The total ramifications of the Association of National Advertisers’ recent report on media transparency have yet to be fully realized. But at the very least, the report’s revelations about large media holding companies and their agencies pushing their own digital partnerships and buying tools on clients suggest that bigger is not necessarily better. Pressure on large agencies to generate revenue and profits apparently have created a breach of trust between client and agency that goes deeper than ever before.
The irony here is that the “bigger is better” philosophy is precisely why many clients chose their media agencies in the first place. Clients were convinced that the buying power wielded by these agencies—made possible by the massive accounts they collectively represented—gave them more leverage in the marketplace and allowed them to secure more favorable rates for their clients.
Read the full MediaPost MAD article here.