Zorkin Alexander: advertisers, demand bigger from advertising agencies
Recently, willy-nilly, I’ve participated in an advertising campaign with a common offer of two advertisers, “X” and “Y”. Concurrently, with the “X” advertiser our agency and me collaborated for a long time. And the “Y” advertiser collaborated with another agency. By the time, when we started the implementation of our advertising campaign, the agency of “Y” company, in every possible way, began to interfere the form of our common collaboration, speaking about non-transparency from our standpoint. It didn’t changed our partner’s mind but, unfortunately, involved some difficulties with the forehanded campaign start. And what’s important, seeded mistrust between the two advertising companies.
The arisen precedent gave me a nudge to discuss about the insufficient level of media expertise both on the side of clients and advertising agencies.
In most cases, in advertising business area, the main attention and the biggest part of the resources are concentrated on the in-house expertise. As a result, the level of information exchange about standards and their parity with international level is very low. Also there is no space for an open discussion, here in Moldova. This restrains advertisers to understand what agency can become a reliable partner.
The level of understanding of media opportunities by local entrepreneurs, generally, leaves a lot to be desired and greatly depends on the efforts and desires of advertising agencies to inform the client about the possibility to choose. Frequently, every local media-cooperation begins with questions about costs of these and those advertising placement. At this stage that’s the most important moment to approve marketing goals, to convert them into media target and to calculate economic feasibility of investment, for choosing the best way to resolve specific tasks.
Unfortunately, in Moldova are few specialists in media and most of them studied in advertising agencies. Often, the biggest part of knowledge, specialists gain by working with international clients. Speaking of necessary changes to increase knowledge-level in media, I would note next points:
- Transparent communication and readiness to take the responsibility for the results of the advertising campaign.
- Organization of courses in media and organizing meetings between agencies, clients, sail-houses, web-platforms OOH operators and so on.
- Consolidation of all the interested participants of the media market, for finding solutions to increasing the number of media measurements, as a source of statistical data on the different media channels and products.
In order to assess the potential and to determine the vector of development of the media market, I’ve decided to interview my colleagues, members of this field. I know them all personally, and I consider that their media expertise is at the top-level. There were many questions, such as creation of communication strategy, the web-market, communication with clients, purchases in media, reached and expected changes in this area. This is what I’ve got.
Dorel Samoila – Chief Commercial Officer VivaKi in Moldova / CEO Zenith in Moldova
“As with other processes, which occur in Moldova, not only on media-market, we will tend to globalization and gradually we will come to the media-buying that operate on more “mature” markets.”
How media-buying looks in Moldova today?
The principle of media-buying in Moldova differs from one media channel to another. Speaking of TV-market, it can be pointed out, that there are no huge changes in its structure, but alongside with changes on global market, certain amendments appear. There is no excessive demand. The 2015 ended with a sharp depreciation of stocks (Sold Out* for the last year averaged 55%), respectively sell-houses change the conditions of service delivery, particularly with respect to their relations with clients, who are ready to declare their budgets for the year ahead, or who plans to work active during the recession. Few years ago, all operations on the WEB were effectuated by the “flat-free” (payment for the period) principle, and today all of them moved to CPM or even CPC. In addition, the principle of discount was changed from application of a discount to the cumulative budget, to a stable budget with discount adding for cost per view. The outdoor advertising market and the radio works like it did 10 years ago. The discount for placement on the radio gets bigger and bigger, because of the shrinking in the 2015 for 25%, and by now, in 2016, that trend continues.
What are the main differences between Moldova and other countries in the media-buying and how further development of media-buying can influence on media expertise?
Because of the high level of media-activity of international companies in Moldova, the principles of media-buying are used as well as in other countries. And yet there are some more nuances. For example, in other countries, the system of retro-bonuses is better developed, which implies that if you comply with the agreements this year, you automatically get a discount in the next one. Respectively, that fact motivates clients to plan their annual activities with much more care; otherwise they will lose the retro-discount. There are different improvements in the WEB also, but because of the youngness of the local market the principle of annual activity planning is at the stage of a start-up. While clients make purchases on the internet, contractors have no idea how to motivate them properly to create a long-term plan.
