Why Dealership Principals Must Demand Quality Controls in Principal Media

The Rise of Principal Media: Understanding Its Implications

In recent months, principal media (PM) has emerged as a hot topic in the advertising landscape, particularly within automotive sales and dealership communications. This media purchasing model—where agencies buy media in bulk and resell it to clients—holds the potential for value creation but also poses significant challenges. Understanding how this mechanism operates and its implications is crucial for dealership principals, general managers, and fixed operations directors.

Quality Concerns: The Risk of Vanity Metrics

While PM as a concept seems sound, critics have expressed worries about the opacity in PM contracts. A recent ANA report underscores how reliance on vanity metrics like viewability can lead to undervalued media purchases that do not always serve the client’s best interest. For example, many dealerships might prioritize quantity over quality, churning through ad buys with limited oversight on performance and value. Dealer managers should be aware that focusing solely on these vanity metrics can erode the quality of media being acquired, making it imperative to push for a comprehensive review of what constitutes quality metrics in media transactions.

Commoditization of Media: The Danger for Dealerships

The commoditization of media—where inventory is viewed as interchangeable rather than unique—can diminish the effectiveness of campaigns. Imagine being tasked with selling premium vehicles yet relying on standard, low-quality media placements. A better approach, argues industry experts, is to establish quality standards within contracts with agencies. By outlining measurable and verifiable quality requirements, dealerships can ensure they invest in media strategies that genuinely resonate with their target audience, leading to better sales outcomes. Otherwise, they risk operating in a "lemon market" where subpar media undercuts their profitability.

Learning From Other Industries: A Quality-Focused Shift

Insights from industries such as food production can offer invaluable lessons here. Much like beef, which varies in quality rating, media too varies significantly in quality and efficacy. Buyers must demand that their media contracts include not just basic health indicators, such as standard viewability, but also more robust quality checks that reflect the true value of the ad space being purchased. Without such insights, simply labeling all media as "effective" will only lead to misguided marketing decisions.

What Should Dealerships Do? Practical Steps for Quality Assurance

As we navigate this evolving landscape, dealership executives have a vital role to play in advocating for stringent quality measures. Here are a few actionable steps:

• Review Contracts: Ensure that contracts with agencies are explicitly constructed to reflect quality measures rather than relying on vague metrics.
• Educate Staff: Training programs focusing on the nature of principal media and its implications for advertising strategies can empower dealership teams.
• Implement Auditing Processes: Develop internal auditing strategies for media purchases to ensure transparency and quality.

The Future of Principal Media: Are We Ready?

With changes in the advertising space, including the increasing call for transparency and better inventory quality, it’s clear that principal media is here to stay. Dealership principals and general managers must equip themselves with knowledge and tools to effectively navigate this landscape. Whether it's leveraging automated online courses for personnel training or enhancing internal metrics for media quality assessment, proactive engagement with the advertising process will be crucial.

Moreover, staying informed about market trends, including the rise of AI-driven solutions in advertising, will help dealerships craft better marketing strategies and maximize ROI in their media buying.

In conclusion, as dealership leaders, it is essential to advocate for better quality controls in principal media. By holding agencies accountable and insisting on robust media standards, we can safeguard against the pitfalls of commoditization, ensuring that each marketing dollar is spent effectively.