Media planning and buying is set to become fully automated, as media agencies increasingly become technologically focused, according to a study.
According to a study by PHD, called 2016: Beyond the Horizon, media agencies will become increasingly data driven, and agencies will primarily be considered digital-based.
As a result, the study predicts that within five years, many media agencies will be split. One half will focus on upscale services and account management, and will move along a path that will see them competing with creative agencies.
The other half will focus on automation, and will compete with algorithm-based software/investment houses. As media continues to fragment and data becomes increasingly abundant, automation will become a necessity.
As agencies evolve, the study predicts they will increase in their value to advertisers, as the complexity of what they can offer increases and their pools of data become more pervasive.
PHD Worldwide strategy and planning director Mark Holden, who was the primary author of the study, said: “We will see as much change in the next five years as we have done in the last 10. Technological development will enable us as people to move one step further on our journey towards abundance.”
The changes will be driven increasingly by new technologies like cloud computing, social commerce, socially enhanced gaming and augmented reality.
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