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The media buying business
Published in Daily News Egypt on 13 - 03 - 2006

CAIRO: The advertising industry, in all its shapes and forms, is in a tight jam. As consumers become better informed, the traditional methods of advertising and marketing no longer sell. In response, a growing diversified segment of media has cropped up: media buying agencies. While they do not create the campaign (that's advertising's job), or hatch a good public image for the brand (that's PR's job), they do something more effective; they catch the consumer at the right time and the right place.
As an industry, the function of media buying agencies is to purchase advertising time or space from media outlets and resell it directly to advertising agencies or individual companies. The media outlets include TV, radio and newspapers. What these companies do is liaise with media company owners or publishers and buy advertising spots for their clients, negotiating the best advertising rates and placements on their client's behalf. Working hand in hand with advertising and PR, media buying agencies are able to assist their counterparts by providing advice on the most effective way and media medium to use to reach their target consumers.
"A media buying agency's key asset is the relationships they have with media vendors/suppliers within their respective markets, says Sara Metwally, a media executive at Starcom Media Vest Group (SMG), one of the world's largest media and marketing companies. "The role of agencies such as ours is to capitalize on these relationships, providing clients with the best rates on a variety of different mediums within the media industry.
What is so ingenious about this type of advertising is that the consumer is unaware that they are being bought. Unlike advertising, which in its purest form still meets a you-can't-fool-me consumer attitude, media buying agencies have the uncanny ability (thanks to extensive consumer behavior research) to place an ad for a product you need in the place you're most likely to see it and at the time you are most in need of it.
In this sense, media buying agencies provide the best argument in the debate that has plagued the industry about the best way to achieve results. As clients become more and more concerned with the idea of getting value for money, the question among companies has become: "How effective will this ad be? rather than "How much will this ad cost me? Very few companies are willing to roll out the dough to launch a creative campaign that no one buys into.
By knowing the who, when and where, media buying agencies are able to tap into consumers mind frame, an imperative key to the success of any campaign.
According to Metwally, the first step in an agency's process is developing consumer insights.
"We move far beyond the questions about what people want and start looking at what they care about, how they spend their time, money and, ultimately, how they define themselves, says Metwally. "From there we create unique media properties. If we know who they are, what they want and what they do, then we can unearth new ways to interact with them. If there isn t a media solution to our clients problems, we create a solution.
This is where research comes in handy. Through research, media buying agencies are able to go about their business by effectively answering questions such as: how many people can we reach through this medium? And, what is the best way to spend our media budgets?
"Based on our research findings, we are able to determine when and where to reach our specified targets and hence, when and where those messages will have the greatest impact, says Metwally.
So central is research to the success of their business, that media buying agencies will willingly pour a hefty sum of their income into it. SMG, for example, invests more than $36 million in research.
In Egypt, where consumers have become wary after being bombarded with commercial clutter, media buying agencies have become the ideal method to subtly sell a product.
As a result, the industry is flourishing in Egypt, and competition is growing strong.
"With the increased demand for efficient communication, the industry is booming throughout the region, says Metwally.
"There has been lots of development [in the] media buying agencies industry, says Gamal Badr, general manager of Universal Media Seven (UM7) in Cairo, a media buying agency that is part of the Fortune Promoseven Group, a communications network in the MENA region, with 18 offices in the region and billings of over $200 million. "Competition is also growing.
In less than a decade, a number of media buying agencies have sprouted up in Egypt, including Starcom (which was established a little over five years ago), UM7, and Tarek Nour, the advertising guru who has expanded his empire to include various media, marketing and advertising outlets.
However, despite positive growth and development, the industry still faces many challenges, which, unless solved, will stunt the growth of the industry, according to Badr.
"As agencies, we see lots of growth and development, but in regards to the media, we are still old school, refusing to evolve and join the innovative, modern trends of the media in other parts of the world, says Badr.
According to Badr, the media in Egypt still leaves a lot to be desired, especially when compared to their counterparts in the Gulf, which accommodate the client's needs and brand.
"Look at LBC (Lebanese satellite channel), for example. There is room for creativity there, for creative media buys. If you want to do points of contact, you can do contests, live interactive discussions and so forth, he says. "But here, the media - radio, TV and newspapers, are going at a slow and idiotic pace.
"The media industry in Egypt is definitely premature in comparison to places like Europe and North America. A lot of the research tools used there are still being developed here to adapt to the local market, says Metwally.
Other problems that stifle the industry include government regulations, laws and censorship issues.
"Because of government regulations, it's hard to change, says Badr. "For example, look at taxes. Taxes are high on public radio, newspapers and television.
Censorship is also another big roadblock for the industry. According to Badr, there are many things that cannot be done due to censorship, citing as an example the zaghroota (traditional cheer), which cannot be used in an ad.
"You also can't show an ad with a student laughing or interacting in a friendly manner with his or her professor because of censorship, he adds. Such constraints, according to Badr, choke creativity and hold the industry back from becoming on par with its gulf counterparts.
Despite this, many in the business remain sanguine.
"Because Egypt is still a virgin market in terms of media, there is a lot of room for innovation. Creative media stands out in advertising clutter and grabs the attention of consumers, providing our brands with a competitive edge, says Metwally.


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