The business model for media agencies needs to change, says David Hohman, Nielsen's agency solutions EVP in an interview with Beet.TV. Many agencies still operate according to an old-school billable hours model, but as tech companies and platform vendors bring new services to the marketing and advertising world, media agencies are going to need to evolve faster, he says.
"Agencies are becoming more dependent on data, and doing things faster and cheaper, and that requires automation, data science, and skills they haven't traditionally had. The challenge is they are operating in an old business model and the ecosystem is moving on without them," he says.
But bringing creative closer to media buying can help agencies to move forward. "Content and advertising needs to be more tightly integrated than before, especially with the proliferation of mobile devices," he says. "All of that is changing how advertising is being done and being bought and sold."
Hohman was interviewed by Beet.TV at the 4As' (American Association of Advertising Agencies) Transformation 2015 event in Austin, Texas. Our coverage is sponsored by Videology. Please find more coverage from the conference here.
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