Interview with M&M on Global trends pre Festival of Media

What are the key trends and insights driving global media in 2018?
The key insight is that not everything is as it seems. We have come to question so many things around digital media and we are seeing erosion of trust across the board. No one can ignore this as a trend. The positive trend though is a thorough reevaluation of
where advertisers place media. This is encouraging for those who love this industry versus those who just want to make high margin revenue. It means that premium advertising environments are becoming far more sought after and the belief that context and environment are not important is slowing fading and becoming a distant memory. I hope we see this trend continue and the blind, low CPM retargeting networks fade away.

What is the toughest challenge the industry faces?
We have to get ourselves out of the vicious cycle of pitches begetting lower and lower CPM campaigns. This type of behaviour means agencies squeeze publishers, only looking for low cost inventory, and then find themselves at a higher risk of fraud, which then creates mistrust. We need agencies to charge properly for their services, clients to pay for quality service from whomever is best placed to provide it and then we will see a move away from opacity. We are still confronted by too much of a ‘we have to pay less than last year’ attitude. It is a path that leads nowhere for all involved.

What does success look like for you in 2018?
Spotify is on a very exciting journey. My role was to re-look at the European business and accelerate positive momentum and a strong proposition in market. We are well on our way to doing that, and it has been a lot of fun. 2018 is a year in which the topics of audioand programmatic are converging, so we look forward to working with key advertisers and partners on bringing this innovation into the mainstream. Success stories leveraging data and dynamic audio creative suggest this is just the start of a fabulous year.

The second area I will be focusing on is showing the industry that we have some of the best video advertising inventory in town. We only sell completed video impressions, with 100% viewability. Audio has traditionally been our bread and butter but video is a large part of our business and we want more brands to enjoy its benefits. Our current customers all report strong results so we hope the education we are doing across the industry will be music to people’s ears.

What is the key to winning new business?
I  don’t think that has ever changed, whether on the agency or publisher side. All you need to ask yourself is whether you are helping the advertiser grow their business. New business needs to be built on insights that unlock something fundamental (and often
very simple) that will create a reaction in consumers. Too often in new business one gets carried away with internal structures and technology. Keep it simple and customer-focused and you can win.

What do you find clients want more than ever?

There is still an eternal hunt for the new thing, the first thing etc, but actually if you just come up with great ideas those usually win out. As I mentioned there is a trend for better environments and contexts taking us back to the basics of advertising. Note
that 2017 was a very strong year for traditional channels like radio, outdoor etc. At Spotify we continue to innovate, which is what makes the company an exciting place to be. And where we develop innovations our partners get to be the first to try things
out, which makes selling a whole lot easier.

How does the industry develop measurement standards for digital that are universal?
Sucha big question.. The only possible answer is relentless collaboration involving both the biggest and smallest players and this is going to be even more true with the GDPR implementation. My view is to worry less about common measurement and keep focused on common standards. Some of the basic requirements are very low in terms of viewability etc. I believe we should raise the bar significantly as a starting point. ‘Three seconds partially-in-view’ inventory should not be the benchmark.

How important is inclusivity to your business?
Inclusivity is enormously important to Spotify. As you might expect from a Swedish business, inclusion is at the core of the Spotify culture and values, and we are putting a great deal of focus on D&I initiatives. Indeed, just this week we held our annual, global, Diversity and Inclusion Summit at Spotify’s Stockholm headquarters, which was an opportunity for members of staff from all over the world to discuss ideas and opportunities to drive change and innovation where needed at Spotify and to make us even more of a leader in this space.

How do media owners and tech companies capitalize on the changing media landscape?
Combine good environment, trustworthy inventory and clever use of technology and data. Technology has a bad rep at the moment, but it is not technology that is the problem, rather how it is used. Used correctly you can achieve great things.

Audio is seeing a resurgence and we are very happy about that, but that’s not about traditional ‘radio’. Across connected cars, homes, voice assistants, speakers, TVs, fridges, you need an audio strategy that is future proof. However, we believe the real opportunity is in combining audio formats with video to generate the greatest impact. The media landscape is definitely changing and Spotify is in a great place to be at the heart of it.

