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.

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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

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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, “Nothing replaces true relevant and very important, since sales parallel with the launch of independent expertise and insider perspective. In teams are essential to knowing when media agencies in the 90’s and how the end that is the USP which justifies to recommend programmatic buys for that trend provoked a reassessment of the investment that media owners specific campaigns or clients, depending how clients paid for their media buying make in independent representatives. on advertising goals. The “human” service – and moving away from pure There is no “guide book” that can element also remains key in terms of agency commission and towards a fee trump true local knowledge.” proper optimization and strategy to and retainer payment based system.” Wayne St. John of Publicitas deploy on each programmatic buying Canada reinforces this notion: “The campaign.” options available through a premium Peter Mason of Advance PREMIUM MEDIA media supplier require in depth International Media in London OPPORTUNITIES knowledge of the media assets and an takes a more philosophical approach to For most, premium media acute understanding of the advertisers the issue of programmatic buying: “In opportunities mean more history, objectives and goals…for this my view, the rise of programmatic is there is no automated solution!” personal interaction—with the next iteration of digital, and as such, France’s Frédéric Lahalle, its direct effects on international media better results. Many views of ever the realist, says, “The value of representation should be less damaging premium media are tied to premium media has become harder than some observers lead us to believe. exclusive representation. From to prove and it requires much more Instead, we can chart the change an international standpoint, efforts to defend.” specifically in media representation few marketers understand the Sabine Fedrowitz of Germany to when digital media arrived well elaborates: “Premium media level of interaction to make over a decade ago. This sea change in opportunities do require more human media brought about a need for media these campaigns work, as clearly interaction as they are more complex. reps to have detailed knowledge and outlined by Conover Brown of Plus, premium media opportunities understanding of a media owner’s WorldMedia. are highly connected with the media product portfolio, brand values “Premium media opportunities,” brand. The benefits for an advertiser and targeting methodologies, with according to New York-based to connect with a brand versus a sophisticated and intelligent companies Conover Brown, “are a large competing brand need to be explained, and individuals being able to sell and part of our work on an annual demonstrated and proved. This execute complex online campaigns.” basis and yes, they require more definitely requires human interaction.” He emphasizes, “It’s naïve to human interaction – particularly She continues, “Digital advertising deny that programmatic doesn’t for international media buying. We has been a challenge for exclusive fundamentally change the way media is provide detailed custom rate proposals, representation. With the rise of digital bought and sold, particularly for certain in-depth “in-country” market and advertising, new players entered types of campaigns; however, this media research, sample media plans, the market creating their own rules. suggests an absolute move away from guaranteed ad positioning, guaranteed Traditional processes were shaken and human beings to machines, which isn’t fixed US dollars for foreign currency the market became less transparent. the case. For a media representative to deals, invoices with no VAT exposure, It is important to strengthen exclusive have a future though, they need to be expedited checking copies and digital representation in order to guarantee able to add true value to the new types campaign performance reports.” transparency for media owners and of digital solutions. This is especially Publicitas’ Bruce Brandfon clients.” important in markets such as London, outlines: “Premium Media owners Eva Favre, Principle— where reps will remain having a pivotal continue to be dependent on exclusive Affinity-PrimeMEDIA in role in international advertising, often relationships with their independent Switzerland also makes the following advising — as Advance does — on the contractors in our experience. At point: “Adding a digital campaign latest technologies and trends launching the same time most are also making to a brand’s outreach can have the

