Jay Sears on behalf of Rubicon had his annual buy side panel (previously Trading Desk Panel) in the church of RTB at Adweek. The panel discussed transparency, pricing and auditing, programmatic TV and more.
Click on the video to play.
Rather than copy and paste individual sections of my commentary in the press, here are the links to the latest hot topics, starting most recently with the Google buying Inmobi news. Basic summary was a necessary if not perfect acquisition target.
Published in Business Insider – click here for article.
A couple of weeks back, Marketing published a post on programmatic TV and how things were developing by Charlotte McEleny. Overview was we needed to unlock the data if things were going to progress.
Published in Marketing Magazine, please click here for the article.
Campaign published my article in the magazine on the joining of creative and programmatic and how both creative industry and media industry need to up their game.
Published in Campaign – please click here for the article.
Digiday story on the evolving story of trading desks, where VivaKi are leading the way in transformation in this space. Written by Emily Siegel.
Published in Digiday, click here for the article.
Drum coverage of VivaKi announcing restructure where programmatic buying skills move into the agencies. Written by Jessica Davies
Published in The Drum, for the article click here.
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.
First published in Campaignlive US – click here for article.
In a year dominated by headlines of transparency, fraud, agency trading desks and advertisers “taking it in house,” we should not lose sight of the incredible pace of acquisitions, IPOs and investments. In all these seemingly endless and haphazard investments, we have seen a few patterns form — some just starting out while others completing the circle.
Completion of the ad stack
Probably the largest amount of ground was covered here. After the first big move last year by AOL buying Adap.tv, we saw a flurry of activity. Yahoo bought BrightRoll and Flurry; Facebook bought LiveRail and relaunched Atlas. AOL, Yahoo and Facebook are all live or creating their DSPs so if you want to buy their inventory you need to use their DSP. All these moves are designed to allow the big players to compete with Google and offer a full stack to the market place. More importance is being attached to being able to demonstrate targeting abilities across channel and platform, and this is where the battlegrounds will form.
One view to rule them all
As well as the platform and infrastructure play, we have seen massive moves afoot to deliver user identification both in terms of interests and where they are consuming media. The cookie is dying, slowly, everyone can see that and the realization that owned, logged in, registered data is the new cookie. Much hand-wringing occurred when Facebook bought WhatsApp. No revenue, no ad model, what are they doing? Well one, they needed to buy up the competition as they did with Instagram, but two, it massively expands Facebook’s pool of registered, logged-in user data. Everyone now wants to create a unique set of data insights around consumers, and I am afraid that is setting us back a little: Advertisers have a right to get a single view of their customer and not be forced to work with multiple siloes.
2014 — year of video
I know, it was meant to be the year of mobile (maybe it was really), but it turned out that video stole the show. A strong IPO from TubeMogul, Videology partnering with Mediaocean and Turn launching a TV offering, BrightRoll being bought by Yahoo, LiveRail by Facebook showed just how important video has become to advertisers and media-owners alike.
If it is not the media side of it, it is the structural side: Comcast bought up Freewheel in a move sure to take it toward programmatic, and the U.K.’s Channel 4 opened up VOD to selected video DSPs. Whether it is connected, on demand or in stream, video has well and truly taken center stage. Next year is the year of mobile. Definitely. Really.
Enterprise marketing solutions look to ad tech
The likes of Oracle, IBM, Salesforce and Adobe have for years looked in the other direction when it came to media and ad tech, but 2013 and 14 have seen that change considerably. There have been some major plays this year: most notably Oracle buying BlueKai, but Adobe and Oracle have also signed major agency deals and continue to feature heavily in the discussion of merging marketing tech with ad tech.
The ups and downs of IPOs
What a year for IPOs! I think everyone was taken aback by the volume and pace of the IPOs this year. Rubicon began strongly and gave the market some confidence. TubeMogul followed, and there was talk from DataXu as well, although that has not materialized. RocketFuel and Millennial IPO’d but to less success, and they followed Tremor and others in falling dramatically from their first-day float. Some of the business models are being questioned on the basis of market position, their real added value or even whether their businesses are built on the hard and never-ending work of the bots.
Internet of things as bought by Google
From left field comes a raft of purchases that prove the tech giants are looking well beyond the banner. (That’s dead, right?) Facebook bought Oculus Rift; slow on the social-gaming ride, Facebook simply jumped one step ahead. Google has bought into Nest, the household wireless heating/ home control system. Samsung bought Smart Things, another platform for controlling the home, and finally Google bought a drone company. There were more, but you get the idea. I recommend you read the book The Circle by Dave Eggers about a social-media company that becomes part of everything in our lives and slowly erodes privacy … Then look at some of these purchases.
Marco Bertozzi is President of AOD, EMEA and North American Client Services with VivaKi.
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!