Media Buying and Planning Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Published Date: Feb, 2024
- Base Year for Estimate: 2022
- Report ID: GVR-P-10576
- Format: Electronic (PDF)
- Historical Data: 2020 - 2021
- Number of Pages: 60
The pricing and cost analysis helps in deriving and projecting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive advantage during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers for the category.
In this Media Buying and Planning procurement intelligence report, we have estimated the pricing of the key cost components such as staff, cost of acquiring media space, hardware, software, research and data, and other costs. Components of other costs include general and administrative, sales and marketing, rent and utilities, travel, compliance, and taxes.
Media Buying and Planning agencies often use one of many pricing structures. The project-based pricing structure is typically used by agencies. This pricing model charges a fixed fee based on scope of the project. The scope is determined by the expertise, resources, and time required for project completion. Fixed price ensures clarity and transparency to both parties as they know what to expect. However, it is difficult to determine an appropriate fee for complex projects with highly customized services. Another prominent pricing model being used is commission-based pricing, wherein agencies decide fees based on the media spend percentage of the client. Typically, a commission of 10% - 20% of the total media expenses is charged. Another key pricing model being deployed is performance-based pricing, wherein clients are charged basis the results achieved by the agency with respect to the predetermined Key Performance Indicators (KPIs). Few other key pricing structures in this category include hourly rate pricing, retainer pricing, and value-based pricing.
The prices of media buying and planning services vary according to type of service. Few of the common types of media buying services are OOH (Out-of-Home), print, radio, and TV. Under OOH media buying services, customers are allocated placements based on the amount of time required for the ad to be displayed to the audience. Popular ad platforms under OOH include transit ads, bench ads, and billboards. Under print, customers and media planning agencies concurrently earn placements according to ad size and location requirements. In 2024, the prices of OOH services in the U.S. were in the range of USD 95 - USD 155, and those of print services were in the range of USD 75 - USD 145. The prices of radio services varied in the range of USD 145 - USD 205, whereas the rates of TV services were placed in the range of USD 90 - USD 160.
Every company and its procurement unit look to bargain the best deal while procuring a set of products or subscribing to a set of services. Rate benchmarking comprises price/cost comparison of multiple sets of products/services to assess the most effective combination that can potentially assist the procurement team in getting the optimum rate.
The rates for this category are structured based on the scope and location of engagement, type of service, and type of pricing model. Additionally, the rates may vary based on the length of the contract. Long-term contracts are beneficial to both parties as they ensure security, stability, dedicated support, and strong partnerships.
During January 2024, the average cost per hour of media buying and planning services in the U.S. has ranged between USD 95 - USD 155, the average cost per hour in the U.K. has ranged between USD 145 - USD 205, and the same in India has ranged between USD 20 - USD 55. Additionally, the average cost per hour in the Philippines has ranged between USD 25 - USD 60, and the same in Poland has ranged between USD 45 - USD 105.
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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.
According to our research, Publicis Groupe and Omnicom Group Inc. offer a 10% - 15% higher base salary as compared to the base salary offered by Vivendi SE and Dentsu International. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).
Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Media Buying and Planning category over the last two years:
In November 2023, MiQ Digital Limited announced the acquisition of Grasp. This acquisition strengthened MIQ’s capabilities in programmatic media buying for its clients across the globe. Moreover, this acquisition helped MiQ to leverage Grasp’s expertise in operational compliance, global governance, SaaS capabilities, and real-time alerts to enhance its suite of programmatic media buying offerings and optimize its programmatic advertising solutions.
In July 2023, Omnicom Group Inc. announced the acquisition of Ptarmigan Media, Inc. This acquisition strengthened Omnicom’s capabilities in providing media buying and planning services in the financial services sector. This acquisition enabled Omnicom to leverage Ptarmigan Media’s expertise in offering media buying, planning, and marketing solutions to Insurance, Asset Management, and Investment Banking companies.
In January 2023, Publicis Groupe announced the acquisition of Advertise BG. This acquisition strengthened Publicis’s digital transformation competencies, thus supporting its social media, digital strategy, and media buying segments. Additionally, this acquisition enabled Publicis to leverage Advertise’s capabilities in digital design and analytics, due to which Publicis was able to optimize the performance of its media buying and planning services.
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Add-on Services
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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