Despite what you might have heard. Procurement leaders are not Evil Zombies.
As a follow up to a previous post about the Two Types of Procurement in Media, I wanted to add some thoughts about how the media industry can perhaps help TypeA procurement develop and succeed.
As media experts, we (I'm talking about we consultants, media agencies and media vendors) should be better at organising ourselves around the new reality of media budgets increasingly being managed by procurement leaders.
This, is the new reality:
Media clients will increasingly come from procurement backgrounds.
They will play an increasingly influential role in the commercial decisions in marketing.
This does not make them evil zombies.
However, like evil zombies, they are not going to go away.
You must adapt now.
This reality means that our collective challenge is to ensure anyone coming new to the media industry MUST understand the 4 things. These are the elements which will facilitate procurement leaders to cross the divide that can exist within client organisations between finance and marketing (i.e. jumping from a cost management role to a value creation role).
These 4 rules will help procurement leaders who have been given media responsibilities get to being a Type A quicker.
Media budgets - are a huge lever for growth for many companies but are not fulfilling their potential. Media budgets demand better levels of governance.
Media value - the upsides of proper media governance are not measured in percentages. They are measured as multiples. This is a big deal.
Media clients - will require new skills and capabilities in media governance to fully realise the value of their investments in a digital world.
Media agencies - are the arbiters of value; agencies can deliver large productivity improvements on media spend when organised and incentivised the right way and (obviously) are a key partner in improving the governance and performance of media as a lever for growth.
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