The four official advertising media negotiating companies in Romania grab an aggregated 65% share of a market estimated at nearly 450 million euros. In parallel, a set of informal joint-ventures are operating, and a giant-sized media buying pool costing 100 million euros is on the pipeline.
In a media-buying venture, two or more media agencies put their budgets together in a move aimed at getting lower tariffs from ad spaces providers (TV, press, Internet, outdoor), negotiated on larger ad volume.
Over the past six months, three firms have pooled their media buying and planning functions under one roof: two of them involving subsidiaries of international communication groups in Romania, Aegis and Publicis Groupe respectively, and a media venture that brings four local companies together under one name, Romanian Media Agency.
Media negotiating companies emerged as a natural response to providers’ selling policy, said Razvan Varabiescu, managing director of Aegis Media Central Services (AMCS). Aimed at enhancing market share, ad space providers offer preferred prices for large volumes.
The apparition of these joint ventures can be seen as a market trend as well, fueled by international companies who brought their media businesses together under certain patents, said Claudia Chirilescu, managing director of local Spoon, part of ARM.
“In crisis, teaming up in a buying pool confers stability”
The third pool that involves an international communication group is Aegis Media Central Services (AMCS) that joins the buying budgets of Tempo Media and Carat, both of them part of Aegis Media Group Romania. The pool was established in December last year when Razvan Vrabiescu (photo) forecasted 35-40 million euro budget for 2009. Meanwhile, he became client of AMCS and Bigger Group, agency that closed in March. A part of Bigger’s media clients