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disadvantage of decentralization that or less redundant. It’s not surprising for international media, who have a reduces control and accountability that companies who weren’t flexible strong brand recognition. National for advertising effectiveness when or forward-thinking enough to change media still need local ‘experts.’ We are digital agencies, ad networks and other their approach all those years ago, not only selling media A vs. media B; intermediaries are used. This can also thinking that having hundreds of we are also explaining what’s specific leave clients unaware of the rationale local contacts was good enough, are with each market.” for buying selection, and is another now having to exit the market as they Eva Favre of Affinity- stumbling block for publishers and the realise their business models are PrimeMEDIA in Switzerland representative.” basically broken.” raises an issue about the extraordinary Guy Holroyd of Iconic contribution that represents make summarizes the situation well: “The LOCAL MARKET to building a multifaceted data base. more prestigious or recognized the INSIGHTS “Because of our daily, weekly, monthly media brand, the more likely it is that updates, as well as local contacts and As with all things international, the media owner will seek out a single market knowledge, we are constantly well-versed conduit in local markets. many individual markets building a product of significant This is how the top international represents “exceptions” to some value to publishers and agencies and media brands maintain their status.” general rules or overall trends. advertisers alike. The effect of this As to digital options, he’s equally They also raise interesting local shouldn’t be overlooked.” eloquent: “The sheer plethora of digital perspectives worth consideration to David Castelló, Managing media opportunities linked to a single Director of k.Media Madrid all. Representatives from a number brand should require and presupposes makes a number of interesting points an intimate knowledge of the title/ of European markets offered about the Spanish market, which channel on the part of any competent several insights. he calls “a non-mature market on media representative. Digital media Bernard Kedzierski of exports.” He says, “Local contact is presentations can now run up to 100 K.media, based in Milan, works key and essential in Spain, especially, pages, the bulk of which are taken largely with Italy’s high-profile fashion when developing trust among clients up with creative options available to and luxury advertisers who seek to for long-term, strong and successful the advertiser. Without a ‘pathfinder’, promote their brands among the business. Due to the current economic agencies and clients are liable to affluent, while also supporting those stage of the Spanish market, we believe overlook the most imaginative creative markets with greatest retail volume. there is a need for more marketing platforms open to them.” He works with this segment beyond service consultancies. New media WorldMedia’s Conover simple advertising, and is very much solutions and opportunities arise every Brown agrees that “Where the print involved with all aspects of their day, and we must be able to identify exclusive representative relationship is communications and public relations. the ideal ones for every client.” strong, so is the digital relationship.” “The digital shift,” he says, “has He explains, “The two go hand-in- changed our market very little as it hand. Digital is just another way for remains a small portion of investment So What Will International And most importantly, what will an advertiser to align itself with a for these companies. Of course, we Media Representation international media representation models preferred content brand. And that are very much connected to the digital looks like in 2 years? products of our current publishers, but Models Looks Like in 2 content brand requires custom selling What follows is a compilation of thoughts from our business tends to be more focused Years? --- which includes market expertise around the world, grouped by issue or trend. --- to help distinguish it from its on cross media marketing beyond The views are wide-ranging, but competitors in the print or digital traditional advertising.” largely focus on new concepts of space.” Jean Mineur of value, diversification, knowledge Peter Mason of the UK’s Mediacontact International in levels and opportunity. Many Advance International Media Brussels talks about some of the issues admit to recent challenges due to takes a more fundamental view facing the Benelux region. “In markets, the slowing of some economies of digital change: “Digital has such as this one, where very few or simply keeping pace with rapid shone a light on how dated media media agencies (and this number has change while experimenting representation has become. Older decreased in the last 6-8 years) have with new business models. models of representation, based a correct knowledge of international Most see an evolution to more primarily on the long standing print markets, our input as an adviser is consultative approaches, some see representation principles of having increasingly important. In some cases, a need for new fee structures and as many local contacts for media as the agency effectively ‘outsources’ the remuneration options, but all feel possible, have been rendered more planning to representatives like us. their services are needed more Hubs covering various markets is fine than ever before.

