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EDI for an Advertising Agency

November 3, 2009

Sometimes we advertising agency guys need to take a look at how other industries do things. I have long been slamming how our antiquated system works, especially in the media planning area. Google for example does an EDI / ebay approach to getting things done. There are not 20000 media planners there, it’s a computer system that works on an EDI / Ebay type system to purchase ads.

This honestly is how all advertising agencies need to work moving forward. What I am saying is that in the long run, all media planners are going to be facing more and more competition from a computer program.

The problem is the Google Adwords program ( again which is nothing more than an EDI / Ebay system ) works.. and works wonders against the traditional approach to staffing an advertising agency with tons of media planners. It’s the reason why ad agencies want their 20% cut, mostly because they have to pay for a bunch of people that honestly are not needed.

I am not saying to have Google Adwords replace your media planning department, what I am saying however is that perhaps some modernization of those areas might make more sense.

I know that there are media planning firms out there that have already modernized, what I am saying is that perhaps they modernized wrongly. They really need to adopt more of a Google platform for media planning and content owners need to understand that in a horrific economic environment like this, they need adopt that as well.

There’s nothing wrong with offering the spot at the highest price… and what we are getting right now for the most part is 10 guys at 10 differing advertising agencies all calling ABC trying to get a spot on V tonight.

This should be as easy as an authorized advertiser logging in and putting in their bid. That’s not what we are getting, hence the problem. Also don’t go on saying “it’s already there” because it’s not. Clearly this is ABC’s advertising page, what do you do from here?

Because that blank page is going to help everyone.

Screenshot-ABC Family: Advertise with ABC Family - Mozilla Firefox

Written by TheFounder · Filed Under Advertising Agency News 


Comments

  • goldoneshow
    While I agree on your base point, that computer programs can do a better job overall than humans in media planning, your argument has two big flaws. First, agencies don't make 20% anymore, hasn't been that way for a while now. Most media divisions get a 5%(that's high, big budgets never pay more than 3%) placement/planning fee from clients. The discount (kickback) goes directly to the client these days if there is a discount. A lot of times there isn't.
    Secondly, without human media planners, the ability of networks to manipulate numbers would be too easy. This would especially be true in the digital realm.
  • goldoneshow, trust me on this.. that kickback is still making it's way back to the agency.... as recently as a week ago I saw it happen....
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