Sanofi-Aventis recently closed its Aventis media planning and buying division, while Wyeth decided to bring its media buying function back in-house. Are outside media services a cost-effective approach for pharmaceutical companies?
Nancy Kohler
Consultant (former director, Avenus advertising operations)
"Cost-effectiveness is hugely important today, but even more important is the value you get from your spend.The real benefit of having media planning and buying in-house is that you have professionals within your organization who are able to look at all forms of media across a therapeutic portfolio and drive strategies and cost savings by doing so.
They are more aware of the brand strategies because they're part of the team.This encourages an ongoing exchange between the marketer and media planner. And they're driven to achieve the best results for the brand because these results are so close to home.
At Aventis, we looked at all media across the entire business, and we were expanding our offerings to meet the growing needs of the organization. At the end of the day, the media team delivered substantial results with a small, dedicated team of professionals."
Larry Mickelberg
VP, marketing & media services, Medical Broadcasting Company
"I can speak to online media buying and planning, where traditional agencies have been citing their 'buying clout' as a reason to consolidate Internet advertising with them. The initial proof points from these relationships are discouraging - scattershot, inefficient placements with cheap buys but low conversion rates. There are simply too many variables online to apply the kinds of mass marketing principles in which the buying shops specialize.
In fact, there are significant opportunity costs to premature consolidation of Internet media services. The real power of the Internet comes from the ability to precisely target audiences. Smart companies are in a test-and-Iearn mode, in partnership with their interactive agencies, to uncover and exploit the avenues of competitive advantages online."
Alison McCauley
Senior vice president, media director, Cline Davis & Mann
"The media plan is a strategic promotional tactic ideally handled where global strategies for the brand are developed. Being briefed by the client about brand strategies and insights allows the agency or in-house team to work at an optimal level, as every media buy must be based on one or more objectives. Placement is an intricate process, and the most tactical will achieve the highest ROI.
Media service groups work differently.Their purchasing decisions are made on behalf of the conglomerate. Attention to individual brands and clients is not the focus of their efforts, as it is with agencies and in-house teams. Commitments are made to vendors up front. If a brand or client pulls back on advertising, other brands may be used to fulfill commitments, a practice that can compromise the media plan. Efficiencies are lost when buying is based globally and not specifically on client and brand needs."
Joe Carofano
Strategic director, CCA Advertising
"As physicians and patients consume media in increasingly sophisticated ways, engaging them with effective advertising requires challenging conventional media planning to go beyond traditional and emerging communication channels. It requires bold thinking that anticipates trends based on an intimate understanding of the market.
More than ever, agencies are best equipped to identify relevant and efficient ways to deliver targeted messages with their wellconnected, deep media expertise. Full-service agencies that fuse integrated strategic approaches and multimedia services with market intelligence and design capabilities provide a more comprehensive and cost-effective service than most in-house divisions."
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"In-house media professionals are driven to achieve the best results for the brand because the results are so close to home.