Low Media Inflation Hides New Levels Of Buying Complexity
South African media inflation at 2.7% for 2017* sounds like a big win for marketers but media buyers and planners need to act with great agility and skill to extract greater value in this buyer’s market.
The +2.7% 2017 Rate Index is the lowest it has been in three years and is approaching rates last seen soon after the Financial Crisis of 2008. The market is likely to continue seeing only modest rate increases as media owners respond to tightening economic conditions, poor advertiser sentiment and an uncertain political environment.
Yet, while low rates should present opportunities to marketers, the current media environment is fraught with price volatility. New buying opportunities are presented on an almost daily basis. New data is available to support even newer packages and competitiveness between media types and even within media types is accelerating. This market is fast-changing and complex making it extremely challenging to extract value for money.
Therefore, while this market may be beguiling in terms of apparent value, marketers need strong media partners to unlock the inherent opportunities. Good media people do significantly more than book a schedule at low prices. They also have a deep understating of the latest research giving insight into audience composition and migration as well as having the responsiveness to act very fast when good buying opportunities are available. Furthermore, good media people build in top-notch reporting to allow for ROI measurement.
Marketers need to choose their media partners with diligence. They need to ask the hard questions about the true effectiveness of schedules that may look good on paper but underperform in this fast-changing environment.
Intelligent navigation is the key. Look deeply at your media specialist for direction.