of only a small percentage of market who are knowledgeable about clients’ course programmatic buying is share. Major agencies will always be marketing goals.” affecting the role of representatives, looking for the best media placement Wayne St. John of especially where high traffic news to reach a client’s target. They will Publicitas Canada continues, sites are concerned, but this trend is prefer better, customized analysis, “Programmatic is another example of not removing the need for human discussing with media sellers on a where our company is at the forefront interaction where more targeted and campaign-by-campaign basis.” of technology that is impacting the complex solutions are needed.” Guy Holroyd of media ecosystem. The Publicitas ATS Representatives in the US have Iconic International Trading Desk is a tool that is custom- a slightly different view. According Communications, based in the built for medium and small-sized to Ralph Lockwood of Huson US with representation of European agencies and advertisers. It represents International Media, “We are business titles, is more measured a core service to ensure that our clients not seeing a major concern with in his views: “The end effect [of have access to programmatic buying programmatic media buying. In the programmatic] is less creative input and that our media owners have a same way that premium web sites and flexibility in the development of “premium” exchange to offer inventory are not replacing their domestic sales international campaigns. Number- at competitive pricing. Providing forces with automated programmatic crunching may superficially increase programmatic solutions deepens our buying, neither are they doing so when efficiency, but it does not address relationship with media owners and 42 THE INTERNATIONALIST www.internationalistmagazine.com 43 inter-2014-70indd.indd 43 10/3/14 2:36 PM clients – we have made programmatic in London before expanding across their sub-premium inventory another arrow in the quiver of Europe.” available via third-parties such as Publicitas-hosted media solutions that Andrew Butcher of B&P ad networks and trading desks. The our in-person sales team can offer. Worldwide in Singapore relationship between the publisher Lucio Grimaldi, Vice- says, “There is no question that and their independent representatives President &Managing Director programmatic ad sales and other continues to be a crucial element Latin America & US Hispanic for automated systems will play a role in sustaining mutually beneficial Publicitas, emphasizes that “The ‘in- in how Media Reps will be rewarded partnerships.” person’ factor of programmatic buying is and paid in the future. You can draw a He adds,
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