Festival of Media 2015 – David Brocklehurst on Financial Transparency
The Festival of Media conference provided some interesting focus on various parts of the APAC region with some stimulating insights into emerging businesses. Clearly, digital and mobile applications – and the information emanating from them – is influencing many business and marketing decisions.
In this interview, after reflecting on the observation that agency fees have been coming down while their profits have been going up, David talks about the way in which agency groups have created new revenue streams via new divisions or services that are separately contracted. This stresses the need for contracts to be current and thorough in ensuring inclusion of all services and all related companies. Existing FirmDecisions clients benefit from our own knowledge and insights, but it’s the other advertisers that are in the dark.
While Procurement has been playing a role in challenging and minimising agency fees, it is ultimately a commercial decision made in the agency’s “engine room” whether or not to accept the proposed remuneration and what processes to implement to maximise the agency profits.
Ultimately, it’s about fairness, transparency and comprehensive contracts.
David’s presentation ‘The disappearance of financial transparency’