Friday, January 16, 2015

Putting Your Money Where Your Data Is

Today’s article in Adweek talks about the growing tension between agencies and advertisers in regards to compensation.

According to a new survey by RSW/US, advertisers want agencies to know more, while paying them less.

Here’s a solution.  Pay agencies based on what they do know. 

For example, if agencies and advertisers know that the majority of viewers only watched 40% of the video ad the agency created, then pay them for that 40%. 

And, not for the 60% that wasn’t watched.

If viewers watch 100% of the video ad, then the agency makes more money then if viewers only watched 40%.

Doesn’t this seem fair?

After all, failure should not be lucrative.  And if 60% of the ad isn’t consumed by viewers, then why should the agency be paid full fair for failure?

Advertisers would no doubt agree.

Agencies, at least the good ones, would follow suit.

After all, the major complaint by agencies is that they are being paid based on time rather than how good they are. 

This lets agencies put their money where their mouth is.

We now have the data that measures view duration.

So why aren’t advertisers putting their money where their data is?

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