An incredibly joined up BCG study between ZO, Performics and VivaKi focused on the benefits of a unified platform and advanced targeting. A combination of strong partnership and strategy achieves very strong results.
Your Name: Marco Bertozzi
Your Company: VivaKi
Your Title: President EMEA and US Client Services
SEARS: Where do you read your daily news [not just industry news, but all news]? Do you still read a newspaper? Listen to the radio? Use social media?
BERTOZZI: Twitter is usually where I start the discovery. Where I end up reading the news varies. I also use the Guardian News app as an anchor. Occasionally I will grab a newspaper but safe to say most of my news consumption is online.
SEARS: What’s your favorite commercial of all time?
BERTOZZI: My favorite commercial of all-time is an ad for Blackcurrant Tango.
SEARS: Today on average in the United States — out of each $1.00 spent on media (all media, not just digital) by one of your advertisers — how much is spent on automated or programmatic channels?
BERTOZZI: We’re seeing $0.08 of every $1.00 spent on programmatic channels in 2014, and I think we’re still in the early stages of adoption — even in the U.S. — but it’s starting to rise. We’re going to see a sharp increase as education continues across agencies and clients.
SEARS: What was this number in 2012?
SEARS: What will this number be in 2016?
SEARS: What is the mission statement of VivaKi AOD?
BERTOZZI: Audience On Demand® (AOD) was built exclusively for Publicis Groupe agencies and their clients. Created in 2008, our sole purpose has been to help our agency partners and their clients control their brands and messaging in a fragmented, digital ecosystem. We work as an extension of the agency team our clients trust to steward their advertising spend and marketing activity.
SEARS: Please tell us:
SEARS: Overall United States managed budget (media spend) for your trading desk, expected in 2014:
BERTOZZI: A lot
SEARS: Percentage increase, United States managed budget (media spend) 2013 vs. expected 2014:
BERTOZZI: It’s a healthy increase
SEARS: How many employees are there in your United States organization [headcount number]?
Total across USA: 261
New York: 80
San Francisco: 2
Los Angeles: N/A
Other: 25 employees in Seattle
SEARS: What are VivaKi AOD’s three biggest U.S. initiatives in 2014?
Quality and viewability. We launched Quality Index — a proprietary evaluation process that vets all ad placements through AOD. Built on performance metrics and data provided by comScore, Integral Ad Science (IAS), Proximic and various DSPs, as well as ad server performance data, Quality Index also sources inventory according to various metrics that assess viewability, page content quality and historical performance.
This year, we also invested in the building out of the VivaKi OS, combining the AOD Platform and DMP, supported by our established channel solutions (display, mobile, video and social) and our VivaKi Verified teams.
We introduced AOD Brand into the US market. Focused on large-scale formats, it gives advertisers impactful creative in the right locations. It’s the best of RTB with premium inventory, utilizing private marketplaces and giving brand advertisers a vehicle to deliver programmatically against brand objectives. It’s an approach already heavily used in Europe but now formulated for the US.
SEARS: By 2016, what percentage of your holding company’s U.S. media spend will be automated or programmatic?
BERTOZZI: As above
SEARS: Can linear TV be automated, yes or no?
BERTOZZI: Yes! The real question, however, is whether large broadcasters are willing to invest in adapting to new and efficient ways of trading or do they prefer to hold on to “how it has always been done.” Media automation is an inevitability and those that move fastest will benefit the most.
SEARS: Does VivaKi AOD plan to automate linear TV in 2014? 2015?
BERTOZZI: No, but we intend to work with all available and accessible inventory and that includes connected TV inventory which will increase substantially over the coming months and years. The shift from TV to multiple screens will power the increase in inventory and as audiences across devices move away from just traditional TV the opportunities will only increase.
SEARS: Once linear TV is automated, will it be bought by TV buyers or digital buyers?
BERTOZZI: As we are already witnessing, there is a massive blurring of roles within agencies. By the time linear TV is automated I would suggest that roles and in fact most agencies including those in our group will be well under way with planning and buying being very much across screens and channels.
SEARS: On the subject of business models, the best way to describe your company is:
a) Product organization – i.e. you curate a media product for your agencies and advertisers
b) Service organization – i.e. you recommend and manage best practices and best of breed products for your agencies and advertisers
c) Combination of both
BERTOZZI: Other. We see our role as threefold. First, we build technology that powers AOD in order to join up the complex programmatic ecosystem. Second, we evaluate and consult with advertisers on technology and data providers that best address their particular campaign needs and goals. Third, we provide marketing expertise and services for agencies and advertisers on campaigns including human oversight, strategic direction, context and advice that a machine simply cannot [offer].
