Media Management

MediaSense on integrating agencies, achieving operational efficiency and brands’ ‘overwhelming appetite to evolve’

Convergence

“….more and more, we’re seeing the convergence of media and creative. The industry is blurring – where do you draw the line between media and content, shopper and retail, or social and influencer?”

You could say that 2024 was something of a landmark year for global media advisory MediaSense.

Three years on from selling a majority stake to private equity investor Apiary Capital LLP, MediaSense made two significant acquisitions – first, PwC’s marketing and media advisory team, followed by the global creative and media advisory R3.

Adding to the momentum, the company later appointed Jamie Posnanski (pictured centre) as its new global CEO. Posnanski was one of the driving forces behind Accenture Song’s disruptive rise to becoming one of the world’s largest digital agency networks; with him at the helm, it’s clear MediaSense has bold ambitions for 2025 and beyond.

R3 is a particularly noteworthy acquisition. MediaSense has historically focused on assisting brands with their media-related needs, but R3 has expanded its capabilities into creative, content, data, and technology while also increasing its presence in North America and Asia. The question is: why the shift?

The Consolidation of Media & Creative

“We’re called MediaSense for a reason,” says chief strategy officer Ryan Kangisser (pictured right) “We’ve built a great business by sticking to our media roots. But more and more, we’re seeing the convergence of media and creative. The industry is blurring – where do you draw the line between media and content, shopper and retail, or social and influencer?”

Recent research by the World Federation of Advertisers (WFA) and MediaSense reveals that one in four brands are already planning to consolidate their media, creative, data, and technology functions. Kangisser believes this trend is only going to accelerate – and MediaSense is evolving right alongside.

“It’s a question of when, not if, as far as clients looking to bring these elements together in transformational ways over the next two to three years. So, to remain a credible advisor, we need to support marketers across the entire ecosystem,” he explains.

Perhaps unsurprisingly then, the reaction to the R3 acquisition has been overwhelmingly positive among brands and clients, Kangisser says. “It’s given them confidence that we can support them with their future needs, not just stay within our traditional disciplines.”

MediaSense will be speaking at the Marketing Procurement iQ Conference in London on 25th & 26th March. If you are involved in marketing procurement or media management within a brand, you can apply for a complimentary ticket here. Limited number available

Streamlining for True Customer-Centricity

However, the convergence of creative and media is only one area in which MediaSense foresees agency models evolving. The advisory’s Future of Media Agency Models report reveals a stark reality: only 11% of brands believe their current agency model meets their future needs, while 24% find it unfit for purpose. This signals, as Kangisser puts it, an “overwhelming appetite to evolve.”

Brands are particularly frustrated by the silos that exist within their sprawling agency models, he says. For many, the pandemic underscored how difficult it is to react to changing circumstances in a cohesive way when your teams, data, and technology are so fragmented and disparate. Kangisser adds: “Disjointed teams and objectives hinder the seamless customer journey brands are striving for.”

Streamlining their agency model, establishing consistent ways of handling data and technology, and learning how to “walk the walk” on customer-centricity are therefore top priorities for brands today, he continues. “Clients don’t want to manage multiple agencies, egos, and politics. They want a system focused on a singular goal: doing what’s right for the customer.”

The sixth wave of MediaSense’s Media 2025 research underscores this ongoing shift. Over half (51%) of brands believe their organisations have become more consumer-centric in the past year.

“It’s all about re-establishing the vision, recalibrating the organisation and agency model, and getting that data, tech, and measurement piece in place so brands are able to operate in a more integrated way,” Kangisser explains. For MediaSense, he adds, the goal is to become the “pre-eminent advisor” to help brands on that journey.

Globalisation vs. Localisation

This drive for simplification also means reconsidering global and local agency models. Historically, brands would often appoint different media agencies for each market, particularly when chasing low TV pricing. However, the dominance of digital advertising and global platforms has rendered this approach all but irrelevant. For many multinational brands, consolidation is therefore a pressing priority.

“In today’s digital-first world, you can’t negotiate auction-based pricing. The focus must shift to the quality of planning, buying, and the technology underpinning it,” explains MediaSense’s chief client officer and former PwC partner, Sam Tomlinson (pictured left)

“It is much easier to get high quality, consistent ways of working if you consolidate your media agency relationships. That doesn’t necessarily mean one media agency globally, but it certainly might mean one media agency per region as opposed to one per market.”

However, excessive centralisation has its pitfalls. In some cases, “the pendulum has swung too far,” Kangisser warns.

In more nuanced growth markets like China and Southeast Asia, for example, a bottom-up approach underpinned by local specialists may be more effective. MediaSense’s own growth journey reflects this need, with R3’s footprint in Asia a key part of its appeal.

And even in less complex markets, there are certain specialisms that require feet on the ground to execute well, such as retail media or influencer marketing.

But Kangisser and Tomlinson agree that today, many digital media activities don’t need to be handled on a local level – and so the ongoing trend will be a continuation towards regional (and global) consolidation.

Cost, Efficacy, & the Role of Automation

Elsewhere, cost pressures continue to influence agency relationships and models. Though the worst of inflation is over, margins are still being squeezed – and so there’s an expectation that marketers and their procurement teams will be looking to save money wherever possible.

Automation and AI in particular are expected to play significant roles in delivering savings, but Kangisser highlights a challenge: current remuneration models often hinder agencies from realising these efficiencies.

“Understandably, there’s a big appetite for automation and AI. Brands expect that they will be able to achieve more with fewer resources – but labour-based compensation models complicate this,” Kangisser explains.

To truly realise the benefits of AI and automation in the coming years, Kangisser says we can expect a shift towards outcome-based remuneration. Such models move the focus away from how long it takes to produce a piece of work, and towards the impact it has on the brand. Indeed, MediaSense’s Future of Agency Remuneration report saw 74% of brands admit they are looking to change their agency remuneration model in the next three years.

Meanwhile, with marketers under rising pressure to prove the return on investment (ROI) of their advertising spend, Kangisser predicts a greater focus on efficacy over the next two years. Limited by their slashed budgets, brands are rethinking their approach towards channels and platforms and will be looking to focus on “fewer, bigger, better” campaigns.

But crucially, Tomlinson stresses that the pursuit of cost-cutting must never overshadow the goal of value creation. In fact, he urges all brands to frame objectives around operational efficiencies rather than cost.

“It’s not about cost. It’s about value. It’s about how your marketing spend can be the most effective it can possibly be,” Tomlinson explains. “Apple, for example, is reputed to actively seeks expensive media placements because it knows they deliver the best value for its business.”

“Any brand that’s focused on cost efficiency should step back and regroup around its business and marketing goals,” he adds. “Cheaper is not always better.”

What’s next for MediaSense?

So, if one thing is clear, it’s this: brands and the wider advertising industry are set to undergo a huge amount of change and disruption over the next few years, driven by the ever-growing desire for simplicity, efficiency, and effectiveness. Already, 68% of global marketers say they are either midway or moving towards the end of their transformation.

However, there are a number of deep-rooted challenges that need to be overcome. Organisational structure, the integration of creative, media, data and technology, and outdated remuneration models are just a few of the most pressing.

As for MediaSense, Kangisser and Tomlinson believe the advisory is now well-positioned to support brands as they pursue transformation in the months and years ahead.

“There will be no shortage of client demand in the next few years as complexity invariably grows,” Tomlinson concludes. “MediaSense should be uniquely well-placed to meet this demand.”