Tag Archives: AOD

CampaignLive US article on Advertisers missing the prize of programmatic

My piece in CampaignLive publication in the US – to see click here

How did it come to this? You can’t mention programmatic without talk about transparency, trading desks and advertisers taking it “in-house.” A part of me that would likely get fired says “Go on, then” because it will mean that advertisers spend considerable time understanding the space, in order to appreciate what is required to do this well. They will also be doing the right thing with their media — I don’t mean taking it in-house, but rather the likely improvement in execution and management of their media using the latest technology.

While in-house has been a hot topic this year, all we have right now is a lot of noise. Companies stirring up the ecosystem trying to make hay while the sun shines and consultants with minimal experience in this complex space suddenly getting the light of day. It is a real shame. I spend so much time talking fees and transparency with advertisers and so little on strategy that I truly believe they are missing the chance to make the most of this incredible opportunity.

Advertisers setting up their own programmatic operations is as sensible as Google deciding to set up an agency business and go direct to clients. “They do that,” I hear you cry! Not really. They chase revenue, and if they see that being taken by competitors they step in. Google also has tens of thousands of free sales people — they are called agencies. Clever businesses stick to what they do best. Even brands that have been working away at this for some years are still struggling to keep up.

I recently read that taking it in house was expensive upfront but you get payback over years. I have never read such incredibly ill-informed, ill-thought rhetoric in all my life. It infers that programmatic expertise in agencies after the first couple of years runs on nothing. The reality is people need paying; tech companies need paying; innovation needs to evolve. Nothing goes away after initial set up; it only grows. It is this kind of crazy talk that is distracting advertisers.

Let’s start with talent. Programmatic now commands some of the highest salaries and brightest brains. This creates multiple challenges for employers — motivation, retention and a lack of insights from outside the immediate business. Technology evaluation skill sets, data analytics and audience insights knowledge, data warehousing, contract negotiations, legal, creative, partner management – these all are essential for a successful programmatic business. Spare a thought for the team doing it in-house — two, perhaps three people. They will not be immune from the same standards agencies have. Brand safety is still brand safety. The CEO will be no less unhappy when the Wall Street Journal reports a fraud blow up and an in-house team has been managing it. The same effort needs to be applied in or out of the house and that costs money.

Why would an advertiser want to take that on? Because they are unhappy with transparency? Because tech fees are high and they want to find ways of saving? It is a false economy. “Buy cheap, buy twice” is a phrase I am a firm believer in.

The companies who have managed to do this well are few and often pure-play digital, online businesses with very specific KPIs that are easily tracked and measured and with a culture of digital innovation. Netflix is one example. Moneysupermarket in the U.K., another. Almost all, including the most famously quoted however, are relying on third parties to do the work. That is not taking it in-house, it’s just not using an agency. And they are right not to, but if a little less time was spent on the angst of transparency and fees (easily solved by talking with your agency operation) and more time on the strategy, then the fees will make sense. More time also needs to be spent talking about the amazing case studies of clients that have embraced this space and are turning their media investment around – there are many.

Advertisers who empower their agencies in the programmatic space and invest the time to really partner with them will dramatically change how they do business and the results they achieve.

As a final note on this, While hundreds of millions of advertiser dollars are spent on blind, low-CPM, long-tail ad networks that are taking 60 percent margin, I find it very difficult to believe that an advertiser is achieving the most they can from programmatic or indeed asking the right questions about their media investment, whether that is taking it in-house or not.

Marco Bertozzi is VivaKi’s President, North America Client Services and Audience on Demand EMEA.

Read more at http://www.campaignlive.com/article/programmatic-taking-in-house/1317802#Rwl3QzVofffQABqe.99

About these ads

Jay Sears interview in advance of Adweek New York Panel

photo for blog

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?

BERTOZZI: $0.06

SEARS: What will this number be in 2016?

BERTOZZI: $0.14

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]?

BERTOZZI:
Total across USA: 261
Total in:
New York: 80
Boston: 8
Chicago: 123
Detroit: 23
San Francisco: 2
Los Angeles: N/A
Dallas: N/A
Other: 25 employees in Seattle

SEARS: What are VivaKi AOD’s three biggest U.S. initiatives in 2014?

