High technological adoption, increasing consumption of social media and digital content, and surge in programmatic media buying will lead to increased demand for Media Buying and Planning

Media Buying and Planning Category - Procurement Intelligence

The media buying and planning category is projected to witness growth at a CAGR of 5.2% from 2023 to 2030. In 2022, North America dominated the global category and held a share of 38% of the global market. Growth in this region is attributed to a high concentration of network agencies, centralized contracts, extensive geographical presence, and high technological adoption. In addition, the increasing use of social media, online platforms, and streaming services is leading to a surge in demand for the category in this region.

In 2022, Europe accounted for the second-largest share of the global market. Key factors driving the European market include a surge in e-commerce channels, deployment of cloud-based & SaaS solutions in media planning software, and presence of key service providers. Asia Pacific is anticipated to witness the fastest growth rate during the forecasted period. Key drivers supporting the growth of this region include rising technological penetration, increasing competition in the market, surge in demand for programmatic media buying, rising consumption of digital content, and extensive usage of mobile devices.

Media buying and planning services are deployed as a part of paid marketing efforts to categorize and acquire ad spaces on channels. The ads must be relevant to the target audience at the optimal time and must lead to cost savings for buyers. In terms of end-use, media buying and planning services are utilized by various industries, such as BFSI, FMCG, Healthcare, IT & Telecom, and Automotive. For instance, the healthcare sector is required to promote its offerings via health awareness campaigns. Similarly, IT and telecom companies are required to effectively advertise their offerings to reach the target audience.

Key technologies that are driving the growth of this category include geotargeting, programmatic media buying, retargeting, native advertising, and Artificial Intelligence (AI) & Machine Learning (ML). Geotargeting ensures customized ads or content is catered to users according to their geographic location. By leveraging physical data of users acquired via GPS or IP addresses, relevant and localized campaigns can be created, which resonate with users in specific locations or regions. This allows media planning agencies to improve their messaging based on cultural or regional preferences.

Key players that provide media buying and planning services compete based on service innovation, pricing strategies, technology integration, multi-channel expertise, targeting & personalization, customization, flexibility, and efficiency. Customers have diverse options to service scope, price range, end-use, enhanced access to media campaigns, and increased access to measurement and analytics tools. Regulatory laws in several regions require agencies to comply with rigorous standards for the safety and privacy of consumers’ personal data.

The prices of media buying and planning services are influenced by several variables, such as service scale and complexity, media channels and platforms, technology integration, and length of contract. Clients generally adopt a full-service outsourcing model to engage with agencies. In this model, clients outsource the complete service scope to single or multiple agencies. This helps clients minimize their operational costs, ensure quicker project implementation, and gain access to an expert team.

The COVID-19 pandemic caused significant disruption in the global media buying and planning industry. The demand dropped after the outbreak of the pandemic, as clients were forced to cut their media and advertising budgets. At the same time, the category witnessed transformation due to surge in use of digital channels, which led to an increased adoption of programmatic media buying services. Since 2023, demand for the category has stabilized significantly.

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Media Buying and Planning Sourcing Intelligence Highlights

• The media buying and planning category consists of a fragmented landscape, with intense competition among the service providers

• Buyers in the category possess high bargaining power due to the intense competition among agencies based on the service scope and pricing, enabling buyers with the flexibility to switch to a better alternative

• Countries, such as India and the Philippines, are the preferred low-cost/best-cost countries for media buying and planning owing to low costs of labor & technology, competitive pricing, and high return on investment

• Staff, cost of acquiring media spaces, hardware, software, research & data, and other costs are the key cost components of this category. Other costs include general & administrative, sales & marketing, rent & utilities, travel, compliance, and taxes

Media Buying and Planning Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Category estimates and forecasts from 2023 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Category report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights:

Grand View Research has identified the following key cost components for the Media Buying and Planning Category:

• Staff

• Cost of acquiring media space

• Hardware

• Software

• Research and data

• Others

  • General and administrative

  • Sales and marketing

  • Rent and utilities

  • Travel

  • Compliance

  • Taxes

Staff costs form the largest key cost component of the Media Buying and Planning category.

List of Key Suppliers in the Media Buying and Planning Category

• Dentsu International

• Ideon Media

• Kubient, Inc.

• McKinney Ventures, LLC

• Mindshare Media Ltd.

• MiQ Digital Limited

• Omnicom Group Inc

• Publicis Groupe

• Starcom Worldwide, Inc.

• The Interpublic Group of Companies, Inc.

• Vivendi SE

• WPP plc