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inter-2014-70indd.indd 45 10/3/14 2:36 PM Sabine Fedrowitz, General global with a complex and moving representatives will continue to search Manager of Mercury Publicity decision making process, so it will be for original integrated offerings Deutschland looks ahead to the crucial for publishers to involve reps and will work closely with content next two years with these thoughts: in the sales process with these core providers and delivery channels “Like media owners, representatives clients.” to develop these. This will include have been affected by the advertising Conover Brown, Founder creating events and native content crisis and decreasing budgets. Digital of WorldMedia in New York as we will offer more of a full-service agencies have found an answer to this also cites change, but also recognizes to clients who are still eager to tap challenge by centralizing their media the value in content offerings of into the rich knowledge base and buying with resellers. Still, our clients some of the world’s top publishers: understanding that the independent - print and digital planners - expect “We are admittedly all going through can deliver.” the best service from international a challenging period of significant Ralph Lockwood, representatives in a very competitive realignment. The international President & Co-Founder market, and so do our media partners. representation business as we knew it of Huson International Diversification of the portfolio and 10 years ago simply no longer exists— Media, based in the company’s centralization of services seem to be we are all now in the cross-platform San Francisco office, also stresses the solution to survive in a time of marketing business. Based on the issues of value: “The international shrinking advertising budgets. On the resources that our leading media media representative is far more other hand, a high quality service and brands have invested in their products than a mouthpiece for a publisher. sales approach needs to be financed, so and content distribution models, we We-- (by which I mean Huson and we have to think about new models of can deliver proposals and provide our respected competitors)-- also add international representation.” services that incorporate print, a lot of value to the overall process Frédéric Lahalle, digital, tablet, mobile, e-newsletters, by streamlining on many fronts. President & CEO of social, events, OOH, blogs, content This includes currency, single point AFFINITY MEDIA in France marketing, and some TV. Our of contact, help with translations, admits to great transformation representative business in two years’ localization, etc. We explain what’s within the representation business time will continue to reflect the important about a country and and sees the need to move forward outstanding content offerings of our market, and answer questions about through diversification of media and leading media brands– through every everything from different tech-spec greater support from publishers: distribution channel they support. measurements to VAT, other local “I believe that some representation Tablet and Mobile are clearly on the taxes, and local laws or regulations. will remain even more necessary for ascendancy.” So yes, there will always be a place the media owners. However, after According to Andrew Butcher, for a quality media representative this long and painful crisis we have Managing Partner of B&P (international or otherwise) – if not, experienced since 2008, the rep Worldwide, “Media Representation the media owners would just create panorama has drastically changed in has already changed dramatically and send out media kits, then open many countries. There are less reps and no longer work solely on the window for all those lovely media and in numerous markets and the selling ad space or online. Today the orders to come in…” survivors have become smaller. The professional media representative Guy Holroyd, President question now is-—Will the end of the works with a broad variety of clients of Iconic International advertising recession will mean a new and offer multi country services. Communications New York, growth for reps? The launch of the ASEAN Economic adds: “The best international He outlines some important Union (AEU) in 2015 will unite ten media representatives are two-way thoughts about insuring success: “My South East Asian countries into a ‘gatekeepers’. They provide a conduit feeling is that reps will need to be common market of 630 million and informational resource to the more diversified in terms of the scope people – this offers clients unique local market to a distant publisher. of media in their portfolios, and they advertising opportunities and They also serve to explain and will need to be more demanding media sellers have been quick to illuminate the vagaries of a particular toward media owners. Exclusivity is the market to offer advertisers new distant international media market less possible as buying channels are Pan-Asean marketing ideas as they to local clients and agencies, who more diverse, so if media owners can collaborate with local media may or may not have any first-hand want a quality service they should unencumbered and combine the experience whatsoever of those local precisely define their expectations offerings to create a one stop ASEAN markets.” and pay a fee for delivery. The most shop.” Fernando Mariano, strategic advertisers have become He add, “International media President of Multimedia Inc.

