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M&M’s Blog goes behind the headlines to offer a running commentary on the business dynamics within the international media and marketing industry. The M&M editorial team joins forces with industry experts and local market heroes to balance a bird’s eye view of global trends with the importance of local insight.

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auditors

  • The future of global digital media trading standards

    09 April 2013

    The International Federation of Audit Bureaux of Circulations (IFABC) was founded in 1963, long before the advent of digital publications, and was set up to establish an international set of rules to standardise circulation measurement, providing the media industry with reliable data for print media on a global scale, enabling cross-country planning. However, despite its print roots, the IFABC was quick to recognise the digital shift 15 years ago and has been working to accommodate these changes in the media landscape.

    The speed of change over the last few years has been rapid and unrelenting. The global media industry is now operating across multiple platforms and publishers are increasingly launching digital products and using boundary-less, digital platforms to publish content that stands alone, as well as replicating a traditional, printed edition. As the market for such products grows, so too does the need to monetise them. However, monetisation can be difficult if there is no way to prove the value of investing in the new digital platforms.

    JICWEBS (The Joint Industry Committee for Web Standards in the UK and Ireland) was created by the UK and Ireland media industry to ensure independent development of standards for measuring performance online and benchmarking best practice for online ad trading. The IFABC has adopted many of the JICWEBS standard definitions to ensure global principles are maintained. The IFABC World Wide Web Standards Group (IFABC WWWSG) reviews the global metrics to ensure they remain relevant as they are used in markets around the globe.

    GroupM reported that global digital advertising spend exceeded $98bn in 2012, a 16% year-on-year rise and a figure that represents approximately 19% of overall global ad spending. The trend is reflected across all established global markets. However, the digital world can be something of a minefield for advertising buyers who are wrestling with new challenges such as tracking advertising activity on multiple platforms, rights and fees, ad misplacement, and its complexity in general. 

    Agencies and publishers want to be able to navigate the sweeping digital industry changes that are occurring almost continuously. Advertisers also want to be able to document usage and performance on a global scale, and therefore global metrics need to be established. Media owners also need an internationally recognised set of guidelines against which to measure the success of their brands. The IFABC WWWSG has already delivered agreed metrics covering everything from page impressions to email delivery. At the group’s last meeting, it agreed app and video metric definitions that underpin the results from the key global and local analytics tools. This provides global standards for local markets which are built on as required by those local markets.

    The IFABC has also established a Digital Publications Standards Committee (DPSC), the objective of which is to establish a set of global measurement guidelines. Once the guidelines are agreed and issued they will be considered a starting point from which all IFABC members should begin. Each international member bureau will be able to add their own rules beyond the suggested guidelines. The Committee is also meeting with global digital publishing platforms to try to standardise the way metrics are reported to the ABCs. To ensure IFABC remains relevant in the evolving digital age, the DPSC will continue to meet to oversee the development of the guidelines as the medium continues to transform itself.

    By Jerry Wright, president, IFABC & chief executive, ABC UK

    Comments (0) | Permalink

    Posted by: Bloggers' Gallery

    Tags: auditors, Digital

  • 2012, new business and the shape of my Jacuzzi

    07 September 2011

    This month we've seen what some are calling the beginning of a double dip recession, although nobody has actually dared say that out loud. America's credit has been downgraded for the first time and they’re pulling money out of Europe, the Eurozone is causing nervousness by not adequately addressing the issues in Greece, Portugal et al putting huge pressures on Germany and France economies and their confidence to the point where the Euro itself is at risk. Alongside this, various agencies have also naturally scaled back their growth forecasts for this and next year and some large brands are starting to review their agency arrangements more than usual for a traditionally quiet summer for new business.



    In 2003 Sorrell famously predicted a “bath-shaped” recession. I’m thinking its going to be more of a "Jacuzzi-shape" this time (see kindergarten quality diagram) and we are on the edge of our seats (ahem) waiting again to see how this will play out in adland.

    As we hurtle towards Q4, naturally brands start to consider budgeting for next year and will be re-evaluating their marketing investments in light of the insecurity of consumer spending and growth potential in the market.

    Is this all sounding rather familiar? True, but how might it affect our industry this time around? Will 2012 be any different to the madness of agency reviews we saw in 2009.

    I think we may be seeing the beginnings of another round of 2009 style agency reviews. GM’s recent announcement of a $3bn kick-start to this inevitable process rocked media agencies around the world. At the time we said 2009 would be the year of the pitch and indeed it was with a collection of behemoth global FMCG and telecom reviews. I expect that 2012 is shaping up to be the same, with a likelihood of many agency reviews commencing across Q4'11 to Q1'12  

    Over the coming days and weeks I want to consider the implications of this scenario for some of the key stakeholders; namely clients, agencies and media owners. Some of who are still battling with the legacy left from 2009 reviews where deflationary pricing triggered some very aggressive reviews and promises made in media.

    I'm going to share with you a chain of related posts that I've been writing for the past few months in somewhat anticipation of this scenario happening.

    Keep an eye open and stay out of the Jacuzzi for now…

    Comments (0) | Permalink

    Posted by: Tom Denford

    Tags: consulting, Agency/ client relationships, auditors, pitches, Ad Spend

  • $3bn GM global media review: cost-cutting or cost-management?

    26 August 2011

    You’ll no doubt have found it hard to miss the news that this week General Motors announced a review of its global media spend, estimated to be in excess of $3bn. The business is currently split regionally, there is no suggestion yet that this is a consolidation and we don’t yet have sight of the broad brief. I found it interesting that much of the debate and discussion when this was announced was the assumption that this was inevitably a “pre-double-dip” cost-cutting exercise which many accused Unilever and Vodafone (amongst others) of conducting in 2009 as the first recession hit adland.




    I would like to believe that this review has a strategic ambition but there’s not yet much word coming from GM, or indeed the market, to suggest this. The appointment of an auditor (R3) to run the review probably isn’t reassuring the incumbent agencies either…. 

     A review of this scale is going to remain in the headlines for its duration, many perhaps seeing it as a bell-weather for what double-dip agency reviews might look like in the coming (terrifying) 18 months for agencies. I would encourage GM and their auditors to take the opportunity to make a strategic ambition a publicly visible core of this review and hopefully avoid a frenzy of cost-cutting reviews in the wake of this big news from GM if the only news that trickles out is alarm concerning aggressive cost demands…


    Comments (0) | Permalink

    Posted by: Tom Denford

    Tags: consulting, auditors, pitches, media costs