Media spend measurements

Eric Picard of Microsoft have challenged in his last column the methodology used by many to measure the spread of media dollars across channels.  All points made are valid and not that surprising considering the rapid changes in consumption patterns and the fact that investments in tools for measurement is lacking and lagging.

I do feel however that the solution is not as simplistic as attempted to be offered by Eric. For how long will we be able to consider NBC or ABC a broadcast company? Should we assume they will rely on Pure-play companies for distribution online? How will these companies utilize social networks that are becoming the predominant entry point to the Internet? What will their distribution channels be for mobile devices?

As Eric correctly mentions, the more relevant point of discussion relates to the different forms of Display Advertising. TV, Online, In-Game and Mobile channels have many similarities:

• The Currency 
• The Message content, i.e. Creative
• Marketing objectives and the position of the desired response in the buying funnel

Another point of growing similarity is the user mode of consumption. More and more digital content is consumed as a lean back experience that is similar to TV. In such a mode the value of active digital engagement is lower and therefore the marketing content can be similar. It is in these cases that it is difficult to distinguish where the media funds were invested. It is also this kind of inventory that can easily be bought by a traditional buyer using traditional dollars.

The resolution? While I am not sure this will be a growing problem I feel it is within the hands of advertisers themselves to resolve it. I am confident that bundling of media will only continue (Easier for the seller and beneficial to the traditional media buyer to demonstrate its value against the digital one) and Advertiser can insist on measuring and reporting on their Broadcast Vs. Digital spend separately. This will incentivize all of us to distinguish between the spend on NY Times Digital Vs. Print and will hopefully encourage investment in automated digital measurement tools.