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based in Orlando, Florida, bigger organizations that finance a driven. The way in which media makes a point about efficiency: global network solution. Networks reps are remunerated will very likely “Representatives will need to develop offer scale, and in turn, provide change, but their role will remain their infrastructure to be more access to global assets that are both important if they continue to add efficient and updated as we look media based and talent specific. their own unique, highly sought after to the near future. Response time This model will afford access to knowledge about the market.” is a good example. Not long ago, subject matter experts regardless David Oliver, Co-Founder agencies accepted answers with a few of geography. The need to provide of OSP, a G+J company, days. Now, a same day response is improvements in client service that in London agrees on the need becoming the norm.” drives global network development for media representatives to be Lucio Grimaldi, Vice- among advertising agencies is equally consultative, and with a look back President/Managing Director important to international media and ahead, offer a fair summation of for Latin America & US representation companies. Our focus what’s next: “The role of international Hispanic at Publicitas Miami might be slightly different and biased media representatives has always talks about evolution in a digital age: to serving medium and small-sized been partly consultative, but this “Representation media models will clients, but the ambition is the same.” requirement has become a focal continue to evolve. Bringing value-- Peter Mason, Founder of point now. Agency briefs are far more both to advertisers and media brands-- Advance International Media comprehensive and representatives will remain key. The digital revolution in London, sees a way forward are expected to deliver engaging, is shaping this to a fast-paced, as a move from sales to solutions thoughtful responses across multi- international, solution-driven model in a world that embraces greater media platforms. working to help brands execute their technology: “Programmatic is just He adds, “I think the rep of the media goals across several platforms a part of the changes in digital; future will have to be far more service in and efficient manner.” perhaps the more important trend for minded with better access to the Wayne St. John, President media representatives are within the tools used by their media partners. & CEO of Publicitas Canada, movement towards native advertising Closer integration between the two sees the importance of network scale and content sharing, which actually partners is often talked about, but not in the reinvention of the international swing the pendulum back towards delivered, so more work is needed in rep model in the next 24 months: human beings and therefore reps. this regard. More generally, I believe “Representation assignments will Successful reps have always been international representatives are here be awarded to the business that can able to work in this closer, advisory, to stay but only if they add value to the level the playing field on market human-driven type of partnership, planning/buying process and provide knowledge and media opportunity. which requires having a deeper and efficient access to engaging solutions. To do this, the model must be drive better knowledge of their media Their demise was flagged 25 years off a network. The requirement for owner brands and the individuals ago when the agency networks were best-in-class technology platforms within it, in order to provide genuine created and good operators adapted to that share information and reduce solutions rather than basic sales– be this development. I’m sure the same response times will be limited to they programmatic or partner will be true once again.”

Participants: Bruce Brandfon, Vice-President/Managing Director North Bernard Kedzierski, Managing Director—K.media (Milan, America—Publicitas (New York USA) Italy) Conover Brown, Founder—WorldMedia (New York, USA) Frédéric Lahalle, President & CEO—AFFINITY MEDIA Andrew Butcher, Founder Managing Partner—B&P (Paris, France) Worldwide Pte Ltd (Singapore) Ralph Lockwood, President & Co-Founder—Huson David Castelló, Managing Director—K.media Spain International Media (San Francisco, California- USA) (Madrid, Spain) Fernando Mariano, President—Multimedia Inc. (Orlando, Eva Favre, Principle—Affinity-PrimeMEDIA Ltd. (Lausanne, Florida- USA) Switzerland) Peter Mason, Founder—Advance International Media Sabine Fedrowitz, General Manager—Mercury Publicity (London, UK) Deutschland (Bad Homburg, Germany) Jean Mineur, Founder—Mediacontact International Lucio Grimaldi, Vice-President/Managing Director Latin (Brussels, Belgium) America & US Hispanic—Publicitas (Miami, Florida David Oliver, Co-Founder—OSP, a G+J company (London, USA) UK) Guy Holroyd, President—Iconic International Wayne St. John, President & CEO—Publicitas Canada Communications (New York, USA) (Toronto, Canada)

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