Future of media agencies – are they under threat?

Direct deals, media commissions dropping to 0.5%, rising costs and a talent gap, coupled in many instances with international pressure on local off-shoots to hoof up the profits - all suggests that the future of media agencies is under threat.

At this month's AMASA monthly forum, Sandra Gordon, owner of Wag the Dog Publishers will be hosting a panel debate on this issue - sure to raise more than a few hackles, queries and eyebrows.

Some major media owners are predicting that within three years, over 50% of their income will be placed directly by clients, and ironically, in a desperate move to survive, some agencies are looking to media owners to assist them in boosting their revenue through volume based deals. Will media owners come to the party? Will advertisers benefit from these proposals or lose out?

Will proposed commission structures be transparently communicated alongside the standard 16.5% rebate system? What does the future hold for media agencies as a business?