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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!
This post was first published in the Wall Street Journal – to see it click here
In Defence of Trading Desks
The World Federation of Advertisers report on programmatic trading, issued last week, has set the online ad industry abuzz. I am pleased to see clients taking a stand on transparency and some of the other issues surfaced in the report, despite being one of the purported programmatic culprits.
When Publicis launched Audience On Demand in 2008, we decided to create it as an alternative to the very murky services that were dominating the marketplace at the time, such as ad networks, that operated in the dark and sometimes pocketed triple digit profit margins in the process.
Six years later we are standing firm on our early decisions, and reports like the one issued last week suggest the market is moving in our favor.
But the fact is not all agency trading desks are created equal. And while the WFA report inaccurately tries to paint us all with one color, I encourage every marketer in the industry to take note of the questions in the report that relate to issues such as arbitrage and data. Don’t just ask these questions of your agency trading desk, however; Ask them of every programmatic provider you might be spending with today.
If a programmatic provider is working in a marketers’ best interest it should not be arbitraging inventory, it should be buying audiences and inventory transparently in real time. It should be protecting marketers’ data (it’s their data, and they should honor it as such, unless given permission to blend it). It should have a rigorous vetting process to evaluate all data and technology partners to be sure that protection extends across the ecosystem.
It should also be tireless in pursuit of viewability and quality, and it should show you how it is trying to protect your ads from fraud. I submit that an in-house option or managed service demand-side platform that buys on a marketer’s behalf will provide less brand safety than an agency trading desk. It simply costs too much to deliver extensive black and white lists, tech vetting and human vetting at a client level.
Finally programmatic providers should make it entirely clear what percentage of marketers’ ad dollars are actually spent on ad space, and it should be far, far greater than 40% as the WFA report suggested. That number is ridiculous. Candidly, a fair amount of the math cited in the WFA report is peculiar.
In general, the WFA report steers marketers toward setting up an in-house solution. It’s a viable, though difficult and limiting proposition to pursue. An in-house operation is not going to resolve all transparency issues. It might give marketers complete control, but it also results in limited visibility once the campaigns go out the door, and you are only as good as the technology you tie yourself to.
Meanwhile, if marketers outsource to an ad network, managed service DSP or non-disclosed trading desk, you have little control, less visibility and no ownership.
I hope I get a chance to meet the WFA. I would love to talk to authors of this report about their findings, where the insights were obtained and how the calculations were done. So much of the report is spot on in terms of what questions to ask, but the bias and inaccuracies need to be corrected.
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.