The marketing communication budget, and particularly the media budget, is one of the biggest cost items in most companies. MarCom investments are often assessed in a totally different way from investments in machines, people and ICT, for example. Yet investments in marketing communication are vitally important for the operating results and survival of the company. One CFO said: “obviously I’m involved in these budgets. Insofar as I approve them. But I can’t check whether those millions are being spent effectively and efficiently and at what risk.”
It is not only the CFO who is not in a position to assess efficiency. In fact, the responsible marketing people are also unable to do so. The media world can be seen as a complex black box through which a lot of advertising money passes and with many hidden cash flows. This was already the case in the traditional offline world but it is even more prevalent in the new online world.
In quick succession, two important reports were published, which revealed that billions were being lost to fraudulent activities. Between 30 and 90% of online budgets evaporate in the chain of consultants and platforms.
Media agencies have long since ceased to be objective advisors and are instead suppliers with their own agendas. The larger agencies are market makers with a strong influence on market prices. Agency pricing structures are complex and lack transparency. Agencies not only earn their revenue from visible, direct client channels but also from invisible, indirect media channels. Marketers and purchasers have insufficient knowledge and insight into agency rates, earnings and performances.
MiM helps to support advertisers with relevant knowledge and experience of this challenging field. MiM partners have a lot of experience of the media world and deep knowledge from advertiser, agency and media owner perspectives. They understand their business models and hidden agendas.