Dmexco – powered by professional energy

Perhaps a surprise to some but this year was my first year at Dmexco. Every year it has clashed with something or other, but this year I was there, well for a night and a day at least. It is usually the happenings around the conference that garner the most interest but at Dmexco it IS the conference. Dmexco is a REAL trade show, a place where companies come to show off their goods and hope that the circling hoards will come buy.

There is something refreshing about that, it felt a lot more meaningful, a place where business came first and rose second. Don’t get me wrong I have no issue with rose and I am certainly not one of those bitter nay sayers that write about the pointlessness of Cannes, no siree, I am a fan, but that said Dmexco felt solid and meaningful. There is no other place that so neatly distills the lumascape into a real environment, where you get to see the colossal competition for the buck all in one place. I think it is that which really struck me, just how many people are out there in the martech, adtech space and all with their piece of the action.

I did not get a chance to truly get around everything but I sensed there was a pecking order with the smaller stalls gathered in one place. They are all looking to grow of course and move into Yr2 with the big guys. Big guys they are as well, over the years the stalls have apparently grown and grown and it appears to be like Yachts with everyone weighing and rating each other up based on size and how many people fit, after the size comes facilities – does yours have a coffee machine? Meeting rooms? TV centre – shower? Swinging dicks aside it is an amazing array of companies all sat alongside each other from Adobe and Oracle to MediaMath or the agency lounge. It was great to see all the Publicis agencies there, not too big, not too small. GroupM were clearly out to make a statement on the other hand, commercially powered by Xaxis.

What I have been impressed by is the level of seniority of attendees, Global CEOs, Group CEOs all attending an event that is relatively new. All around the event you will find leaders from every corner of the business and with that brings some gravitas and focus and less feel of a jolly that comes with Cannes.

I hope to go for longer next year and attend more of the actual presentations, but for a first trip I was hugely impressed and will definitely prioritise. The event ended on a high as I managed to hitch a lift with the lovely (am I allowed to say lovely?) Nikki Mendonca who had a cab waiting for me even as I stood in a long queue.

Adblocking – I am going to make you an offer you cant refuse

Italian organised crime started with men ‘offering’ to protect the olive groves of Sicily from the roving gangs of people who ‘might’ burn them down at any point. It was a slightly one sided offer in that they had little choice as to whether accept that or not. As I have been reading and listening to publishers I have started to see some parallels with the Adblocking industry, especially as you delve into the commercial relations behind the scene.

As a publisher, under so many different pressures, probably the last thing you were planning for was a slick salesman roll up and make you an offer you could not refuse. Pay us some money and we can make this ‘adblocking thing’ go away or if you don’t give us a cut, we are going to let the adblock software loose on your site. Of course the publishers are not the only ones being shafted. The customer who signed up to the software may be surprised to find that he or she is seeing Ads again because the publisher paid the protection racket.What you need is a saviour of course and so enter stage left the guys that come and offer the publisher an option to block the blockers. Now of course they are not quite out of the Superman annuals as you have to pay them as well but I guess its better than not getting any ad revenues and they are working to some extent in their interests.


Overall the whole landscape is very messy, very challenging and right now seems to be a little too much like the Sicilian olive groves of yesteryear.

Will media owners and tech vendors be scrutinised by procurement?

25-30 Billion dollars of spend up for pitch. The whole industry is alive with comment on it. What does it mean for the agencies, who is up to lose the most and so on. The reason for it has been unclear, could it be digital capabilities, transparency, a stagnant commercial marketplace meaning advertisers have to extract more from their business, there have been many suggestions. Perhaps it is a simple as no one wanting to miss out.

All that said, the blog is not about that topic per se, more what impact all of this is having on the whole industry. There has not been too much of a knock on effect to the world of technology, technology that is now powering so much of the agency media landscape. Across the whole landscape deals have been done, tech fees agreed and contracts signed. The tech companies and tech/media companies are sitting back and watching this all play out with little impact to them, at least for now. But how long can that continue?

