ADWEEK’S TOP DIGITAL STATS: AdWeek is out with another roundup of the Top Digital Stats from the past week in the attached link. It’s a pretty ho hum list, except for one jaw dropping stat in #2. AdWeek sourced a Deloitte study when it said “consumers are expected to spend 55% of their shopping budgets online this year.” I reread that sentence and still couldn’t believe it. So then I went online and downloaded the study for myself – attached here (Deloitte Holiday 2017). Then I isolated the questionable stat in the image below. It turns out that 55% of consumers plan to make holiday purchases online, which is a big difference from consumers planning to spend 55% of their budgets online. It’s sort of like the classic “let’s eat Grandma” vs. “let’s eat, Grandma” mistake. Once that was cleared up in my mind the data made a lot more sense. Regardless of the error, it’s important to understand how Ecommerce is transforming traditional holiday shopping for the majority of us.
THE GAME IS CHANGING ON THE AGENCY HCs: Yesterday WPP announced its Q3 earnings, and it was pretty rough sledding for the world’s largest agency holding company and its CEO Sir Martin Sorrell. Total global rev was flat YoY, which was below investor expectations, and WPP lowered their future revenue outlook for the third time this year. Mr. Sorrell was pressed on two fronts about the disappointing results. The first question was whether or not business consultancies like Deloitte, PwC, etc. are eating into agency business. Sir Martin responded with a no (so far), citing the fact that just 1% of traditional agency work is being done by consultancies. Then he was asked if the aggregation of media spending on Google and Facebook was hurting WPP, since clients were more likely to work directly with digital publishers. Mr. Sorrell also said no to this, but then a Twitter post of WPP’s own data started to circulate (image below) showing an amazing shift in the top 10 media owners from five years ago to today. This paints the picture of a new world order across the media-scape which the HCs still need to figure out.
MEDIA BUYER REDOUX: The lowly media buyer position has become a commodity at most agencies, since this is the roll most likely to be squeezed out thanks to programmatic automation. But not every agency is reducing/eliminating buyer positions. In the attached AdExchanger interview Chris Nicholson, the Chief Media Officer at VaynerMedia, said they’re hiring more media buyers than ever for a newly imagined position. First difference – today’s media buyers are trained in programmatic transacting, data layering, tracking and attribution, and not just buying ratings points at the lowest possible CPP. Then, in a brilliant move, the Buying (or Investment) arm is integrated with Planning so buyers get planning experience to help them understand how the whole campaign works to meet client KPIs. I’m not sure if this new approach will save media buying jobs from the dust bins of history, but it’s a novel approach that appears to be paying off at VaynerMedia.
Have a great Wednesday guys!
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