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Why Now?

Clout is not the currency in broadcast.

The media business has seen significant changes in recent years; key among them is the emergence of media agencies and their continuing growth through consolidation into ever-larger media organizations.

This quest for size is powered by an on-going push for efficiencies of scale and leverage with the national broadcast units of the leading media supply companies.

Sounds good…until we review the facts. Ever since media agency consolidation, media price increases actually exceeded the rate of inflation. In effect, the mega-agency claims of reduced pricing actually failed to produce the much-anticipated savings.

Percent Change Year Over Year

Why? Pricing is not determined by agency size. It is determined by seven factors common to all advertisers' in the marketplace, the greatest of which is the market dynamic of supply and demand. Over the past ten years national broadcast viewing levels (supply) have continued to decline, while advertiser spending (demand) continued to grow.

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