Marco will be speaking at Festival of Media Global next month and Spotify is one of the key partners of the event.

Advertisements

Advertising industry is mirroring global politics. Retreating into localization.

Eight years ago, I was hired by Curt Hecht. The Global CEO of VivaKi Nerve Center and probably the biggest influence on my career. It is hard to work out what he influenced the most or which bit of his teaching had the biggest impact but he did. He definitely had some things in common with me, he was opinionated, he said what he thought, he challenged a lot. I loved that.

He was the first boss who encouraged me as EMEA MD of VivaKi Nerve Center to go out and learn. He wanted me to go to Cannes, CES, Dmexco, 4AAA you name it. He argued that without the impact of meeting new people, seeing new things and engaging in global content, I was the same as everyone else in London.

He said ‘ Do you think clients want to hear from someone who just came back from Cupertino and chatted data with Apple, or someone who heard from the new UK Apple agency lead, who heard from the Europe lead who got sent a memo from the US? This hit me like a train, it was the antithesis of everything I had been told. I had been force fed a diet of going on conferences being a jolly. If you went to Cannes, it was a rolled eyes and yeah whatever..

So this takes me into two other areas that keep coming into my consciousness. Since I made my move to Spotify and have been hosting (up for debate, depending on who you talk to) at Cannes, CES and Dmexco we have experienced the big draw back from agencies and clients to these events. It has been interesting to see from both internal and external perspectives. Externally we are obviously keen to meet with external partners at these events and selfishly feel like we would actually benefit from it, and in my experience that small one to one experience would be good for all. Now, less and less people are going to events.

As I think about that and what Curt Hecht said to me, it makes me think that perhaps we are going down a path of localization. If you speak to some teams in Germany, they have decided that Dmexco has become an International event and they should pull back a little. Spotify for now has not done that, others have. On the flip side, International teams have said that Dmexco is too German. Cannes is now 100% an International event that less and less local market people go to, so what are we left with?

We are in danger of an industry that does not embrace, value or support International collaboration which I find a little depressing. Every local market has its own micro community of people and influences. London focuses on London. If you work as I have done in regional jobs, even when it included London teams, it is not the same as the person who owns a London only team. The closeness of the Paris media scene, or Madrid media scene is important and as a company that has been hiring in all those markets, we see first hand the power of that local marketplace and relationships there in. BUT..let us not all withdraw from learning from each other.

Many companies are embracing country CEOs vs regional management, local market teams dont go to International festivals of media and marketing, try finding a UK CEO at Festival of Media in Rome, boundaries are being drawn up around what is valuable or not, and who should benefit from it. To me this is the decline of the industry. We should embrace global influence and it feels that right now we are retreating. Dare I say it, along with global politics and everything we rally against.

This industry more than any needs to look outwards and embrace globalization, not retreat. Let us celebrate different people, we should encourage learning at events and not become too focused on what the person down the street thinks, but the person who comes from a totally different world.

BertozziBytesize: I LOVE CES.

There, I said it.

I am a proud CES attendee since 2010. Every year between late December and early January my mind flitters to thoughts of Vegas and CES. Depending on how depressing the weather has been or how much fun we have had determines whether I dwell for a longer or shorter period of time!

Part of this comes from the fact that I still thank my lucky stars for the fact I can travel to Las Vegas, stay in amazing hotels, see so much and do so much as part of my job. I have a persistent gratefulness for the opportunity, same goes for Cannes and all the other events I attend. We are a fortunate group.

On top of that though, is still the feeling of excitement that I got the first year I attended as part of the VivaKi Nerve Center, part of the Curt Hecht, Sean Kegelman, Kurt Unkel crew. I had just left a very depressing role in a depressing company and had the chance, in fact was positively encouraged to come to Vegas, embrace CES and learn everything I could. That first year was an amazing year and we had a great time, That feeling has never left me.