SEARS: On the subject of advertiser clients and transparent vs. non-transparent models:
a) We have a transparent model — clients know media and other costs (i.e. costs are unbundled)
b) We have a non-transparent model — clients do not know media and other costs (i.e. costs are bundled)
c) Combination of both
BERTOZZI: A. We make sure that our clients know how much spend is going against working media. I strongly believe this should be an absolute given for any business that aligns its objectives with its clients’ objectives. We also do not arbitrage media, as we believe this is counter to the principles and efficiencies offered by programmatic media-buying and takes us further away from the spirit of collaboration and true partnership with our clients.
SEARS: What percentage of your agency or advertiser’s site direct budget (direct orders) has been automated?
a) Less than 10% (of site direct dollars)
d) Over 50%
BERTOZZI: A. All of our buys are auction-based and therefore we do not allocate budget for direct-buys.
SEARS: Which of the following will accelerate the automation of site direct (direct orders) budget? Pick all that apply:
a) Dynamic access to all publisher inventory [vs. just “remnant” or “auction”]
b) Ability to leverage publisher first party data
c) Ability to leverage advertiser first party data [against all publisher inventory, especially premium]
d) Availability of rich media, expandable units and larger IAB Rising Star formats
e) Ability to more easily curate audiences for specific advertisers across the premium content of multiple publishers
f) All of the above
BERTOZZI: While all of the above are valid considerations, I believe the biggest factors that will help accelerate the automation of direct orders are actually tech development and greater alignment on inventory. As I’ve previously mentioned, there have been occasions where we wanted to push significant spend across premium publishers but the publishers were not ready to accept it.
SEARS: Tell us a bit more about you.
SEARS: Who was one of your first mentors as a child?
BERTOZZI: My brother. Five years older than I, he was (and is) someone I looked up to and not just because he defended me when I got into scrapes. It was his sound advice that ultimately led me into media agency life — so I should thank him for that!
SEARS: Money is not a concern. You no longer work in advertising or technology. What would you choose to do for work?
BERTOZZI: Having always loved animals, I would choose to work on an African game reserve. The solitude and connection to nature attracts me as does working with the most incredible animals on the planet. I would however probably still look for a connection to data, no matter how slow!
Solid article in the FT following up on the Fraud issues in advertising. To read the artlcle please click here. You will need to have a subscription or sign up.
My small piece focused on the issue that people talk a lot about fraud detection, as was Rocketfuel’s response, how much they detect, but the real key is to not fish in that pool of inventory in the first place.
‘Fighting fraud requires more than just developing better detection systems, says Marco Bertozzi of VivaKi, the digital ad buying division of Publicis. A big problem, he says, is that the entire advertising industry is too fixated on chasing cheap slots, even if that means “fishing in a cesspool”. Advertisers need to start looking much more closely at the quality of what they are buying, he says.’
The advertising community needs to take a stand and stop buying poor inventory under the guise of performance. Lets spell it out.
Advertiser Demand: I want cheaper CPMs and lower CPAs
Agency: Would you like to be brand safe and not risk having a Mercedes Benz issue?
Advertiser: Of course, have to be brand safe
Agency: Then I cant buy from these networks and deliver that CPM – which is it?
For those of you who have been living through the digital advertising era from the start can not help but notice a little resurgence of what used to be the only names that counted in digital media. In those early and exciting years AOL, Yahoo, Microsoft, Excite ruled the landscape until they started to come under fire from the upstarts, not least a start up called Google. The pursuing years saw these companies lose their place in life as more and more competition entered the marketplace. It is not to say of course that they have not always been major players, but without doubt lost their way in the face of Facebook, Youtube and others.
In the last couple of years we have seen a come back, it started with AOL. Launching Project Devil to stamp some brand credentials on what was mostly a DR product through Ad.com, the purchase of GoViral started their video offering and then more recently Huff Post, all adding up to create some powerful content. The final act though has been to embrace the programmatic era and to beef up video with the purchase of Adapt.tv, rounding off what is now a far more interesting offer for agencies and seemingly leading them to a return to the top.
Yahoo have seen a similar track, they had a head start with Right Media in programmatic but did not know what to do with it and in my opinion lost a few valuable years vs Google when they should have been ahead of the game. RM was neglected and allowed to become a down market solution, when it should have been the forerunner of private marketplaces. The much hyped arrival of Marissa has had many words written about it so I wont focus on that but it appears that a series of purchases in mobile is starting to bear fruit. Marissa has in fact bought 35+ companies since joining, the largest of course being Tumblr. The good news is that mobile traffic for Yahoo is on the up, in fact it is up 47% year on year. The approach towards native ads such as ‘Stream Ads’ and away from banner should also increase yields and encourage brand advertisers onto mobile. If you believe the press releases Yahoo plan to phase out all banner ads by the end of the year.