As all these pitches play out one thing is for sure, media fees will have reduced across the board, one way or another. Not to say that with increased billings they can’t find other offerings and models to make it up but at a media level, they will be squeezed. So those fees are reduced but the tech fees remain the same. The managed services and RTB networks and even one could argue Facebook and Google margins remain solid and published. So at what point does the advertiser start to turn their attention to those parties?

If the squeeze continues then how can an advertiser be happy that Criteo and Rocketfuel are taking 50+ of their IO and turning it into revenue for themselves (published numbers). Is the only answer to that ‘they are not an agency of record?’ If you can squeeze a percentage point out of an agency, how about 10 from the people your dollars eventually end up with? The topics of taking it house and aggressive sales tactics direct to advertisers such as Tubemogul and others also means that they are trying to take the role of the agency and so would surely have to make sure that their every transaction, their every margin on data and tech be revealed.

I think we are entering interesting times and auditors and procurement are going to run out of room on the agency approach, something has to give. In my eyes their valuable media dollars being passed to tech and inventory players will have to come under scrutiny a lot more than today, and if you want to be the partner that dis-intermediates the agency then you will have to answer to the same scrutiny an agency does, not just commercial but standards of protection, payment terms and all the other lovely stuff that goes with it. But first lets start with the 50% of the advertisers dollars that don’t make it into media.

Call centre ineptitude from RAC and AA negates good advertising

For many years I have sat opposite brand managers asking us to deliver more sales, conversions and the ‘right kind of customer’. This was often in the face of poor offers in market from those same Brand managers. The privilege of being the client, when asked how competitive a product is for say insurance or mortgages, the answer being, very uncompetitive, but don’t let that stop you. This is daily life for many agency performance planners in the business and is what makes performance remuneration so tricky.

But lets say the offer is good, lets say the creative is great, acquisition is still difficult and customers are hard won. So I want to understand why businesses allow thousands of call centre people to allow potential customers walk with no attempt to keep them or common sense.

I want to talk about my experience with break down cover. Three players in this space. RAC, AA and Green Flag. It is a battle royal and I have worked with two of those three so know how difficult it is to keep up acquisition at a good cost.

So this weekend my son got in my car and turned on the radio and left it like that for 24hours so that the battery became dead, dead, dead. So dead I could not even get under the bonnet to charge the battery(electric switch). So I call the RAC who I have been a customer with for around 7 years. It turns out that my cover did not auto renew because my debit card had changed at the same time I moved home and my address was not updated. This actually is a side issue but they had my number – no text or message to alert me?

Instead the lovely lady on the phone tells me I can renew but I have a surcharge based on my ‘usage’ last year ie called them twice AND a £70 extra charge for sending someone out at the same time. So I said ‘thank you RAC, its been good but you are now losing a customer.’ Again a side issue but there was no attempt to keep me, no discussion, no sweetener, just a ‘OK thanks.’ What a shame. How much media to now replace me?

So I go online to AA and start to book with them, all going well until I click the button ‘are you in a breakdown situation?’ The AA then add £130 pounds to the booking. Angry but in need of support I call the AA to proudly tell them I am leaving the RAC after all these years and I am ready to book for a year upfront for two people, £150 of cover and could they see clear to not adding the charge. No chance. In fact the guy sounded like he enjoyed saying no. And here lies the issue. Their rules suggest that I become a bad customer if I claim the minute I join, but what about if I stay for 7 years, and I would, that’s a minimum 1000 pounds they lost and the opportunity to cross sell, to try and gain £130. It is crazy.

The banks will negotiate overdraft fees, the insurance companies offer discounts but clearly that has not reached the breakdown companies. Worst still is the complete and obvious lack of flexibility, training and initiative that the bosses provide for call centre workers.

Well RAC and AA. I managed to get the bonnet open, and charged the car and now I am going to book with Green Flag and all for £70. Don’t come asking your planner to increase sales when your call centres and commercial practises are so flawed.