Study: Big Media Shops Don't Get Better Rates Than Smaller Shops
Even though we often rail against studies that simply restate the obvious, it's nice to see a study that confirms what we've known for years. Contrary to life as a porn star, in the world of media buying, size does not matter according to a recent study of negotiated media rates. A two year analysis of media spending by Billets media audit arm MMPA found prices paid for the same media vary widely and big agency bulk buying clout did not guarantee a lower rate. Our own personal confirmation of this came several years ago when an idiot sales rep mistakenly emailed us his entire inventory sheet for the past six month showing our little three person media department was kicking the shit out of the big guys rate-wise.
The reason for this is likely working with smaller budget usually requires stretching that budget further and coming up with more imaginative and better ways to spend the budget. A budget under $5 million is much more closely scrutinized than a $50 million buy when a few thousand in either direction is irrelevant. So all you small media shops out there, hold your head high. The big guys are not beating you all the time and don't let your clients think they are.