EXCLUSIVE: The co-founder of indie media and creative shop Razor Group has labeled much of the media agency business irrelevant to modern marketing and says the industry’s focus around “advertising exposure” is wayward and wrong.
Speaking to AdNews as he and Razor co-founder
Andrew Wynne sold a stake in Razor Group to former Publicis Mojo
chairman Graeme Wills, Rush said the rebadged trans-Tasman company will
be called Joy although Razor will remain for clients who want media
planning and buying only.
“In media the model has been based on
exposure which is a model that is not relevant at all,” Rush said. “It
should be around getting people to act. Exposure is the absolute wrong
metric.
“Pretty much all media agencies are based around
cost-per-exposure as the main unit of currency and I’d argue it’s almost
entirely irrelevant.”
Rush said cost-per-exposure was fine for purchasing media but should not be the underpinning of any media agency operation.
“Clients
who are thinking about it understand it’s actually incorrect,” he said.
“Our initial conversations with some very advanced marketers suggest
they get there are problems.
“The ability to generate commercial
success on behalf of clients is what we always were set up to do. The
shift that’s taken place in the market means much of what is available
to clients is irrelevant. We have to get people to act in a commercially
advantageous way and that really means reinventing the services we
offer.”
The rebadged Joy will remain a full-service creative and
media group. Brands already using creative and media services from Razor
include Goodman Fielder, Nike, SBS, Subaru Retail and Colonial First
State. Others such as Eftpos use media only.
The official shift to Joy will be April 1 with staff and clients currently being briefed.
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