BERTOZZI:

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
d) Other

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
d) Other

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)
b) 11-20%
c) 21-50%
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!

- See more at: http://www.mediabizbloggers.com/rubicon-project/276847701.html#.VCVuSnKwSgI.twitter

Buy cheap, Buy twice when it comes to Adtech

Disintermediation is a hot topic right now. Since coming to the US I have witnessed and been shocked by the extent of it on this side of the Atlantic, far more so than in Europe. It is a trend affecting the entire media ecosystem and one which if global industry trends are anything to go by, will soon impact European advertisers in the same way.

As an advertiser it is increasingly appealing, especially within programmatic to see the ‘sell’ of a standalone DSP as attractive. Tech costs are high, so minimising service fees is an incentive. The trouble is that when cost is the driving force rather than a particular strategic play, you can be led down the wrong path. The rules have changed with the rise of ad tech. Our whole business is based more and more on data which we need to manage, explore, test and learn with. The data needs to be held by the agency running the wider business, or remain in the hands of the advertiser should they choose to take the process in-house. Either way, the advertiser retains control and has the opportunity to ‘play the field’ without too many costs being incurred.

As a company 100% focused on this space we see all of the pros and cons of the different platforms. We have a whole team, called VivaKi Verified, dedicated to analysing and evaluating the different tech offerings. This gives us an unbiased view of all of their strengths and weaknesses as well as access to every opportunity. If you think about the exclusion of Google’s DoubleClick Bid Manager (DBM) from Facebook or the fact that no DSP vendor has access to Amazon or AOP, or that Yahoo stopped selling to certain Ad networks and so on, advertisers cannot afford to tie themselves to a single player. Times change and abilities increase and decrease over time. Handcuffing yourself a single provider will therefore be to the detriment of your own ability to innovate. Analytics remains the play of the day with data insights being invaluable to deciding your strategy. Companies such as ours have a view of the whole marketplace and create understanding and analytics to inform which tech to use in which circumstances. Whether you are after pure direct response or greater data understanding, the type of inventory, access to it and historical performance are all crucial ingredients.

A single Ad tech company can only give you their view. An advertiser might be attracted to cheaper options. A siloed, third-party provider might “feel” unbiased. But what happens when the market moves (which is does every day), and that advertiser is tied to a single provider? They can only move at the speed of the provider. Or they pay a significant switching cost. Yes, DSP technology evolves. But their lack of access to the ideal marketplaces may leave an advertiser handicapped. And how will the advertiser know? It is hard to measure performance without any comparison or opportunity to swap (short of making an extensive investment).

The agency relationship should give clients cross-platform, open access to all opportunities — and objectivity. Trading desks should deliver the benefits of relationships, learnings and experience with all of the best DSPs, plus perpetual evaluations of new and evolving partners. They must be able to provide brand safety, starting with the basics like full disclosure on where ads are appearing and how much of advertiser’s budget was spent on media. The advertiser may invest substantial energy into a single provider, giving them data knowledge and insights and indeed some very valuable CRM data access. The problems arise when they decide to change providers. For this reason, it is important to know what happens to campaign performance and of course your data insights. DSPs will not necessarily let clients take all of their campaign set up and data insights with them, claiming that it is not their proprietary insight. This will most certainly affect the advertiser’s ongoing performance.

The VC-fuelled pressure cooker we are in at the moment is creating the potential for disintermediation on a grand scale. Everyone focuses on the agencies and what they lose out on, but few highlight the danger to the advertiser. There is always an opportunity cost but we know that you can often ‘buy cheap, buy twice’. The end goal for an advertiser is to either use multiple parties or at least have the infrastructure in place to make the swap easily and in a controlled fashion. The ‘all your eggs in a single basket’ approach is strewn with risk and I believe that a few of the active advertisers to date who have gone all in with one party will start to realise their mistake and push back. When they do, I believe agencies with a robust programmatic offering or an integrated trading desk will be there to pick up the pieces, and as with search back in the day, weave it back into the overall media mix.