So that leaves Microsoft. Working with Microsoft over the years has been like watching a wildebeest bog down in sinking mud, struggling harder and harder but just getting into a worse and worse situation. Microsoft have always had the ingredients to make an incredible meal, but somehow the planning and then the execution always fell short. I have for many years looked to Microsoft to turn that corner, they have the four screens, an incredible offer in the Xbox and Kinect, turned a corner in mobile and yet stiching these things together always seemed elusive.
I remember for instance sitting in a presentation in Cannes where Microsoft was presenting the new Windows8. It looked great, but telling to me was little or no information about how advertising would work within it. The potential tiles as Ads in W8 was clearly an early example of a Native Ad – although luckily the term had not been coined yet! However these tile Ads would be perfect for programmatic – unique to Microsoft but definitively able to be automated. However no one had planned that far ahead, the company worked in silos. What a shame for them and us.
Programmatic as a whole also demonstrated a lack of future planning. When Google was buying companies and integrating them, Microsoft was desperately trying to protect its direct ad network business. Even today they are behind the curve, they started fast and then went backwards a little with limited targeting capabilities and a seemingly disconnected leadership who were not willing to move faster and embrace programmatic. The recent launch of Microsoft Video Network is both a step forward and a step sidewards versus competition. Microsoft are taking their valuable data and applying it across the video exchanges, where AOL are buying the tech outright rather than licensing. Where Google are buying Invite and Doubleclick, Microsoft bought 5% of Appnexus. Even the Crown Jewels of Xbox and Kinect have been under utilised, I am still yet to see an Ad pushing Xbox as anything more than a games console when in reality it is so much more, I think we will see that change over coming months as Google TV, Apple TV and others ramp up their efforts.
But is not lost because the big picture for Microsoft is changing. The new leadership for a start. Microsoft ended up choosing from within, disappointing for some but as Satya Nadella says himself ‘he is now looking at the business through fresh eyes.’ He is also super bright, passionate and has accelerated change in just a few short days. Recently there have been a couple of large events, the launch of Office 365 and most notably onto Apple devices and the Build 2014 conference. Both these events have revealed that Nadella has big plans and wants to shake things up. Microsoft had already started changing with One Microsoft where they tore down siloes and made sure that cross divisional work and idea sharing started to happen, so someone creating software for the phone was thinking about advertisers as well. The example I sight above about the tiles would probably not have happened today.
More importantly Nadella has pushed through changes inconceivable a few years back. What has changed. As Nadella describes it, we are now in an era of ubiquitous computing. Connected users, devices all relying on the cloud for delivery of ever more complex solutions. Not for today but importantly for Microsoft they see their customers as consumers and IT professionals, the corporate world and only Microsoft really has the range to answer to both of those – this should rediscover for them differentiation.On average the consumer is carrying/using four devices and Windows and Microsoft want to span all those devices seamlessly, they want the canvas for software, Apps and their developers and users to be as wide as possible. So what are they doing?
1. Windows is being introduced across all devices including Kinect for Windows. A huge step forward for users and developers a like. Design once for all devices is crucial in this connected world. Still Apple and Android want people to design for mobile and desktop/laptop. As a user the more seamless the App the better the experience across devices.
2. Use the power of Office – making it available cross all devices is huge, anyone who uses iPads know the big issues is with opening Powerpoint in particular, but to make it free is a massive step for Microsoft, putting it all in the cloud also makes it entirely portable and for developers they can use Office 365 log ins as an identifier
3. Welcome to the new world of Kinect. App developers can now design Apps once that include Kinect technology to make incredible user experiences, this will make that box in your room, even more interesting and put Microsoft right back in the game as far as Apps. Likely end result being even your PC being able to work through motion.
4. Smaller signs of change have been to provide solutions that allow people what they want on their desktop like the start button. Some describe it as retreating, I call it sensible. Microsoft is listening and that is the main thing that we all want and need.
There have been other innovations with Cortana the voice assistant, great that it has been introduced but not sure it stands out vs Siri and of course has arrived considerably later, but again an extra ingredient to create experiences for users.
Microsoft really wants to get into the Internet of Everything and with their very close partner Intel they can start to revolutionise the home and out of home with Windows being the glue to make it all happen.
