The Myers Report 2023 highlights critical challenges and trends that are shaping the future of media sales organizations. As part of our Collectif series (see more here), the publisher of the report, Jack Myers, extracts seven exclusive insights. TL;DR: The future of advertising demands a nuanced approach, blending the precision of data with the art of storytelling and relationship building.
The advertising supported media industry is at a crossroads, needing to balance the efficiency of data-driven, programmatic approaches with the depth and creativity of traditional relationship and knowledge-based strategies.
Whilst media buying agencies have successfully made the transformation to the new tools, resources, investments and staffing that are required to compete, many media sales organizations remain embedded in outdated organizational and business models (with the need to focus on technological proficiency while nurturing meaningful relationships with new agency and brand stakeholders).
As the media business has shifted from demand for advertising inventory exceeding supply to a supply exceeding demand economy, the power has shifted from seller to buyer. The need for competitive intelligence is now an imperative to compete effectively in a commoditized marketplace.
The future-readiness of leading agency holding company media groups, independent agencies, and more than 200 media sales and service organizations have been evaluated by The Myers Report, providing underwriting subscribers with strategic counsel, insights on pivotal challenges, and targeted connections.
Following are seven trends impacting the advertising business. The consistent thread is that the future of advertising demands a nuanced approach, blending the precision of data with the art of storytelling and relationship building.
SEVEN TRENDS INFLUENCING MEDIA BUYING AND SELLING
1. Renewed Focus on Relationship-Based Buying & Selling: The decline in positive perceptions towards media sales organizations can be partially attributed to the shift from a relationship-based approach to a more impersonal, data-driven strategy. While efficiency is enhanced, the personal touch, crucial in long-term client relationships, is compromised and due for a revival.
2. Programmatic Advertising’s Dominance Balances with Innovation: With programmatic and automated buying constituting a significant portion of media transactions, the focus is on technology and algorithms. However, this shift raises concerns about the neglect of creative and innovative advertising solutions that resonate more deeply with audiences. As generative AI tools become commonplace, the opportunity to develop enhanced connections and innovative partnerships will become more relevant.
3. Consolidation and Contraction of Currency Investments: The over-investment in multiple research and currency providers to support programmatic buying will recede, freeing budgets for investments in creative and innovative advertising solutions needed to stay competitive and capture a share of the more profitable 25% of media spending that is relationship dependent.
4. Empowerment through Professional Development: Investments in professional development and education are vital and are destined to increase. This focus will better equip sales and media planning professionals with the necessary skills to navigate the changing landscape that requires both data proficiency and relationship-building.
5. Future of AI and Emerging Technologies: With the continuous advancement in generative AI and other emerging technologies, media buying and selling organizations need to stay ahead of the curve. These technologies require the expansion of personalized advertising and more creative creativity, a redundancy that is obvious to all. It’s not a trend; it’s an escalating reality, revolutionizing the advertising industry.
6. Sustainable and Ethical Advertising: There is a growing trend towards sustainable and ethical advertising practices. Media sales organizations will need to adapt their strategies to align with these values, catering to a more socially conscious audience and client base. The more than 50% of digital advertising that is estimated to be ineffective due to fraudulent advertising practices; transactional costs will become an increasing target of AI tools to reduce fraud and ineffective investments.
7. Navigating Economic Uncertainties: Economic factors such as recessions or shifts in consumer spending patterns can significantly impact advertising budgets. Media buying and selling organizations will increase their investment in predictive tools and analytics to assure they can operate with agility and be adaptable. The result will result in greater focus on relationship-building and proving ROI value.
The Myers Report 2024 Survey of Advertising Professionals presents an invaluable opportunity for media planning, buying and selling organizations to gauge their brand equity and sales effectiveness, offering exclusive insights to participating companies. Contact jack@mediavillage.org for further information and to be part of shaping the future of this industry. Embrace these trends, invest in your teams, and let’s together steer towards a more efficient, creative, and relationship-driven advertising era.
Jack Myers
Founder, MediaVillage
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The above column by media ecologist Jack Myers, founder of MediaVillage Education Foundation, AdvancingDiversity.org and The Myers Report, originally ran on MediaVillage.org, link here.
About: Through Jack Myer’s five decades of research and reporting on the role of media and advertising in culture and society, he has been recognized as the nation’s leading media ecologist and one of the most influential leaders in the history of the media and advertising business.
Jack advises advertising-supported media companies on advancing business growth through cultural change. He is the founder of the MediaVillage Education Foundation, AdvancingDiversity.org and The Myers Report, all focused on bridging the generational gap through marketplace intelligence, education and professional development. He is founder and chairman of the marketing and advertising community’s Advancing Diversity Hall of Honors, which will induct 16 new members at its annual event in New York City on April 11, 2024. For additional information: www.mediavillage.org; @jackmyersbiz.