When I hear or read people saying ‘ Oh no, I am not going to CES, that would be the last thing on earth I would choose to do’ I always think the same – Oh come on! followed by the thought that they were not invited or you are not doing CES right. CES is a massive opportunity to learn. Over the years I have written about my experiences – this one in 2013 on TV Measurement or in 2014 I wrote about the fact that data capture and usage was getting out of hand with my post about ‘Just because you can, does not mean you should. Also in 2014 I wrote about the in car tech that was flooding the conference. It was the first time that car manufacturers started to appear in droves. That post called ‘The one piece of tech you cant fit in your pocket.’ Featured in M&M. In 2015 I wrote for the Drum about how advertising feels like it is becoming out paced by technology and hardware driving consumer choices, like the fridge that orders for you and therefore could choose the contents for you. It turns out that Alexa and Dash buttons have taken that role!

You get the idea, this show is FULL of fascinating trends, companies, hardware and you can soak it all up, you can learn from it and you can bring it back to base. If you dont attend these shows everything you hear is 18th hand, you hear it from some guy, who was sent it by another person, which was released by their marketing team. You see and hear things you would never expect to and you become a more knowledgeable person for it. People often ask me one of my biggest lessons I have learned from someone and I always reference Curt Hecht who once said to me, if you dont go to these events but work in a company like the Vivaki Nerve Center which is meant to be future facing, then you are no different to the local digital guy from London who heard it all from their Google, Facebook, Twitter rep. Advertisers want to meet people who have just met Apple at their HQ or spent time with a product manager in Palo Alto. He wanted us to go off and learn, I loved that, because at the time the prevailing sentiment was that going to these things was just a jolly and a waste of time. They can be, if you dont do anything with them.

This year is my second with Spotify. The first year was my first week at the company! You can imagine that was a little crazy, this year I am so excited to be part of this amazing crew and we have a great set up in the C-Space that is designed to help people like me of the past to come and learn something about culture, how we fit into culture, how we use data and understand people through music. We will talk about how voice enabled devices and connected hardware are impacting our lives and where Spotify will fit in that, it is fascinating what’s going on right now and CES has never been more relevant and informative as hardware powered by data and AI is changing our day to day, I hope those who come to the C-Space will walk away having learned a little more.

As someone who works for a specific company, I dont get to see all the interesting behind  the scenes stuff I used to on the agency side, I see and learn different things now about advertiser businesses, agency businesses, our own hardware partners etc, so for those who genuinely do have a choice as to whether or not to come and chose not to, dont  make the same mistake again. CES is the most relevant conference for our industry and understanding culture, you just have to know where to look. If you want to come see Spotify, let me know, it is a pretty cool story!

Coming to your senses: the Spotify Video story, presented at Dmexco

The Spotify journey from Audio to multi sensory platform that encompasses video and audio has been a really interesting one. It continues at pace and has been infused with our unique data proposition as well.

At Demexco we took the main stage and presented it to 600+ people, here it is in all its glory. Some of the videos have been covered, so hold your breathe through a couple of those! CLICK ON THE PHOTO TO LINK TO VIDEO.

50972C5A-D0A1-45EB-879E-7E1A687FA74B

Have we reached ‘Peak Technology’

Original article in Campaign HERE

Cannes is fast approaching, so it makes sense about now for us discuss creativity and technology and how it works together to power our advertising future.

I wonder, though, whether the changes in advertising we have experienced over the past 12 months are going to have as much impact upon the event as the new need to register to walk into a hotel or get on a yacht.

This past year has been quite traumatic for the advertising community; the ongoing onslaught against programmatic, the questions about digital vs offline, and circular debates about which media channel is most influential.

These would all be the standard issues for an average year, until ANA-gate, which kicked off a huge surge of self analysis across the industry.

Procter & Gamble’s Marc Pritchard weighed in more recently and delivered the biggest mic drop – basically calling out the whole digital industry. And of course it did not end there.

