Forrester's principal media report: It's here to stay, so wise up on how to use it
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Forrester's principal media report: It's here to stay, so wise up on how to use it
"There are some in the marketing and media industries who might not like what Forrester's latest report into the use of principal media indicates - that it's here to stay so you better get used to it. But the report, issued on Jan. 15, also suggests ways marketers, agencies and even publishers can use it in a way that doesn't leave some parties completely in the dark."
"Pattisall cited three major factors that lead marketers to accepting principal media despite its opacity: the constant and continued rising cost of media, the pressures internally on marketers to deliver results in a cost-effective manner since they're largely seen in companies as a cost center, and finally the external pressures on the marketplace like tariffs and inflation that can lead to uncertainty."
Principal media is the polarizing practice of reselling media inventory at an undisclosed margin, provoking tensions over conflicts of interest and praise for favorable rates. Rising media costs, internal pressure on marketers to deliver cost-effective results, and external economic forces like tariffs and inflation drive acceptance of principal media as a business necessity. Principal media enables cost relief for brands, agency margin preservation, and publisher sales and revenue through mechanisms of arbitrage. Transparency and disclosure are recommended to reduce conflicts, ensure fair value exchanges, and prevent stakeholders from being kept in the dark.
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