As with other processes, which occur in Moldova, not only on media-market, we will tend to globalization, and gradually we will come to the media-buying that operate on more “mature” markets: speaking of TV, we are referring to forecast of stock, retro-discounts, etc.; speaking of internet: buying by СРМ/СРС/СРА*, Programmatic Buying etc. At the same time it will be necessary to expand the level of media expertise of the whole market, since any media-buying comes from marketing tasks posed by a client and required volume of media decisions.
- Sold-Out – percentage ratio of level of the sold stock to available stock to sale.
- Sales-house – the companies which are engaged in sale of advertising time to a certain group of TV channels.
- СРМ/СРС/СРА – cost per mile/cost per click/cost per action – sales units of advertising stock on the Internet.
Liuba Lozovanu-Balan – Managing Director TV MR MLD, AGB Nielsen Media Research in Moldova representative.
“The TV unit of measure, MR and MLD viewers in Moldova is ready to engage new technologies of measuring and reporting multimedia data.”
What is the role of TV research in the process of planning and purchasing? What awaits the market of TV researches in the future?
While noting the change of approach to TV viewers (TV-rating) changes in television broadcasting and in the placement of TV-advertising can be noted as well. We have already seen the transformation of TV from analog to a digital. Emergence of digital has led to the need to find new research methods. Nowadays, Moldova, along with other countries uses digital research methods that were created by Nielsen Media Research Company. By today, we can observe how TV goes to the virtual internet world. The majority of international TV channels started online broadcasting of their content, where you can find both online visuals and separate shows, which were earlier on air. Therefore, in the near future we will use two television platforms:
- Live broadcasting, which would continue to collect audience, interested in news-shows, talk shows and sport TV shows.
- TV on demand or pay-per-view that implies that viewer has access to the information every time he wants it.
It will lead to the fact that for different TV platforms different methods of advertising placement will be used. And that, in turn, will provoke appearance of new measurement methods, which will be based on internet technologies. And Moldova, which is nearly the top on the percentage of internet coverage, will see this effect in the foreseeable future. The Moldova measuring instrument TV MR MLD is ready to engage new technologies and to provide multimedia data.
Alla Malinovskaya – CEO VivaKi in Moldova / Business Director Media&Digital Hub Publicis One Ukraine
“Today it isn’t enough to be a narrow specialist in the area, today it is necessary to have a wide <media background>, to understand how media-channels interact with each other.”
Which possibility of development has Moldavian advertising market, and why media-expertise is so important?
Cross-media and cross-platform – 2 world trends, which have an impact on the development media strategy. The main objective of any media strategy remains unchanged – to reach the target audience by making it as relevant as possible.
Main global trends:
- Programmatic Buying growth (automation of purchases) – in the US, the proportion of purchasing with Programmatic is more than 55%, and it’s not actual only for Digital segment.
- Rapid growth of a mobile traffic – world-wide proportion- 30%, in US is 50%.
- Growth of purchases in on – line (e-commerce) – in Europe 17% of all purchases are made on the Internet, in the US – already 45%;
- Transition of all media to digital platforms (Video on Demand, Digital OOH, radio etc.)
- Maximal personalization of advertising messages (targeting not only by sex, geographical location and age, but also taking interests into account).
Each and every trend can be successful on the Moldavian market, if it is interesting for players of the advertising arenas. The Moldavian advertising market shows passivity and conservatism so far, against the background of advanced technologies.
Media expertise becomes more and more demanded, and at the same time new demands appear. Today it isn’t enough to be a narrow specialist in the area, today it is necessary to have a wide <media background>, to understand how media-channels interact with each other. The largest demands have people whose occupation is analytics. They are able to find insights for strategy elaboration, in today’s massive flow of information. The Internet eliminated information inequality, but created another problem – how to work with such a huge flow of information?
In conclusion, I would like to mention, that markets are ready to grow and to develop it. It is time to act- transparently on the part of agency and with more interest in the problem of statement on the part of client. With over-estimating our requirements and standards – we’ll achieve better results.