Ad agency probes what makes consumers tick

By Helen Vause

Both the media and the audience it seeks to talk to are a much more complex and different breed than they were a decade ago.

In recognition of the fast-changing picture on both sides of the equation, international agency McCann-Erickson is taking a look at where and when advertising is placed and a much closer look at consumer reactions to it.

This week the agency moved against the industry trend of separating media buying and elevated it to a strategic role within the advertising mix.

Internationally, the agency is the world's largest media buyer and locally McCanns is at number three, with billings around $58 million. The global launch of the new media entity Universal McCann is accompanied by what is claimed to be the most comprehensive research ever undertaken by an ad agency into consumers' media consumption habits.

The outcome of that research is likely to see new media buying practices from this agency, at least.

The widespread practice of unbundling media services followed the sharemarket crash when tighter budgets led to a consensus that media practice was negotiable and bulk buying placement deals were the name of the game.

It's an outmoded scenario, more driven by agencies than client needs, says McCann-Erickson.

"The bargain basement, bulk buying philosophy of the last decade has had its day. The client loses out because the focus with these operations is on quantity buying instead of quality thinking and superb execution," says managing director of McCann-Erickson New Zealand, David Glover.

"Agencies need to focus more on the increasing complexity of the media environment. Clients need to be aware of the true media consumption habits of consumers, not just when peak ratings indicate that a television set is switched on," says Glover.

The philosophy of media buying has not kept pace with the increase in outlets. From a quick count of New Zealand media - the greatest number of magazines per capita, the proliferation of TV and radio - an outsider could think the country had a much larger population than it has. We now have 35 TV channels compared with three a decade ago. The number of radio stations has tripled. We have 172 audited magazines and 350 unaudited titles compared with 62 10 years ago. Cinema screens have increased from 122 to 290.

In the US, broadcast television now has 50 per cent of audience where it once had a very dominant 80 per cent. Statistics in Britain show that by the age of 12 a child will have received 25,000 advertising messages. The scenario is headed the same way here.

We are bombarded with media and with advertising messages. The new wisdom is that we are now much more selective about what we take on board and we are a much better educated audience.

"Consumers have less time, they are more in control with more discretionary choices about what they expose themselves to. Where once the industry could use the hard sell approach and just tell them things, we now have to find those target consumers and find a way to engage them."

Glover says the next generation of media practice will see a change in the media mix for some campaigns and signs of media actually driving the creative process.

"We are reversing the old practice of creating a campaign and then telling a media shop to go out and place it somewhere."

As McCanns beefs up its media operation worldwide, the local arm of the agency has strengthened ranks with the addition of more senior staff in its media department.

The quest to learn more about consumer mindset and mood includes more use of consumer focus groups to deliver much more specific information than has previously been sought on consumer patterns. The mission is to lead in shaping the next generation of media practice and to shape the media landscape to the greater advantage of clients.

Figuring out better ways to spend the client's budget on ad placement means finding out a lot more about consumers and the changing relationships with media, says McCann's media director, Glenda Wynward.

Adding a new level of intelligence to understanding consumers is expected to come from the new McCann-Erickson global research weaponry, which includes a suite of proprietary data gathering and planning tools.

"We have to surpass current standards with tools and research to add the value that will give a business advantage to our clients," says Wynward.

"We now have the ability to get closer to consumer thinking than ever before."

In an industry where soul searching and questions of best practice are hot topics, media buying had to come up on the agenda. If the McCann-Erickson change of approach makes good sense to the rest of the industry, how fast it becomes conventional wisdom will be interesting to watch. Meanwhile, competitive advantage for the agency's clients aside, McCanns is boldly claiming the high ground under the heading "Global Power".