This post was originally posted on http://www.spotifyforbrands.com
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!
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.
Since 2000 when I started to work in digital there has been a constant learning curve for agencies, advertisers and publishers alike. The fantastic part of working in digital but also the greatest challenge is that it rarely sits still for long, leaving people constantly chasing the next level of knowledge. If I look back over the last thirteen years there have been some key milestones. First we got this whole thing off the ground around 2000 in a real manner. We then saw the rise of Search as a real revolution of the digital business. The dot com crash and overall stagnation saw little innovation until Youtube, social media start up around the middle of the decade. Just as everyone was comfortable along came Real time bidding and exchanges.
Each sector of our business has responded differently to each of the challenges and seen different challenges and opportunities. In the last 12 months I have been asked to talk at a couple of B2B events on the subject of RTB, it is a business that was traditional in nature and could understand digital from a search and targeting perspective, mainly because they could replicate the very industry specific offline approach online. Many websites, content specific and so on. The trouble is RTB is not about the content. It can be part of the equation, but it is not the driving force. The driving force is Audience and reaching that audience.
At first that felt wrong to people but actually I have had many conversations over the years where we wanted to target small business owners or IT professionals and the conclusion was that these professionals ‘were just people’ and we should target them not just in work specific environments but also in their spare time, catching them where you would expect them to be. How many campaigns run on Golf sites in the hope of attracting C-level execs?
At the heart of the issue is that, how do you target very specific audiences without being in very specific content. Reaching the investment community, IT hardware budget holders, small businesses, you name it. Well RTB has some answers and the marketeers of B2B and Publishers alike need to start testing and creating their own very bespoke audiences. The data is there, as an advertiser you have visitor data, registered user data, you have data from your social presence and more. Publishers collect information all the time and there is even more they can do as sophistication increases. Planning is not what it used to be, planning starts by creating profiles and target segments using your data, publisher data and third party data. Start to create and test, RTB allows you to switch on and off in an instant and so the opportunity to learn is immense.
I sometimes have this impression that people still see RTB as the remnant of the industry on long tail sites. This is a misconception so I advise a marketeer to go an investigate. The world’s leading content is now in the exchange ecosystem, whether through private marketplaces or public. If the FT, Guardian, Telegraph most IT sites all see opportunity then the marketeer should also. The technology and the data can now be applied intelligently to all this premium inventory and combine that with intelligent use of dynamic creative and you have a powerful opportunity. And after all of those benefits you can apply the macro benefits of RTB – you dont buy upfront, you buy what you need to buy, one impression at a time. You can frequency cap, single reporting and achieve transparency of what you are buying. These are vital in the new digital ecosystem marketeers should be demanding this as standard.
I often spend time explaining to advertisers that we have changed our agency model, the publishers have adapted or are in the process of adapting to this revolution in digital, but many times we dont challenge the advertiser to change. That would be my core message here, dont do what you have always done, you should change and if you agency partner is not challenging you to do that then you have the wrong agency.
An interview with Geoff Smith and Myself on the successful learnings of the world first work we carried out earlier in 2013, where we took search signals and used them to re-market against through display.
All facilitated with DBM and DS3.