Microsoft have realised that the world has changed and you need to pull users in with what is still a great set of products used by over a billion people. Microsoft have the opportunity to be a partner to your life in a way that no one else can, I say an opportunity. It is what they do with it that counts. Microsoft have a leading position in the home with Xbox, software and cloud computing has always been their strength, it is just application they must work on, phones and tablets need more work but by making life easier for developers and IT professionals they can solidify their position spanning consumers and corporate.
Overall Microsoft, more than anyone has the plumbing, the hardware and most importantly the software, and they are focused on a mobile world. They need to make room for the marketeer in all of this and bringing them to the table, we as advertisers are desperate to make sure that Microsoft is central in plans but they need to make this easier for us. As with AOL, Yahoo I hope that we see a strong resurgence from Microsoft and it seems that Satya Nadella has the right ideas and guts to push them through. Just don’t forget that the advertiser would like to be involved.
Probably 6-9 months ago when November seemed a life time away I received my first communication from Webit. Come the day I walk on stage, myself and fellow speakers had received according to the hosts around 36,000 emails in the arranging of this event. Based on my own experiences and those of others, it felt like at least 36,000 as well. As time went by I started to talk to more people who appeared to be attending this mysterious event in Istanbul and so I decided to have a go.
Welcome to Webit, 8000 people from 103 countries all converging on the astounding Istanbul. Link to event here
The 36,000 emails was a precursor to a peculiar event, just as Istanbul sits between Western world and Eastern world so the event seemed to attempt to straddle both but with an emphasis on the Middle East. I think to call it an International event is slightly over stating, I would suggest that 80% of attendees were local or from the Middle Eastern region with a smattering of people from the rest of the globe. The genius of these conferences is that a smattering of logos gives it the appearance of something that perhaps it will be one day but not yet. Vevo, Yume, VivaKi, Omnicom (Nikki Mendoca flew in for a morning to grace us), Facebook etc all make it look a big deal and yet many presentations were far from International.
As an event I believe it over stretched itself although I am not sure the organiser thought so, there was no hint of embarrassement that they had spammed people with communication in the run up, so much so that basically everyone I met had given up caring and waited until the last minute to work out where to go next. There is less hierarchy in an arilines exec club status than at this event with three or four different tiers of ticket and then corresponding content. As an example the Telco area and presentations was only available to Platinum, consequently there were no people in the sessions! Different rooms, different tiers and thousands of emails led to a pleasantly chaotic environment.
I think the focus on start ups and innovation is probably very valuable to the area and I think the mentality of networking very strong and so this side of the event was more powerful than other more sedate affairs. The outside areas and exhibition area, actually quite small, was more like a souk atmosphere with human interaction front and centre. I certainly have never had so many spam contacts, apologies, new business opportunities sent to me and continue to be so. A small point but I feel like I have signed up to the biggest direct mail database by attending the conference, as my inbox seems to be now filled with new biz opportunities. My favourite being:
‘We partner with firms to enable you to expedite time-to-market and improve Return-on-investment by providing cost effective solutions’
I think the area that the organiser most needs to focus on is the matching of titles and content, the Big Data session as an example had at least two presentations that niether mentioned the words Big Data or in fact had anything but a tenuous link with it. Some might say that is the norm, but watching a number of the sessions, it felt to me like too much time spent on creating an overcomplicated infrastructure and not enough on the content, both original content and how it is coordinated. The Panels at times had 8 people on them, this format needs some work, too many people not saying enough, less is more definitely springs to mind!
Evening entertainment was very good, especially for the speakers and panelists and the men, a wonderful evening boat ride and dinner followed by cool party on night one and then night two a meal followed by probably the least likely entertainment – a mass naked Hammam..umm. This combined with some liberal belly dancing left a few of the International ladies wondering whether this conference could be a little more balanced in its approach to men and women and indeed I doubt anyone really cared about how many women there were on stage – the answer. very few.
All that said it was an amazing location, infectious atmosphere led by Plamen and I am sure it will continue to grow and grow. I feel like it needs to take a lead from other large events in how it is set up and run to streamline everything and have less of the workings on show and more of the content. If you want to really ramp up business in the area I also believe it would be a great starting place. For VivaKi expanding and increasing the Audeince On Demand services there it worked well on the back of the AOD Publisher Day we had before it and I am sure many other International teams will see similar opportunity.
The event also created two side lines, the first is that myself and Brian from Digiday have coined the phrase ‘they did a Webit’ and that Brian has big plans for bringing programmatic to the Bazaars of Istanbul, he is particularly worried about the longevity of the exclusive superglue stall man in this new era of RTB!