Media Model Structure
Identifying A Hybrid Pathway
The Hybrid model is an intermediary step towards full in-housing, and we recommend that clients work together with their agency or independent technology and service.
The Hybrid Trading model is more or less the same thing as the Agency Trading Desk model, but with the client (brand or publisher) in charge of key decision-making and with the ultimate ownership of data via extended contractual terms.
In reality there is a continuum, with a range of hybrid models existing between the two poles. The Hybrid Desk model promises to be a good step towards a more serious and future-proof approach to media investment.
The Hybrid Trading Desk model that presents the least risk, is working with the agency or independents that will still continue to provide workforce and relationship management against a flat fee commission. Fundamentally the Agency Trading Desk continues to operate as it would otherwise, with the main difference being that decisions are made by the client together with REAL, and the ownership of key assets transition increasingly to the client.
The commission can remain the same as in the pure Agency Trading Desk model, which means that the agency is making the same amount of money without doing more work and the client ends up with more value and ownership.
The benefits can be reaped almost immediately through greater transparency and more control resulting in:
- Decreased costs
- Improved results
Your ability to identify and thus manage the various fees and charges is greatly enhanced.
The first part of moving into a hybrid model is establishing the degree of immediate change to the current status quo. Keeping in mind the overall goals and objectives.
Important decisions need to be made regarding employing either:
- Client Owned Agency Trading Desk – which could leverage current Agency resources
- Independents – Trading Desk and other Technology vendors
- Managed service – Using an external (non agency owned) programmatic media trading desk used for all operational activities.
Then following activities become critical dependencies for determining the variable components of the selected Hybrid model.
- Determining specific responsibilities between the client, REAL, Agency and vendors.
- Creating technology RFPs specifically for DSP, DMP, TMS, Attribution and Data visualisation technology selection and engaging best of breed providers.
- Deep understanding of data security and protection for on boarding and externalisation purposes.
Once the above activities have been completed REAL will develop a ‘Blueprint Document’ outlining process guidelines that sit within the following categories: