The survey found that: 1) The biggest challenges facing the media industry are the relevance of current metrics, business profitability, pressure on fees, and digital disruption. 2) Respondents believe that measurement techniques are becoming less reliable and that most client/agency contracts are built on irrelevant metrics. 3) There is a need for the industry to move beyond legacy business models and metrics and develop new skills and ways of working focused on outcomes rather than inputs to drive innovation.

1. 2012 Media
Industry survey
1 May 2012

2. Background
• 2012 Media Industry Survey Client
commissioned by MediaSense to Media agency
assess the industry’s thinking on Media owner
100%
key issues that define the media
industry
75%
• Survey conducted online March-
April 2012 50%
• 255 responses from media 25%
agencies, media owners, and
client-side marketers 0%
Series 1

3. Key findings
• The data issue is now the issue
• A set of business models being reinvented
• Partnerships are moving front and centre
• A time to be brave

4. The Big Challenges

5. The biggest challenges facing the media industry
1.Relevance of current metrics 29%
2.Business profitability 24%
3.Pressure on fees 24%
4.Digital disruption 22%
5.Skills gaps 19%

6. The biggest challenges facing the media industry
Media Owner Agencies Clients
17%
Business sustainability
11%
Unlocking creativity
Current metrics
37%
Digital Disruption
35%
0% 10% 20% 30% 40%

7. The future role of Media Agencies
All responses Clients Agencies Media Owners
“The media agency’s role will
become more important over the 3.8 3.9 4.3 3.2
next 3 years”
“Media agencies make neutral media
recommendations to clients”
3.0 3.1 3.7 2.3
“Media trading will split off from
media planning” 3.8 3.9 3.5 4.1
“Media owners will form more direct
relationships with clients” 4.3 4.5 3.8 5.1
Responses scored on a range of 1 (strongly disagree) to 6 (strongly agree)

8. Media Agencies at a crossroads
Media agencies are uniquely placed to play a Media agencies will split into
vital role in guiding and educating their clients, consultancies and trading points
Media agencies have a key role in facilitating Media Agencies will be no more
the development of communications around relevant than bowler-hatted
content and participation. stockbrokers and travel agents
“It can only be described as a rollercoaster, but
the challenges are making agencies stronger..”

9. The measurement challenges
All responses Clients Agencies Media Owners
“The way media performance is
measured will change significantly 4.6 4.7 4.6 4.2
over the next 3 years?”
“Audience measurement techniques
are becoming less and less reliable” 4.5 4.8 4.4 4.3
“Most client/agency contracts are built
upon irrelevant metrics” 4.2 4.0 4.2 4.3
Responses scored on a range of 1 (strongly disagree) to 6 (strongly agree)

10. The data challenges
All responses Clients Agencies Media Owners
“Industry lacks the refining skills to get
value from data” 4.7 4.8 4.4 4.7
“A major media company will soon be
found in breach of data privacy laws” 4.5 4.4 4.4 4.5
“a data driven naked”
Responses scored on a range of 1 (strongly disagree) to 6 (strongly agree)

11. Future Scenarios

12. Media agencies disintermediated?
“Media agencies blew it when they got too greedy and saw
the opportunity to generate super-profits through
exchanges and trading desks.
From that point on clients lost trust in them and treated
them as suppliers rather than partners, and looked for
alternative ways of working.
Creative agencies, tech companies and media owners
now have the brainpower and offer more objective and
innovative communications guidance to clients.”

13. Media agencies disintermediated?
“Media agencies blew it when they got too greedy and saw
the opportunity to generate super-profits through
exchanges and trading desks.
From that point on clients lost trust in them and treated
them as suppliers rather than partners, and looked for
alternative ways of working.
Creative agencies, tech companies and media owners
now have the brainpower and offer more objective and
innovative communications guidance to clients.”

14. Things change slowly
“It’s actually amazing how little has changed. Greater
volumes of data failed to generate additional anticipated
insights and a series of expensive privacy lawsuits made
the practicalities of audience re-targeting too cumbersome.
Traditional TV companies were also very smart in keeping
hold of their content assets, which starved online platforms
(status quo)
and kept eyeballs on the TV screen.
Realising that the development of addressable advertising
would also threaten their business models in the longer
term, the broadcasters continue to trade GRPs
successfully..”

15. Things change slowly
“It’s actually amazing how little has changed. Greater
volumes of data failed to generate additional anticipated
insights and a series of expensive privacy lawsuits made
the practicalities of audience re-targeting too cumbersome.
Traditional TV companies were also very smart in keeping
hold of their content assets, which starved online platforms
(status quo)
and kept eyeballs on the TV screen.
Realising that the development of addressable advertising
would also threaten their business models in the longer
term, the broadcasters continue to trade GRPs
successfully..”

16. The Big Issues

17. Legacy business models are creaking
“It is headed into extremes of commodity
and expertise, with trading talent at one end
and communication specialists at the
other.”
"If I want a great ad I'll go to Mother, if I want
someone to buy some radio I'll go to Carat, if I want
a great idea I'll go to Google and if I want great
content I'll go Simon Cowell" ”

18. Demand for new skills and ways of working
“We will need to move away from traditional
cultures to allow creativity..”
“Talent is key. Yet the media industry is just not
putting out the right noises to the incredible talent
out there , and is not going wide enough to find the
talent that can be unlocked from unexpected
quarters of our society

19. Desire to move from inputs to outcomes
“For media agencies the control over data and
metrics is ending, clients will have direct data
insights that will allow them to plan, execute and
alter campaigns in real time. Anyone working for
BARB,TGI, etc. better start looking for new roles..”
“Finding agencies and clients brave enough to look
beyond a CPM and understand and appreciate ideas
enough to be willing to pay for them..”

20. Still many hurdles in the way of progress
“More complexity, more staff, more data,
more competition”
“Satisfying the growing number of audited
clients who miss the point entirely that
cheapest is not necessarily best..”

21. Summing up
• Acknowledging the problems is the easy bit
• Change requires disruption, bravery and
clarity of vision
• Is there a new business out there?

22. Thank You
Get in touch at theresahoulihan@mediasenseinternational.com or call us on +44 203 005 6002
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