Too many unfulfilled promises and uncovered secrets in terms of the micro-targeting, data offerings, media properties that are unsuitable, and not enough human eyeballs.

Enter stage left – The Times – and so the we hit rock bottom. Technology, data, programmatic, privacy, fraud, all in the spotlight.

It has felt like an endless stream of negativity, but what has it changed and how can we expect Cannes to reflect it?

The initial outcomes of all this introspection have been a drift towards a rejuvenation of interest in more traditional channels. TV, premium publishers and “safe” environments are having a renaissance, as advertisers worry about where their ads are appearing.

It feels to me that we have reached “peak technology” within advertising. Too many unfulfilled promises and uncovered secrets in terms of the micro-targeting, data offerings, media properties that are unsuitable, and not enough human eyeballs.

Now we see the need to have a reset – a fresh approach to how we connect with consumers.

It has felt like an endless stream of negativity, but what has it changed and how can we expect Cannes to reflect it?

Now, I’m not suggesting we are going to see an “anti-tech brigade” per se, but we will see a surge of realism… a step back.

In advertising we adore the creation of a powerpoint presentation. Yet we are all familiar with the feeling you get when you get lost in the weeds and eventually you have to say, “what are we trying to communicate?”

I feel that’s the same with our whole industry. I have worked in digital from the start, and we have done exactly that – we started to tell a story, a good one, but it got more and more convoluted.

We allowed other people to insert slides that were “really important” – adserving, retargeting, audiences, data, programmatic – until we are all staring at a mess of charts on the inside of a meeting room glass wall.

We are now looking to go back to basics. What are we trying to communicate?

Well, I suspect Cannes is going to be the echo chamber. Woe betide anyone who starts wanging on about data without substance, to my mind, I believe the industry is getting to the point where, if you don’t own that data, if it does not come from a reputable registration, you should keep quiet.

Stop paying for videos the moment they start playing. Take down the spend going to programmatic Adnets that won’t tell you where your ads appear. And let’s show our ads to humans.

Geo data, segments, match rates and most recently viewability numbers that only talk about desktop and not mobile, your time is up.

We are about to take a step back and look at that wall and rip up all those superfluous slides, get back to basics and start again.

Here is how it will look:

  • Everything begins with a great campaign idea. It begins with a strong hook, a smart idea, a utility that people want, a price people need.
  • It will be followed by some easy questions – did they see my ad? Did they see all of my ad?
  • Did they see my ad for the whole ad or majority of it?
  • Was my ad seen by a human?
  • Was my ad on a property that I would be comfortable with in terms of content?
  • Do I know where my ads were served?
  • Did my ads deliver some ROI?

Anyone remember taking this for granted 15 years ago? Well those properties exist today and there is lots of room for them.

What Cannes I hope will show is that advertisers need to pull down those slides that don’t fit that narrative.

Advertisers have to cut that budget that is being wasted and reinvest into premium publishers. Spend to your heart’s content with digital but make it quality – so stop persuading yourself that scrolling video is viewable and three seconds is good enough.

Stop paying for videos the moment they start playing. Take down the spend going to programmatic Adnets that won’t tell you where your ads appear. And let’s show our ads to humans.

I believe that advertisers could slash half their digital budget and reinvest in the publishers that deserve it – those that deliver audience, quality environments and humans. Our industry has been planning and buying based on muscle memory, and that has to end.

I have worked for 20 years in agency and a few months at Spotify. I am proud of what we are doing as a business and I want to challenge the industry to hit these standards. It is possible. And yes, Spotify does hit those standards, but so do others.

Let’s take the blinkers off, rip off those slides that add nothing to the narrative, and ask the biggest players in town to shape up, and to leave room for them and the other premium publishers.

Let’s cut the dross, and I hope Cannes will shine a light on quality and cast a shadow over the kind of behaviours that will finish our industry and ruin the presentation
Read more at http://www.campaignlive.co.uk/article/reached-peak-technology-its-time-reset-digital-media/1436267#XA4X1cD4BcGXQ3jx.99