Why Some Local Media Reps Sell Against The Agency

I just need to clarify the headline of this ad blog when I refer to this statement as applying to local media reps and not national media reps. This ad blog will touch the nerve of only a few sales reps, because it holds validity. National media reps LOVE ad agencies because it's those ad agencies which drive their revenue and bonus money. As an agency we will have the odd local client tell us that the media rep has relayed to them not use an agency because they will save money by buying direct from them. When I come across this comment it's usually from a business owner who has been in touch with a radio or print sales rep, and you'll see why.

As agencies work for the best interest of the client in terms of how ad dollars are spent most efficiently, an agency does not represent any one media but rather consults for the best fit based on a list of factors ranging from budget, type of campaign, creative, location, target audience etc.
The agency's job is to get more for the same amount of money a client would spend or less. When I refer to "More" it could apply to a more efficient schedule, bonus commercials, promotions or better rate.

Overall the agency acts as a strategist, gate keeper and negotiator as a partner with the client on their behalf. As an example, a local radio rep represents usually 1 - 3 radio stations which are either independently owned or owned by a conglomerate. Not only are radio reps in competition with people on their own team, they are in competition with other stations in the market. The rep may typically have the viewpoint that everyone is in competition with them for those available ad dollars from a business in the marketplace. Now you can see how an agency can be a bee in the resp bonnet ensuring the client's ad budget is not being over-killed and driven to the reps own stations. In many small to medium sized markets there are typically more radio and print options in the marketplace, hence these reps are slightly more pugilistic in nature when vying for ad dollars.

As opposed to writing a long dissertation as to why some media reps prefer businesses not to use an agency to media buy allow me to bullet point it:

• Media reps get 3 - 5% less commission if the business buys through an agency.
• The rep is now in more competition with other stations to win the business of that client, because the agency will provide the client's criteria and will determine which station provides the best fit based on target demo, frequency, reach, added value, bonus or promotion. If a media wants the business badly enough they will go the extra bit to make it work. Not all reps like to do the "Extra Work"
• Some media reps will provide a proposal which is either overkill or under kill in frequency. This basically means that the business owner may be spending too much and wasting ad dollars which could be placed elsewhere or they could not be spending enough which equates to an ineffective campaign. Those reps who overkill campaigns don't typically like an agency's involvement because it takes dollars away from their sales budget because an experienced and knowledgeable agency will compose a campaign to deliver the right frequency for the client based on the objectives.
• If a media grosses up the campaign when working with an agency the logic is to offset the decrease in sales reps commission and since the sales reps just needs to write up the order it's less work for them. Reps don't like it because they are making less. Station owners like it because they are making more because they pay the sales rep less. Is this logical? No it isn't, from the reps standpoint...but that's the way it is. Those stations which sell to agencies with no gross ups make it more favorable to work with which in turn can give more value to the client. Buying on a CPP, CPM or GRP basis is the right way to go.