Six years ago, media ecologist Jack Myers called it right on the almost total automation of media buying. Now he says extending principal trading models into retail media is the future for media agencies, as more retail media brands – the likes of Uber and United Airlines “that aren’t that interested in selling ads” – sell directly to agencies, who then arbitrage for bigger margins.
Myers thinks that presents new competitive challenges for the likes of The Trade Desk (TTD) as holdcos simultaneously acquire FAST channels and digital assets from pressured publishers and hunt TTD’s robust market cap growth versus those of the global agency owners.
As media owners, he argues, holdcos are far less likely to hand over 15 cents on the dollar to DSPs when that is margin they could keep. “That doesn’t mean The Trade Desk is going to go away. I just believe they’ll find the holdcos are going to be their competitor, as opposed to their client,” per Myers. “Media consolidation will happen inside of media agencies, which I believe will increasingly become media financial services companies.”
While media owners seemingly grasp that they must “come together as a single force to compete with these [big tech] monoliths instead of fighting against each other for a declining share of business”, Myers remains bleak – because most looming M&A and deal-cutting is focused on cost-cutting rather than genuine transformation.
A united media front, he says, is “not going to happen. Why? Because that's not what the leaders of those companies get paid to do. They're paid to make sure their Wall Street value remains viable, and they do that by holding on to the past until it's too late. They become the Kodak of the television business.”
Across the piste, Myers thinks AI’s total disruption will force company leaders to focus less on quarterly results and more on actually leading their people “through a time when it's no longer about the answers, it's about the questions”, he suggests.
“In a world where the answers are immediately available through technology, it's the quality of the questions, it's the insights that are gained, it's the use of those insights [that defines winners and losers].
“So when it comes to the advertising business and when it comes to people, I have two foundational beliefs. One is that creativity is going to be the saviour of the advertising and media business. Number two, it will only save those who invest in their human talent, and that means investing in the creativity, the ingenuity, the intuition of their human talent,” per Myers. “In order to lead that talent, the qualities that are most required are empathy and ethics… two things that modern corporations are not particularly well-versed in.”
However, he sees some immediate potential wins for advertisers and streamers of all persuasions: Getting smarter about harnessing back-catalogue content that powers the bulk of viewing. How? Proactive, bespoke sponsorsh
For everyone else, Myers advises getting more fluent in short-form content.
“We're going to see more and more short-form, serial dramas and comedies … where every day there's a new episode, and it's going to be across social media. We're seeing that heavily in China, it's a big business. So I think we're going to see more advertising connecting up to the content and being content itself,” says Myers. “When that happens, we need new currency – based on attentiveness, based on brand equity value of the content, attention. So the fundamentals of the industry need to change.”
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By Mi3 & iHeart Podcasts AustraliaSix years ago, media ecologist Jack Myers called it right on the almost total automation of media buying. Now he says extending principal trading models into retail media is the future for media agencies, as more retail media brands – the likes of Uber and United Airlines “that aren’t that interested in selling ads” – sell directly to agencies, who then arbitrage for bigger margins.
Myers thinks that presents new competitive challenges for the likes of The Trade Desk (TTD) as holdcos simultaneously acquire FAST channels and digital assets from pressured publishers and hunt TTD’s robust market cap growth versus those of the global agency owners.
As media owners, he argues, holdcos are far less likely to hand over 15 cents on the dollar to DSPs when that is margin they could keep. “That doesn’t mean The Trade Desk is going to go away. I just believe they’ll find the holdcos are going to be their competitor, as opposed to their client,” per Myers. “Media consolidation will happen inside of media agencies, which I believe will increasingly become media financial services companies.”
While media owners seemingly grasp that they must “come together as a single force to compete with these [big tech] monoliths instead of fighting against each other for a declining share of business”, Myers remains bleak – because most looming M&A and deal-cutting is focused on cost-cutting rather than genuine transformation.
A united media front, he says, is “not going to happen. Why? Because that's not what the leaders of those companies get paid to do. They're paid to make sure their Wall Street value remains viable, and they do that by holding on to the past until it's too late. They become the Kodak of the television business.”
Across the piste, Myers thinks AI’s total disruption will force company leaders to focus less on quarterly results and more on actually leading their people “through a time when it's no longer about the answers, it's about the questions”, he suggests.
“In a world where the answers are immediately available through technology, it's the quality of the questions, it's the insights that are gained, it's the use of those insights [that defines winners and losers].
“So when it comes to the advertising business and when it comes to people, I have two foundational beliefs. One is that creativity is going to be the saviour of the advertising and media business. Number two, it will only save those who invest in their human talent, and that means investing in the creativity, the ingenuity, the intuition of their human talent,” per Myers. “In order to lead that talent, the qualities that are most required are empathy and ethics… two things that modern corporations are not particularly well-versed in.”
However, he sees some immediate potential wins for advertisers and streamers of all persuasions: Getting smarter about harnessing back-catalogue content that powers the bulk of viewing. How? Proactive, bespoke sponsorsh
For everyone else, Myers advises getting more fluent in short-form content.
“We're going to see more and more short-form, serial dramas and comedies … where every day there's a new episode, and it's going to be across social media. We're seeing that heavily in China, it's a big business. So I think we're going to see more advertising connecting up to the content and being content itself,” says Myers. “When that happens, we need new currency – based on attentiveness, based on brand equity value of the content, attention. So the fundamentals of the industry need to change.”
See omnystudio.com/listener for privacy information.
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