Although media buying principles and processes are universal Globally, the local media structure and media buying dynamics in China are uniquely complex, presenting significant value measurement and transparency challenges for advertisers.
Media Buying Cost Variables
The differences in media buying cost delivery between buying points are much higher than other markets. Variables in net costs and cost per audience can be hundreds of points.
Factors that influence this include : greater volatility of TV audiences driven by fragmented China TV landscape; higher quality premium in many media because of a lack of niche target audience buying opportunities; margins associated with bulk buying or brokered inventory which are not passed onto the advertiser and a lack of transparency on real net costs, volume rebates etc.
Advertiser Challenges : It is more difficult for advertisers to accurately measure their media buying performance in relation to the different delivery components – including net costs, cost per audience delivery, quality, exposure and volume rebates. The need for concrete media buying KPI’s as well as media buying transparency checks and controls are fundamental to ensuring optimal and quantifiable value delivery.